Taxes

Fixing The Economy IS Easy

Social Security
Means test benefits. If you made twice the median salary in your last 5 years of employment, you  get reduced benefits.
Eliminate the income limits. Why should you stop paying in just because you made more than $106,800? There are no income limits on medicare.

Revenues
Legalize and tax marijuana. That may be $40 billion to $100 billion in new revenue!
Legalize and tax sports betting. Although only 35 states currently allow "gaming", that number is sure to grow. Adding $50 million to a state budget will help to eliminate the need for federal dollars.

Economic Growth
A natural gas based economy. Get fleet vehicles and 18 wheelers running CNG. Get Detroit making those vehicles. And export LNG to other countries (USA natural gas is $2.76 but it can be liquified and sold much higher.

Homeless
Make shuttered schools into shelters. They have showers, gyms, bathrooms, cafeterias, computers, and plenty of room for beds. Laid off teachers can re-train these folks in the Cheapo Groovo system, which has no layoffs or outsourcing.


The Best Tax System

0%.

Did you know that we had no federal income tax until 1913 and no withholding until 1943. So what did we do until then to operate?

If we need a system, it should be a flat tax on all income (including passive income such as capital gains, dividends, MLP distributions, etc.). We could make the rate 35% but exempt the first 30K of income (the yellow line).

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Easy Estate Planning

The need for a will is becoming less and less. And going thru the probate process may become a thing of the past. Here is what you need to check on:

Brokerage Account:  Transfer on Death (TOD)
A way of designating beneficiaries to receive your assets at the time of your death without having to go through probate. This designation also allows you to specify the percentage of assets each person or entity (your "TOD beneficiary") will receive. Your assets will then be automatically transferred to the designated beneficiaries upon your death.

Bank Account: Payable on Death (POD)
An arrangement between a bank or credit union and a client that designates beneficiaries to receive all the client's assets. The immediate transfer of assets is triggered by the death of the client.

Real Estate: Transfer on Death Deed
When the homeowner dies, title to the real estate passes to the beneficiary or beneficiaries, named in the Transfer-on-Death Deed, similar to how title passes in a Joint Tenancy Deed. This Deed avoids Capital Gains Taxes to be paid by the Beneficiaries at time of sale. Not all states allow them.
If you want to pass property to family members, look into a Quitclaim deed


The Tyranny of the Tax Man

In 1913, the entire federal tax law, plus explanations and other related material, fit into a single 400-page volume. Today, they total 40,500 pages in 22 volumes. And the list below shows you all the taxes that have been added. Yet the government is broke??????

  1. Accounts Receivable Tax
  2. Building Permit Tax
  3. CDL License Tax
  4. Cigarette Tax
  5. Dog License Tax
  6. Federal Unemployment Tax (FUTA)
  7. Fishing License Tax
  8. Food License Tax
  9. Fuel Permit Tax
  10. Gasoline Tax
  11. Hunting License Tax
  12. Inheritance Tax
  13. Interest Expense Inventory tax
  14. IRS Interest Charges IRS Penalties (tax on top of tax)
  15. Liquor Tax
  16. Luxury Taxes
  17. Marriage License Tax
  18. Medicare Tax
  19. Property Tax
  20. Real Estate Tax
  21. Social Security Tax
  22. Road Usage taxes
  23. Sales Tax
  24. Recreational Vehicle Tax
  25. School Tax
  26. State Unemployment Tax (SUTA)
  27. Telephone Taxes such as federal excise, universal service fee tax, federal, state and local surcharge taxes
  28. Utility Taxes
  29. Vehicle License Registration Tax
  30. Vehicle Sales Tax
  31. Watercraft Registration Tax
  32. Well Permit Tax
  33. Workers Compensation Tax

 


Corporations Find Tax Havens, The People Find Tax Tyranny

Back in the 1950s, corporate taxes accounted for about 30 percent of all federal revenue, but in 2009 corporate taxes accounted for just 6.6 percent.

Cities in Switzerland do a booming business in setting up sham headquarters for foreign corporations.  For example: Zug, Switzerland is home to 26,000 people and 30,000 companies.

Transocean, the owner of the rig involved in the BP oil spill, movied their "headquarters" to Zug for tax purposes and saved about 2 billion dollars.

General Electric made a total of 14.2 billion dollars in profits last year paid nothing into the U.S. Treasury,

Even though Boeing receives billions in federal subsidies every year and even though it has a bunch of juicy government contracts it did not pay a single penny in federal corporate income taxes from 2008 to 2010.


Food Pantries Should Use Extreme Couponing Techniques

Cpns
Instead of individuals doing the leg work and then donating their stockpiles to charity, why don't the non-profit institutions (that avoid taxation) do the work? It is easy to learn here and here.

We can even get the governemt employees who administer food stamp programs to use extreme couponing as well.