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Taxes Made Simple

The overriding operative standard in most financial decisions is their tax implications. While most people will deny this parameter, the effective net result is that an unconscious disconnect from strictly economic factors, permeates business judgments. The most basic rules for assessing the specific merits and beneficial reward for a transaction is violated by the ultimate silent partner - the taxman. This is reality, wearing its most unpleasant face.

No one can escape the tax codes. Moreover, the pretenses for their administrative function and influence is continually disavow from official acknowledgment. The facts of life can never be admitted by the bureaucratic. Taxes exist not for collective revenue, but for controlling behavior.

Who pays taxes? Only those who are engaged in some aspect of commerce, have regular sessions with tax accountants and qualify for business deductions understand the nature of the game. Those who work for wages only see taxes as a deduction from a paycheck. Those who don't work, only complain about sales or property taxes. Those who live on the street, could not be bothered with a 1040.

Analyze the pecking order. The more financially successful one becomes the greater the likelihood is that tax laws and their endless confusion in interpretation, dominate your waking hours. Forget about just making pure profit, the question becomes can you afford the extra income? Pass on the absurdly low interest rate on that new car; pay cash, after taking out a deductible home equity loan.

Maybe a list of conduct to beat the system might help!

1) Never take a paycheck that involves withholding taxes.

2) Never take income today when it can be deferred into the future.

3) Never pay cash when you can negotiate a deductible interest loan.

4) Never purchase equities that pay an income dividend.

5) Never loan money to a bank that will earn taxable interest.

6) Always opt for your own business so you can withhold taxes from your employees and have the privilege of playing a government tax collector.

7) Always load up on all the debt you can find that qualifies as a deduction.

8) Always pay your bills as late as possible so you can pay your quarterly tax estimates.

9) Always be as creative as possible with inventing right-offs, investing in tax loses and uncovering those few remaining tax shelters.

10) Always be prepared to file for bankruptcy at any sign of falling short of paying your taxes.

This is the drill for the modern day businessman. Hired help, move to the back of the bus. Your only relief is an IRA or a 401 (k) or those magnificent saving plans for your kids college.

Now isn't that great? If you are lucky enough to aspire to upgrade to a larger house, will you be able to afford that steep property tax increase on the inflated value you will need to pay for that dream? Maybe the mortgage rate is low enough, but now you must add in the escrow. Staying where you are, may start to look better.

But you say the government needs to raise the revenue to pay for all those social services that are so necessary. Well, do they? Is it really necessary to collect taxes to pay for public expenditures? If that fantasy axiom was really true, there would be no need for civic borrowing that only future generations will be forced to endure. Today's taxpayer is already tapped, so those wonderful intentions for the "children" will have them stepping up to the plate . . . and place them on a diet . . . for the rest of their lives.

Tax codes are the best of all possible worlds. In the grand scramble to get an edge, the lobbyists stroke the legislature to get their little favorable treatment. The inside fix allows for real returns, when none existed before. Now that's the way to dance with the tax revenue office! As long as your government is wedded to the Keynesian clan, deficits and disappearing purchasing value from all those taxes won't matter. If the State gets into a temporary bind, they can always raise the rates, discover a few new user fees and reduce any remaining deductions.

We all know that the size of government can't afford to downsize. Since so many living wage jobs have disappeared, expanding the safety net is more important than ever. Don't forget that the tide of government prosperity will rise your boat too. Just tax the rich for obeying those ten tax commandments. They didn't play fair. They never cared about you! And they are greedy. Paying taxes is your duty, don't complain, when doing your civic charge. Suck it up, so what if you have to work a few more years; your government needs the help.

How many compassionate politicians sing that tune and sucker the regimented jerks that accept and pay to support such a fraudulent tax system? When was the last time any mainstream 'poll' addressed the totality of the tax insanity? Until the tax code is removed as a factor in business decisions, the transfer of wealth from productive to the dependent will continue. Government produces nothing of wealth and value. The State never produced prosperity. Decreed government fiat cannot deliver affluence. It only takes and re-distributors, with skimming off the lion share off the top. How long can the fundamentals be masked and insolvency delayed? For you not long, for them - forever - as long as you play along . . . by the rules of their sham.


The TAX Site

Tax Away Your Dreams

We all know Ben Franklin was right! So why worry, just pay up until you die! The unconstitutionality of the 16th amendment has long been established. The annals of imposing taxes goes back before the first shekel circulated. All governments do it, so why get all uptight? If you want to do something about it, never miss an opportunity to attend an Irwin Schiff seminar!

So what are the highlights of the American version of this age old thievery? The Fairy Tale of Taxation is a good start. And the original articles of the U.S. Constitution would certainly shed some light on the legal claim for legitimate taxation. But these elements bore most people. Their response is always, what can we do about it?

So we will leave the debate on the lawfulness of taxation for the brave of heart, and concentrate upon the ordinary level that most can people relate, within their own experience. What amount of their incomes really goes to pay for the support of all forms of government services and expenses? Is it 30%, or does it come in at 40% or is it really possible that to exceeds 50%? If you are one of the fortunate ones to be rich, that burden could top 70 or 80%. You say ridiculous, no one pays anywhere near those kinds of percentages. But before you dismiss this as a frivolous claim consider the following.

You pay the familiar ones, like federal and state taxes. But you also pay property tax to the local school district, town and county. Even if you rent, you are contributing indirectly. There are those additional fees to support the local library, fire and emergency services. Don't forget that Social Security contribution! And no doubt your state has a sales tax, and maybe a city tax. But it doesn't stop there.

How about all those other fees that just keep adding up. Telephone, cell phones and those long distance charges. There is the car registration, and all those gas taxes. How about those energy fees? Fuel oil, electric and natural gas, not to mention the fumes that burn from your boat and other pleasure crafts. OK, you heard all this before, but have you ever considered the other taxes that seem to fall through the cracks?

Indirect and excise taxes are all too often hidden from direct view but consume a Huge portion of the national economy. Banking, insurance and professional services all have hidden costs that go to the taxman. Entertainment is a wonderful source of add on tax. Rental cars, hotel rooms, vacation tours and cruises can bury those charges deep within those bargain rates.

And we all have to eat, wear clothes and most get sick. Food and beverage, and medicine costs only seem to be exempt, until you look a little closer. It all keeps going on and on and on . . . So how much is too much for you to pay?

Taxes are burning up your money

It seems that the sky is the limit for most. They keep paying and paying, and maybe someday it may strike them that there is nothing left for them and that they are in hock to the banks for more than they will ever be able to pay back. So far this is a simple and sad tale, but it is all true. No need to argue the unconstitutionality of the current income tax, or the wisdom of the alternatives: the flat tax, VATS or the pure consumption tax. Who in there right mind would ever think the government will give up this racket and allow you enough of your own money to live on?

Well the answer is clear, the State will take care of your needs now that you proved that you are unable to pay for a decent life out of your earnings. They will give you prescription drugs - it won't cost you anything! They will give your kids a break on college, it will be made a right. And they will give you peace and security, for just a few billion more for this and that. Before you know it we will need a trillion more just to keep the trains running on time . . .

So why don't we all just accept this plight and adopt the logical conclusion - our incremental and progressive 'sugar daddy' needs all our help to keep doing all these good works. Let's just accept our fate and volunteer for jail or reserve our own padded room in the sanitarium? We will get much better care if we allow the professionals to dole out our subsistence, and the best way we can get the care we need is in the institution!

Maybe we have not taken the 'vow of poverty', just yet; but we sure are on the road to learn how it works before we take the pledge. It seems ridiculous, all these political theories and tax protests ideas, we are really better off then we could ever imagine. Now I'm beginning to see why so many are so content to accept this fabulous system. Taking those marvelous little pills from the public nurse has made all the difference. We don't pay too much in taxes, we aren't paying enough!


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