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Taxes Made Simple

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Nothing is so well calculated to produce a death-like torpor in the country
 as an extended system of taxation and a great national debt.
William Cobbett

Taxes Made Simple

Stealing the loot is the norm for government

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.

SARTRE - November 10, 2003

The art of taxation consists in so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing.
J. B. Colbert

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