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Archive for the ‘Taxes’ Category

Well, when you

31 Aug

elect a Democrat, you end up paying more in taxes than you pay for food and clothes. THAT is one reason you NEVER vote for a Democrat! They just have not shown fiscal responsibility or restraint.

And don’t be fooled. If you depend upon government for your sustenance, you are careful not to offend them. THAT is why Democrats always want to increase spending. You just shut up and do what they say (though it is almost always cloaked in the garb of helping people)…

 
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Well,

21 Aug

that is certainly true.

And don’t be fooled–the complexity of the tax system is on purpose. It is designed to make the whole system as opaque as possible. You must hire someone to do your taxes unless you have the most simple situation. And hiring someone to do your taxes will cost money. Maybe a lot. You can try to do it yourself, but you will almost for sure miss out on deductions. But even then taxes will almost for sure take you several hours. Several. And if you make an error, you may go to prison. If the accountant is deemed to have made a mistake, YOU are criminally liable, not them. And the IRS is NOT a forgiving bunch…

The complexity is key. The more complex the tax code is, the less you will understand and the less likely you are to protest. For example, Steve Forbes suggested a flat tax. You simply state your income, multiply it by, say, .19, and voilà you have your tax burden.

But if lawmakers want to change it to, say, .21, we ALL know, and many of us will object. We will want to know how and why that extra 2% is being spent. We will demand it. The increase is transparent to the taxpayers. For lawmakers, that dog don’t hunt. That’s why we don’t have such a system. Rather, lawmakers cloak it in complexity. Yeah, that’s the ticket…

So, as the government, to get as much money as possible, you have to make things as difficult to understand and as painless as possible. You have a tax code that fills volumes of books. You make understanding it pretty much impossible  (and different “experts” will give you different interpretations of the law–and if some lackey at the IRS disagrees, you go to prison), so almost anyone can be charged with a crime (and therefore be in your power). You FORCE employers to pay their employees’ taxes–almost half of them and they act as unpaid tax collectors, as well). You do withholding, which is like anesthetic that hides the pain of the incision. You might know it is there, but there is little actual pain.

That is exactly why the “gig economy” is such a threat to the gov’t. There is not the lack of pain associated with the anesthetization of withholding. If a substantial minority is exposed to the pain of taxes without withholding, there will be a HUGE revolt. THAT is the real reason Leftists hate the gig economy and 1099 employees in general.

 
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Yeah, the

07 Jul

gig economy is great for retirees.

But there is another, absolutely HUGE issue.

It both lets the cat out of the bag that you can float your own dang boat, and it drives anger about our horrible tax system.

Say you are a W-2 employee. You don’t like taxes–they seem onerous but you shrug and figure that’s the price of civilization. And through the dark magic of withholding, you hardly even feel the knife going in. And besides, payroll taxes (such as medicare) are only about 8%. That is irritating, but it doesn’t seem like all that much.

But wait! You DO realize that your employer ALSO has to pay the very same amount on YOUR check for payroll taxes, right? Yep, you are only paying half the tax. Half. So it’s not 7.5%, it’s 15%. And that is money you can’t be paid in salary because it goes to the gummint instead of to you. It is also money that is never refunded.

Now with the gig economy there IS no employer, so YOU have to pay the entire bill. Leftists HATE the gig economy because it subjects people to the entire tax burden. And since there is no withholding, You just cut a check for ALL your taxes–after you pay someone to figure the taxes out, of course.

So your neighbor pays you $100 to step over to his house to trim his bushes. OK, but YOU don’t get all of the money. You pay income tax, sure, but you also pay about $15 in payroll taxes. Oh, and you need to pay someone who can tell you what you owe.  You will be lucky indeed to have $50 left after all that.

And all that is exposed in the gig economy. No wonder greedy Leftists hate it. Don’t mind the man behind the curtain!

 
 

Tax reform

30 Jun

is something desperately to be wished for.

No one I’ve ever met or heard has argued that there should be NO income tax. That is a stupid straw man. But many people object to egregious taxes!

The pain of taxes is numbed by the anesthesia of withholding. If everyone just wrote a check for their taxes (like those of us who run our own businesses or are 1099) trust me, taxes would be lower. That’s why the 1099 “gig” economy (such as Uber and Lyft) is so important. The more people who are 1099 folks, the better. It would only take 5%, and I can tell you that as an employer I don’t know why I would have anything other that 1099 contractors if I could possibly get away with it.

The system we have right now is horrible.

Why not do a flat tax? You pay, say, 20% of all income over $20 grand. EVERYBODY. No withholding by the gov’t. Income tax is easy to figure. It takes 5 minutes and does not require more compliance costs–take your W-2 gross. Subtract 20,000. Multiply THAT by .20. That is what you owe. Fill out a half-page documentation form. Write a check to the Treasury for that amount. Mail it to them. Done.

You didn’t file taxes? Then no welfare of any kind for you. No food stamps. No Social Security disability. No house loans. No rental background check approval. No car loans. No student loans. No account with the electric or gas or Internet company. No passing the mandatory background check for typical hiring–you have to live exclusively under-the-table. There must be either a 5-year history of filing or strong documentation as to why not.

As a housewife you made $0? OK, 0-20000 x.20=$0 tax. Not a toughie. EVERYBODY files.

 
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I really like

02 May

this idea. I hope it happens. High-tax states should acutely feel the pain of being high-tax. Maybe then you will see people revolt in those states.

I fully understand that the high earner in CA will be irritated not to have his or her egregious state tax bill deducted from Federal tax. But the Federal gov’t needs money, and I see no reason for the poor farmer in GA to subsidize the rich NY tycoon. And THAT is exactly what is happening now.

 

 
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Pure slavery and theft.

19 Apr

The average time Americans spend doing their taxes is 17 hours. Think about that–17 hours. NONE of that time is paid. It is hard and complicated. And you go to prison at the point of a gun if the IRS thinks you did it wrong. The penalties are quite severe.

And if your accountant screws up, YOU go to jail! You signed and therefore you are responsible.

There used to be actual tax collectors, but no more. YOU (and your employer) are the tax collectors now, and your time is totally free to the government. You are unpaid “volunteers” for the government. That time is forcibly robbed from you, along with your money. So YOU have to pay both the taxes AND the cost (in time and/or money) of getting them done.

And your employer has to hire an army of people to make sure the HE pays part of your taxes! The boss can’t just pay you and let you fully comply or not. No, no. He or she is LEGALLY LIABLE to pay half of your tax bill. Hence the boom in 1099 employees.

Did you know that what you pay as an employee is actually half? Yeah, it’s called “payroll taxes” and your employer pays just what you do in order to have you as an employee and cut you a check. Maybe you didn’t know that–you’ve always been a “worker bee” who only needed to know what time your shift started and where to place the wires. And there’s certainly no shame in being a worker bee. But it is a very different job than being an executive. That’s why I say that you should never hold elected office unless you have been an executive.

So you have to pay the taxes and also pay an accountant or spend 17+ hours yourself doing taxes. And the more complex the tax code, the more you need an accountant. That you pay for. And THAT is why the tax code is so complex. The accountants just love the complexity! The dream of having a tax form on a postcard is pure delusion.

But of course, not everyone shares in the tax burden. I mean, all animals are equal, it’s just that some are more equal than others… I think there should probably be a minimum tax. Everyone should share the burden.

 
 

It’s REALLY frustrating!

18 Apr

On this tax day we should talk about… taxes.

The tax code is so onerous, punitive, and labyrinthine that no normal of even highly educated person in business can do it. I have a Ph.D. and did a post-doc at Harvard, yet I wouldn’t dream of trying to do my own taxes. No way would I spend the time and effort to learn that stuff.

And for the Left, the complexity is a feature, not a bug.

If you run a small business, you must get an expert to do your taxes! The penalties are draconian. Just think, you get to pay someone (by the hour) to wade through the muck that is our tax code, and then you have to pay the taxes! The compliance costs may be quite significant. Even “normal” families spend hours on it.

Accountants and the government do NOT want a simple flat tax you can calculate in five minutes on a postcard! No, the complexity and draconian-ness is deliberate. Save us, Obi-Wan Trump, you’re our only hope!

 
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THIS is perhaps the best

05 Aug

reason to vote for Trump. Unfortunately, he won’t win, and you can thank the stupid Trumpkins for that! <shakes head> He was the worst possible GOP candidate, and yet the stupid Trumpkins insisted on cutting off their noses to spite their faces.

Yes, I hope Trump wins. I also hope that I will get a growth spurt at age 50. Those two things are about equally likely to happen. Even a blind squirrel gets a nut once in a while… Get ready to hear the Hillary cackle for at least the next 4 years. And get ready to have SCOTUS take away your civil rights. Hey, YOU voted for this! Idiots!

The Trumpaphiles are like a dog that finally catches a car.

 
 

Here’s what I don’t get…

16 May

The democrats whine and wig when someone pays a little in taxes as possible, but isn’t that the point? I mean, why would someone pay more than you have to?

Now don’t get me wrong, I’m not talking about tax evasion. I’m talking about legal means of minimize taxes. Yet the Lefties whine when a Republican does… (wait for it!)… the same thing they do. Nice. Hypocrisy much?

 
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I never really

03 May

understood why Silicon Valley types would like Democrats. It really makes no sense. Unless you understand three things:

  1. They are totally and shamelessly predisposed to the Left in the first place, and
  2. The gov’t pays their cronies very well. It just pays to be a gov’t lackey. It’s good business, and
  3. Those who head up the business are insulated from the gov’t. Yes, they take half the salary in taxes and fees, but your gross is $10 million a year. You can scrape by on five. It’s a relatively small price for you to pay to assuage your guilt. It’s actually quite painless for you! And it makes you feel so, well, noble (which is really all that counts, anyway). Who said that there is no Nobility is the U.S.? You can pay your modern-day indulgence and then be on your merry way! After all, the guy at the Maserati dealership can’t stand around waiting for you forever, duh. But you gottta admit he wears great suits, and your model from last year is so 2015… Your partner will be SO excited. It will be the best birthday ever!

Given these things, it’s no surprise that we see what we do.