RSS
 

Archive for the ‘Taxes’ Category

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.

 
2 Comments

Posted in Taxes

 

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.

 

 
Comments Off on I really like

Posted in Taxes

 

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!

 
1 Comment

Posted in Taxes

 

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?

 
Comments Off on Here’s what I don’t get…

Posted in Hypocrisy, Taxes

 

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.

 
 

This is

02 May

totally reprehensible.

Disgusting!

It is a moral travesty. Freakin’ thieves!

 
Comments Off on This is

Posted in Taxes

 

The Lefty war on cash.

30 Apr

So the Obama administration wants to do away with the $100 bill. They would dearly love to do away with cash altogether, and they certainly would if they could. They say it is to hurt drug dealers. That does indeed sound noble–drug dealers are not exactly a sympathetic group. But this explanation is a total lie. The Obama lackeys are simply trying to make it very inconvenient for anyone to use cash. Why?

Simple. Cash is anonymous. Cash is virtually untraceable. And that means it is un-taxable. And Lefties just hate that. And if you need a briefcase full of $20s instead of a pocket roll of $100s, so much the better for the Lefties. THAT is far less convenient and therefore it will be far less common. Maybe they can’t totally get rid of cash, but they can make using it as onerous as possible.

Let’s say you are an independent handyman. This is your own small business. A little old widow pays you $200 to come do some repairs at her house. Instead of giving you 10 $20 bills, she gives you two $100s. MUCH easier and more convenient.

See, if she had paid with a check you would have deposited it in your bank and the gov’t could easily trace it. Banks are required to report to the gov’t. And the gov’t takes about half when Federal, State, Sales, Property, and other taxes are included.

But she paid you in cash, so there is no reporting unless you deposit it. So you take that $200 and go buy a pair of jeans, go to the movie, and take your spouse out to dinner. Maybe you pay down the balance to the Orthodontist that your kid goes to. In any case, that money is never taxed for you, at least on the Federal and state level (you can’t get around sales tax without going “under the table”). The gov’t does not get as much of a bite out of it. You get nearly 100% of what you earned. (N.B. that’s why the gov’t also hates bartering)

Now giving you two $100 bills is convenient. Giving you 10 $20 bills is really not. Hence the Obama push to get rid of the $100 bill. It really has nothing to do with drug deals. But it sounds good and fools the rubes. But don’t YOU be fooled. The whole “drug dealer” thing is a Trojan Horse.

Understand that the war on cash is a war on you. It is merely a ploy for increased gov’t power. This maneuver has a long tradition. FDR made it illegal to own gold! Just let that sink in for a moment. Illegal. He did that because gold is fundamentally liquid–it is untraceable. THAT is the real reason for the war on cash. It is not about drug dealers at all. It is about gov’t taking your money, plain and simple.

 
4 Comments

Posted in Economy, Taxes