Tis’ the season for taxes. Californians voted for more taxes. Obama was elected, full well knowing he was going to raise taxes (elected by people that won’t have to pay those taxes). The truth about taxes is clearly stated below. There will be no end to the rising tsunami of new taxes, increases to existing taxes, and creative ways to separate you from your income. Let us not forget, our country was founded by those rebelling from taxes. Let’s hope people get off their asses and do it again.
More Lies About Your Taxes…
Via Simon Black of Sovereign Man blog
In 1936, the US government began circulating a series of pamphlets to explain its brand new Social Security program, plus the associated taxes. Initially, the Social Security tax was set at 2%. The government promised it would rise to 3% in 1949, with no additional increases EVER:
“[F]inally, beginning in 1949. . . you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay.”
In 1949, the tax rose to 3% as scheduled. But it only took five years for the government to break its promise. The tax rose to 4% in 1954, 4.5% in 1957, 5% in 1959… and continued to rise for decades. On January 1st it will be 12.4%.
Politicians routinely make bold promises about tax policy… and they almost always end up being lies. Raising taxes, i.e. plundering the wealth of citizens, is one of the oldest tactics in the playbook for insolvent governments, and you can be 100% certain that your taxes will increase despite any promises to the contrary.
Perhaps most dangerously, politicians fail to understand that raising tax rates does NOT actually increase government tax revenue.
In the US, for example, government tax revenue has consistently been 17.7% of GDP since the end of World War II, plus/minus a very tight band. Similarly, the British government has consistently collected 35% of GDP in tax revenue.
Yet over the decades, tax rates have been all over the board… from 0% to over 90%! Plus variations in corporate profits tax, payroll tax, estate tax, capital gains tax, dividend tax, and (for the Brits) VAT.
Rates go up, rates go down… it doesn’t affect overall government tax revenue one bit. Despite the obvious facts, though, politicians keep raising tax rates.
On January 1, 2013, the US government will impose what my tax attorney calls the biggest tax increase in the history of the world. And some of the rate increases are simply extraordinary.
The estate tax exemption, for instance, is being slashed by EIGHTY PERCENT! And the amount that the Obama administration will tax the rest of your estate will increase to a whopping 55%!
Moreover, dividend tax rates are set to rise from 15% to as high as 43.4%. This affects not only US taxpayers, but everyone on the planet who invests in the US stock market.
Remember Finance 101– the price of a stock is theoretically the present value of discounted future cash flows. In English, this means that share prices should rise and fall based on the market’s expectations about future earnings… and over the long run, future dividends.
As a result of this tax policy, many investors who own shares in US companies will now see their after-tax dividends slashed by 33%. And since their investment returns are falling so dramatically, it stands to reason that the investments themselves become less valuable.
This is putting a lot of downward pressure on stock prices, affecting almost everyone who currently owns US shares– pension funds and retirement accounts, rich and middle class, US and non-US citizens alike. It’s as if the US government is hanging a sign over the country saying “PLEASE DO NOT INVEST HERE.” It’s genius.
This is the tip of the iceberg. Taxes will keep rising. Investment returns will be destroyed. Any incentive to start a business will be destroyed. Any benefit to your heirs for what you have worked your entire life to pass on will be destroyed.
All of this because a handful of morally bankrupt individuals who run financially bankrupt governments fail to understand simple truths about tax policy.
Bear this in mind over the next few weeks, because many new taxes will take effect on January 1st, and it’s imperative to take defensive action first. I strongly recommend consulting with your tax advisor as soon as possible.
How much more are people going to put up with?
Taxed To Death Til Death:
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Nonanonymous says:
Can you say, “what fiscal cliff”?
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20th November 2012 at 7:21 am
Davos says:
http://www.youtube.com/watch?v=FC5Gkox-1QY&feature=plcp
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20th November 2012 at 7:50 am
Hollow man says:
Davos think about everyone cutting pay to a level to avoid a tax. It would be funny.
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20th November 2012 at 8:08 am
card802 says:
Maybe this all coincides with the fourth turning we are in, we have fourteen or so more years right?
Obama in four more years, free shit army demands more.
No change, economy sinks, unemployment continues to rise as do taxes on others.
Hilary in next, free shit army demanding even more as their numbers swell.
No change, economy sinks further, unemployment continues to rise as do taxes on more and more.
Wealth and it’s creators have left this once great nation fleeing to the east.
Hilary voted in yet again, 80% of nation is now part of the free shit army but there is no one left to tax to death.
Riots, strikes, war, crises.
We enter the next first turning.
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20th November 2012 at 8:13 am
Kill Bill says:
I find it endlessly amusing that AWD thinks the Ass-iderms will solve the debt problem they have created.
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20th November 2012 at 8:34 am
Kill Bill says:
I have heard so many times that we have already entered the crisis but only to hear that we have not entered the crisis [4T]
Its like those that say Jesus is returning to earth. But then re-adjust the date again and again when Jesus doesnt appear.
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20th November 2012 at 8:36 am
Kill Bill says:
It is not 44 cents for gasoline tax AWD.
The United States federal excise tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel fuel. On average, as of April 2012, state and local taxes add 30.5 cents to gasoline and 29.4 cents to diesel, for a total US average fuel tax of 48.9 cents per gallon for gas and 43.9 cents per gallon for diesel.
And guess what…this goes for Red and Blue [Assiderms] state government!.
But keep rooting for the two party system AWD Im sure one year, or a hundred more, of the same will cure the problem
LMAOTIH
Gasoline tax started in 1932.
And guess what? It was signed into law by Herbert Hoover. Gee, was he a socialist or what? Of course not he was a Iderm-ass.
Here is what Hoover said about the Revenue act which started the gasoline tax and increased tax rates for corporations and top income earners
Go Ass-Iderms!!! YAY!!
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20th November 2012 at 8:46 am
Kill Bill says:
Want to see something interesting as to what the defense spent on one day [nov 19th 2012]??
Husky Marketing and Supply Co., Dublin, Ohio, $277,460,860 [yes thats millions] for fuel.
DMS Pharmaceutical Group Inc.*, Park Ridge, Ill., $47,327,999
KPMG L.L.P., McLean, Va.,$13,187,951
DRS C3 and Aviation Co., Herndon, Va., is being awarded a $49,983,913
BAE Systems, Land and Armaments L.P., U.S. Combat Systems, Minneapolis, Minn. $24,000,000
The Boeing Co., St. Louis, Mo.,$23,280,000
Tactical Engineering and Analysis Inc., San Diego, Calif.,$8,366,000
Lockheed Martin Aeronautics Co., Marietta, Ga.,$38,333,017
Raytheon Co., Tucson, Ariz.,$6,417,221
For a total of over 486 million dollars in one day!
See complete list here; http://www.defense.gov/contracts/archive.aspx
Gee, what should I invest in?
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20th November 2012 at 9:04 am
Eddie says:
It is definitely time to think about structuring your life to minimize the tax bite.
Some possibilities:
Move to a rural county and minimize property taxes by getting an ag or wildlife tax exemption. Learn how to file a schedule F farm return. Sell your stocks and buy some livestock…and depreciate it. In some areas, you can even build a house without being a slave to the unifrom building code.
Establish an informal local trade network and learn to exchange goods and services without resorting to currency. Keep it informal to avoid the IRS.
Learn a skill and buy tools that will enable you to work outside the corporate world, preferably doing something that will help others gain a more sustainable lifestyle. There will be work for those who know how to do the things that preppers and surviviors need.
If you operate a business, be smarter about letting the business pay for things you might be paying for out of pocket, like travel. Piggyback vacation on top of a business trip. Take more deductions for meals by having catered meetings. Save receipts and document everything.
Lower your need for currency by growing your own food and generating your own electricity. Make an EDAP (energy descent action plan) too. Make use of LEDs and other energy saving technologies. The idea is to lower your cost..there are other advantages too, of course.
Learn how to heat with efficient biomass technology, like a thermal mass rocket stove. Instead of burning oil, you can burn trash for free.
Stop commuting and live near work. Get an electric car or a plug in hybrid. Not necesarily greener, but no gasoline tax on the electricity. Ride your bike.
Don’t buy things you don’t need….to avoid sales tax…or shop at garage sales. Shop on the internet.
Avoid sin taxes like cigarette and alcohol taxes by either not sinning…or making your own home-made sin.
Those are the things I’m doing. Anybody else got ideas?
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20th November 2012 at 10:03 am
card802 says:
Eddie, here are some other ideas: http://www.backwoodshome.com/articles2/duffy138.html
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20th November 2012 at 10:12 am
Eddie says:
Thanks for the link. Dave Duffy and I think exactly alike.
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20th November 2012 at 10:39 am
Wyoming Mike says:
Eddie,
Doing a lot of those already, not to mention cutting my work week from 60-40 hours. We should owe NO federal tax next year. Screw ‘em. Gave them 25-40k for years and they pissed it away. I’m done.
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20th November 2012 at 11:04 am
AWD says:
Funny, these buttons weren’t very effective…
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20th November 2012 at 11:28 am
Brazil66 says:
“Rates go up, rates go down… it doesn’t affect overall government tax revenue one bit. Despite the obvious facts, though, politicians keep raising tax rates.”
“On January 1, 2013, the US government will impose what my tax attorney calls the biggest tax increase in the history of the world. And some of the rate increases are simply extraordinary.”
…Sounds like someone needs to be audited, full cavity, deep and hard!
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20th November 2012 at 1:08 pm
Darwin says:
Shit that’s a long list. It’s death by a thousand cuts and people are too damn naive, or afraid of looking like a “tea party crazy” to actually voice their displeasure. I think it all boils down to a few things about Americans:
- Lack of any historical perspective on taxes, politics and why things are so screwed up now
- Lack of basic math skills
- Lack of foresight to see where things are headed
- Lack of critical thinking skills
- Putting emotions over objective assessment (oh, the poor 23 yo that doesn’t have healthcare, we need to pay for him… over, we just can’t afford it)
I am utterly shocked we elected not just Obama, but more seats in Congress, to dems with how bad this “recovery” is. It’s truly a different nation…
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20th November 2012 at 3:37 pm
AWD says:
Tell Me Again… Which Of These Nations Is Communist?
Tax policy really tells you a lot about a government… what politicians’ values and priorities are. People can SAY anything, but in a way, tax policy is putting their money where their mouths are.
For example, politicians like to talk about technology, efficiency and transparency. But just take a look at the tax code to see where they really stand. Estonia’s Taxation Act of 2002, which form the preponderance of that country’s tax code, is 43,370 words.
In Canada, the tax code is close to 1 million words. And in the US, the tax code is so daunting that simply the INSTRUCTIONS for form 1040 shatter the record books at 178,096 words… over four times the entirety of Estonia’s tax code.
US tax code is so massive, in fact, that the Government Printing Office charges $1,028 just to print a copy of it!
And for most taxpayers, it’s still virtually impossible to file online. It’s 2012 already, yet taxpayers in most ‘advanced’ western nations still have to carry around reams of paper as if we’re still using the telegraph.
Then there are the rates themselves. In places like France, Belgium, and Germany where the government confiscates the majority of what people earn, the message those governments are sending is quite clear: citizens are nothing more than dairy cows for the government to milk.
As I wrote yesterday, tax rates across the board in the United States are set to increase dramatically in 2013. For example, if you happen to kick the bucket on or before December 31st, the government will charge a 35% tax on the value of your estate that exceeds $5 million.
If you happen to kick the bucket on January 1st, however, the tax goes up to 55%, and the exemption goes down to $1 million.
Moreover, this exemption is not indexed to inflation. Which means that the more Ben Bernanke prints, and the more asset prices become inflated, the more people will fall into this category.
Again, the message they’re sending is quite clear– citizens, even in death, are dairy cows for the government to milk.
Perhaps most shocking is increase in dividend tax rates, set to rise from 15% to as high as 43.4%. Individuals who start productive businesses are being heavily penalized. Individuals who save their money and put it to work investing in other people’s businesses are being heavily penalized. This says a lot about government values.
Ironically, the new government of the People’s Republic of China has decided the REDUCE their tax on dividends. Years ago it was 20%, then dropped to 10% in 2005. Effective January 1st, though, the dividend tax rate in China will drop to a mere 5%.
Via Simon Black of Sovereign Man blog
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20th November 2012 at 4:06 pm
AWD says:
Taxes: turns people into diary cows to milk, Mooooo!
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20th November 2012 at 4:08 pm
Kill Bill says:
No no no, taxes are milk. When the cow gives milk they have paid their debt and can roam the fields chewing their cud or roamng the aisles of Wally.
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20th November 2012 at 4:25 pm
ASIG says:
China is moving away from communism towards capitalism, lowering taxes and strengthening personal property rights, and they’re seeing a booming economy with drastic improvements in their standard of living.
The US is doing the exact opposite, moving away from capitalism towards communism, higher taxes and weakening personal property rights, and we’re seeing the exact opposite result, our economy is on the edge of collapse, incomes are in decline, cost of living increasing, and overall standard of living clearly in decline.
It should be obvious to anyone with half brain that this country is moving in the wrong direction. And yet TPTB are not only continuing along this path to failure, but determined to go there even faster.
This is not accidental, there is an agenda.
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20th November 2012 at 5:12 pm
AWD says:
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20th November 2012 at 5:29 pm
Kill Bill says:
China is moving away from communism towards capitalism, lowering taxes and strengthening personal property rights, and they’re seeing a booming economy with drastic improvements in their standard of living. ASIG
-Interesting analogy
But is China seeking cheaper labor sources?
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20th November 2012 at 7:30 pm
ASIG says:
What they’re seeking I don’t know, but their wages are rising.
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20th November 2012 at 10:19 pm
ron says:
Doing taxs online is easy.There are so many legal easy deductions.Eddie was right on his post.
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20th November 2012 at 10:35 pm
nof says:
So get off your asses: https://www.youtube.com/watch?v=DU6fxC5CXMg
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20th November 2012 at 12:12 pm
randy says:
If raising taxes does not raise revenue, then rasing taxes should not take more of my money…
The grammar and language of you teabaggers makes me laugh…
One more…
If raising taxes does not raise government revenue, thus the amount the government wants to re-distrubute, I mean, if more taxes do not mean any more real money for the government, why should anyone care…
Thats exactly how dumb it sounds when i read what people like this write…
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20th November 2012 at 12:01 am
crazyivan says:
“It should be obvious to anyone with half brain that this country is moving in the wrong direction. And yet TPTB are not only continuing along this path to failure, but determined to go there even faster.
This is not accidental, there is an agenda.”- ASIG
Ok. So, we got a few really,really, really,really, fuckin really rich people calling the shots.
Then we got the minions, heads of state and whatnot. They do whatever the really really really really fuckin really rich tell them to do. They have to.
The minions oversee the parasites, which are basically the rest of government. A scroungy group right down to the dogcatcher.
The minions and parasites share a common lust. POWER
Waiting in the wings to rush out on stage and fuck the first young boy they find are the bankers, stockmarket snakeoil producers,commodity houses (en masse) and again bankers of all stripes. MONEY.
There is a break here between the bankers and the lower classes below. All of the above are non producers. Towards the end here we will see the same exact non- production from a differant angle further down the pyramid.
Most corporations produce something tangible. Some build airplanes that can’t really fly yet, some build drugs to make you sick and set you up for more drugs, others do better. Corporations are what they are. MONEY
Small Business. My definition of small business is a sentimental relic. Honor, Courage, and balance the flippin checkbook. llpoh comes to mind.
Of course most business needs a labor component. Bug meets windshield. But at least these guys are willing to work for a check (and quite proudly in most cases I would guess). Reality suggests that if we all turn it back a notch we can live even better on less. It is probabaly going to be a neccesity. Mind you, these are the backbone of this country and have yet to wake up, as a group.
Then there is the FSA. Very numerous. They have an attitude. They are just as snakey as the bankers.
Evil bastards really. But they don’t really know it or see it.
My point ASIG is that there is no agenda required to bring this country to it’s knees, or any other country . Human nature has it baked in the cake.
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20th November 2012 at 1:57 am