RANT: Gas is going up and staying up?

Monday, December 10, 2012



Posted on December 4, 2012 at 12:50pm by Becket Adams

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See that? Although the price of crude has fallen in recent months, as the above chart clearly indicates, the price of gasoline remains at a record high.

“Anecdotally, it feels like when oil prices rise, gas prices at the pump rise; but when turmoil pauses in global geo-politics – or some entity decides that high oil prices just will not do for the world’s economy – gas prices at the pump seem not to drop so quickly,” writers are Zero Hedge note.

“Yes there are pipeline, inventory (and even tax) issues but the following chart suggests ‘gouging’ on a national level,” they add.

It’s also worth noting that what we’re seeing today with the price of gasoline and crude is eerily similar to what we saw right before the economic collapse of 2008.

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I think there maybe a big overhang on the markets due to increased costs (i.e., Obamacare) and increased taxes (i.e., the fiscal cliff).

Given the “gouging rules” passed after Sandy. Or used during Sandy. I wouldn’t lower my price un my competition forces me to.



MONEY: Roth IRA Conversions are problematic?

Wednesday, February 22, 2012


February 13, 2012
Roth may become more compelling planning option

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If the current proposal before congress to eliminate the stretch IRA provisions from the tax code go into effect, it presents an even more compelling reason to convert traditional IRA’s into Roth IRA’s.  While most people are reluctant to pay taxes now on a tax deferred account, the ability to pay taxes now under current rates, rather than under future rates which are likely to be higher.  Now with the potential loss of the ability of beneficiaries to stretch withdrawals when they inherit, thereby paying the taxes on the account within 5 years of their inheritance, the case for the Roth becomes more compelling.

*** and ***

Their growth and distributions would be tax free – unless, of course, congress eliminated the tax free character of the Roth IRA.  But they would never break a promise like that (unless, of course, you count their original promise not to tax social security benefits).

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Wow, even more cynical people.

Converting to Roth now ENSURES that a tax is to be paid. Waiting MAY cause a higher tax to be paid.

What’s the time value of money in a zero interest rate environment?

That argues BOTH ways.

* Since money today has ZERO value, why not pay the tax (i.e., there is no better use of the funds; the NPV of the tax loss in the future is huge; confiscation of IRA / 401Ks for the “enhanced socsec benefit)?

* Since money today has zero value, why not try to convert it into something that will become valuable (i.e., real estate; gold; dividend paying growth stock)?

Pretty good argue with myself and lose twice.

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MONEY: The stretch IRA to be killed

Monday, February 20, 2012


Personal Finance
2/08/2012 @ 3:40PM
Congress May Crush Key Tool For IRA Inheritors
Deborah L. Jacobs, Forbes Staff

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Let’s hope there’s enough of a public outcry that this legislation doesn’t pass. If it does, owners of traditional IRAs will have one more reason to convert them to Roth accounts. For more about Roth conversions, see my post, “Smart Moves For Battered IRAs” and two sophisticated strategies described here and here by Forbes Associate Editor Ashlea Ebeling. Meantime, stay tuned.
Hat tip to financial planner Michael Kirsh and CPA Robert Keebler for calling the pending legislation to my attention.

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More bad advice. Pay taxes now rather than later? Guess what tax rates in the future or ROIs will be. I never liked IRAs or 401Ks just because it put you at the mercy of the future politicians and bureaucrats. Argh!

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POLITICAL: The only correct corporate tax rate is zero

Tuesday, November 23, 2010


Posted by timothy on Sunday November 21, @02:02AM

from the shame-if-anything-was-to-happen dept.

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theodp writes “The Irish government has been given a stark warning from some of the biggest American companies in Ireland on the risk of a mass exodus if the country’s controversial low corporate tax rate is raised in return for an IMF/EU bailout to shore up the country’s beleaguered banking system. According to The Telegraph, a statement signed by senior execs at Microsoft, HP, Bank of America, Merrill Lynch, and Intel points out that although Ireland’s tax rate may be low in European terms, it is not when compared with locations such as Singapore, India and China.

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Once again demonstrating that the only correct corporate tax rate is zero. Only real human beings pay taxes.

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POLITICS: The philosophy of taxes

Thursday, September 3, 2009


The Truth About Taxes
Monday, 31st August 2009 (by J.D.)

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Note: Although I try to keep GRS a politics-free zone, today’s topic is inherently political. I’ve stayed as neutral as possible in the article, but I know that there’ll be some political discussion in the comments. Please keep conversation civil, as always.

Because I was frustrated with my own ignorance about the U.S. federal budget and our tax system, I recently spent twelve hours researching a variety of tax topics. From my research came two articles: last week’s short guide to the federal budget and today’s post, which answers some of my personal questions about taxes.

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Welcome to the “tax wars”, by the time we’re finished with you, you too will be a raving loon!

Tactically, you can’t figure out how much “tax” you pay. We need to recognize that ONLY real people pay tax. So, the taxes that companies pay is really a hidden tax on the people who buy their products. BUT you can’t see it. Further, if there are capital goods used by a company, the taxes on that capital good are buried in the product’s price. Also, recognize that “costs”, “user fees”, or any unavoidable expense imposed by or as a result of the gooferment’s actions, laws, regulations, or diktats is a TAX! Try and figure out all of those. Good luck. One quick example, drugs. The FDA has rules, pharmacies have regulations, doctors have laws. Argh! It’s IMPOSSIBLE to figure out exactly what you pay in tax. And, then we can talk about monetary inflation as a gooferment tax. When you sum it all up, it might be greater than your annual income!

Strategically, taxes are NOT “the cost of living in civilized society”; they are THEFT. How does what dead old white guys did 233 years ago obligate me? It’s a principle of contract law that there has to be offer and acceptance to have a contract. Where is the offer? Where is my acceptance? What obligates me to pay? The definition of citizen states there is an exchange for the state’s “protection”, yet the courts have repeatedly held that there is no specific enforceable duty of the government to protect me. So why again do I have to pay for “services” that I don’t want, can’t use, and are horribly overpriced? In the case of Federal Abortion funding, it’s also morally offensive to me; yet, I still must pay.

Welcome to the tax wars. This is theft by deception. IMHO!

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MONEY: Inflation is a hidden tax

Tuesday, May 12, 2009


Friday, May 8, 2009


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This is a backdoor tax because a tax was not passed. You did not have money stolen out of your paycheck and didn’t write them a check but they in effect reached into your wallet and bank accounts and via a loss purchasing power you were essentially taxed.

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Insidious backdoor taxation. Coming to you very soon!

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RANT: Too many drones; not enough workers

Wednesday, April 15, 2009


April 10, 2009
Representation without Taxation
By Alan Aronoff

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When beneficiaries of government policy do not sufficiently overlap the payers of those benefits, we have a governing system of representation without taxation. This type of system is not sustainable long term, but history suggests it may persist for some time under the pretext of ‘economic justice’ unless soundly rejected by the American people.

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That’s the result of “progressive” taxation aka “soak the rich”.

The only fair tax is to make it voluntary. If the gooferment provides a service, then it should “tin cup” for donations.

At the very least, if EVERYONE had to pay a 1% tariff on imported goods. That would be “fair”.

As I proposed in page 616 of my book “CHURCH 10●19●62” (http://www.itstartedinchurch.com), a simple modest tariff collection mechanism would require little enforcement:

“Because the Government didn’t want to have a lot of checkers, the value is declared at the border. The tariff is two MILs per 10 ounces of value. The importer declares the value and pays the tariff. To ensure honesty, under estimation triggers a 100% penalty. So because the rate is so low and the penalty so high, importers typically add a zero to the end of the value number. For example, a truck valued of one thousand ounces would be assessed a tax of two ounces. So an importer, to be sure of compliance, would call it ten thousand ounces and pay a tax of twenty ounces. Not very fair, but very easy to administrate.”

We have reached the point where the “takers” outnumber the “producers”. We’ll we now see the diminished incentives lead to decreased productivity. Eventually it winds up that we look like a Communist country where the underground economy and “just getting by” becomes the national ethic.

Where are the pitchfork and torches?

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