POLITICAL: The only correct corporate tax rate is zero

Tuesday, November 23, 2010

http://tech.slashdot.org/story/10/11/21/0157216/Google-Warns-Irish-Government-Against-Tax-Increase

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

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

*** begin quote ***

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.

*** end quote ***

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

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RANT: Cut the Gooferment; taxes will follow

Sunday, October 3, 2010

http://online.wsj.com/article/SB10001424052748704483004575524340160716872.html?mod=WSJ_hpp_sections_opinion

* DECLARATIONS
* OCTOBER 1, 2010
The Twister of 2010
America’s political landscape will never be the same.
*  By PEGGY NOONAN

*** begin quote ***

The primary reason is the severity of the moment. But another is that negative ads worked so well in the past. For a generation, the American people have been told their politicians are lowlifes. You know what they now think of them? They think they’re lowlifes! People don’t really expect high character from their political figures anymore. “Congressman Smith cheated on his wife.” That’s her problem. Cut my taxes.

*** end quote ***

I think Ms. Noonan understates the demand.

It’s no longer JUST “cut my taxes”. I think the Tea Parties are now on to the game. It’s cut spending, cut taxes, and cut out all the other “barbara streisand”.

See we were fooled under Reagan, who cut taxes, but not spending. The tax and spend Democrats were repelaced by the borrow and spend Republicans.

So, the meme has changed.

Reduce Gooferment and taxes will come along naturally.

I always find it interesting that the Gooferment “cuts” (what I would call) Customer facing services. They want the Taxpayer and Taxconsumer to say I want that. (When I was on Wall Street if I’d done that, I’d have been looking for a job. The challenge was always to cut your budget WITHOUT cutting services. Figure it out.)

“We, The People” seem to be on the warpath to cut everything.

Is this a glacial shift? Yes. Will it last? Yes. (Our parent’s generation was scared by the Depression; we’ll be too.)

Will it be enough to save the Republic? I don’t know!

When the Gooferment shuts down the Federal Department of Education, then we will be on the road to recovery.

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RANT: Questioning the purity of my little L libertarianism?

Thursday, August 19, 2010

*** begin quote ***

On Aug 13, 2010, at 9:12 AM, LUDDITE wrote:

I almost submitted on your blog, but decided this should be a ‘personal’ post!   I found your letter quite interesting given your Libertarian label.  Isn’t this a little hypocritical?  Maybe it is hitting ‘too close to home’?  Being a FOWG like me?  lol

*** end quote ***

Well, exxxxcuuuuse me. :-)

Think my “libertarianism” is not “pure” enough? That’s why libertarians rip each other up. Over who is the “pure-est” in the land. Very counter productive to success.

(You could have made it a public post. I take criticism well. I think.)

Let me explain my thinking on EEO and corporations. Maybe you can show me the error of my ways?

When a thief steals your wealth, you have the right to self-defense. Part of self-defense is working the system to get back what was unjustly taken. Think Robin Hood stealing back the King’s unjust taxes. Fighting against injustice is always the correct thing to do.

Corporations are a creations of the Gooferment. So, any diktats leveled on their subordinate entities are of no concern. In my little L libertarian world, there should be no “limited liability companies”. Just people doing business as. You might have “groups” operating under a “trade name” but liability would be unlimited but shared under a contractual arrangement. Thus a “BP” would be responsible for cleanup and damages.

(Sigh!)

But we are NOT in my little L libertarian world.

If the thief has ways of recovering some of your wealth, then, as a principle of common law, I must mitigate my loss.

Some libertarians believe that “true libertarians” should be “pure” and complete forego any voluntary interaction with the Gooferment. These are the anarcho capitalist faction.

Some libertarians believe that “true libertarians” should be confrontational and get in the Gooferment’s grill at every opportunity. These are the social action / peaceful civil disobedience faction. (Think like Gandhi. Of course, it is never moral to initiate force or violence. It’s always moral to defend yourself. In proportion. Can’t kill a politicians and bureaucrats because they rob you of a few dollars. But, in Ruby Ridge, Waco, or Kelo, you defend vigorously.)

Some libertarians believe that “true libertarians” should pick their battles. Steal anything you can back if you can. Pay when you have to. So, each time an opportunity to “interact” with the Gooferment appears, you decide: comply, ignore , or “snipe”. One motivation is to recover lost wealth or liberty. One is to demonstrate the Gooferment’s oppression. One is to gum up the works (i.e., pay tickets in pennies; use their system against them to demonstrate to them or others that they are tyrants).

My EEO post was that the Gooferment permits another part of itself (i.e., corporations) to injure people while the Gooferment is claiming to champion the people and protect them from age discrimination. It circles back on itself. If you look at “corporations” as part of the Gooferment, then the illusion really dissolves.

Does that make sense? Strip away the costumes & labels, and it all seems much clearer.

imho,
fjohn

p.p.s., For example, that’s why like the “University of Maryland” is really the Gooferment in disguise. And, they should not be allowed to fool “We, The People” with different costumes and labels. It’s just all just Gooferment. Big! Overpowering! And, ubiquitous. They call themselves the UoM but it’s just an extension of Big Government. When you total up, you have to figure: politicians and bureaucrats added to all the people who are the “feeders at the trough” of Big G!

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MONEY: The reality of the doldrums

Tuesday, August 17, 2010

http://www.haaretz.com/print-edition/business/near-the-ceiling-1.306854

Near the ceiling
Solutions in a world where bonds have nowhere to go but down
By Eytan Avriel
Published 02:35 09.08.10
Latest update 02:35 09.08.10

*** begin quote ***

3. The third solution may sound weird, but it’s the most practical of the three: Accept the reality.

Yields are going to stay low for a long time. That’s how it is. It may change one day, but until then, keep a stiff upper lip. Grasp the reality with both hands and figure out how to live in a world of low returns.

*** end quote ***

Get ready for the “Lost Decades”. Like Japan, the USA is stuck in a morass of Gooferment disasters. At least a natural disaster comes and goes relatively quickly. This one, of our own making, is goign to be here for a long time.

1. End the personal and corporate dole; 2. Dismiss gooferment public education; 3. Stop the various wars — foreign and domestic; 4. Repatriate the troops home; 5. End the drug war; pardon all non-violent drug offenders; 6. Downsize ALL gooferments; 7. Eliminate all taxes but tariffs and excise.

And, we’ll be back on track in no time.

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MONEY: The Congress reneges on Coverdales

Friday, August 13, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1498

Yet Another Reason Not to Make Tax Avoidance Your Top Goal
For Immediate Release
August 06, 2010

*** begin quote ***

Congress cuts a tax break retroactively – again!

Congress creates a program that offers tax benefits. Taxpayers participate in the program. Congress then eliminates the program’s tax benefits, retroactively denying the benefits to the taxpayers who had participated in good faith.

If you think you can trust Congress to honor its obligations, think again. Congress has changed tax rules retroactively several times before — and it just did it again.

*** and ***

By the way, Congress currently says that money placed into a Roth IRA can be withdrawn tax-free in the future.

Do you really believe that?

*** end quote ***

One of my initial reluctances to get involved with IRAs was the “political risk”.

We’ve seen several trial balloons about the Gooferment seizing the IRA / 401Ks in exchanged for an enhanced social security benefit. Where else are the politicians and bureaucrats going to find the amounts of money they need to keep the merry-go-round turning. And, all they have to do is issue diktats to the relatively small finite number of “custodians” to turn it over. It’ll be easier than FDR’s gold confiscation.

Does this start the NEXT american revolution?

Do the Sheeple have to see the boxcars destined for the camps waiting to be loaded before they wake up?

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RANT: Bailouts are welfare and theft is just theft

Monday, July 19, 2010

http://irisheagle.blogspot.com/2010/07/mortgage-bail-out-recipients-should-be.html

Saturday, July 10, 2010
Mortgage bail-out recipients should be publicly named

*** begin quote ***

I also have sympathy for those who find themselves out of work and can’t afford their mortgage, but again I would like any help that we taxpayers are to provide …

*** end quote ***

Welfare is welfare. Theft is theft. And, there’s a “moral hazard” in this.

When the Gooferment takes over, “We, The Taxpayers” don’t get to decide who gets our charity and who doesn’t. Who’s worthwhile and who’s a bum! And, from thence all sorts of bad things come.

It’s welfare. Just more welfare. That enables bad behavior. Bad behavior on the part of the recipient, every one who knows about it, the politicians, and the bureaucrats. The recipient is not “encouraged” to make better decisions. Every one, who knows about it, takes on more risks “knowing” that “We, The Taxpayer” will chip in to our hard luck story. The politicians get to claim that they “care” — easy to care sending OPM Other People’s Money — while having favors, contracts, and jobs to dispense. And, last but not least, the bureaucrats can have high paying jobs with pensions while doing “good for the downtrodden”. Argh!

It’s welfare. It’s theft. And, it encourages future bad behaviors that we can only imagine.

To misquote the iconic Nike commercial, and to quote the stupid anti–drug one, “Just Say No”.

No Taxpayer-funded bailouts of any kind. Ever. No matter how sad the tale.

If the politicians want to pass the collection basket after putting in a few quid of their own, I’m happy to contribute. Just don’t rob me and expect me to be happy that the thief is doing good with my few scarce pennies.

Argh!

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RANT: It’s always about the “something else”

Monday, July 5, 2010

http://thehill.com/business-a-lobbying/106887-health-law-risks-turning-away-sick

Health law risks turning away sick
By Julian Pecquet – 07/01/10 07:13 PM ET

*** begin quote ***

The Obama administration has not ruled out turning sick people away from an insurance program created by the new healthcare law to provide coverage for the uninsured.

Critics of the $5 billion high-risk pool program insist it will run out of money before Jan. 1, 2014. That’s when the program sunsets and health plans can no longer discriminate against people with pre-existing conditions.

*** and ***

“Along with that, we can work with the states to adjust their benefit structure, the deductibles, the co-pays, the overall plan structure to address some of those cost drivers, again to help the plan make it to 2014, when it will no longer be needed.”

In addition, Popper said, many people won’t be able to afford to participate in the program since premiums will range between about $140 and $900 a month, depending on applicants’ age and where they live. HHS estimates that at least 200,000 people will be in the program at any one time. To be eligible, applicants have to be citizens or nationals of the United States or be lawfully present; have a pre-existing medical condition; and have been uninsured for at least six months before applying for the high-risk pool plan.

*** and ***

If it looks like too many people are signing up — states will get monthly updates on how many people they can cover with the money they have left — there’s always the option of turning people down.

The bill “does give the secretary authority to limit enrollment in the plan … nationally or on a state-by-state basis,” Popper said. “So that is present, but at this point, we’re starting with no one in the plan as of today … so we don’t see that happening anytime soon.”

*** end quote ***

One giant criticism of BHO44 and his Obamacare is that it had muddled objectives. Was it about “health”, “health care”, “health care insurance”, or something else. Us, tin foil hats, believe it’s the “something else”.

By not being specific about their objectives, they don’t have to be specific about their results. We, The People have allowed our elected representatives to get away with this muddled thinking. And, as such, we once again find ourselves faced with a confused mess. Argh!

I believe this is all about “control”. By centralizing one seventh of the economy, the politicians and bureaucrats are in control of our lives. By controlling “health care” and “health care insurance”, they control us.

Remember the three “laws” of political motivation: (1) reward your friends; (2) punish your enemies; and (3) feather your own nest. Clearly, this wins on all three fronts.

By controlling “health care” and “health care insurance”, they create a voting block. Look what Social Security and Medicare has done to create a “senior citizen” voting block for the Democratic Party. Look at Florida. Created by Social Security. That’s the power to reward yor friends — the incumbent politicians. Never mind the endless opportunities for graft, corruption and outright theft for the .

By controlling “health care” and “health care insurance”, they have won a war with the Catholic Church and Right To Life groups over abortion. The “sacrament” of the modern liberal feminist, enshrined by Roe v Wade, will now be fully funded to the abhorrence of Right To Life taxpaying advocates. That’s punishing your enemy — the Religious Right.

By controlling “health care” and “health care insurance”, they have created endless bureaucratic positions. Of course, to be filled by “them”, their friends ‘n’ family, and their supporters. And, created countless opportunities for lobbyists to fill their pockets as they create loopholes, exceptions, and prohibitions. That’s feathering, with some pretty comfortable feathers.

Silly Taxpayer, you didn’t think this was about anything as trivial as helping sick people now did you?

By pulling the Sheeple’s own wool over the Sheeple’s eyes, they are able to sheer the Sheeple some more.

See if the objective was “health”, “health care”, or “health care insurance”, then it would be relatively easy and cheap to address the issue. For “health”, address the root cause of poor health — we have to make it a national priority to find out what that was. (I’d say “gooferment skrules”, but that’s another story.) If it was “health care”, then perhaps better records, uniform forms, or — shocked hush — eliminating medical licensing. If it is was “health care insurance” slash cost, then we could change the tax law to make everyone their own subchapter S copr and make cost of earning a living deductible to all. If it is was “health care insurance” slash cost, then the gooferment could just buy poor people health insurance as part of the federal health insurance system. (Whoopi Goldberg had it right: “What the hell! I just want what you <Congressmen> got. <for health insurance>. Way to nail the issue, Whoopster!)

See it’s always about something else!

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RANT: Can we silently revolt?

Sunday, May 30, 2010

The oligarchy runs the country for their own benefit. That hasn’t changed since forever. The “democracy” is all theater. At least since Lincoln, maybe just after Andrew Jackson. Clearly FDR, by the removal of the nation from the gold standard, set up the unlimited expansion of the gooferment. Wilson’s creation of the FED set up FDR.

Argh!

How do we unwind this? Can we silently revolt? Participation in the elections is just a sham. I don’t know how we can derail this. If no one votes, what happens? Can we just ignore them? I don’t think so. Preserve wealth by buying gold and gold equivalents. They can inflate the currency, but we don’t get hurt if we’re not holding dollars.

Thinking about Robinson Crusoe’s island, with coconuts and fish, and a banker. If the banker inflates the currency, how do Tom and Dick protect themselves? The price of goods and services must go up the amount of inflation. If money is being inflated, then Tom and Dick must avoid holding money. Clearly, they can exchange directly. How do we extrapolate this to the island called America? You must escape the fiat currencies. Buy things that will hold their value. Real Estate. Gold. Commodities.

But what does the little guy do? Emulate the Mormons and the Amish. Put up a year’s supply of food. Pay off any bad debt. Buy gold. Or at least silver. Get small. Get light. Remember the 7 points of success. Develop streams of income. Perhaps that crazy real estate guy who wanted everyone to have 12 single family homes as rental properties. That’s his idea to create a pension of sorts. By the use of leverage, the renters pay off the mortgages. At the end of thirty years, the properties are yours and the rentals become your income stream. Unfortunately, that’s an impossible dream. Let’s assume that houses are 200k each. 12 = 2.4 million. You have to start with one. 20% down = 40k$. Say 10k$ for start up expenses. 5% 30 fixed mortgage = 1400 $/month. It just doesn’t work. 2.4M$ @ 5% = 120k$ per year. With no work and no risk. But, with 30k$ per house, 12 houses, 360k$ starts the chain. So you could boot yourself into it. You need a real sharp pencil and something that works to deliver. It’s possible.

Argh!

What do you do? You need that white collar job to generate the money necessary to get started.

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MONEY: The Lost Decade may be the Lost Epoch unless we act

Wednesday, May 26, 2010

http://www.ricedelman.com/cs/pressroom/pressroom_detail?pressrelease.id=1161

The Lost Decade – The decade has been awarded a cute name, but it’s not very accurate

For Immediate Release

May 07, 2010

*** begin quote ***

As of December 31, 2009, the Dow Jones Industrial Average, the S&P 500 Stock Index, the NASDAQ and the EAFE were all lower than they were on December 31, 1999 — a lot lower. The NASDAQ itself is 44% lower than it was 10 years ago — you know, when you were worried about Y2K.

*** and ***

Such diversification proved its worth, as gains in some asset classes were able to offset losses in others.

Surely some might have exited the last decade with a lower net worth than when they started. They are likely lamenting the fact that they’ve “lost” 10 years of wealth creation opportunity.

But the bulk of our clients, by contrast, have more money today than they did 10 years ago, thanks to the smart dual strategies of continuing to invest and diversifying.

Who says you need a rising stock market to make money?

*** end quote ***

Unfortunately, the collapse in the market is going to cost the nation greatly in it’s mind. It has demonstrated several things that, like the Great Depression scared generation of people, (1) the total failure of Wall Street; (2) the corruption of politicians; (3) the ineptitude of bureaucrats.

That will hang like a millstone around our necks forever.

We have to address the National Debt, the Federal Deficits, the unfunded liabilities of Social Security, and the out-of-control Federal Gooferment, the fiscal crisis of the States, inflation, and the rape of the public treasuries.

We have several fundamental issues to “fix”: (a) welfare; (b) warfare; and (c) confidence.

We’re not going to have a “rising stock market” until we do. So we better figure out how to make money in a down market.

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GOLDBUG: Just because there’s an obvious bias, doesn’t mean what being said is wrong

Tuesday, May 18, 2010

http://www.kitco.com/ind/GoldReport/may32010.html

*** begin quote ***

In terms of preserving the purchasing power of your assets, the best thing I can think of is physical gold. That’s worked over the millennia. I’m not per se a gold bug. It just happens to be a circumstance in which it’s the cleanest asset around for that. You don’t need to put all your assets into gold, but hold some. Hold some silver. I’d look to get some assets out of the U.S. dollar and look to get some assets out of the U.S. When I say outside of the U.S. dollar, again, I look at the Canadian dollar, Australian dollar, Swiss franc in particular. I think they will tend to do particularly well, whereas the U.S. dollar is going to become effectively worthless.

As the dollar breaks down, you’ll also likely see disruptions in supply chains, including shipments of food to grocery stores. People should consider maintaining stockpiles of basic goods needed for living, much as they would for a natural disaster. I sit on the Hayward fault in California. I have a supply of goods and basic necessities in case something terrible happens—natural or man-made—that will carry me for a couple of months. It may take that long for a barter system to evolve, which I think is what you’re going to end up with; at least until a new currency system is reorganized and you get a government that’s able to bring its fiscal house into order. No currency system in the U.S. is going to work unless the fiscal conditions that drove it into oblivion are also addressed.

*** end quote ***

Ignoring for the moment Kitco’s inherent bias, (just because they’re biased, doesn’t mean they are wrong), it would seem that buying 1,000 ounces of silver rounds (about 19K$) is good “inflation insurance”. Remember Zimbabwe used silver, gold, and American dollars when their currency collapsed. A lesson form the Mormons about food storage; it’s be nice to keep a year’s worth. And, an urban yute discouragement device or two with a sufficient of individual reminders to go away, and you have a nice “insurance police” in case crazy as a loon Ferd is right once in his life. Remember forewarned is fore armed. Or, four armed. As I see it, fjohn

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