Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
JOHNSON & JOHNSON (JNJ) Big Pharama AI Mega-trend Investing 2020 - 25th Jan 20
Experts See Opportunity in Ratios of Gold to Silver and Platinum - 25th Jan 20
Gold/Silver Ratio, SPX, Yield Curve and a Story to Tell - 25th Jan 20
Germany Starts War on Gold  - 25th Jan 20
Gold Mining Stocks Valuations - 25th Jan 20
Three Upside and One Downside Risk for Gold - 25th Jan 20
A Lesson About Gold – How Bullish Can It Be? - 24th Jan 20
Stock Market January 2018 Repeats in 2020 – Yikes! - 24th Jan 20
Gold Report from the Two Besieged Cities - 24th Jan 20
Stock Market Elliott Waves Trend Forecast 2020 - Video - 24th Jan 20
AMD Multi-cores vs INTEL Turbo Cores - Best Gaming CPUs 2020 - 3900x, 3950x, 9900K, or 9900KS - 24th Jan 20
Choosing the Best Garage Floor Containment Mats - 23rd Jan 20
Understanding the Benefits of Cannabis Tea - 23rd Jan 20
The Next Catalyst for Gold - 23rd Jan 20
5 Cyber-security considerations for 2020 - 23rd Jan 20
Car insurance: what the latest modifications could mean for your premiums - 23rd Jan 20
Junior Gold Mining Stocks Setting Up For Another Rally - 22nd Jan 20
Debt the Only 'Bubble' That Counts, Buy Gold and Silver! - 22nd Jan 20
AMAZON (AMZN) - Primary AI Tech Stock Investing 2020 and Beyond - Video - 21st Jan 20
What Do Fresh U.S. Economic Reports Imply for Gold? - 21st Jan 20
Corporate Earnings Setup Rally To Stock Market Peak - 21st Jan 20
Gold Price Trend Forecast 2020 - Part1 - 21st Jan 20
How to Write a Good Finance College Essay  - 21st Jan 20
Risks to Global Economy is Balanced: Stock Market upside limited short term - 20th Jan 20
How Digital Technology is Changing the Sports Betting Industry - 20th Jan 20
Is CEOs Reputation Management Essential? All You Must Know - 20th Jan 20
APPLE (AAPL) AI Tech Stocks Investing 2020 - 20th Jan 20
FOMO or FOPA or Au? - 20th Jan 20
Stock Market SP500 Kitchin Cycle Review - 20th Jan 20
Why Intel i7-4790k Devils Canyon CPU is STILL GOOD in 2020! - 20th Jan 20
Stock Market Final Thrust Review - 19th Jan 20
Gold Trade Usage & Price Effect - 19th Jan 20
Stock Market Trend Forecast 2020 - Trend Analysis - Video - 19th Jan 20
Stock Trade-of-the-Week: Dorchester Minerals (DMLP) - 19th Jan 20
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Taxes and Government Waste, Is There a Better Way?

Politics / Taxes Apr 21, 2019 - 01:36 AM GMT

By: Rodney_Johnson

Politics This is an expensive week for me. Our wedding anniversary is the 14th, Tax Day is the 15th, and my youngest child’s birthday falls on the 16th.

Only two of those days make me happy.

This year I’m getting a bit of a refund, but I’ll never see it. Because my income varies, it’s hard to know how much to pay every quarter, so I usually overpay. But then my accountant just applies the refund to next year’s tax bill.

One day I want to get the check in my hand. I send so much to Uncle Sam, for once I want him to send some cash to me!


Where does it go?

Like many Americans, I can’t help but think about where all that money goes. And I’m always a little disappointed when I find out.

The Citizens Against Government Waste publishes a book every year outlining wasteful spending. From their research I find that, in addition to national defense, the courts, and the administration of the government, I’m also helping fund:

  • $13 million for the Save America’s Treasures program, which funds renovating museums and opera houses;
  • $16.7 million for the East-West Center in Hawaii, which works to foster better relations with Pacific and Asian nations; and
  • $65 million to help the Pacific Coastal Salmon recovery.

These aren’t big numbers, but they definitely make you wonder.

And this year, in addition to funding things that frustrate me, I have to pay my accountant more to figure out my taxes because of the recent tax reform.

I’m not sure if my bill to the government went down, but I know my bill from the accountant will go up.

What happened to the promise of tax returns on a post card?

Simplify the System

Maybe Herman Cain, Trump’s newest and already embattled potential nomination for the Fed, can revive his 9-9-9 plan, which called for a 9% tax on corporate income, personal income, and sales.

No deductions. No way to avoid. Just pay the tax and move on. Talk about radical truth that even Trump and Ray Dalio could get behind!

Of course, this will never happen. The government uses the tax code as both a weapon and piggy bank, punishing some behaviors (spending a lot on a house) while encouraging others (having children and donating to charity).

I’ve got a better idea… Get the government out of our personal decision making.

Get rid of deductions. Renters shouldn’t subsidize homeowners, and families without children don’t need to subsidize those that have kids.

Why should we cross-support each other’s charitable contributions? You might not like mine, and I might not like yours.

Left playing the game…

Without wholesale changes to the tax code, we’re left playing the game of minimizing our taxes, which the famous jurist Learned Hand noted was our personal responsibility when he said:

Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.

So I’m left reconsidering where I live, contemplating a move not just for the reasons , but also because it would significantly shrink my tax footprint.

This time of year also makes me take another look at Charles’ Peak Income service, where he holds several tax-free investments, two of which earn about 5%. That’s the same as earning 7.7% in the 35% tax bracket, which is nothing to sneeze at in this low interest-rate environment.

Because in addition to keeping as much as a I can to fund retirement, I also need to make sure I have enough left over to buy anniversary and birthday gifts.

Rodney Johnson

Follow me on Twitter ;@RJHSDent

By Rodney Johnson, Senior Editor of Economy & Markets

http://economyandmarkets.com

Copyright © 2019 Rodney Johnson - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Rodney Johnson Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules