Saturday, April 29, 2017

With Congress unwilling to provide tax relief to Americans, join the new tax revolt whenever you dine out

There used to be just two primary things that were true in life... those being death and taxes.  But ever since the start of the new millennia, we can add a third one to that list, and it is the incompetency of government to ever do anything that is beneficial for the American people.


Case in point.  Ever since President George Herbert Walker Bush lied to the the people and said, 'read my lips, no new taxes', every single President since has at some point increased the burden of the American people to provide more and more money to feed the monster that is Washington.

Fast forward to 2017 and President Donald Trump's tax cut proposal.

Using the Reagan model of 'trickle down' economics, Donald Trump is seeking to pass a massive tax cut for corporations, small businesses, and in a minor sort of way, for the Middle Class.  However there has been no real efforts made by Congress in the first 100 days of Trump's Presidency to actually write legislation to accomplish this, and it is unlikely to occur since the House and Senate are unwilling to accept a decline in their own revenue largesse even as the American people find themselves completely tapped out in credit and savings.

Ironically, it took less than this for the colonists to rebel against Britain when they passed the Stamp Act and demanded the colonists use only their fiat currency to conduct commerce back in 1776.  And with some Americans paying upwards of 60% of their income to Federal and State governments (California), the ballot box no longer provides a means of redress.

Thus it's time to use a little ingenuity and begin a legalized form of tax revolt.

In a recent event from the state of Missouri last week, a customer dining out at a restaurant decided to 'stick it to the government' and crossed out their expected 'tip' for the servers who provided him his meal, and instead wrote on a piece of paper that the money that would have formerly gone for a tip be given instead to the server as a gift.


Now why is this significant?  Because tips are taxed by the government as wages, while gifts are not taxable if they do not exceed a certain monetary threshold.
  • You can give up to $14,000 to any number of individuals this year without triggering gift taxes.
  • Anything above the annual limit has to be reported and counts toward your lifetime exclusion.
In addition, this is also a way to respond to the growing demand for a boost in the minimum wage without needing a law to accomplish this, and to also help keep lower income workers receiving welfare benefits for those who need it.

The rich have always skated by not having to pay their full share of taxes by simply incorporating themselves where they have hardly any income, and where most of the money they receive is taxed under the umbrella of much lower capital gains rules.  In addition, these elite can deduct almost anything which lowers their taxable earnings even more.  And if both the state and Federal governments simply see the American people as entities solely existing to provide them money so they can take us into unnecessary wars or fund wasteful social and green agendas, then the only way to fight back is to find our own loopholes in the tax code... starting with the elimination of tips and instead replacing them with gifts.

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