The Israel Deception

Is the return of Israel in the 20th century truly a work of God, or is it a result of a cosmic chess move to deceive the elect by the adversary?

Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Thursday, May 11, 2017

Arizona officially removes taxation on gold and silver purchases and sales

On May 10 the Arizona state legislature completed its approval of Bill 2014 which removes the state taxation on the sale and purchase of physical gold and silver.

This move is also the first step by the state to once again recognize gold and silver as Constitutional money, and to begin the process towards one day allowing the precious metals to be used in commerce within its borders.

Arizona also joins Utah, Idaho, Texas, Oklahoma, and Virginia in either proposing or passing legislation to work towards the legalization of gold and silver as money.

Sound money advocates scored a major victory today when the Arizona state senate voted 16-13 to remove all income taxation of precious metals at the state level. The measure heads to Governor Doug Ducey, who is expected to sign it into law. 
Under House Bill 2014, introduced by Representative Mark Finchem (R-Tucson), Arizona taxpayers will simply back out all precious metals “gains” and “losses” reported on their federal tax returns from the calculation of their Arizona adjusted gross income (AGI). 
Dr. Ron Paul noted, “HB 2014 is a very important and timely piece of legislation. The Federal Reserve’s failure to reignite the economy with record-low interest rates since the last crash is a sign that we may soon see the dollar’s collapse. It is therefore imperative that the law protect people’s right to use alternatives to what may soon be virtually worthless Federal Reserve Notes.” - Goldseek

Friday, April 14, 2017

As consumers find themselves broke, a proposal to Congress would sacrifice social security for more money to spend

When 9/11 hit, the Bush administration saw that the terror event could have serious ramifications on the economy as people naturally would pull back on spending out of fear of further geo-political and domestic crises.  And in the wake of this the President not only went on the air encouraging people to spend using the guise of 'Don't let the terrorists win', but he also got Congress to approve a tax rebate to filter billions of dollars into consumer's pockets so they would prime the pump to keep spending.

Then following the 2008 Financial Crisis and subsequent Great Recession, that decade of spending that was additionally fueled by near zero interest rates and a housing bubble which gave homeowners a virtual 'equity checkbook' came to an abrupt halt as job losses, foreclosures, and the realization of massive consumer debt put the economy into its worst environment since the Great Depression.

So the Fed then embarked on a new program called Quantitative Easing where they pumped $10's of trillions of dollars onto Wall Street and the Federal Government to facilitate the creation of not just one asset bubble, but multiple ones in housing, stocks, student loans, automobile loans, and the bond market.  And this provided the illusion of recovery, but only sustainable as long as the increased printing of money did not reach the point of diminishing returns.

But alas, that happened during 2015 where it takes at least $4 new printed dollars to equal $1 new dollar in GDP growth.

As we reach the end of the first quarter of 2017, the data is signalling the tipping point of all of these bubbles, and an end to consumers being able to borrow and spend beyond their means.  Retailers are closing stores and filing for bankruptcies at accelerating rates, and earlier this month credit card debt for Americans crossed over $1 trillion for the first time since prior to the 2008 crash.

So with consumer and government spending making up 80-85% of the nation's GDP, what is left for Congress and/or the Fed to scheme up to keep the economy from 'officially' spinning back towards an ever greater recession than nine years ago?

One proposal suggested by a Congressional lobbyist to legislators would be to cut or eliminate the Social Security tax paid by workers and business owners in favor of getting that money into the pockets of consumers so they can keep the ponzi scheme going for a few more years.

Image result for fed bush economy titanic
President Trump and his Republican colleagues are in a precarious position at the moment. They need to find ways to trim costs, yet not at the expensive of expanding the federal deficit. One idea being floated around Washington by a GOP lobbyist, according to Fox News, is one that would see the payroll tax drastically cut or eliminated entirely. 
In 2015, Social Security generated $920.2 billion in revenue, and the payroll tax accounted for 86.4% of that revenue. The payroll tax, which also funds Medicare, is a 15.3% aggregate tax on earned income. Overall, 12.4% goes to fund Social Security, and 2.9% funds Medicare. However, most workers are only responsible for half of this amount, with their employers covering the remainder. Thus, your responsibility as a worker is often 7.65% of your earned income (6.2% to Social Security and 1.45% to Medicare). Only the self-employed wind up paying the full 15.3%. 
Even then, Social Security's payroll tax has added exemptions. Earned income is taxed between $0.01 and $127,200, as of 2017. Any additional income above and beyond $127,200 is free and clear of taxation, which is a big benefit to the wealthy.
Under the Republican proposal, the payroll tax for Social Security (the aforementioned 12.4% tax) would be eliminated, while the Medicare tax of 2.9% would remain in place. 
Why eliminate this absolutely critical source of funding? Removing the Social Security payroll tax would add $3,100 to the pockets of the average Americans household earning $50,000 a year. Republican lawmakers have long believed that putting money back into the pockets of Americans is the best way to stimulate our consumption-driven economy. - Madison
With the government already borrowing over $1 trillion in deficit spending each year to simply make ends meet, the concept of borrowing the additional difference to cover Social Security payments should the tax be cut or removed from workers is not only in of the realm of possibiities, but has already been done back in the 1990's when President Bill Clinton replaced the $3 trillion cash surplus that was in the Social Security trust fund with U.S. Treasuries (debt) so they could spend the money elsewhere on the way to building the first great bubble, that of the Dot Com variety.

Friday, April 7, 2017

As we get closer to tax day in the U.S., the IRS is paying close attention to Bitcoin traders paying their due

Tax day in the U.S. this year is April 18, and ironically it is on a Tuesday rather than Monday because of the recognition of 'Emancipation Day' on the 17th.  However this emancipation is tied to Lincoln's proclamation freeing the slaves back in 1863 rather than every American's emancipation from having to pay income tax or the myriad of other onerous government obligations.

Which brings us to the newest tax that must be paid by individuals who have conducted either commerce, or trade in the crypto-currency known as Bitcoin.  In a ruling by a Federal district court back in 2014, Bitcoin was deemed to be a security rather than money, and as such is to be taxed the same way one does with property.  Ie... if you made a profit from the difference when you bought and sold Bitcoin, you are required to pay taxes on those profits, and record it in your tax return.

Image result for taxes on bitcoin

Image use courtesy of Michael Carney/pondodaily
When you file your taxes this year, your accountant might ask if you own any bitcoin.
The popular digital currency recently hit an all-time high of $1,327 per coin, and while there arguably still hasn’t been a “killer app” (a mainstream purpose for a layperson to use bitcoin), its main use right now is as a speculative investment—and it has been a good investment. 
And if you’ve bought something using bitcoin, or sold something for bitcoin, or traded bitcoin for fiat currency, you should consider making that clear on your taxes.
Believe it or not, the IRS posted official language on digital currency back in 2014; it considers bitcoin to be property. “For federal tax purposes,” the IRS says in no uncertain terms, “virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency.” 
If you’ve bought bitcoin simply to hold it as a speculative investment, you don’t need to disclose anything. But as with stocks, income from the sale of bitcoin would be taxed as capital gains, based on the value of bitcoin at the time you sold it. The same goes for if you receive bitcoin as payment, the IRS says: “A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, measured in US dollars.” - Yahoo Finance
It is this recognition of Bitcoin as a security rather than as money that will make it more difficult to use Bitcoin in its original intention as a medium of exchange for goods and services.  Because in every single transaction you make, whether through the paying with or in the receiving of the crypto-currency, you have to keep a record of every transaction, and at the current market value of Bitcoin in U.S. dollars at the time of the transaction.

The IRS has stated recently that they are now planning to single out individuals who buy, sell, or use Bitcoin, and look closely to see if they are or have been recording their use of the crypto-currency on their tax returns.  And unfortunately this scrutiny will cause many who were considering buying some Bitcoin for commercial or investment purposes to think again as the government makes it nearly more trouble than its worth.

Tuesday, March 14, 2017

Idaho follows Arizona this month in voting to eliminate state taxes on gold and silver purchases

With the growing expectations of a possible collapse in the dollar and other fiat currencies thanks to the nation's $20 trillion in debt, and the upcoming debate over increasing the debt ceiling, the Idaho legislature on March 14 voted overwhelmingly to eliminate capital gains and sales taxes on the buying and selling of gold and silver.

In a vote of 56-13, Idaho's legislative body joins that of Arizona who last week also voted to remove state taxation from the Constitutional monetary metals, and systematically declared that gold and silver are no longer simply commodities, but actual legal tender.

By an overwhelming 56-13 margin, the Idaho House of Representatives today voted to end all Idaho taxation on precious metals, e.g. gold and silver coins and bars. 
Bill sponsor Representative Mike Moyle (R) and the entire Republican caucus voted for the measure. If the Republican-controlled Idaho Senate follows suit and Governor Butch Otter (R) signs the bill, Idaho citizens will better be able to use gold and silver as a form of savings which protects against ongoing devaluation of America’s currency. 
Backed by the Sound Money Defense League, Idaho Freedom Foundation, Money Metals Exchange, and grassroots activists, HB 206 expands Idaho’s existing sales tax exemption to end Idaho income taxation of sales of “precious metals bullion” and “monetized bullion.” - Money Metals

Monday, March 6, 2017

Ron Paul to speak to Arizona legislature to help push through bill to make gold and silver legal tender

On Wednesday March 8, former Congressman and Audit the Fed champion Ron Paul will be speaking to the Arizona Senate Finance Committee regarding Bill HB2014, and the benefits of making gold and silver legal tender in the state.

HB2014 encompasses two key components regarding gold and silver.  First, it recognizes the metals as legal tender in accordance with the Constitution of the United States, and second it would remove any state capital gains taxes on the sale of these metals, making it easier for Arizonan's to begin the process of using gold and silver as money now, or in the near future.

Image result for ron paul gold standard
Audit the Fed is not the only focus of the growing anti-Fed movement. For example, this Wednesday the Arizona Senate Finance and Rules Committees will consider legislation (HB 2014) officially defining gold, silver, and other precious metals as legal tender. The bill also exempts transactions in precious metals from state capital gains taxes, thus ensuring that people are not punished by the taxman for rejecting Federal Reserve notes in favor of gold or silver. Since inflation increases the value of precious metals, these taxes give the government one more way to profit from the Federal Reserve’s currency debasement. 
HB 2014 is a very important and timely piece of legislation. The Federal Reserve’s failure to reignite the economy with record-low interest rates since the last crash is a sign that we may soon see the dollar’s collapse. It is therefore imperative that the law protect people’s right to use alternatives to what may soon be virtually worthless Federal Reserve notes. 
This Wednesday I will be in Arizona to help rally support for HB 2014, speaking on behalf of the bill before the Arizona Senate Finance Committee at 9:00 a.m. I will also be speaking at a rally at noon at the Arizona state capitol. I hope every supporter of sound money in the Phoenix area joins me to show their support for ending the Fed’s money monopoly. - Ron Paul Institute

Wednesday, February 15, 2017

IRS quietly adjusts tax requirements in having to pay Obamacare mandate to follow President Trump's Executive Order

In a victory for personal choice and civil rights, the IRS has quietly adjusted their tax policies to not require individuals to fill out Line Item 61 which declares that you either have health insurance, or are required to pay the Obamacare mandate, in accordance with an Executive Order signed by President Donald Trump during his first days in office.

Called the Executive Order Minimizing the Economic Burden of the Patient Protection and Affordable Care Act Pending Repeal, and signed on the very first day of Trump's inauguration, this Order repeals the forced tax mandate on individuals who either cannot afford, or choose not to get health insurance that coincides with the original Affordable Health Care law's mandates.

Image result for obamacare this is going to hurt
How much difference does a single line on a tax form make? For Obamacare's individual mandate, the answer might be quite a lot. 
Following President Donald Trump's executive order instructing agencies to provide relief from the health law, the Internal Revenue Service appears to be taking a more lax approach to the coverage requirement. 
The health law's individual mandate requires everyone to either maintain qualifying health coverage or pay a tax penalty, known as a "shared responsibility payment." The IRS was set to require filers to indicate whether they had maintained coverage in 2016 or paid the penalty by filling out line 61 on their form 1040s. Alternatively, they could claim exemption from the mandate by filing a form 8965. 
For most filers, filling out line 61 would be mandatory. The IRS would not accept 1040s unless the coverage box was checked, or the shared responsibility payment noted, or the exemption form included. Otherwise they would be labeled "silent returns" and rejected.
Instead, however, filling out that line will be optional. - Reason
In tax filings for 2016, the Obamacare mandate rose to either 2.5% of household income, or $695 per person, dependent upon which was higher.

Monday, February 6, 2017

Following Utah's new plan for sound money, Arizona ready to vote on bill that would make gold and silver legal tender

Last week we published an article in which the state of Utah was preparing to vote on making gold and silver once again legal tender, and eliminating the taxation of the metals.  This move of course is to transfer the perception and belief that gold and silver are not simply commodities, but actual money in accordance with the Constitution.

And now we can add Arizona to this movement as on Feb. 2, the state legislature completed debate over the same issue regarding gold, silver, and sound money, and is getting ready to bring House Bill 2015 (HB2014) to a floor vote.

An Arizona bill that would eliminate state capital gains taxes on gold and silver specie, and encourage its use as currency, passed an important House committee today. Final approval of the legislation would help undermine the Federal Reserve’s monopoly on money. 
Rep. Mark Finchem (R-Tucson) introduced House Bill 2014 (HB2014) on Jan. 9. The legislation would eliminate state capital gains taxes on income “derived from the exchange of one kind of legal tender for another kind of legal tender.” The bill defines legal tender as “a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues.” “Specie” means coins having precious metal content. 
In effect, passage of the bill would “legalize the Constitution” by treating gold and silver specie as money. 
HB2014 passed the House Ways and Means Committee by a 5-0 vote, with four members abstaining. - Activist Post
The Constitution does not give states the right to coin money, but it does specify that they have the power to use gold and and silver as legal tender outside other currencies created and determined by Congress.  And as confidence in the fiat currency known as the dollar continues to wane, more and more states are preparing for the inevitability that the dollar will one day no longer be able to support the U.S. economy, much less the global financial system.

Saturday, February 4, 2017

IRS ready to begin revoking passports from Americans who owe large tax obligations

Back in 2012, Congress attempted to pass legislation that would revoke passport privileges from anyone owing more than $50,000 in unpaid tax liabilities.  And while this rider attached to the HB1813 Highway appropriations bill failed to pass back in 2012, it was once again put up for a vote and signed into law in late 2015.

However, the controversy behind using tax laws to keep Americans from leaving the country had kept the Obama administration from implementing it over the last year of his administration, but now that Donald Trump has taken office the IRS on Feb. 3 is ready to begin going after 'deadbeat taxpayers'.

President Trump's executive order on travel may be generating big protests, but an IRS missive on travel and passports may not go down too well either. More than a year ago, in H.R.22, Congress gave the IRS a new weapon to collect taxes. Tax code Section 7345 is labeled, “Revocation or Denial of Passport in Case of Certain Tax Delinquencies.” The law isn't limited to criminal tax cases, or even cases where the IRS thinks you are trying to flee. The idea of the law is to use travel as a way to enforce tax collections. It was proposed and rejected in 2012. But by late 2015, Congress passed it and President Obama signed it. 
Now, over a year later, the IRS has finally released new details on its website.  
If you have seriously delinquent tax debt, IRS can notify the State Department. 
The State Department generally will not issue or renew a passport after receiving certification from the IRS. 
The IRS has not yet started certifying tax debt to the State Department. 
The IRS says certifications will begin in early 2017, and the IRS website will be updated to indicate when this process has been implemented. - Forbes via Zerohedge
Which leaves the American people to ask the question... will the IRS use this draconian law to only go after Trump supporters and conservatives like they did in 2014 with Lois Lerner?  Or will they implement the law honestly, which means that the first individuals they should revoke passport privileges from are Al Sharpton and Congressman Charlie Rangel.

Oh, and not to be forgotten... Timothy Geitner.

Monday, January 23, 2017

State of Virginia about to vote on bill calling gold and silver sound money, and remove taxes from its purchase

On Jan. 20, a House subcommittee in the state of Virginia passed a key component that will soon allow a bill to go to the floor for a vote on whether to consider gold and silver as money, and remove all taxation mechanisms on its purchase by individuals.

House Bill 1668 (HB1668) would facilitate the exemption of taxes on purchases of gold, silver, and platinum bullion if the price exceeds $1000.

A Virginia bill that would remove sales taxes from some purchases of gold and silver passed an important House subcommittee Wednesday. The legislation would take an important first step toward encouraging its regular use as currency and breaking the Federal Reserve’s monopoly on money. 
A bipartisan coalition of delegates sponsor House Bill 1668 (HB1668). The legislation would exempt gold, silver, or platinum bullion or legal tender coins whose sales price exceeds $1,000 from from state sales tax. Each piece of gold, silver, or platinum or legal tender coin need not exceed $1,000, provided that the sales price of one entire transaction of such pieces exceeds $1,000. ” 
Under the proposed law, the exemption would remain in place until June 30, 2022. 
A House Committee on Finance subcommittee approved the measure 10-0. - Tenth Amendment Center
By removing taxes on gold and silver purchases, the state of Virginia is opening the door for businesses, individuals, and even government agencies to accept and use gold at a future date as money.

Virginia also joins in the growing number of states (Oklahoma, Utah, and Texas) who are either creating state run gold depositories, or passing legislation that returns gold and silver to their rightful place as a monetary unit.

Tuesday, January 17, 2017

2017 will see the acceleration of baby boomers dumping retirement assets out of market to pay tax liabilities

In 2013 we saw the first of the baby boomer generation reach the magical 70 1/2 age which began a new trend where these retirees will have to start liquidating their tax deferred assets to pay Uncle Sam his due.  And while that first year saw only around $9 billion sold off from 401Ks, IRAs, and other tax deferred accounts, the Law of Compounding will begin to work against the markets in 2017 as an estimated 100,000 will be taking more distributions from their retirements than they will be contributing to them.

Retirement

In aggregate, per the Wall Street JournalBoomers have saved $10 trillion in various tax-deferred saving accounts.  While that sounds like an impressive figure, with 75 million Boomers, it equates to an average of $133,000 per person which, needless to say, is insufficient to fund ~20 years of retirement.  
But while the Boomers, and by extension taxpayers, are facing a harsh future, Wall Street has made a killing in fees off of managing the ever growing balance of retirement accounts as Baby Boomers have come of age.  But that all looks set to change as America's aging population is forced by IRS regulations to take retirement withdrawals once they hit 70 1/2 years of age. 
As illustrated by the chart above, over the past 2 decades Americans have consistently contributed more than they've withdrawn from tax deferred accounts, excluding recessionary periods.  But that all changed in 2013 and 2014 as the first wave of Boomers hit the magical age of 70.5 with a total of $25 billion of net withdrawals in 2014 alone. 
Contributions to tax-deferred retirement plans outnumbered withdrawals through much of the 1990s and 2000s. That flow began to reverse as boomers entered their retirement years earlier this decade. 
Investors pulled a net $9 billion from workplace retirement-savings plans in 2013, according to the Labor Department. In 2014 the withdrawals jumped to net $24.9 billion. Full-year information for 2015 from the Labor Department isn’t yet available, but large mutual-fund companies that manage the bulk of U.S. retirement assets say outflows continue to rise. Fidelity Investments expects 100,000 customers to take their first required distributions in 2017, up from 91,000 in 2016. 
Still, distributions are expected to grow exponentially over the next two decades because of a 1986 change to federal law designed to prevent the loss of tax revenue. Congress said savers who turn 70 ½ have to start taking withdrawals from tax-deferred savings plans or face a penalty. Specifically, retirees who turn 70 ½ have until April of the following calendar year to pull roughly 3.65% from their IRA and 401(k) funds, subject to slight differences in the way the funds are treated by the Internal Revenue Service. - Zerohedge
Yet what makes this trend even more dire for Wall Street is the fact that the younger generations are not buying stocks, or putting the same amount of money as their parents and grandparents into retirement accounts.  And with millennials having so much debt and lower job prospects on the horizon for at least the next decade, there are few buyers to mop up the selling that will be taking place in the markets at the coming exponential rates.

It has reached that time when Paul must pay back Peter for the years baby boomers spent deferring their taxes to save for their retirements, and Uncle Sam will not care how it affects the overall markets in the short and long runs.  And like the fact that Social Security no longer has enough workers paying in to support the benefits being taken out by these same boomer recipients, the retirement programs of 40 and 50 years ago will have to redone for a different world, and where the younger generation will need to rely more upon themselves than in being able to use Wall Street as their retirement vehicle.

Got gold?

Wednesday, September 14, 2016

Gold authorities looking to ways to get airlines to ban transporting gold in carry on luggage

With governments using both high taxation and import restrictions to try to dissuade people from moving out of their fiat currencies and into physical precious metals at the same that these same governments are embarking on devaluing their currencies through zero or negative interest rates, the natural reaction has been a rise in smuggling to try to bring metals like gold and silver into restricted markets.

And similar to how some ivory tower economists now want to ban physical cash using spurious reasons like money laundering and its use in illegal activities, a group of gold authorities now want airlines to ban the transportation of gold by gold holders in their carry-on luggage.
Leaders of the global gold industry have called on airlines and aviation authorities to ban the transport of the precious metal as hand luggage to reduce the risk of smuggling, which is said to be costing billions of dollars a year in lost government revenue. 
They want gold to be shipped only as hold cargo, which would allow for "proof of responsible sourcing" and lift what is regarded as a threat to miners’ employment and mining companies’ profits. 
Delegates at the Africa Dubai Precious Metals Forum, held in Accra, Ghana, agreed on a "call to action" to airlines, air transport companies and the global air authorities to "ban the hand-held personal carriage of gold in favour of adopting a cargo-only policy". 
The cabin transportation of gold is generally legal around the world, subject to airline weight restrictions and customs regulations. Gold bars and finished jewellery are often flown between manufacturing and retail centres, including Dubai. - Thenational.ae

Monday, September 12, 2016

Why invest in gold? Because contrary to popular belief, the government can end the insolvent Social Security at any time

Prior to FDR's creation of Social Security in 1935, people relied upon their families to take care of them in their retirement years.  And in fact, there were no expectations of a 'benevolent government' using the General Welfare clause of the Constitution to do for them what was their responsibility since the beginning of time.

But with the advent of Social Security, the government opened the door to a whole myriad of programs to virtually take care of people from cradle to grave, and has used the power of taxation to force everyone to pay into it whether they wanted to, or even needed to at all.

It is now 80 years later following this momentous act passed during the height of the Great Depression, and because of a combination of Demographics and Congressional greed, the program is insolvent and by some analyst's measures, could be completely bankrupt as early as 2017.  And the real question that has to be asked is, is the government responsible for providing these retirement benefits no matter what, or can they simply dissolve the program at will if they decide they can no longer afford to pay for it?

The answer unfortunately may scare some people, because the question itself was resolved back in the 1950's by the Supreme Court.

Most people see Social Security as a contract between themselves and the government. You pay money into the system, and the system pays it back at a later date—guaranteed by law. 
But nothing could be further from the truth… 
You have no choice when it comes to paying your Social Security tax. It comes out of your paycheck automatically. 
But did you know the government isn’t under the same rigid contract? 
In fact, by ruling of the United States Supreme Court, the federal government is under no obligation to pay you a Social Security check. 
This is the clear precedent set in the case of Flemming v. Nestor
Ephram Nestor was an immigrant from Bulgaria. He moved here in 1918 and paid Social Security taxes from the very beginning of the program in 1936. 
In 1955, when he retired, Nestor began receiving Social Security checks for $55.60 per month. 
But, just one year later, Nestor was deported. Turns out, he’d been an active member of the Communist Party in the 1930s, giving the U.S. government grounds to kick him out. 
When he was deported, his Social Security checks stopped. Nestor sued the U.S. government, arguing that, since he had paid money into the program, he had a right to those benefits. 
The Supreme Court ruled against Nestor, saying the government had the right to terminate Social Security at any time. 
The people who sign the Social Security checks sum it up this way: 
[Nestor] appealed the termination, arguing, among other claims, that promised Social Security benefits were a contract. In its ruling, the Court rejected this argument and established the principle that entitlement to Social Security benefits is not a contractual right. 
Takeaway: You have no contractual right to Social Security. 
That historical precedent means it has the power to cut Social Security anytime it wants. - Casey Research
So while politicians deceive everyone into thinking Social Security is guaranteed to them for the tens of thousands of dollars they have paid in taxes to be eligible for a retirement payout, the truth of the matter is Congress's only obligation is their right to tax you as they see fit, and even to keep on taxing you whether they pay out social security benefits or not.

And it is why nothing has ever changed in life... and it is you and I who are responsible for our own retirement savings programs.

Got gold?

Tuesday, July 19, 2016

Got gold? Social security now $32 trillion in the red, with a $6 trillion deficit

Here at the Daily Economist we have written numerous times on the pension shortfalls proliferating municipalities, unions, and state run systems.  But perhaps it is time we look at the most important retirement plan of all, which of course is that of social security.

In the newest 2016 report out by the Social Security Trustees, the fund that already services tens of millions of Americans with a monthly income, and is promised to do the same for hundreds of millions now working in the labor force, is $32 trillion in the red, and in the shorter term has a $6 trillion deficit.

It’s been several weeks since the Social Security Trustees released their 2016 Trustees Report. I’ve been waiting to see if either Donald Trump or Hillary Clinton or anyone in the press core would say a peep about the astounding $6 trillion deficit implied by the Report’s table VI.F1
Not a peep. 
As you may know, I’m running for President as a write-in candidate along with my VP choice, UCLA economist, Edward Leamer. We’ll be on the ballot along with the two party candidates if voters simply write Laurence Kotlikoff for President and Edward Leamer for Vice President on the ballot in the space provided. It’s that simple. 
Ed and I are deeply concerned about our country’s fiscal condition, which is grave to say the least. If we don’t address it, we can kiss our children’s economic futures goodbye. 
I’ll get back to the overall picture, but let me tell the press what they will find if they care to do their job and look at Table VI.F1. They will learn that Social Security, according to the system’s own actuaries, is now $32 trillion in the red! The $32 trillion is the present value difference between all the system’s projected future benefit payments less the sum of a) all its projected future taxes and b) its current almost $3 trillion trust fund. 
We economists call this measure Social Security’s infinite horizon fiscal gap. Last year, the Trustees reported a fiscal gap of $26 trillion. So the system’s fiscal gap grew by $6 trillion over the past year, i.e., Social Security ran a $6 trillion deficit! - Forbes
And sadly, this trend of increasing deficits will only get worse as the Baby Boomers move completely into their receiving years for Social Security, and a large portion of Millennials who would normally be starting their careers are either out of work, or in jobs earning barely over minimum wage. And this dilemma of course is not even close enough to provide the revenues to pay for those who now collecting social security, much less sustain it for their own retirement years.

The 2008 financial crisis was a wake-up call, and had given Americans nearly a decade to find new alternative ways to save for their own retirements, and to not have to rely upon insolvent state and federal systems that are themselves bankrupt.  And one of the only ways that this can be achieved, especially if the government soon decides to massively increase taxes to cover the growing deficits, is to get some money into physical gold, which will both protect your wealth, and allow you little or no counter-party risk from insolvent Wall Street or government retirement schemes.

Wednesday, June 29, 2016

Beginning July 1 will start the trillion dollar selloff of stocks for baby boomers over the next 11 years

Besides the consequences of there being more Baby Boomer retirees than workers to fiscally deal with the insolvent social security program, a new monetary crisis is about to hit the markets in just three days time.  That is because on July 1, the oldest of the Baby Boomer generation will turn 70 1/2, and thus forced to start selling off their 401K, IRA, and mutual fund assets to fulfill their obligations to Uncle Sam and the taxman.
Currently there are between $14-15 trillion in non-pension, personal retirement accounts which are held on Wall Street in the forms of stocks, bonds, annuities, reits, and other security assets.  And by law once someone reaches the age of 70.5, they must begin selling off those securities at the rate of 3.65% each year, with a decade later it expanding to 5.35% after age 80, and 11% per annum after age 90.
Since the first of the Baby Boomers will be hitting the age of 70.5 on July 1, selloffs in the market will commence over the next 11 years as those on the lowest end of the generational scale will each move into this age requirement at an accelerated pace year by year.
boomers selloff

Saturday, June 11, 2016

The wages of sin are taxes

One of the primary reasons why the states of Colorado and Washington finally capitulated to the legalization of marijuana was because of economics.  Ever since the collapse of the housing bubble and the 2008 Credit Crisis that saw millions lose their homes and jobs, state and municipal revenues have fallen off a cliff in many areas around the country.
And the windfall that has come from the legalization of marijuana is just one of many revenue streams that states are now relying upon as the return of ‘sin taxes’ to the limelight are usurping religious, social, and liberal agendas to end these activities all across the country.
sin taxes

Thursday, June 2, 2016

China overtakes the U.S. as most competitive global economy

In their annual ranking for most competitive global economies, IMD announced on May 30 that China’s Hong Kong sector surpassed the United States on the list to move into the number one spot for 2016.
The U.S. had been number one of the rankings scale for the past three years, but massive regulation, higher taxes, declining infrastructures, and moves towards closed trade (TPP, TPIP) led to their dip down to number three behind China and Switzerland.
Top 10
Read more on this article here...

Wednesday, May 18, 2016

Mainstream wonders why consumers aren’t spending because they don’t actually look at the data

Many Americans by now know that the mainstream media is little more than a propaganda tool of the banks and government, and they rarely if ever report on actual data that could deter from their agenda of ensuring the public believes everything is fine.  This has been true in many facets, whether it is the whitewashing of the actual unemployment rate, or by having the President go on air and call anyone who doesn’t believe in a strong economy as being delusional.
Yet the economy in America today rests upon too shaky pillars of both consumer and government spending.  And despite the media’s continuous attempts to say buy stocks because the consumer is doing fine, the newest CPI report out on May 17 shatters this rhetoric by showing a rise in prices of over .3% in just the last month, and the highest move since 2013.

Read more on this article here...

Tuesday, April 19, 2016

IRS head condones illegal’s use of fraudulent social security cards since they use them to pay taxes

As a wise author in the bible once stated over 2000 years ago, the love of money is the root of many evils.  And when you fast forward this to the 21st century, the parallel concept of means justifying the ends is an apt description of how both men and governments will condone illegal activity if it results in the accumulation of more money.
On April 12, the head of the Internal Revenue Service spoke before Congress on the topics of taxes and the allowance of illegal aliens using social security cards.   And in a stark moment of truth, IRS Commissioner John Koskinen told the Senate that the agency condones the use of fraudulent social security cards by illegal aliens because the benefit is that they pay taxes, which in turn benefits the government.

Wednesday, April 13, 2016

Who needs Bernie? Americans spend more on taxes than on food, clothing, and shelter

Independent/Democratic candidate for President Bernie Sanders has been running on a platform of not just tax the rich, but pretty much tax everyone more to pay for his $18 trillion program of full blown Socialism.  But what the old man from Vermont who never worked an honest job in his entire life is failing to see is that as Americans rush towards tax day less than a week from now, they already give away to government agencies more in taxes than they spend each year on food, clothing, and shelter…
Combined.
This year, Tax Freedom Day falls on April 24, or 114 days into the year (excluding Leap Day).
Americans will pay $3.3 trillion in federal taxes and $1.6 trillion in state and local taxes, for a total bill of almost $5.0 trillion, or 31 percent of the nation’s income.
Americans will collectively spend more on taxes in 2016 than they will on food, clothing, and housing combined.
That last statistic is a huge sore point with me.
How can anyone argue that we are not a socialist society when the government takes more of our money than we spend on food, clothing and housing combined?
What they are doing to us is deeply wrong and it is fundamentally un-American. -Theeconomiccollapseblog
tax foundation chart
Chart courtesy of Taxfoundation.com

Monday, March 28, 2016

Wonder why consumers have no money from lower oil prices? Thank Obamacare!

If you spend any time watching the business channels on cable you find that the litany of analysts they parade across the screen cite the false narrative that consumers (American people) will be the catalyst for economic recovery because they will have more money to spend thanks to lower oil prices that have occurred over the past 18 months.  But despite this fallacy that didn’t come to pass, and was validated yesterday in a 1.4% Q4 GDP revision, there is another reason why Americans have not been able to participate wholeheartedly in the economy, and that reason is Obamacare.
The increase in healthcare spending and the Obamacare tax was by far the number one spending item by consumers in 2015, and nearly double the second place item which was new vehicle purchases.
2015 consumer spending