The Hidden Tax we all pay!

Last Wednesday, Nov. 3, the Federal Reserve announced it would be implementing a new round of quantitative easing to the tune of $600 billion. Most people do not even understand what quantitive easing is, much less what it will do to their purchasing power, retirement savings or job security.

Quantitative easing means “the printing of money” and it always causes inflation. No amount of tax planning can keep a taxpayer from paying this bill. Inflation is a hidden tax. It is the most regressive of all taxes since those who earn a limited income do not have the means to hedge themselves against inflation.

Why is Ben Bernanke and his Federal board members doing this then? Frustration is the word that most comes to mind. Economics is a theoretical science that is really more akin to psychology than mathematics. Unfortunately for everyone involved, there doesn’t seem to be a grown up involved who knows this.

Voting is a Privelege but Tax Planning is your Right!

Why do business owners and retirees both hate paying taxes so much? Both groups of taxpayers have to write the check to pay their taxes to the IRS and State. 

Have you been working your whole life and saving for retirement just so you could pay taxes?  Did you start your business just so you could pay taxes? Did you feel excited when you earned your very first paycheck at your very first job and got to see how much you got to pay towards taxes? Of Course Not!

Good for you! You are truly a red blooded patriot from the USA. There is really only one common feeling that binds us as Americans and that is the common loathing of paying taxes. It is why the founding fathers declared independence. The income tax being the most hated tax of them all.

Is the Small Business Jobs Act Good for your Business?

The recently passed Small Business Jobs Act brought a bunch of tax provisions to help the small business owner, or did it? Here is a run down of the main provisions affecting small business owners –

Could Prop A cause the City Fiscal Turmoil?

I disagree. The editorial board of the St. Louis Post Dispatch and the St. Louis Business Journal’s Darlene Green would have you believe so. 

Historically and economically speaking the large difference between the standard of living from prosperity, poverty and crime shows the hardships created by the City’s financially burdensome income tax system. People and businesses vote with their feet.

It would be socially irresponsible to allow a failed economic civil entity to continue to be rewarded with the power to impose burdensome taxation upon its dwindling economic base. Bondholders and the City’s credit rating would benefit from a larger more diverse economic tax base that would be created by the removal of the income tax.

Real Estate Investors make the 1099 Hit List

On September 27, President Obama signed the Small Business Jobs Act of 2010. While the Act focuses on expanding credit for small business, it also includes a provision that applies to rental real estate investors. Beginning with payments made after December 31, 2010, now they have to file 1099s for service providers just as if they were engaged in a trade or business.

This late arriving provison to the Small Business Jobs Act is quite bewildering since many Democratic lawmakers had been paying lip service to stripping the 1099 provision applied to businesses by the Health Care Reform Act.

Obamas’ wasting thousands in unnecessary taxes

President Barack Obama and First Lady Michelle Obama reported over $5 million in 2009 income and paid nearly $1.8 million in federal tax. But the First Couple actually wasted thousands of dollars in taxes they didn’t have to pay. The Obama’s missed several legal opportunities to harness the power of proactive tax planning in ways that would minimize their taxes.

President Obama reported over $5 million in book royalties as a sole proprietor. Structuring the right entity to report that income could have saved him over $100,000 in employment tax alone. The Obama’s also missed opportunities to hire the First Lady to create retirement plan savings, as well as opportunities to hire daughters Sasha and Malia to help subsidize their pricey private school tuition costs.

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