Friday, November 27, 2015

Pfizer leaves US with their tax bill

Another tax evader has gone overseas—Pfizer, NYC > Belfast
Pfizer and Allergan will join in a $160 billion deal to create the world's largest drugmaker. It's the largest so-called inversion in history, a tax-saving maneuver in which a U.S. company reorganizes in a country with a lower corporate tax rate. U.S. efforts to curb the practice have so far proven ineffectual. Botox maker Allergan is based in Ireland but runs much of its operations out of New Jersey.
You can’t get away with claiming you live in Ireland to cut taxes but …

Wealthy Americans are buying their way into ‘Citizen of the World’ status—low taxes
“Global citizenship” is becoming an increasingly popular tool for the world’s ultra wealthy. There are many different reasons why an ultra-high-net-worth individuals—min. $30 million—buy second citizenship, including stability, security, tax efficiency, ease of travel, higher standard of living, increased options for education and investment. The easy way is to buy a luxury villa—citizenship no charge. The annual savings in capital gains tax alone could reach $1 million. Villas and citizenship cost as little as $500,000. 

Tax evaders may lose passport=can’t get to tax havens
Yes, your gov may finally be doing something to get tax evaders to pay up. “I’d encourage U.S. people abroad… To make sure that their fiscal matters are in compliant and purchase by the New Year,” he explained.

Women worry about retirement for good reason
More women are concerned about their ability to retire than men, according to the Insured Retirement Institute (IRI). More than half of women (54 percent) are very concerned they will not be able to retire when they want and an almost equal number (53 percent) are concerned about being able to afford the lifestyle they want. Women earn less than men in same job and interrupt career investing to have a family.

Are municipal bonds (tax-free) right for you?
Buying bonds for tax-FREE income (interest) sounds good but beware. One Muni Bond Trade Can Cost $1,500 More Than You Realize. Brokers buy bonds cheap and sell them at a big profit when there is demand for them. You don’t know what the market price is so you may be gauged. That extra cost may destroy your tax advantage. “A year’s worth of interest can be wiped away simply by buying or selling a bond,” Securities and Exchange Commission commissioner Michael Piwowar said in a telephone interview. “People should know what they’re paying.” But isn’t that what you pay your broker for? No. Brokers work for profit-making firms and like real estate brokers; they are NOT on your side. This is why the fiduciary rule is so important and why the industry is fighting it so hard. Doing what is right for you is what regulators want brokers to do at least for retirement accounts. Paying an advisor a fee may get you a fairly priced muni but most people should use the not-for-profit management firms, TIAA or Vanguard:

Is a secure Retirement right for you?
Fears about Social Security, health care and retirement funds top the list of worries that U.S. households have, Hearts & Wallets says. Fewer people believe they are on track for building their retirement nest egg with the percentage dropping from 36 percent last year to 31 percent this year, the study says. There’s no one-size-fits-all advice for workers on post-retirement spending, another new study says. While 54.1 percent of retirees spent less or the same in the first two years after work, 45.9 percent spent more.
And of those spending more, 28 percent upped their outlays by 20 percent or more annually. It might be tempting to think the splurges are limited to the wealthy who can afford to travel to exotic locales, but the researchers found the spending increases occur across all income levels. The number of Americans spending more than they did while they were working declines by about a quarter by the sixth year of retirement. Some took 6% a year from principal not the 4% old advisory story.

Some employers force workers to take risky 401k options
At Intel you may be forced to invest in hedge funds and private placements with high fees and low returns. Management decides which options employees have and they may be limited to high-fee funds. You can reach retirement goals of $1 million by using your brain and guts as this 29 year old did or use the low-cost Buffett strategy:

Schwab moves to offer mutual funds starting at just $100
Schwab has lowered the minimum initial investment for most mutual funds on its zero-transaction-fee Mutual Fund OneSource platform to $100, dropping the minimum for subsequent investments to $1. There are fees for redemption and broker services. Certain conditions apply. Schwab now offers the largest selection of funds available at a $100 minimum, allowing investors an easier path toward long-term savings and simplified options for diversification, the company said. Earn more, pay less.

Does our President need to be pragmatic and respect all religions?

“Without some alteration in our political creed, … We are fast verging to anarchy and confusion!” George Washington, 1786. Anger factor HIGH 2015.

Trump: Muslims to carry special ID just like Jews armband in Hitler’s Germany
            Trumped Up Worry--New study shows Mexicans are LEAVING U.S.
            Wants Cheney torture even though not effective against terrorists: War crime
            Back on pledge--Won’t support the GOP nominee unless self: Psychotic?
Carson: Jefferson wrote Constitution, gun control, and other B.S. he made up.
Kasich: Wants federal agency to promote "Judeo-Christian values" more taxes?

Clinton: Pfizer move to Ireland "will leave U.S. taxpayers holding the bag." 
            Tax credit when you take care of elderly—fund women SS/cheaper than Wall

Sanders: Qatar should spend its oil $Billions on fighting ISIS before they attack Qatar.
            Getting Arabs to have skin in the game.

Is democratic socialism right for you?
Your gov will pay you your pension if your company went out of business before paying you your pension money. PBGC pays nearly $6Billions in benefits to retirees. If you are receiving benefits, it is a ‘socialist’ program.
If you are over age 65 or poor, you are receiving medical benefits. That is ‘socialism.’
If you have ever been laid off and received gov benefits, that is ‘socialism.’
If you are retired or disabled and not able to work and receive SS benefits, that is ‘socialism.’
You pay for inspection and regulation of your Chipolte food, all food, medicine, toys, millions of dangerous chemicals and products--your car air bag, child seat, airplane, etc.
Thousands of citizens used to die because manufacturers had no incentive to check and recall their products. Despite GOP candidates, we want protection from companies!
Your water, electric and gas come from single ‘socialist’ companies.
The credit union is socialist and offers higher savings and lower mortgage.
Largest mutual fund is a not for profit owned by the shareholders and offers low fees.
Many largest insurance companies are not for profit and owned by policyholders.
Most Americans GOP And DEMS want government to strengthen economy, protect environment and maintain infrastructure. Majorities also want gov to help the poor and seniors.  

We have Socialism for the Rich
according to GOP election-funder Charles Koch
“This is creating a two-tiered system where opportunities for the disadvantaged are being destroyed and we’re creating welfare for the wealthy, so it’s unjust,” he told Yahoo.
Best example: GOP celebrated cut in farm subsidies in April and now reversing their cuts because farm corporations complained.

New companies don’t have unions but they pay lobbyists to guide our ‘Reps’
Today’s tech companies — even the youngest ones — have accepted lobbying as an essential part of doing business. In addition to knowing the language of computer code, founders are speaking the language of Washington—lobbying—so they win the regulatory battles. Internet companies have tripled their lobbying spending. Uber and Hello Alfred for example, outsource labor and almost all expenses so they don’t have anything to slow meteoric profits for investors.
Many move their legal address offshore to evade taxes:

We need regulation—GOP is wrong—companies would not fix bad products on own
Regulators have handled over 749,400 financial complaints—many against banks                                                      
Gov forced more recalls 451,865 Ford gas tanks; 305,000 Hyundai brakes; Tesla belts 
Businesses can expense capital items (tablet, phone) up to $2,500 to ease admin in 2016. 
Regulators: Sands Brothers Asset Management broke custody rule--fine, no jail!
Bernard Parker, Indiana, PA stole $1.2 million by promising 6% returns--indicted

Special Inspector General John F. Sopko has spent years documenting waste, fraud and abuse in the U.S. military’s efforts to rebuild war-torn Afghanistan. We have spent $110 billion on reconstruction projects in Afghanistan. When adjusted for inflation, that total exceeds the value of the entire Marshall Plan effort to rebuild Western Europe, WWII.
=More than $8 billion in spending on counter-narcotics efforts in Afghanistan that have “failed by every conceivable metric. Afgans grow poppies like we grow corn.
=The purchase of nearly $500 million worth of airplanes that never could fly and had to be turned into scrap.
=Construction of a building that literally began to melt when it rained.
A $500,000 health clinic that lacked water and electricity. Newborn babies had to be washed in a nearby dirty river.

BioTerror detectors in every US city--$1Billion--not working!
The nation’s main defense against biological terrorism -- a $1-billion network of air samplers in cities across the country -- cannot be counted on to detect an attack, according to a new report by the Government Accountability Office.

Pentagon says pilots decided to hit hospital killing 30 after given bad coordinates
The Oct. 3 airstrike lasted more than an hour, killed at least 30 people, mostly doctors and patients and collapsed large parts of the hospital. Bomber’s computer with hospital GPS ID was not working. Pilots failed to confirm correct target by radio. US ignored hospital pleas to break attack and failed to use GPS location for target. Actual target was nearby and looked similar pilots claim. War crime suspected.

We pay bounty for contractors to run terrorist drones
Air Force has turned to civilian contractors to fly MQ-9 Reaper drones in "combat air patrols" to help track suspected militants. The civilians aren't supposed to pinpoint targets with lasers or fire missiles but we have skirted around the rules before. Mercenary fighters have provoked more wars in the past. Any civilian who is involved in waging such warfare would lose legal immunity under the law of armed conflict and could face prosecution by a foreign country, says Steven Ratner, a professor at the University of Michigan Law School.

Vanguard’s low-fee structure incurs higher taxes in TX
Ex-employee gets bounty for sharing internal documents with TX audit that shows not-for-profit firm pays advisors less (so charges less fees) than “industry.” Tax law disallowed lower fees implying higher income than reported; thus owe taxes. Huh???

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, November 20, 2015

Koch: Stop Corporate Welfare

Koch Bros ask fellow capitalists to stop corporate welfare
Koch, who pays over $900 million on our elections, says he fears gov control via welfare for the wealthy will eventually degrade American capitalism. “This is creating a two-tiered system where opportunities for the disadvantaged are being destroyed and we’re creating welfare for the wealthy, so it’s unjust,” he told Yahoo. “It’s an unjust system, and it’s making people’s lives worse.” According to a report from Good Jobs First, which tracks government subsidies, some of the biggest companies in the United States received hundreds of billions of dollars in federal grants and tax credits. General Electric received $836,000,000 and General Motors received $529,000,000.

Is a simple IRS tax code right for you?
GOP favorite applause grabber is “simplify taxes.” Beware what you wish for.
10% tax rate. Noncash compensation is tax-free. Corporations pay 0% tax.
Tax preferences will be added.  Everyone will want their wages/salary in goods not cash. All the rich people will take compensation in stock certificates or dividends. No one will have Social Security in the future. Medicare and Medicaid will end. Deficits may double in 5 years due to war spending not included in budget. Interest on debt alone costs $230 BILLIONS. Wealthy people will incorporate themselves and their American assets and pay nothing to America. Only the middle- and poor-classes will pay taxes, just as Mrs Helmsley predicted. Simplify now—use your IRS tax-FREE trust:

More companies moving “legal” addresses to evade taxes
“If Congress doesn’t act, tax inversions will be very appealing for many American corporations,” according to Edward Kleinbard, former chief of staff of the congressional Joint Committee on Taxation. Congress has an incentive NOT to act. Lobbyists pay for their campaigns and perks. Firms like Pfizer may merge with Allergan, which has already shifted its own tax domicile to Ireland through a tax-inversion merger. Pfizer already holds $140 billion overseas and is quite skillful at minimizing its taxes.
We don’t have to move to Ireland to cut our taxes:

Does our President need to be pragmatic and respect all religions?

“Without some alteration in our political creed, … We are fast verging to anarchy and confusion!” George Washington, 1786.

Cruz: “we should be providing safe haven to [Christians]” only.  Matthew 25:35???
Trump thinks Ben has “pathologic disease” can’t be cured.
GOP wants our kids to go back to clean up Sadam’s old army buddies Bush overthrew.

TX GOP says, “Don’t bother us with the facts”
Texas rejects allowing academics to fact-check public school textbooks. The board's textbook process has for years sparked ideological battles over subjects such as climate change and evolution. Supporters of the failed proposal said those are now likely to continue.

5 old men will decide if we have rights to our own sex health—ban sex?
GOP led Supremes will determine how far states may go in regulating the procedure without violating a woman’s constitutional rights. TX closed many clinics so as many as 240,000 Texas women between the ages of 18 and 49 have tried to end a pregnancy by themselves, according to a pair of surveys. Many end up in emergency.

GOP is wrong—We need regulation otherwise “everyone” would cheat!
Dr Scott Doak, Xenia, Ohio, stole $66 million and pays $250,000 fine to US.
Student Financial Resource Center and College Financial Advisory, Global Financial             Support caught charging for financial aid assistance they don’t actually receive.
Regulators require advisors to act in YOUR best interest not their own finally in 2016.
Fake Bob Marley schemers caught stealing name and trademarks for $78 million.
Integrity Advance, James Carnes caught deceiving consumers about the cost of loans.
CDC monitors Chipotle-Linked E. Coli Illness as Numbers Drop as testing continues.

Is the MyRA right for you?
This retirement starter kit is Obama’s answer to the young financial illiterates who work at a small business that does not offer retirement plans like a 401k. It is free of fees and safe—like savings bonds—guaranteed by the gov. But because it has the character of a savings account, it is almost worthless as a retirement vehicle. No one can retire by contributing $25 a week to a gov account paying 1% a year. Obama should have offered the plan he and Congress use. It is best for all workers. Thrift Savings Plan has low-fee Life Cycle stock/bond mutual funds averaging 10.83% and used by federal workers.   
Best alternative: Non-profit mutual funds cost little and can grow at market rates of 11% per year. $100 a month could become $250,000 tax-FREE in 28 years not 120 years.

How much does your advisor get paid?
One firm, Commonwealth Financial plans to offer a flat 95 percent payout on fee-based retirement plan business. It will boost payouts by 3-9% for advisors who act as ERISA fiduciaries and have at least $100,000 in fee-based retirement plan revenue. Your advisor must now give you the best advice for your situation not their own fee revenue. Most should use TIAA or Vanguard, the not-for-profit management firms:

Earn 3.79% or 11% on your retirement money
Survey of broker customers shows the average earnings were just 3.79% compared with just holding the stock market index fund at 11%. Pay less, earn more.
The hard part is letting your money GO LONG:

SCAMS: No Jail Time so crime does pay!
Dr Scott Doak, Xenia, Ohio, stole $66 million and pays $250,000 fine. No Jail Time!

Special Inspector General John F. Sopko has spent years documenting waste, fraud and abuse in the U.S. military’s efforts to rebuild war-torn Afghanistan. We have spent $110 billion on reconstruction projects in Afghanistan. When adjusted for inflation, that total exceeds the value of the entire Marshall Plan effort to rebuild Western Europe, WWII.
=More than $8 billion in spending on counter-narcotics efforts in Afghanistan that have “failed by every conceivable metric. Afgans grow poppies like we grow corn.
=The purchase of nearly $500 million worth of airplanes that never could fly and had to be turned into scrap.
=Construction of a building that literally began to melt when it rained.
A $500,000 health clinic that lacked water and electricity. Newborn babies had to be washed in a nearby dirty river.

Terrorists’ phones can’t be hacked—We pay $Billions for CIA, NSA, FBI for what?
Attorney General Loretta Lynch told the House Judiciary Committee on Tuesday that advanced encryption technologies being used by Islamic militants has stuck a wrench into investigations of individuals plotting violence in the United States.

41 Watchung Plaza, B242
MontclairNJ 07042

Friday, November 13, 2015

Hedge fund owners are robbing our pensions

Our pension money is being wasted on hedge fund owners
The only people getting rich from our pensions are the hedge fund owners! Even though the largest public pension, CALPERS, has dumped these fee hogs, some pensions are gambling more of our money with them. A new report examined the hedge fund performance of 11 large public pensions and found that these investments exacted a high cost, had laggard returns and generally moved in tandem with the overall stock market. This bad performance means $8 billion in lost investment revenue at our funds. Hedge fund managers collected $7.1 billion in fees from us. That averages out to 57 cents of every dollar in net returns earned by the funds. Fees can steal 63% of our nest egg!

Digital companies (Google, Apple, Uber, Amazon, Facebook) shift taxes to us
Many new digital companies make nothing in America, outsource sources and can shift taxes on income to tax-FREE countries. We can’t. For instance, Uber is worth more than Target, operates in 60 countries, yet hides profits from all governments as “royalty fees.” It has non-taxable Ocean income. It pays no tax or benefits for its drivers either. Using intricate legal loopholes and 19th century tax laws, new companies avoid paying their fair share. The tax burden paid by companies—for the Army Navy and Air Force protecting them—has fallen from 27% to 8% since 1955. We pay the income and payroll taxes to pay for their use of our roads, police, military, courts, airports, cell towers, etc, etc.
You can avoid their taxes with a legal IRS tax haven:

 Congress just gave debt collectors your cell phone numbers
The budget law gives new power to debt collectors. They can now robocall your cell. That used to be illegal — but not anymore.
“You can only imagine what the debt collectors are going to be like once this door is opened, and they just have the computer calling and calling and calling,” Wayne attorney Michael Forbes says.
Register your phone for no cell calls:

Is a real estate investment right for you?
New York City properties are very expensive. Trump says he makes money buying and selling them. Many international elites buy Manhattan addresses. But are they right for you as investment or even as speculation? No! When you compare even the most prized properties, the market index fund is a better place to be. Over a 10-year period, the boring index fund beats New York City's finest condos. In fact over most time periods 10, 20 30 years, a low-cost market index like the 500 Index provides 11% returns. Real estate has slumps and booms but over time, average returns look like the average brokerage client returns of 3.9%. Hedge funds are not good either. Fees matter.

Critical illness insurance?
This is what your employer or agent will say: “many Americans have to choose between survival and bankruptcy when they are diagnosed with a critical illness, even when they have a medical insurance.” ObamaCare requires insurers to cover essential health care without limits unless your plan was “grandfathered” in 2014. Most have lost that status since then so check with your administrator. This insurance plan may cover some of your expenses if the insurer accepts your claims after your comprehensive health care policy pays for the majority of care expenses. Critical illness insurance was popular in countries where coverage had financial limits.
Agents have sold the lucrative cancer insurance as a supplement for years. However, treatments and no-limit plans have reduced the likelihood of financial catastrophe. Few of us understand the actual probability of complete loss from illness so agents can induce sales from fear.
So, as in most contracts, the fine print matters. Most of these plans will give you cash to spend on expenses if the illness qualifies—some more than others. Better alternatives include flex spending and health savings accounts.
Even better is building a Roth IRA yourself or Roth 401K at work. Contributions are deducted from pay just like CI plans. However, you can use the money when you decide—not an insurance clerk—and you don’t lose it if you don’t need it. Tax-FREE.

Does our President need to tell the truth?

Carson: Ben admits his story of poor angry kid was made upGOP gives him $3.5Mil.
            “Pathological temper” or pathological liar? Classmates can’t remember anger!
Trump: I like Putin in Syria. We are friends bec/ on same ‘60 min’ show!? Look in eye?
            “Our wages are too high. Everything is too high.” His wages: $380 Mil—too high!
            “How stupid are the people of the country to believe this [Carson} crap?"
Christie: I got more money AFTER being kicked off main debate. Running is all I can do             except veto a voting rights bill so GOP can suppress DEMs in NJ.
Rubio: Putin is nothing but a gangster. Nobodies wages should be raised. Except Senate’s
Paul: How is it conservative to add a trillion dollars in military expenditures?
Cruz: 25 programs I would eliminate--corporate welfare, sugar subsidies, etc.
Fiorina: Government uses the tax code to decide winners, and losers.

The GOP Dream Team:
Paul as Prez
Trump as Sec State
Jeb as National Parks head
Rubio as Sec Treasury
Fiorina as Sec Commerce
Christie as Sec Transportation
Kasich as Homeland Security
Huck as Sec Justice
Carson as Surgeon General

GOP religion
Carson thinks Joseph built pyramids. Pyramids built 3,000 years BEFORE he lived.
Michele Bachmann wants to convert Jews to Christianity ahead of the arrival of Jesus. 
GOP Supremes (5 old men) will again try to limit our reproductive rights. Ban sex?
KY gov will stop clerk signatures to protect clerk from Hell on gay licenses?

Are you using all your auto discounts?
Not all insurance companies are alike. Does yours provide discounts for anti-theft devices, hybrid, or club membership? Every time I go shopping for coverage, I find cheaper rates. Insurers go through marketing periods that may benefit you but you must ask. Cancel the extras you don’t need and save $22,000 over time.

GOP Supremes to decide which kids get deported
Obama wanted to grant kids of the undocumented status to stay and work in US. Some states said no and Obama filed for the Supremes to decide. 4.3 million illegal immigrants would be eligible for Obama’s DAPA.

GOP to take health care from 521,000 KY residents? Can they do it?
“I can go home and sleep and wake up in the morning and know that I don’t have to worry about not having insurance,” Wilson said in an interview at the Kynect store after enrolling. If GOP gov Bevin ends Kynect as promised, “they’re going to have a lot of angry people on their hands,” she said.
Bevin is an investment manager and has always had health insurance.

GOP is wrong—We need regulation otherwise “everyone” would cheat!
Agent stole $4.6 million retirement funds but no jail, pays fine, pass go!
RCS Capital caught fraudulently casting shareholder proxy votes for themselves.
Regulators teach stock brokers how to see market manipulation (spoofing).

NRA has taken over Kansas!
Kansas passed a new law allowing concealed firearms for anyone without a permit. A survey says 75 percent of respondents didn’t support the law and only 14% did. Gov Brownback said the law aligns the state with the constitutional right to bear arms without permit. You can't vote, though it's a constitutional right. You still need a permit to vote but not to pack. Every study found no voter fraud.

Average American spending leaves little for extras
We are earning what we earned in the ‘70s when inflation is considered $53,495. Our spending patterns have changed. College and cars went up a lot! Wages went down.

1 hour peddling will power your cottage in the woods and keep you fit
Manoj Bhargava, the guy who made 5 hour caffeine drink, built battery charger for the off-grid world.

Calculating your Social Security benefits and time to retire
Consumer Finance has come up with a guide for learning about your retirement income and your options.

VW will try to buy off fake clean diesel car owners with $500 cash and a chance to buy another VW for $500 credit. VW is being sued by owners since most diesels can’t be driven in states with emission laws. Cost to fix is $2,000 or more and you might not be able to sell the car.

Bobby M. Collins, Wichita FallsTXstole $4.6 million from elderly. No Jail TIME. Agreed to pay $733,000 in disgorgement and civil penalties to settle the charges!?

VA gave $142 million in bonuses for screwing veterans
People who did NOT do their job got “performance bonus.” Just like Wall Street firms, bonus pool for executives and political favors rules the workplace. Contractors over budget for $1 BILLION got bonus for bad behavior.

Who owns your account now?
Fidelity & Guaranty Life to Anbang Insurance Group, China

            Will House committee spend $4 mil to investigate these 30 killings?
House Benghazi committee cost us more than $4.5 million to make Clinton look bad.

We wasted $2.7 BILLION on those giant blimps that broke free from Washington.
America needs to take care of American’s needs FIRST!
Rebuild America Act: a five-year plan would invest $1 trillion and create or maintain at least 13 million decent-paying jobs—Senate Budget Committee but GOP says no.
Will GOP use taxes to move Alaska town due to global warming they don’t accept?

“We must guard against the militaryindustrial complex.” 1960, Pres Dwight Eisenhower.
Defense spending has DOUBLED in 14 years.
Since 2001, the base defense budget has soared from $287 billion to $530 billion — and             that's NOT counting the Iraq and Afghanistan wars, ISIL, UkraineCameroon
US knew US would fail in Vietnam in 1965 but still 1.3 million dead, Kissinger diary.
We just sent “several dozen special operations forces into Syria.” Just like Vietnam.

We are still wasting $8 million per HOUR we don’t have in Syria/Iraq/Afgan/            Ukraine/CameroonObama keeps 9,800 in AfghanistanWasted Billions     
            Taliban captures Kunduz, Afghans run. We bomb hospital instead.

We bombed and killed our own Doctors without Borders hospital staff 10/2/15
            We pay bonus for kills – no wonder the world hates us!
             Saudi’s just bombed Doctors Without Borders hospital even with GPS

We are supporting child abuse by Afghan leaders by giving them arms/money.

100,000 our military in Germany and Japan….still. Why? Costs us $200 billion.
Residents of Okinawa object to tens of thousands of U.S. troops and another base there.

Mission Accomplished?
Kerry warned the Islamic State jihadist group its "days are numbered". 

41 Watchung Plaza, B242
MontclairNJ 07042