Friday, September 30, 2016

Use a lawyer to avoid taxes

Another way the wealthy avoid paying taxes—a good tax lawyer
Jenkens & Gilchrist were the best tax lawyers in the country—even the IRS admitted that by pursuing them for years for tax evasion and fraud. After lead attorney Paul Daugerdas forged a tax shelter scheme used to generate fraudulent losses and eliminate income taxes worth nearly $7 billion for wealthy clients, the firm grew to 600 attorneys and was bringing in millions. Imagine something like the story in The Firm: Mitch (Tom Cruise) learns that most of the Firm's work involves helping wealthy clients hide large amounts of money in off-shore shell corporations and other dubious tax-avoidance schemes. Mitch goes to a seminar on taxes in Washington, probably given by Paul to other lawyers. Trump could teach that seminar based on his record of tax evasion and asset value manipulation in buildings, casinos, and golf courses. The best minds in the world aren’t curing cancer or world hunger, they work for the 1% who own more than 50 percent of the world’s wealth. “Only the little people pay taxes” one of them said.

Trump new tax plan—cut the personal deduction, raise lowest bracket
A middle-class family of five — two parents, three children — would gain $17,000 for their standard deduction but lose $20,250 in personal deductions. Their remaining income would be taxed at 12 percent, not 10 percent. Extra child-care benefits might not be enough to make up the difference, so they would pay more. Trump eliminates what is called "head of household" filing which raises single parent taxes. “Single parents get hit with all three of the tax increases.” On the other hand, Trump gives a government match of up to $500 per year, per child, for parents who put money into a tax-preferred dependent care savings account. A match requires you to put $500 in an account per child. Because of the huge tax cuts for higher income families, Trump's plan would reduce federal revenue by up to $5.9 trillion over a decade. China will need to buy more US savings bonds to cover the gap since fewer wealthy person and corporations pay tax.

Are you the 1% in your county?
You need only $97,000 income to be a 1-percenter in Holmes County, Miss., or Lamar County, Ala., or $108,000 in Grayson County, Va. You need income over $389,436 to be the average 1% in America. In Teton WY it takes over $2.2 million and growing. In Massachusetts, 1-percenters’ incomes jumped 130 percent from 1979 to 2013; they’ve increased by 112 percent in New York and 113 percent in New Jersey. In New Mexico, they’ve grown only 22 percent over the same period, and in Nevada, only 15 percent.
So the wealthy flock together and have been growing their wealth faster. The huge middle class has lost buying power since the 1970s. That may account for the populist era we are experiencing and the anger Trump is counting on to improve his personal wealth. The 1% has doubled its income since 1979 by capital accumulation and tax advantages we don’t have. The wealthy are not working harder – most of us are working two jobs just to keep up. 1%ers can double their pleasures by avoiding taxes AND compounding their assets. Compounding can double your wealth in 8-10 years.

Special Needs child tax-FREE account
ABLE is a way to save $14,000 a year for anyone under age 26 blind or disabled without them losing their SSI benefits. IRS does not tax earnings in this account so it is like Roth IRA. Contributions to $14,000 can be made to an ABLE account on an annual basis up to $100,000, and tax-free distributions if used to pay qualified disability expenses. Check: For those with greater lifetime needs a trust may help. Trust document available in book at You can also use a Roth IRA to create a tax-FREE inheritance for your beneficiary.

GOP ‘trickle down’ economics failing so KS cancels its scorecard
The end of the council's economic assessment tool is an attempt to minimize public exposure of weaknesses in Brownback's program to build the state's economy by exempting 330,000 businesses from the income tax and reducing individual state income tax. "He specifically asked the council to hold him accountable through rigorous performance metrics," a critic said. "Five years later, the metrics clearly show his tax experiment has failed while business leaders and local chambers of commerce across the state openly ask him to change course." Schools and basic services have been cut to balance the budget since revenues have fallen. Koch Industries has taken its tax cut to other states to invest. Business does not expand because taxes are cut. There must be buyers and consumers with money. KS has proved ‘trickle down’ only works in state controlled economy like Russia and China. Wall Street is betting on Clinton’s plan to raise taxes on the wealthy and business. 79% of Americans favor her plan.

Pensions for public employees failing—Wall Street tricks don’t work
Dallas’s police and firefighters are quitting in droves, wagering that financial-market losses are about to render their promised pensions too good to be true. Pension managers made bets on Hawaiian villas, Uruguayan timber and undeveloped land in Arizona instead of a low-cost stock index fund. Hedge funds are closing after years of losing money over the last few years. In addition to poor investment decisions, contributions from cities, towns and states have been reduced; some to zero. NJ and IL are prime examples. The cost of borrowing money has risen since bond raters don’t see a future in cutting pensions and services. In November, Standard & Poor’s downgraded Dallas’s bonds by one step to AA, the third highest grade, citing the need to address the rising liability to the 9,600-member fund. 
Create your own tax-FREE supplement just in case:

Are “fulcrum” fees in your mutual funds right for you?
Several mutual fund companies such as Fidelity, Janus, and Saturna Capital now use a special kind of performance-based fee structure, known as ‘fulcrum’ fees, in some or all of their funds. Fulcrum fees are modified hedge fund fees for index funds sold by salespeople. A base fee like 0.75 is assessed and then slides up or down depending on how well your fund did compared to its index. So if your fund fell -2% while the S&P 500, your fund index, fell -3%, you would be charged the higher fee. This means that if your salesperson sold you on an index called “smart beta” ETF (sounds cool) for large stocks, you might pay 0.85-1% because your fund lost LESS than the market index. Clearly, this is an attempt by wealthy fund companies to make their expensive funds more attractive by giving their customers the illusion of a price break from the hedge funds charging “2-and-20”—2% plus 20% of any gain. Fidelity and most funds have seen customers jumping to cheaper vehicles—namely Vanguard. Even Vanguard’s managed funds are cheaper than these ETFs since you don’t pay a salesperson—Vanguard’s registered reps are on salary. Morningstar: “cost is best predictor of success

GOP plans to win elections by limiting voting by Dems
Federal courts struck down restrictive voting laws in KS and WI where the court found “The Wisconsin experience demonstrates that a preoccupation with mostly phantom election fraud leads to real incidents of disenfranchisement, which undermine rather than enhance confidence in elections, particularly in minority communities.” TX courts struck down its suppression law in July. Voter impersonation fraud is essentially non-existent in practice and has virtually no chance of affecting an election even in theory. These requirements fall disproportionately on racial minorities and the poor. So these laws have racially disparate effects while providing negligible legitimate benefits. GOP has filled state houses with conservatives because only the die-hards vote in off year elections with the support of NRA and other GOP-leaning groups. Some observers see “a coordinated attack on democracy.” Others see a repeat of old GOP tactics with a twist. Clearly, without the Voting Rights Act and ‘conservative’ Federal courts, long lines may be the least price to pay for citizens of the USA to vote.  NC has continued to block voters despite their own Circuit striking the legislature’s suppression and Supremes’ NO. KS has refused to follow a court order to reinstate voters taken off the rolls by the GOP. FBI said hackers have attempted more intrusions into voter registration databases. If they are Putin’s men, you can guess which voters will be cut from the rolls.
If FL or OH have fewer Dems on voter lists, could Putin actually pick the winner?

Don’s Apology?: “Sometimes in the heat of debate, and speaking on a multitude of issues,   you don't choose the right words or you say the wrong thing. I have done that." 
Hill’s Apology?: “I just followed advice of Colin and other Sec. State before me.”

Don vs Hill 2016 – “debate” as reality TV show? Do Nothing Congress decide US future.
            “I guess I’m having an Aleppo moment,” Johnson joked when asked for name.

Don:    Ted’s 180: “I am not in the habit of supporting people who attack my wife and attack my father.” But like Christie I need a job next year.
            I pay Ted for my mailing list outreach—he needs money; I need Bible thumpers.
            I have been successful at business so I can save America; Fortune disagrees Marla Maples was not an affair like Gennifer Flowers with Bill. “Another planet”
            “They gave me a defective mic,” My mic was defective. I don’t sniffle.
            Giuliani: I wouldn't participate in another debate unless I was promised Hannity”
            ‘You are our country's only hope’ my email to foreigners. “It’s not illegal is it?” 
            If I did pay taxes, “It would be squandered, too, believe me.” So he does not pay?
            “Another person would be in jail for that,” Jamilla Hawkins, NC debate observer
            “Raise your hand if you're not a Christian conservative. Should we keep them?”

Mike:   Don has answered ALL questions about his Foundation paying debt, political pay.

Hill:    I prepared for the debate. Even the Arizona Republic endorses me.
            I am sending Bill to FL to inspire the Black and Latino voters          

Tim:    GOP John Warner former Senator and Navy Dept helped me in VA

Regulators are the only protection we have since we can’t sue anymore
            “It is nearly impossible for one individual to take on a corporation with vast resources.” (GOP bill                requires impossible: every person in class action suffer “same type and scope of injury”)
               Supremes stop us from suing—State courts no longer available to sue corporations!

Leon Cooperman Omega Advisors caught as part of an insider trading scheme. Jail?
Colin Whelehan caught insider trading on ADT Apollo Global deal for $24,000. Jail?
Wells Fargo execs will not receive future stock awards; no cash returned; no jail.
IRS announced it will eliminate more than 7,000 jobs by 2024 so NO wealthy audited!
Feds go after Mylan for scamming Medicaid out of $ millions on EpiPen. UK pays $69
Wells Fargo whistleblowers fired in 2010; fraud known to 2010 execs—bonuses; no jail
Wells Fargo caught unlawfully repossessing servicemembers cars for seven years; no jail
Banco Santander SA improperly confiscated over 1,000 vehicles from military members
HSBC caught improper repossessions of 75 cars. Not liable; no jail
In 2012 Capital One fined improper seizures. “it might not be in compliance with law.”
BlackRock fund manager Mark Lyttleton caught profiting from insider trading

We need regulation—GOP wrong—companies/cities wouldn’t fix bad products on own

Police want gun control.
When everyone has guns; your chance of being killed goes up. Police don’t know who to shoot. They assume everyone has gun hidden. You and real criminals both have guns.
If you are black, you get killed even with no gun, hands up, and after stun gunned. They assume you are a “bad dude”; don’t wait to find out. Later say “found PcP in car.” If you act erratically and ignore commands, you are “put down.”
MO just eliminated licensing and training for anyone to carry concealed weapon—crazy!
FL man called NRA group BEFORE victim died from “stand your ground” killing.

Wells Fargo exploited a binding arbitration clause to deflect customers' fraud allegations
Cybercriminals in Europe are offering their services for hire to Isis or countries who pay.

How our government wastes our money
We are paying $ millions for defrauding for-profit colleges to keep profits Apollo still
Each LCS costs $655 million but does not work and Austal boat built in Australia.
600 more troops to retake (3rd time?) Mosul—we already trained Iraq to do this once.

Where have all the jobs gone?
Driverless trucks safer and cheaper so 3.5 million drivers need training for …
Student in Melbourne discovered way to kill superbugs without the use of antibiotics: "a breakthrough that could change the face of modern medicine" Drug company jobs gone!
IRS cuts more than 7,000 jobs by 2024 so NO wealthy audited!
Progressive to hire 1,300 IT developers, systems engineers, software engineers, managers
Manulife (J Hancock) hiring for new IT Lab of Forward Thinking in Singapore; Boston.
9 year old graduates HS; college to ‘prove God exists’ with astrophysicist degree!

Who owns your account now?
Jefferson National to Nationwide

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