Friday, November 10, 2017

Wealthy invest their tax cuts in tax shelters not jobs

This is a middle-class tax cut?
GOP borrows $1.7 Trillion from China to give to wealthy and let it ‘trickle down.’ Does any of Trump’s class pay the top tax rate 39.6%? Do any corporations pay 35%? Their effective rate is 28.5% and 12.6% respectively. Big firms pay NOTHING. All wealthy people know how to pay less tax or they wouldn’t get richer. They send the money to an offshore tax shelter not build factories. Trump’s mob has a lot of their money in shelters we learned about from the Paradise Papers. Trump, Cohn, Tillerson, Mnuchin, Ross, etc avoid the taxes we have to pay. Trump and many corporations like Apple keep their cash in shelters or foreign subsidiaries. They just don’t report it so it is not taxed. Like Romney, they claim they pay their fair share. So why do they keep it overseas? There has to be a benefit otherwise they would put it to work on infrastructure and creating jobs.
But they don’t make jobs. Most wealthy people invest in businesses that increase their dividends by buying up smaller firms or just buying back their own stock from investors. They don’t create jobs or pay higher wages with their extra cash as Trump and the GOP say. For the 12 months ending March 31, S&P analysts said that the top 500 companies spent a record total of $589.4 billion for buybacks. That is so much stock buying that it could rebuild America’s infrastructure. But that means the money does not go into dividends. The rich would need to wait for the improvements to pay off.

Final bill for the 1% tax breaks: $6.2 Trillion: your share of debt = $154,161 
Donald Trump’s tax plan would cost US taxpayers $6.2 trillion! That’s at least three times the cost of George W. Bush’s tax plan, a plan which did nothing to boost the economy or job-growth. In fact, the economic recovery following the Bush tax cuts was the slowest on record, even when artificially buoyed by an enormous housing bubble which eventually burst and caused the Great Recession. More wealthy people are leaving US so WE pay their taxes. GOP insists the tax break is for US but you need to read the details. Hedge fund managers get to keep their lower ‘carried interest’ rate that Trump vowed to end. Corporations get lower rate and keep subsidies and loopholes. DEMs tell the GOP they are wrong—deficits do matter, Mr Cheney!
Who will save US from this catastrophe again?

Is investing in real estate right for you?
Owning your own home is not investing in real estate. You can’t sell it and make a profit easily. If you tried being a landlord, you know how difficult it can be. If you have tried being a flipper of real estate, I hope you bought and sold at the right time. Like individual stocks, you can lose by bad timing. There is an easier way as I explained to my in-laws several times. What motivated them to look at this investment area was the idea that they could buy a property and get rich from the rents year in and year out. People have to live somewhere. Unless you have a lot of money and can afford to hire RE management companies to fill and maintain your property, you must do a lot yourself. Finding and keeping good tenants, fixing and improving the property, and taking your tax benefits are all challenges. I tried it with one 4 tenant brownstone in an up and coming neighborhood and gave up after a few years of work. An easier way is to buy and hold a low-cost RE index like Vanguard REIT. Your return has been over 10% since 1996. As an investment trust, you receive dividends and interest so it is better held in a Roth IRA. Owning a REIT in a Roth turns taxable income into "free" income. 

Small business gets a tax increase—250%
The GOP tax plan would raise tax rates paid by the smallest businesses from 10% to 25%. That's a 250% increase for many small employers. Some corporations like John Deer, General Dynamics, Clorox, Biogen, and Comcast will see their taxes cut by 44% to 20%. Big oil, gas, agribiz, pharma, telecoms, utilities will still receive subsidies and pay less than the average family. Exxon and GE actually got refunds even though they made $ billions and paid shareholders dividends. Some firms like Caterpillar use "goodwill" write-downs (overpaid for subsidiary) to show huge tax rates. The new Trump pass-thru tax at 25% was written to exclude service biz like lawyers and doctors but their accountants have already found ways to get around the complicated revenue limits. Many small businesses use delivery vehicles so the new gas tax will be another tax increase. The Tax Policy Center ran the numbers. By 2027, 31% of middle-class filers would see tax hikes. Repealing the Alt. Minimum Tax created for the rich in 1969 means the burden will shift to those making between $48,600 and $86,100.

Avoid cars that lose value—there is a reason
Leasing a car means you are always going to have a car payment and so deducting from your company revenue makes sense. But if you are not leasing, you are going to sell or trade that car sometime. For some cars from Fusion to Mercedes E, you need to take advantage of the lower prices on those coming OFF lease. I got a 3 year old Camry with local warranty for less than HALF price of new some years ago. Best deal I ever made other than getting a used Ford free when I was age 17. Unfortunately, I loaned it to a ‘friend’ and he gut the transmission. More recently, I was able to afford a used Lexus that I very much appreciated since its 7 air bags kept me from being injured in a crash.

Trump releases report: “global warming” caused by coal, oil, gas use
Trump has finally read the evidence and he agrees global warming is man-made in his new report. Coal owner’s contributions are uncertain now. Surprising, EPA and Energy major-domos agree with FL gov that the idea of man-made warming is not possible in their worlds. FL has banned the word and EPA has sent the scientists home with no pay. And yet, God told us to take care of the Earth. Trump has ended the tax credit for electric cars. He has cancelled the Paris accord (lower emissions) while Syria joined. EPA cancelled clean water clean air regs. Trump let Canada foul our aquifers and take oil from Alaska. Make America Great Again means going back to the 1950s pollution and destruction. The oil/gas owners can drill in your backyard and get our tax money to do it.

ObamaCare enrollment—maybe your last chance for quality care
GOP promise to end quality health care for us has begun. Trump has cut subsidies for the poor just when the addiction crisis demands more treatment not less. GOP budget for next year calls for adding $1.5 trillion to the deficit, cuts $4 trillion in spending including nearly $500 billion in cuts to Medicare and $1 trillion to Medicaid. Medicaid expansion was the means by which millions of working class people got health care plans for the first time. 600,000 signed Nov 4. GOP will leave it up the states to decide who will be covered in the future. ObamaCare plans with full coverage for the whole family may be the only way many will keep their coverage. Congress will keep their ObamaCare full coverage for themselves and have us pay for it while they favor insurers going back to “junk” insurance for the rest of us. Congress could negotiate lower drug and hospital costs but lobbyists won’t let them. Instead they are buying more war items. But terrorist do not fear more missiles.

Trump's repeal of the Alternative Minimum Tax is the best part of his ‘reform’ because it once cost the president $31 million.  It accounted for most of the $38.5 million in taxes Trump paid that year. With the estate tax repealed, Trump's estate saves $564 million based on an estimated net worth of $3 billion, as Bloomberg reported last year. Billionaires don’t use the top bracket of 39.6%. Billionaires like Buffett and Romney create their income from business income (capital gains@15%) to avoid EARNED income which is taxed. Billionaires like Buffett pay 17% or less. Buffett pays himself in stock—not taxed. It is not taxed until he sells it. He has said that holding stock is “a [deferred tax] liability [which] resembles an interest-free loan from the U.S. Treasury."
When the wealthy need cash, they borrow it with their stock as collateral and then deduct the interest as a business expense. Nixon’s Alternative Tax was the only way the rich had to pay tax because it disallowed all the tax-credit class’s deductions. WindFall!
NO Don, this is NOT a middle class tax cut:

Families in high property tax states hit with 9 increases
CA, NJ, NY homeowners are paying for the Trump’s tax ‘cuts.’ We lose property tax, mortgage interest, state local tax, student loan, teacher supply, adoption expense, disaster loss and medical expense deductions. We lose credit for buying an electric vehicle. We add credit for more kids, non-child dependents, lower out of pocket student loan payments, and higher standard deduction. Net net, we pay more tax … unless we can take our incomes as a business like Trump. Trump lives in an office building so no personal property tax compared to average NY, NJ, CA home’s property tax at about $20,000. We could all move inland but that would drive up cost of your home. We don’t get to use the elimination of the alternative minimum tax or estate tax or the drop in corporate tax. There are only 5,000 families who are hit with the estate tax per year so their Trump donations were money well spent. Most of Trump’s class used to have to pay something because of the alt minimum tax. They are the political donors like Trump who avoids paying $31 million in taxes in Don’s case. Many corporations don’t pay tax but they will continue to pay for our ‘reps’ to hide subsidies and loopholes that were NOT eliminated

Most successful investment accounts were ….
Fidelity found that account holders that did NOT 'manage' their accounts or died were the most successful. Think about that! You can earn more in your investment account by NOT touching your money. When you let someone 'manage' your money they tend to waste it and then charge you a fee to boot. It Just Takes Time tells us to buy stock funds and wait. Warren Buffett's teacher, Benjamin Graham, once said: “Buy stocks like you buy groceries not perfume.” Don't buy the stocks that the Wall Street media or your advisor tells you to buy. Buy those that are the most profitable firms worldwide. Just buy low-cost stock market index funds and keep buying. You don’t have to pick the right stock. And you don’t have to do a thing to get rich: It Just Takes Time.

Why are our taxes STILL going to these profitable companies?
TX representative Brady wrote the new tax bill which gives Trump and the wealthy two big tax breaks: no alt minimum tax and no estate tax. Brady lowered taxes for some corporations but he did NOT eliminate the loopholes and subsidies to these:

AT&T ($38.1 billion) 
Wells Fargo ($31.4 billion) 
JPMorgan Chase ($22.2 billion) 
Verizon ($21.1 billion) 
IBM ($17.8 billion) 
General Electric ($15.4 billion) 
Exxon Mobil ($12.9 billion) 
Boeing ($11.9 billion) 
Procter & Gamble ($8.5 billion) 
Twenty-First Century Fox ($7.6 billion) 
Time Warner ($6.7 billion) 
Goldman Sachs ($5.5 billion)

Why ‘reform’ the tax code and leave in all these loopholes and subsidies? Brady and the GOP are running up the deficit when they could cut all this ‘pork.’ There are 23 lobbyists assigned to each of our ‘reps’ to help them give our money to their sponsors. Banks write the bank laws, oil/gas write energy laws, drug firms write drug laws, etc.
When you look at all of our credits that are repealed on pages 6-167 (Repeal of credit for adoption assistance, etc), you find GOP doubles the amount of cost recovery which lowers corporate taxes. The only repeal of subsidies to corporations is the “Repeal of credit for producing oil and gas from marginal wells” on page 4. Marginal wells account for very little of the credits. They have already provided their credits in years past. This is BS so GOP can say they cut corporate subsidies. This is NOT reform of corporate loopholes and subsidies. Someone is going to have to pay for these deficits.

These are the things we give up to pay for corporate and wealth tax breaks
These are the credits/deductions that are repealed by the GOP bill. There is just one corporate subsidy—“marginal oil and gas wells” they give up. We lose these:
Repeal of deduction for personal exemptions. We lost $4,000 per person deduction.
Repeal of nonrefundable credits.
Repeal of other provisions relating to education.
Sec. 1301. Repeal of overall limitation on itemized deductions.
Sec. 1302. Mortgage interest. Reduced deduction.
Sec. 1303. Repeal of deduction for certain taxes not paid or accrued in a trade or business. Property and state and local taxes were deductible.
Sec. 1304. Repeal of deduction for personal casualty losses.
Sec. 1305. Limitation on wagering losses.
Sec. 1306. Charitable contributions. Modifications
Sec. 1307. Repeal of deduction for tax preparation expenses.
Sec. 1308. Repeal of medical expense deduction.
Sec. 1309. Repeal of deduction for alimony payments.
Sec. 1310. Repeal of deduction for moving expenses.
Sec. 1311. Termination of deduction and exclusions for contributions to medical savings accounts.
Sec. 1312. Denial of deduction for expenses attributable to the trade or business of being an employee.
Sec. 1401. Limitation on exclusion for employer-provided housing.
Sec. 1402. Exclusion of gain from sale of a principal residence.
Sec. 1403. Repeal of exclusion, etc., for employee achievement awards.
Sec. 1404. Repeal of exclusion for dependent care assistance programs.
Sec. 1405. Repeal of exclusion for qualified moving expense reimbursement.
Sec. 1406. Repeal of exclusion for adoption assistance programs.

Sec. 1501. Repeal of special rule permitting recharacterization of Roth IRA contributions as traditional IRA contributions.
Sec. 1502. Reduction in minimum age for allowable in-service distributions.
Sec. 1503. Modification of rules governing hardship distributions.
Sec. 1504. Modification of rules relating to hardship withdrawals from cash or deferred arrangements.
Sec. 1505. Extended rollover period for the rollover of plan loan offset amounts in certain cases.
Sec. 1506. Modification of nondiscrimination rules to protect older, longer service participants.
Your employer has credits repealed that may help you if you have a child or disabled:
Sec. 3402. Repeal of employer-provided child care credit.
Sec. 3403. Repeal of rehabilitation credit.
Sec. 3404. Repeal of work opportunity tax credit.
Sec. 3405. Repeal of deduction for certain unused business credits.
Sec. 3406. Termination of new markets tax credit.
Sec. 3407. Repeal of credit for expenditures to provide access to disabled individuals. Sec. 3408. Modification of credit for portion of employer social security taxes paid with respect to employee tips.
Trump’s mob, Commerce Sec Ross, State Dept. Tillerson, advisor Cohn, Treasury Mnuchin, Fed v-chair Quarles, and ambassador Jon Huntsman hide their money in various shelters under fake firms/names. Do you have a tax shelter like the Queen? New report says she hides her money in the Cayman Islands. Apple hides its money in the tiny island of Jersey. Maybe we all need to get a real tax ‘reform’ with an IRS Sec. 408 Trust.

Trump’s money launderer manager indicted on 12 counts: conspiracy against US.
Trump’s RNC is paying for the legal costs—why?  Manafort has $18 mil from USSR

Trump campaign aide pleads guilty to lying to the FBI about Russia contacts

Trump is still just a mafia contractor from Queens—Dad taught him to be The Don.

Smoking gun: “Our boy can become president of the USA and we can engineer it,” Sater wrote in an email to lawyer Cohen. “I will get all of Putins team to buy in on this.” Manafort tells Russian mob he will keep them informed about “our boy.”
Jared deal with Evraz’s owner links to Russia steel pipe in KeystoneXL/Cheniere

Undisclosed $26 million loan from Russian to Trump campaign manager Paul Manafort.

Trump campaign asked Wiki to get Hillary emails from Putin hackers: smoking gun?

Putin using Twitter now with fake followers for Trump mob—how great impact?
Putin hired activists to stage demonstrations and promote divisive content. 

Ministry of Truth1984 novel: Government propaganda is ‘truth’ when they say it!
Trump Calls on the FBI to ‘Go After’ His Enemies (for Things That Aren’t Crimes)
“No Russia connection” but Jared and Ross in with Russian mob laundering biz
ObamaCare ‘collapsing’ but 200,000 more signed up the first day 2017: Mandate works!
Trump on tax: “The deal is so bad for rich people, I had to throw in the estate tax just to give them something.” But 80% of cuts go 1% and estate tax repeal only helps 5,500.
Wealthy do not create growth or wage hikes; money is sent to tax shelters/foreign corps.

My Theory:
Trump got Russian help/funding for business from business/mob ties to Putin. US banks not interested in more bankruptcies. No one expected him to win so no harm getting Putin help. Don owes Vlad’s mob money so they sent mob gofer Manafort to run the campaign. ‘Colluding’ Putin style. Trump always has a fall guy to blame when caught in lie.

TrumpWorld – using presidency to make money the old fashioned way: theft

Ivanka gets $50 million for her causes from Japan
Trump hires only foreign workers  to save expenses despite “hire American” lecture
Jared uses Russian money for his projects and it buys Facebook Twitter media outlets

Tax reform saves the president $31 million.  It accounted for most of the $38.5 million in taxes Trump paid that year. With the estate tax repealed, Trump's estate saves $564 million based on an estimated net worth of $3 billion, as Bloomberg reported last year.

Dictator talk time:
“When the president does it, that means it is not illegal,” Richard Nixon

The Don is moving us to a dictatorship where the only people who go to jail are his enemies and non whites he does not like. Racists and nationalists get pardons. If Flynn Page and Manafort get indicted by Mueller, The Don will just give them a “get out of jail free” card so they don’t rat him out. He is also paying their lawyers to keep quiet.

Avoid the Russian/Trump propaganda—quit Fox, facebook and twitter now
Health Care For All becoming rally cry

The president can’t have a conflict of interest.” The Don is above the law?
Fires FBI head because he was investing The Don’s Russia mob ties.

Quid pro quo: "something for something."
Trump cuts regs and soon we will need gas mask
This is a middle class tax cut to pay the wealthy to allow a “trickle down wage increase”

Pence: work Congress “to ensure that this never happens again.” Disarm TX; USA?

We have given The Don time to act like president: Time to Impeach for obstructing FBI investigation of our enemy disrupting our election process.

Regulation is necessary: We need protection. Saves $12 billion of our money!
            (No one person can afford to sue a bank: class actions banned by GOP now.)

Study shows Advil Tylenol combo relieved pain in ER as well as opioid pain pills.
AL official backs child molester by claiming Mary mother of God was child too. Sick!

How Govt wastes our money:
FEMA and your insurance should help you overcome your disaster: they’re the disaster.


Unemployment 4% means jobs go unfilled without special training or degrees or manual

Who owns your account now?

GOP installs new tax ‘reform’ by Christmas ….. 2020.
Roy Moore sworn into Senate after molested 14 year old girl in 1979.

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