Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for November, 2002

Posted by taxguru on November 30, 2002

Taxpayer Dollars To Communists

Many people think that Rush Limbaugh is exaggerating when he claims that the environmental wacko groups are the new havens for Communists. However, Rush is absolutely correct in that assessment. One of the planks of the Communist Manifesto is a ban on private ownership of property. Such private ownership of property is one of the fundamental requirements for a free capitalist society, which is what the USA was intended to be by our founding fathers.

I have long studied many of the big environmental groups, such as GreenPeace, Sierra Club, Nature Conservancy, John Muir Society, and Earth First (a terrorist organization) and read a lot of their materials over my lifetime. As the owner of some large properties, I was always struck by the goals (both stated and implied) of these organizations. Most of them are outright anti-human and anti-technology, in the same vein as Al Gore and his protege, Ted Kaczynski (the UnaBomber). They want to reduce the population of humans. They want to only allow people to live in small specified areas, so that wildlife can live undisturbed on the bulk of the planet. They also want no private ownership of property. It should all be controlled by government, ideally the United Nations.

It’s bad enough that many people who donate to these groups don’t understand their true agenda and just think they want to keep hiking trails clean. It’s even worse when our own government uses money taken from people who don’t support communism and give it to these very same groups who literally want to destroy our rights to own and use our own property.

KMK

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Posted by taxguru on November 30, 2002

Stupidity On Trial

One way the idiots who fall for the tax protestor scams think they can cover their butts is by getting an official opinion from a tax attorney or CPA that they are not subject to income taxes. Supposedly, by relying on the opinion of a tax professional, it absolves the individual for any personal responsibility for the non-filing and other related penalties. There are a number of attorneys, CPAs and other unlicensed so-called “Tax Professionals” who make a good living selling such opinions to gullible saps. Those opinion letters are worthless in a court proceeding and come with a no refund policy.

KMK

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Posted by taxguru on November 30, 2002

Missing the PRC – Not!

Higher taxes and fees? Fewer services? It sounds an awfully lot like the Post Office’s strategy for success out there on the Left Coast. It’s not that things are that much different here in the Ozarks; but they are nowhere close to the huge scale of problems with the PRC.

KMK

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Posted by taxguru on November 30, 2002

More Bickering

Split in Ranks of Business and G.O.P. on Tax Cuts

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Posted by taxguru on November 29, 2002

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Posted by taxguru on November 28, 2002

Big Brother

With all of the talk about the new level of government snooping and data accumulation on everyone, it’s a good time to remind you that this is nothing new for the Federal government. IRS has long been maintaining top secret files on every person and business in the country. They are called Individual Master Files (IMF) and Business Master Files (BMF) respectively.

Just as with credit records, these files often contain erroneous information that can lead to serious problems. Since our rulers have always considered tax revenues more important than anything else, IRS has always been allowed to ignore the normal constitutional protections that are available for every other aspect of life in this country. It is no exaggeration to say that the two snipers who were murdering people in the DC area have more rights and protections before they are sent to prison or executed than do people in matters with IRS. There is no presumption of innocence in tax matters and IRS is allowed to do its worst to people without any due process.

That’s why it’s not a bad idea to file a Freedom of Information request to obtain a copy of your file. There are some other sites on the web that have the forms and instructions for doing this, and will file the requests and decode the reports, for a fee.

IMF Help

IRS Decoder

KMK

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Posted by taxguru on November 28, 2002

The human brain cannot process too many choices.

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Posted by taxguru on November 28, 2002

Too Many Tax Reform Ideas

Here are a number of recent discussions on how to reform the tax system in the USA. While at first blush it is good to see so many people acknowledging the need for some substantial change, we’ve been down this road before, several times. When so many different options for change are proposed, the public’s brain locks up and we almost always end up with no change. Analysis paralysis.

It’s exactly like what good sales people are taught when working with customers. Show them just a few selections from which to choose. If you show them too many at one time, their brain starts to smoke and they will back away and refuse to make any decision. That is what always happens any time there are several different tax change ideas bandied about. People say that it’s just too confusing and they would rather just leave everything as is. The devil you know vs the devil you don’t know cliche; which is very apropos for taxes.

However, just to stay on top of what ideas are being discussed, I have some current examples to look at.

Replacing the income tax with a national sales tax is an idea I have long supported; but it’s too radical a change to expect to actually happen. The only way to make it effective would be to partner this change with an official repeal of the 16th Amendment. Otherwise, the income tax will be resurrected in a few years.

Here is a perfect example of an unpleasant reform. This Yale professor wants to remove the income tax for everyone except the evil rich (anyone earning more than $100,000 per year) and then jack up income and estate taxes on the evil ones. He wants to also add a national sales tax for everyone.

Tinkering with certain details of the current tax system is what generally makes it into reality.

Whichever kind of tax system we have, from now until the end of time, there will be a need for those of us who can advise clients on how to minimize their taxes. Even with inexpensive tax computer programs and free electronic filing, it is still a matter of GIGO (garbage in, garbage out).

KMK

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Posted by taxguru on November 28, 2002

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Posted by taxguru on November 27, 2002

Grasshopper States

The story of the grasshopper and the ant is an excellent illustration of why so many states are having budget deficits. Spending like a drunk sailor while revenues were up, and pretending that there would never be a down cycle, was nothing less than sheer incompetence by the State Rulers.

KMK

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