Tax Guru – Ker$tetter Letter

I liked these quotes from Thomas Sowell

Some seem to think it is wonderful when super-rich people say that high taxes are not so bad. True, taxes are not so bad if you already have more money than you can spend in your lifetime, especially if you inherited it. But most people had to work for what they have and have things that they want to spend it on, rather than have politicians grab it to use to buy votes.

The fraudulence of the left’s concern about poverty is exposed by their utter lack of interest in ways of increasing the nation’s wealth. Wealth is the only thing that can cure poverty. The reason there is less poverty today is not because the poor got a bigger slice of the pie but because the whole pie got a lot bigger — no thanks to the left.

Bush Casts John Kerry As Tax Raiser in TV Ad – If the shoe fits…

Grand Jury Indicts Anti-Tax Author – It’s about time the government took serious action about tax protestor scammer Irwin Schiff, his support staff, and the people stupid enough to follow his lead.

I have no idea how many people keep track of all the taxes they pay during their lifetimes; but if such a tally were possible, I am certain we would see a lot less passivity in the face of constant tax increases, especially the hidden ones, such as on phone and utility bills.

Tax hawks cooling to Norquist – Dissension among the ranks of tax fighters.

Price gouging – The laws of supply and demand can be cruel at times. However, government attempts to stifle the natural market reactions usually leads to the inevitable shortages.

New Limits May Drive Away Used-Car Donations – This would be a law that makes a lot of sense, a rare thing in the fairy tale world of DC – limit the deduction for vehicle donations to the actual selling price rather than the inflated Blue Book figure. I’m just a big believer in the power of the market to set prices; so what a buyer actually pays for a vehicle is a much more reliable indicator of its true dollar value than some generic pricing guide.

Medicare to go broke by 2019, trustees say – There are a couple of key issues to consider when reading a story like this.

First is the erroneous use of the term “trust fund.” There is no such thing as a trust fund for any of the Medicare or Social Security taxes being paid in. All money taken in is spent immediately. In fact, as I’ve mentioned countless times, the kind of commingling of funds done by our rulers in regard to these supposed trust funds would put regular people in prison if they tried it with private sector insurance or retirement accounts. It’s always been a pet peeve of mine, and cause for low credibility towards anyone (in government or media) who refers to the existence of a trust fund when discussing Medicare or Social Security. Such people are either dishonest, stupid, or both.

The other big problem I have with stories like this is the implication that the bean counters in DC can predict with certainty such things as when the Medicare or Social Security system will go broke. Just as with their perpetual misses on predicting the annual budget deficit or surplus, those accountants can’t even get it close one year ahead of time, much less decades from now. Again, it’s another pet peeve of mine when any kind of financial figures are spouted by our rulers in DC and anyone takes them seriously instead of recognizing them as the WAGs (Wild Ass Guesses) that they are.

Maybe I’m being overly sensitive about the improper usage of the term “trust fund.” Perhaps it’s just more ignorance on the part of the media, like the story in our local paper a few weeks ago, where the reporter referred to a living trust as a trust fund. However, I am certain that the widespread pervasiveness of the “trust fund” concept among so many people is really an attempt to make taxpayers feel more financially secure than they really are and hide the fact that all of their tax payments are going right back out the door and not into any kind of bank account on their behalf.

I am constantly being asked which program is better, such as in the following email I received today:

My question is if your remark would apply to my new small business that I am starting. (least expensive basic version is sufficient)? The accountant that I talked to said that Quicken would be enough but I have had some people debate that. I actually an familiar with QuickBooks but not Quicken. Thank you in advance for your reply.

PS: What is the least expensive way to acquire QuickBooks? I can’t believe the prices I am seeing!!

My response:

For a business, there is no contest. QuickBooks is far superior to Quicken for all of the reasons I spelled out here.

The absolute lowest prices I have seen are from eBay sellers. Next best is through the link on my website.

Next best is from the warehouse clubs (Costco, Sam’s). If you buy the Basic version, it will be much less expensive than the fancier ones, and will work just fine for you.

Good luck.

AARP fears competition, not confusion – Keeping the payers straight in the fight for Social Security reform just became more confusing. Battling the big government loving AARP is a new group, called ARP (Alliance for Retirement Prosperity).

Defend the Bush Economy, Stupid! – The gutless wonders in the GOP are so cowed by the liberal opposition that they can’t even speak up for the Bush programs when they working out well.

Shareholder Group Releases Report Detailing John Kerry’s Record on Investor Issues in the Senate – And it isn’t pretty for anyone who believes in capitalism.

We have already started preparing and submitting the first extension requests for 2003 1040s. Every year, as more people learn the benefits of filing their returns after April 15, I seem to do fewer tax returns by the normal April 15 due date. In fact, right now I am working on several 2002, as well as a few 2001, 1040s that have had their due dates extended to April 15, 2004.

You can download the official Federal extension form directly from IRS.

Each state is different in regard to whether or not you need to send in a special form. Most states will simply honor the IRS extension and only require their own form to be sent in if you are including a payment.