Tag Archives: Tax

YOU DIDN’T WIN THAT OLYMPIC MEDAL ON YOUR OWN. PAY THE TAX

You won a medal? Okay, fork up, the metal in the medal has a melt-down value and the federal government taxes it.  For the bronze that’s two dollars please.  I kid you not; this is for real.  Marcus Rubio has submitted a bill to end this utterly absurd tax.  Here is the link.  Let’s see what the Democrats do.  What if an athlete is rich?

Yes, there is more to the story.  The tax on the melt-down value is an insult that only a government could devise but the politicians want some real money too.  As though the insult weren’t enough, it comes with a slap in the face – tax on the honorarium.  Using the bronze as an example again, the honorarium is $10,000.  Typically the athlete would get $ 6,498 of that and the rest would go to the IRS, according to numbers supplied by  Americans for Tax Reform.

Why should the government get that?  Is it because the medal winner didn’t win it on his own?  How did he get to the gym to train, didn’t he or she use the roads?  Perhaps there should be a surcharge for cyclists and runners because they actually perform their mastery in competition on public roads.  Ridiculi, ridiculum, does the whole world run on idiocy or only Washington?

Rubio has a winner in this bill.  If the Democrats approve it, it bodes well for Rubio.  If they oppose it, they risk the wrath of Olympic fans.  The amount of money raised by the ‘US Tax on Olympic Achievement’ pales, pales, pales into insignificance compared to the negative statement it makes.  Let us honor our winners, not take a piece of their flesh.

NORTH DAKOTA MULLS ELIMINATION OF PRIVATE PROPERTY TAX

A man’s home is his castle, right?  Not exactly.  Once the mortgage is paid a man has the comfort of knowing it’s his for life, right?  Not exactly.  The government cannot take a man’s homestead away except as necessary to build a highway, a bridge or some other project for the benefit of all, certainly not to turn it over to another private party, right?  Not exactly.

A real King could do what he liked in his castle.  A man today can do only what the government permits.  The permission process can be long, costly and still end up in being denied.  Your mother may have to go to the nursing home if the town won’t allow the changes needed to accommodate her living with you.

You can pay off the mortgage for life.  The bank will never come back and say “We decided we want some more money from you.  We are running a little short.”  But the government will.  It’s called property tax.  You can never pay it off and you can never stop the collector from deciding to take a little more if they are running short.

You have heard of the law of eminent domain.  Let’s go to the dictionary.  Eminent – prominent, of higher standing.  Domain – a territory over which rule or control is exercised.  The government has final rights to your castle, not you.  The US Supreme court in the Kelo decision allowed the taking of a home from a taxpayer in Connecticut enabling a developer to bulldoze the house and build something that would yield higher property tax revenue.

You worked all your life, you scraped and you saved, you did everything right.  You achieved the dream, the home is yours.  Now it is the autumn of your life.  You have earned the comfort of knowing that whatever happens, your home is yours for life.  Not exactly.  If misfortune strikes and you can’t pay the rent they call property tax, it’s bye, bye castle.

Oh, I know, many municipalities have laws and practices that allow you to stay in your own home until you die.  But there is something disquieting about the fact that you are living at the mercy of a government in what has become their home by default.

The people of North Dakota have decided to do something about it.

“I would like to be able to know that my home, no matter what happens to my income or my life, is not going to be taken away from me because I can’t pay a tax,” said Susan Beehler, one in a group of North Dakotans who have pressed for an amendment to the state’s Constitution to end the property tax. They argue that the tax is unpredictable, inconsistent, counter to the concept of property ownership.

The proposition comes to a vote on Tuesday.  It isn’t practical enough to pass, but it’s a nice idea.

WARREN BUFFET IS AT IT AGAIN

C’mon Warren, tell the whole story. The only reason your net tax rate is so low is because most of your income is from stock dividends. Your salary puts you in the top tax bracket which is 28% and that is what you are paying on your wages. Tell it like it is.

TWO CORPORATE JET MAGNATES

The money that’s paid to you in dividends is taxed at 35% before you even get it. Then you are taxed another 15% on the same money. The government is getting half of the profit the business makes. Isn’t that enough? It’s in the same ballpark as many other countries although they collect it differently. Some tax all 50% at the corporate level and take none from the investor. Others take all 50% from the investor and nothing from the corporation on money they pay out in dividends. In the latter case your bottom line taxes would be nearly 50%. In either case the money collected by the government is the same.

Quit your squawking and do more of what your buddy Bill Gates does. Give more of your embarrassment of riches directly to good causes like hospitals, schools and centers for medical research. By-pass the middle man. Your money will go farther. None of it will be siphoned off for political corruption and you can choose what you want to support. If Obama loses the next election your tax money will be managed by Republicans. Is that really what you want?