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“Collective” Praise by School Children
Now back at the Florida Headquarters from Ohio then Nashville (nearly adjacent to the EIB network) J
I wanted to post a personal email I sent to a couple of friends last night that are occasional readers and commenters here at NSL, though not on the flattering side. I have taken the liberty of nominal editing and redaction of some actual personal numbers in this republished letter, but you can trust that they were just the same significant, at least to me.
I’d hope that while the left is taking a page out of the Mao Tse-Tung songbook of “collective” praise by school children for the leader (mmm, mmm, mmm) that some might read the article (below) about the “real world” and learn something about how finance actually works, but then again that is why they say about SOME teachers: ”those that can do, do …. while those that can’t do, teach.” New York is worried and perplexed about why the income tax revenues from the recent piled on tax of the “wealthy” this year is not meeting expectations even after adjustment for the recession. The truth is (and to their future and intensified dismay) because it was enacted just this year the “wealthy” have not yet been able to implement their “end game” economic plans. This year down 20% but look out for additional exodus from New York that will not only erode some of the planned increase, but take money off the table that previously existed under the prior tax structure. You might say, “well, that is a state problem,” but they can’t run away from the Federal Government. This is the naiveté of the left. These people are the primary employers in the country and just watch them move investment & production offshore because of this type of stuff and cap & trade, etc. [Just like Obama did in 2008 with the proceeds of his book sales income invested almost entirely in foreign investments.]
Though just a small player in the financial world, I am a “tax refugee” from Ohio myself. I make most of my income from stocks and the stock market. My margin cost (i.e. investment interest) can run to 50% of my gross proceeds (and has been 80% in the past). Ohio is one state that does not recognize the legitimate expenses of producing income and wants to tax the gross not the net. Even the Federal Government allows this type of expense though be it “below the line” as they say and then they also have an “unfair” “run off” of Schedule “A” deductions and of course taxing the gross through AMT outrage. Any self respecting “progressive” won’t see anything wrong with this at all and others will justify it by accusing and citing what they personally didn’t like about George Bush or some ad hominem comment like that, but the bottom line is this is costing governments “revenues” and they just can’t seem to grasp that.
One example is that I myself now file as a Florida resident (and you can be sure I am dotting the i’s and crossing the t’s religiously on the residency game). I went ahead and calculated my hypothetical OHIO taxes for 2008 (just for personal humorous entertainment since I became a refugee in 2007). Well, I laughed when the computer gave me the answer. Even though the rate is about 30% lower than CA, if I were an Ohio resident in 2008 I would have sent them a check for $XX,XXX. If they had responded favorably and reasonably to my petitions to have margin or investment interest deductible against investment income, I would have only had to pay around $XX,XXX in taxes. A couple of Republicans proposed this legislation (which I think I may have influenced) but the “progressives” shot it down. Their “progressive” ignorance not only cost them the $XX,XXX extra tax they wanted from me but the amount I would have paid if they had allowed investment interest deduction as well. In short they lost it all. You say “no big deal” but remember I am not the only one. I meet “tax refugees” down here all the time. Ted Turner is one by his own admission. (though I didn’t meet him)
If teachers or people want their children to learn something that will be of value apart from some inane mantra about the leader however creepy it may seem, they should teach them the lessons of this article (just think how delicious the response would have been if it were George Bush they were singing about 2001-08). Since people still have certain freedoms the schemes of the left are doomed to failure, but I think they know this and realize that they will have to deal with what we once thought of “as” our freedoms. [just for starters take note of the Baucus health care bill requiring the young & healthy to buy health insurance or pay $3,800 +/- “tax” under penalty of fine and imprisonment in the gulag (most likely un-constitutional now ….. pending future vacancies) in order to subsidize health care for the older and other uninsured (which now looks like will include “illegal aliens” by simply declaring them legal). Just think what a world wide health care magnet that will make us…….we’re so wonderful]
About the article below, read it, memorize it and don’t forget it…………. They already tried this with the aviation and marine industries during Clinton and it failed so badly that Teddy Kennedy led the repeal himself. But along the way it cost untold thousands of jobs and was a “net income loss” for the Treasury. The Democrats bragged about it being a luxury tax on the rich. No “rich” person paid the tax and none were denied luxury yachts or private jets or non-jet aircraft, yet they (the rich) still created a lot of jobs…….overseas. What is it they say about what the deffinition of insanity is? But what the hell, change is coming. (heard that before too) http://news.yahoo.com/s/ap/20090927/ap_on_re_us/us_taxing_the_rich
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Regarding tax refugees from Ohio, I think I told you of an article in the WSJ pointing out the hypocrisy of Howard Metzenbaum. Seems that after spending forever in the Senate preaching that the rich should pay their fair share, in retirement he moved to Florida to avoid the Ohio tax structure including the death taxes.
Hi Erston, Nice pick up on Metzenbaum. Further revelation about the honorable Howard Metzenbaum is that while in the Senate he served as an “intermediary” in the sale of the Hay Adams Hotel in D.C. in 1984 and was paid a $250,000 fee. (no dispute here at all) The problem was is that this was an apparent violation of law since it was illegal for a non-real-estate “licensed” broker to receive payment while acting as a sales agent. Of course the spin was first set into motion by Howard himself when he nuanced a claim that it was NOT a “Real Estate Brokers” fee, but a “finder’s fee” and hence he wasn’t acting illegally as an unlicensed real-estate broker. This matter was “thoroughly” examined by authorities in the (DEMOCRATIC dominated) D.C. government who are totally dependent on Congressional largess (from the US taxpayer) for their continued financial existence and they found Mr. Metzenbaum had done “nothing wrong.”
This case first came to my personal attention when I was in the Merger & Acquisition business (my own business Resource One Corporation) at the time of the Hay Adams transaction and it had previously been made eminently clear to me that any transaction for the sale of a Business (i.e. Asset Sale) other than the purchase of its stock by its suitor would require the employment of a licensed Real Estate Broker to handle the Real Property portion of the transaction. In view of that stipulation I hired a licensed Real Estate Broker (not agent) as a full time “in house” Broker to accommodate such situations.
I think you were once in Real Estate and you know that if party A is introduced to party B by party C for the purpose of completing the sale of Real Property and said property is in fact sold and party C is paid a
commission“fee” as consideration for such efforts you have ipso facto what is clearly a Real Estate Brokers Commission. If I am wrong here, anyone can sell real-estate and simply label it as a “fee” not a “commission” to avoid violation of the law. But of course it is only a crime if it is committed by a “Right Wing Republican” not a liberal Democrat……… Steve