Illinois governor vetoes Chicago pension fix, angers city's mayor
Now this seems like a poster point for the whole government/political issue in a nutshell. One answer leaves increased taxes, and just more debt down the road, and the Republicrat Governor actually said "No" and says "It's all the retirement systems", which is true. But the Dumbocrap mayor is just cultivating his "own" issue, and immediately we are back to the hot button, special word responses, like "hostage" and "irresponsible". Like increasing taxes in the armpit of America is not "irresponsible"? Looting is an art and the Dumbocraps far outstrip the Republicrats in that one...not that the Republicrats haven't got their own looting skills honed, but they seem a lot more bumbling in their execution, look at their Health Care fiasco...
Though I don't agree with the mandate part per se, Australia mandates that everyone contribute toward their own private retirement plan. So far it has resulted in zero pension fund mismanagement or budget shortfalls and has dropped their rate of dependence on government in old age.
Yes, people should be able to set aside tax-free income for both retirement and medical expenses. I don't think there should be taxes on either one. Of course, I'd like to see personal (and corporate) income taxes eliminated as well.
One can look at the matter in either of two ways (and probably more):
1) It's my money and I get to do what I want with it just like everyone else has a right to their money
2) I'm doing both myself and them a favor by helping them learn now the painful/expensive lessons of making mistakes so that they have money later with which to engage me in business/commerce so we both benefit.
What's enlightening is that under the law, offshore personal accounts, that the feds hate so much when the common people have them, are actually similar (but in some ways inferior) to IRAs in terms of taxation but have one big difference in application.
Like IRA's they must be funded after taxes and, if set up properly, they allow investment in lots of things with no tax due until funds are withdrawn.
The BIG difference is that government has little to say about their management. You decide when to withdraw funds. You decide what to invest in. Wall street banksters and government do not meddle in what you invest in or limit your choices to only the "investments" that Wall Street manipulates.
Can't imagine why politicians and the wealthy want to keep us from using them. (sarcasm)
The facts regarding offshore accounts are not well known and I was trying to elucidate.
Most people are scared to death of doing anything that the IRS might see as suspicious, and although offshore accounts are completely legal, they are portrayed as if they are not.
What is your income?
Send in 10%.
Period.
No more on top of, excises, deductions or anything. I think they call it a Flat Tax. But then, a whole cadre of accountants and lawyers would be out of work, and the political machines would lose all that money in under the table payments and "donations".
Let's also eliminate corporate income taxes. It's a double tax anyway.
Send in 10%."
All the works is in figuring out what's income. I get two bound folders from my accountant depreciating stuff, showing the basis for things I sold, and so on. Calculating tax owed is one line. It is very simple regardless of the number of brackets.
On top of that there is the whole issue of what is a valid business expense. I can't count the miles driven to work, but I can count driving to a client site. I can count half the cost of a meal.
Yet another issue is deductions. My work doesn't provide any health plan b/c we'd have to provide it for everyone, and that's needless complication; besides many people perfer actual money to a health plan. But it doesn't seem fair that insurance premiums would be deductible as a business expense only if we do them through the business. The tax law apparently agrees and we were able to deduct some of our premiums. A plan that simplifies things by eliminating all non-business deductions would complicate things in areas like this.
I still wish they would find ways to simplify it. The number of brackets is not the issue. I don't think they will simplify it too much, unfortunately, because there's a whole army of tax experts who would have to find other productive work.
It seems like conditions are right for people to consider this, but I don't see it happening. I want it to happen, but I have no idea how to get there.
https://www.cosaction.com/fb_petition...
The latest email from them says:
"North Dakota just became the tenth state to pass our critical legislation to call a state-led convention to propose amendments that limit the power of the federal government"
and
These groups are largely funded by anti-American, foreign-born billionaire George Soros. He’s given more than $9 million to organizations actively working to undermine our grassroots efforts.
Just recently, the Dallas Morning News, a left-leaning media source, printed a piece heavily quoting Common Cause Texas, a group that is well known to be funded by George Soros, to oppose the Article V movement.
This left-wing organization exposed how threatened they feel by our movement: “It’s a realistic possibility. It’s terrifying, but it is a realistic possibility”.
Why are they afraid? Because when we succeed in getting 34 states to pass our legislation, a convention will be called where the states can propose amendments to…
Get the federal government out of our healthcare system.
Impose term limits on Congress.
Balance the budget.
Mandate nationwide voter ID.
Take back our education systems.
Limit federal power.
Congress won’t take these actions. But a Convention of States can.
A lot of their objectives and policies seem very Objectivist. Maybe I should start a thread on this...
Are these Constitutional amendments? Is there anything to stop them from passing amendments expanding gov't powers?
You point out that George Soros is working to undermine it. I respect him highly, and it makes me wonder if there's another side to it. It makes me wonder if they can do this in way it can only limit gov't or if it can backfire in some way.
Opposes communism, drug war, bigotry, empire.
Supports for equal rights, democratic gov't, fair criminal trials, helping the poor, end-of-life care
From reading one of his books I came to admire him. He presents himself as a numerical person very much after my own heart.
Yes. And people think twice about a new gov't program they have to pay for right now. It's so important.
"(which is really both parties at this point)"
Right. The Republicans want to borrow a staggering $1 trillion per year, and the Democrats $450 billion. Being half as bad as the Republicans when it comes to gov't spending borrowed money is nothing to brag about. Plus I think if Democrats were in charge of the entire gov't, they'd increase spending and borrowing from what they were Republicans controlled Congress. So they're right behind Republicans when it comes to big gov't.
Going to 0 deficit blows away my quibbling. It won't be easy. There will be accounting tricks to fake a balanced budget. There is the issue of if there will be exemption for war. If so, does a bogus "war" as we've had for the past 15 years count.
I'm not saying we shouldn't do it. I would take a gamble that they hijack it to pass an Amendment increasing power for the shot at a balanced budget amendment.
HSAs work this way: tax deductible, tax sheltered, not taxes when you take money out. You can invest it stocks, bonds, and mutual funds. You can still fill it up for 2016. It's such a good tax deal, we fill it up every year and don't use it for medical expenses.
Science won't cure aging in time for me, so at some point hopefully several decades from now my wife can spend it on end-of-life care or find a way to bequeath it. I have not looked into bequeathing it, though, b/c I doubt my wife and I will get out of this life without the opportunity to spend it on health-related services.
HSABank of Sheboyan gives me a debit card and a checkbook.
IRS Pub 969 says you can use it for any expenses that would be deductible as medical expenses under Pub 502. These links point you right to the relevant paragraphs.
Pub 969 https://www.irs.gov/publications/p969...
Pub 502 https://www.irs.gov/publications/p502...
I think that's an FSA or some other vehicle. A true HSA is just like a regular bank or investment account with a tax shield around it, similar to a self-directed IRA. To put money in you must have an "HSA-compatible" health insurance policy. You can spend money from it but not put new money in if you do not have an HSA-compatible insurance policy. You can spend the money on many health-related products/services. You cannot use it for OTC meds (you could before PPACA) or to pay insurance premiums.
http://www.hsabank.com/hsabank/educat...
My brother went to work for our local State government doing some kind of analysis part time - tax analysis I think. He was only there for like eight hours a week and he was getting done for them what their normal employees took an entire week to get done. They told him to slow down and that it was okay if it took him a few weeks to get the tasks done and that he was making them look bad. Needless to say he was glad when his degree progressed and allowed him to get a productive full-time job.