|
|
|
|
|
|
|
|
|
|
DeTaxUS Newsletter "The cost of liberty is less than the price of repression." CONTENTS:
INTRODUCTION Our Mission is to Abolish the Federal Income Tax
Some great things are happening in the tax revolution, and momentum is building on several different fronts -- tax protesters are getting more active and more vocal, consumer watch groups are criticizing government spending, the state legislature in Massachusetts coming under flak for not voting (as required by the Mass constitution) on Carla Howell's ballot initiative to end the state income tax, economists are finally admitting that even the small tax cuts put in place last year are having a positive effect on the economy, lots of talk shows are picking up the message, and Congress is hearing about alternatives to the income tax and taking it seriously at last. Yes, it is just a matter of time now until we see the end of the income tax and the IRS. All it will take is ENOUGH people hounding their congressmen and senators to get rid of it. We haven't reached critical mass yet, but we're growing on a grassroots level. The trickle of letters, emails and phone calls will grow to a steady stream, then a torrent, then an over-whelming flood. If you haven't written your representative lately, check out National Write Your Congressman at: You can take their current poll and email your congressman and two senators your opinion. Tell them how you feel about the income tax while you're at it. Warmest regards, Cory Layne "Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place." 1. TAX NEWS A timely news release from the Libertarians:
=============================== After working 117 days to pay taxes, April 27 is Paycheck Emancipation Day WASHINGTON, DC -- On Saturday, America tells the federal government: "Show me my money!" Because on Saturday, April 27, the average American stops working to pay taxes and starts working for himself or herself. That's according to the Tax Foundation, a non-profit Washington, DC research group, which has designated April 27 as Tax Freedom Day. After laboring 117 days to pay federal, state, and local taxes, average Americans are finally allowed to keep the money they've earned. "Forget the 4th of July -- April 27 is America's real Independence Day," said Steve Dasbach, executive director of the Libertarian Party, America's third-largest and most fervently anti-tax political party. "Think of it as Paycheck Emancipation Day," he said. "After spending one-third of the year as an indentured servant to Uncle Sam, you're no longer working for the politicians." According to the Tax Foundation, the average American:
On a state-by-state basis, Tax Freedom Day falls earliest in Alaska (April 11) and Oklahoma (April 15), and latest in Washington state (May 9) and Connecticut (May 14). On average, the Tax Foundation says taxes consume about 32% of the typical worker's gross income -- more than most Americans spend on food, clothing, and housing, combined. Federal taxes grab 22.1%, with state and local taxes taking a 10% bite. "As Tax Freedom Day approaches, we Libertarians challenge Americans to ask themselves just one question," said Dasbach. "Who can spend your money better -- you, or the politicians? "If you answer politicians, then keep voting for Republicans and Democrats. They've made an art form out of snatching your money, and will be happy to continue doing so. "But if you think you are better qualified to spend your own money, and want to keep more of the money you honestly earned, then start voting Libertarian. The Libertarian Party is working every day to slash taxes and let Americans keep more of what they earn," he said. On the subject of taxes, the Libertarian Party Platform calls for "a drastic reduction of both taxes and government spending... We support the repeal of the Sixteenth Amendment, and oppose any increase in existing tax rates and the imposition of any new taxes." -------------------------------------------------- 2. JOKE OF THE MONTH A distiguished-looking man entered a Geneva bank and inquired about taking out a loan for 1000 Swiss francs. "What security can you offer?" the banker asked. "My Rolls-Royce is parked out front," he said, "I will be away for a few weeks. Here are the keys." A month later, the man returned to the bank and paid off the loan, 1,017 francs with interest. "Pardon me for asking," the banker said, "but why a one-thousand-franc loan for a man of your obvious means?" "Very simple!" he replied, "Where else can you store a Rolls for a month for seventeen francs?!" ============== A building contractor was being paid by the week for a job that was likely to stretch over several months. He approached the owner of the property and held up the check he'd been given. 'This is two hundred dollars less than we agreed on,' he said. 'I know,' the owner said. 'But last week I overpaid you two hundred dollars, and you never complained.' The contractor said. 'Well, I don't mind an occasional mistake. But when it gets to be a habit, I feel I have to call it to your attention. '[Sounds like the philosophy of the IRS.] 3. TAX TIPS Loan Points: The term "points" is used to describe certain charges paid to obtain a home mortgage. They may be called "loan origination fees," "loan discount," or "discount points." The general rule is that you can't deduct the full amount of points in the year that they are paid, because they are prepaid interest that must be amortized over the life of the mortgage. BUT... there are exceptions to the rule. You CAN fully deduct points in the year paid if you meet ALL of the following tests:
If you meet all of the above exceptions, you'll find that your points are fully deductible in the year of closing, as Itemized Deductions on your Schedule A. This is true of refinancing as well as a new purchase. If you refinance, you may also be able to deduct any unamortized prepaid interest. If you refi investment property, be sure to deduct any excess mortgage insurance (PMI) and other charges from your old mortgage loan which were not deducted in the year you acquired that loan (less any refund from the old mortgage company, of course). On personal residences, you can add those costs to your basis in the property before calculating any capital gain. "Find out just what people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; ... The limits of tyrants are prescribed by the endurance of those whom they oppress." 4. PLANNING for 2002 Help for grad students. Increased deductions for student-loan interest. Tuition deductions. ============== Estate-tax phase-out. Life insurance is often used to defray estate taxes. You might want to look at your current insurance policies and reduce unnecessary coverage. 5. MONEY SAVERS Benjamin Franklin said, "A penny saved is a penny earned." Actually, a penny saved is worth about 1.4 pennies earned, after taxes. The easiest way to increase your net worth is to reduce spending. Everything you purchase is purchased with after-tax dollars -- food, fuel, utilities, vehicles, furniture, entertainment. Unless it constitutes a business expense used to reduce your taxable business income, everything comes from your after-tax earnings. When you reduce your expenses, you free up after-tax dollars to use for other purposes. By reducing those expenses, you are increasing the money in your pocket, or your investment portfolio, tax-free, without having to increase your income. In the next few issues, we'll mention a few often overlooked ways for you to reduce your spending without reducing your lifestyle.
"Government is not reason, it is not eloquence -- it is force! Like fire it is a dangerous servant and a fearful master: never for a moment should it be left to irresponsible action." -- George Washington 6. EDITORIAL I recently received a copy of a press release from the Bush camp highlighting President Bush's economic strategy. They'd have us believe the Republicans are really concerned about your wallet. See if this hits you the way it does me. 5/1/02 President Bush's Tax Relief Is Helping The Economy - Now Is Exactly The Wrong Time To Raise Taxes: It's a good thing we cut taxes last year. Families are receiving larger refunds spurring consumer spending at a critical juncture in the recovery. Democrats who seek to raise taxes would inflict a crushing blow on our economy at a turning point where recovery appears to be taking hold.
The Bush Ranch Here's my take on the above. Tax Relief Is Helping The Economy. Finally someone in Washington recognizes the fact that high taxes are bad for the economy and leaving people more of their own money to spend as they please is good for the economy. We Must Hold The Line On Spending. Political Double Speak. They'd have you believe that they are reducing spending when in fact the spending on "national defense" and "homeland security" has jumped by 7% (plus off-budget contingencies), and "other government spending" has grown by 2%. Even 2% of Two Trillion Dollars is a LOT of money. The President Said He Will Use His Veto To Keep Spending Down. I certainly hope he will, but I'll believe it when I see it. Balanced Budgets And a Return To Surplus. The US federal budget is in excess of $2 Trillion per year - far more than is necessary or prudent. We should be working on reducing both the cost and inefficiencies within the government. A surplus only means that the government is taking too much from the taxpayers. We Cannot Repeat Mistakes Made In The Past. We can and are making the same mistakes that were made in the 60's, in fact we are still funding programs that were started in the 60's and 70's and have never been successful. Many of these programs should have been scrapped as failures years ago. Instead we continue to throw good money after bad into the War on Poverty (1965), the War on Illiteracy (1968?), the War on Drugs (1972), the War on Crime (1980), and other lost wars. Write your Congressman and Senators today. Let them know you are disgusted and tired of being extorted for more and more money that is just being squandered by Congress. Ask them where the return is on your investment. Call them to task for mismanaging the wealth of the nation. And then contact your State representatives to work on reducing costs at the state level. You can look up contact information for your Congressman and Senators at: Cory Layne P.S. Your comments and suggestions are welcome. We will try to respond to all of them personally and will include a selection of them in future newsletters and on the DeTaxUS website. Send email to: Editor P.P.S. Let us know how you feel about the income tax. Your opinion is always welcome. You can join our online forum to discuss tax issues by going to: P.P.P.S. You can help by sharing our vision with other over-taxed Americans. DISCLAIMERS: The information contained herein is general in nature and is not intended as legal, accounting or tax advice by DeTaxUS, Inc. The reader should seek professional guidance prior to taking any action based upon this information. DeTaxUS, Inc. shall have no obligation to inform the reader of any changes in tax laws or other which may affect the information provided. Portions of this newsletter may have been extracted from articles received for republication. Credit is given where the author is known. Unsigned articles and information gathered from government publications and websites are accepted as public domain. Copyright© 2002 by DeTaxUS, Inc. Copyright
© 2001 DeTaxUS |
|
||||
|
|
