It's time for taxpayers in America to revolt. And a great solution is on the table. If you haven't studied the Fair Tax plan even half-heartedly, you have no standing in a debate about it. But I have to tell you, I am for it 100%.
For one thing, this country spends a lot of time grabbing money from honest, hard-working Americans and businesses while turning a blind eye to the people who work under the table (like Deadbeat Sperm Donors) so they don't have to pay taxes. Believe me, it takes a great deal of time to calculate and pay payroll taxes each month and reports every quarter. Time is money -- and oh, yes, your employer matches what you pay in Social Security and Medicaid Taxes. Plus, a big corporation pays taxes on its earnings and has to pass that amount on to its customers as an embedded cost. It then sends out dividends to stockholders who in turn pay taxes on what they receive. Can you say double taxation? The consumer pays embedded taxes on the corporation's earnings when the product or service is bought and then the stockholder pays tax on the same earnings again when they are distributed.
Secondly, the IRS has too much power. I don't know anyone who files a tax return with intention to defraud the government. About 23 years ago, my husband served as executor of his mother's estate. He set up the estate account at the bank where we had our personal accounts. The bank sent the IRS tax reports with my husband's personal tax ID number rather than the estate's ID number. The IRS sent us a threatening, nasty letter about under-reporting income and the penalties we could face. My husband called and explained the situation, to which the IRS rep said, "Don't you think we hear that story all day long? You need to send us the money you owe." So we did, along with a letter explaining everything. We also had the bank send in corrected papers. At the time there arose a lively, national discussion about Taxpayer's Bill of Rights. The IRS sent us a check for the amount plus interest and a sickeningly sweet letter that didn't apologize but explained that "these things happen."
Third, no one in the IRS is accountable. Ever ask a tax question of the IRS and get an answer, and later you call again with the same question and get a completely different answer? All the good folks there are just doing their job and interpreting the 55,000 pages of tax codes to the best of their ability, so don't hold their feet to the fire. But they can hold YOUR FEET to the fire and it's not pretty when you're in the sights of the IRS.
Lastly, the time and money spent having accountants dot the "i's" and cross the "t's" on tax reporting could be much better spent having them analyze the business financials and helping business owners make better decisions.
What I respect about the Fair Tax plan is that it taxes greed not need -- and it accomplished that in only 130 pages (that's a 99% reduction in the size of the code!). First of all, we would get to keep 100% of our paychecks! Then we would pay a 23% tax on goods and services we purchase. But before we spend a penny, we would receive a "pre-bate" to cover the taxes on basic necessities as calculated by the government's poverty statistics. The roughly 22%-23% cost that's embedded in every product would go away (remember I mentioned that corporations end up passing on their tax costs to the consumer) will go away to be replaced by a 23% embedded Fair Tax. The more we spend, the more tax we pay. It's truly progressive. I can't imagine spending almost $70,000 for a new car, but if I did the essential cost to me would be the same under the Fair Tax as it is today. A $56,000 with embedded (undisclosed) taxes today would run about $69,000. With Fair Tax I would know that I was paying $12,880 in taxes on that $56,000 auto. On the other hand, if I could only afford a used car, I wouldn't pay any extra in taxes because it will already have been taxed when it was sold new.
Now if you're thinking Barack O'Bama's "change" will help alleviate the tax burden, think again. Study it seriously. (Those are the same words Jimmy Carter campaigned on; the economy was in the dumps under his administration as was the situation in the Mid-East -- remember the Iranians releasing hostages to President Reagan his first few days in office?) Any plan that taxes savings is a bad plan. We need to encourage people to save so we can get ourselves and our country back on an economically sound footing.
And if you're wondering whether the country can afford a Fair Tax plan, consider this. When the Deadbeat Sperm Donor goes to buy his new Eddie Bauer Edition Ford Expedition or his Tommy Hilfiger outfit or a Prada purse for his girlfriend, he'll be paying taxes that he doesn't pay now working under the table. Plus, when European tourists visit America (our dollar is worth half the Euro), they'll pay that tax and we both win -- we'll benefit from the tax and they're still saving 27%. (I see a big Cheshire grin coming on!) One more thought. Can you think of any way to entice business growth in the great U.S. of A. than to make it the greatest business tax environment in the world?
Here are some good, concise articles on the Fair Tax:
Syndicated Columnist George Will
Syndicated Columnist Scott Burns
Bob Martin, Americans for Fair Taxation community coordinator for Eau Claire, WI
And here's a Fair Tax calculator for you.
Look. I don't mind paying taxes. It invests me in this great country. But I think we all need to participate and I know the tax system can be fairer. Definitely. It's time for a tax revolt.
Friday, April 25, 2008
Wednesday, April 23, 2008
On Deadbeat Dads
Have you ever had the pleasure of listening to the story of an absentee father? You know the one. His ex is living high on the hog off the child support he pays. Or, he can't afford to pay child support because he needs to pay his bills -- for his new car, his expensive clothes, his legal (and often illegal) substances, his cool digs, football tickets and entertainment. Makes you want to cry. He can't tell you his kid's birthday or grades, or even grade for that matter. But he probably remembers the kid's name. He has no clue how much it costs to clothe, feed, school and care for a child but he's sure the ex has plenty. Yes, it makes you want to cry. But not for him. Try as I might, I've been unable to come up with a better name for a Deadbeat Dad than Deadbeat Dad, unless it's Deadbeat Sperm Donor.
An acquaintance told me that her ex called her yesterday. He left before their daughter's 1st birthday and squelched on child support. Exasperated, my friend turned everything over to the state's attorney to collect what he could when her daughter turned 14. That was 14 years ago. The ex lives comfortably in another state but doesn't work because he doesn't want to pay child support. His second wife supports him. They must have goofed up this year and filed a joint tax return because the authorities snapped up that refund check and sent it to my friend. Hence the phone call.
He explained to her that it was a mistake and that she should just deposit it and write him a check for the amount. His theory? The girl is grown so he doesn't owe it. Of course, my friend is no fool. She is giving every penny to her daughter.
My grandchildren have a Deadbeat Sperm Donor too. In the past 11 years, he has paid -- I'm going to be very generous here -- $5,000 in support for his 11-year-old daughter and 10-year-old son. (A couple of checks came so he could get out of jail, and one came because he also goofed up once and didn't work under the table so his tax refund got intercepted too.)
The sperm donor's girlfriend is a dental hygienist. He works under the table for a house-painting company his brother owns and for tree cutting companies so as not to have a record of income. However, they rent a fabulous house, wear expensive clothes and drive the best of cars. The last my grandchildren saw of him, he was driving an Eddie Bauer Ford Expedition with all the whistles and bells. He took them to Burger King for lunch. And since he was upgrading his gaming system, he gave my grandson his out-of-date one. When my daughter asked for child support, he told her he had something she wanted and she had something he wanted (sex) and they should get together. In effect, his involvement in their lives has been the donation of sperm.
The State of Florida is no help. When my daughter called child support enforcement to give them her new address in case a check magically appeared, she offered to give them the Sperm Donor's new address. "Oh, we have to get that directly from the individual," the state employee, a male, said.
Standing beside her, I howled and said into the phone, "Let me get this straight. We have his address and can give it to you, but you have to wait for him to call you and say, 'Gee, I'm $30,000 in arrears for child support. I know you'd want my new address so you can have me arrested.' That makes perfect sense."
On the other hand, my nephew not only pays child support, but he travels out of town to pick up his daughter and spend time with her twice a month. Now there's a real dad for you. Makes me proud. (By the way, his daughter is brilliant and beautiful!)
It really was easier when people got married before they had babies and then stayed married for the sake of the children. (I'm not talking about physically and/or psychologically abusive situations.) My folks didn't always have a the greatest of relationships but they loved each other "in sickness and in health, until death." It doesn't always work that way -- I speak from experience (for the record, my ex always paid child support). But that is the ideal.
Both my friend and I are blessed enough to be in second marriages to the men we were meant to be with from the beginning. Men who love all the children in the household as their own. Who don't complain about the money. Real men. Men who make Deadbeat Sperm Donors look like the low-lifes they are.
An acquaintance told me that her ex called her yesterday. He left before their daughter's 1st birthday and squelched on child support. Exasperated, my friend turned everything over to the state's attorney to collect what he could when her daughter turned 14. That was 14 years ago. The ex lives comfortably in another state but doesn't work because he doesn't want to pay child support. His second wife supports him. They must have goofed up this year and filed a joint tax return because the authorities snapped up that refund check and sent it to my friend. Hence the phone call.
He explained to her that it was a mistake and that she should just deposit it and write him a check for the amount. His theory? The girl is grown so he doesn't owe it. Of course, my friend is no fool. She is giving every penny to her daughter.
My grandchildren have a Deadbeat Sperm Donor too. In the past 11 years, he has paid -- I'm going to be very generous here -- $5,000 in support for his 11-year-old daughter and 10-year-old son. (A couple of checks came so he could get out of jail, and one came because he also goofed up once and didn't work under the table so his tax refund got intercepted too.)
The sperm donor's girlfriend is a dental hygienist. He works under the table for a house-painting company his brother owns and for tree cutting companies so as not to have a record of income. However, they rent a fabulous house, wear expensive clothes and drive the best of cars. The last my grandchildren saw of him, he was driving an Eddie Bauer Ford Expedition with all the whistles and bells. He took them to Burger King for lunch. And since he was upgrading his gaming system, he gave my grandson his out-of-date one. When my daughter asked for child support, he told her he had something she wanted and she had something he wanted (sex) and they should get together. In effect, his involvement in their lives has been the donation of sperm.
The State of Florida is no help. When my daughter called child support enforcement to give them her new address in case a check magically appeared, she offered to give them the Sperm Donor's new address. "Oh, we have to get that directly from the individual," the state employee, a male, said.
Standing beside her, I howled and said into the phone, "Let me get this straight. We have his address and can give it to you, but you have to wait for him to call you and say, 'Gee, I'm $30,000 in arrears for child support. I know you'd want my new address so you can have me arrested.' That makes perfect sense."
On the other hand, my nephew not only pays child support, but he travels out of town to pick up his daughter and spend time with her twice a month. Now there's a real dad for you. Makes me proud. (By the way, his daughter is brilliant and beautiful!)
It really was easier when people got married before they had babies and then stayed married for the sake of the children. (I'm not talking about physically and/or psychologically abusive situations.) My folks didn't always have a the greatest of relationships but they loved each other "in sickness and in health, until death." It doesn't always work that way -- I speak from experience (for the record, my ex always paid child support). But that is the ideal.
Both my friend and I are blessed enough to be in second marriages to the men we were meant to be with from the beginning. Men who love all the children in the household as their own. Who don't complain about the money. Real men. Men who make Deadbeat Sperm Donors look like the low-lifes they are.
Tuesday, April 22, 2008
Dis-Repectfully Yours
Time was when the Japanese represented a culture of respect. But that has gone the way of the ancients.
Witness the Toyota Sienna commercial (below). Dad has spent four weekends working on a fabulous tree house for his son. Rather than enlist Boy's help and cultivate Boy's vested interest in the project, Dad does all the work himself. Boy seemingly has spent this time sitting in the Sienna with Friend, playing Old Maid, watching movies, all the while enjoying the air conditioning, stereo system and leather seats. While Dad is talking, Boy interrupts repeatedly to ask whether the tree house has the same amenities as the minivan. Even Friend interrupts Dad to ask Boy if he has any three's. This commercial is just wrong, on several levels.
One, it's probably safe to assume that because Dad has been working weekends on the tree house, he works to support his family. Everyone needs to contribute to the household, and Boy needs to be helping Dad on the project. Contrary to what many -- including an ex-husband -- believe, giving children chores and expecting them to help out is not abuse. It is preparing them for life. So, Dad doesn't respect Boy enough to involve him in the project that will benefit him.
Two, Boy has all the power. His father, the slave, spends his free time working on a project for Boy, sans the air conditioning, movies, leather seats and conversation that Boy has enjoyed. Boy dismisses Dad's effort and enthusiasm. Boy is completely void of respect for Dad whose actions do not "look like a man" (thank you, Miss Swan of Mad TV).
Three, in an era when people are trying to reduce consumption, Dad has allowed Boy and Friend to sit in the minivan for four weekends (the equivalent of more than a week!) playing cards and watching movies. Talk about low mileage! No one in the commercial has respect for the environment.
As a former newspaper editor and marketing executive, I know the ad is not meant to be taken literally. Yes, I've seen all the claims that people and children don't learn/mimic behavior they see on TV and movies or hear in songs. Yet, companies like Toyota spend multiple millions to have their 30-second spots aired across the spectrum (they're after reach and frequency) to drive behavior.
In the case of this ad, the list of amenities is repeated articulately by a child actor reminiscent of Haley Joel Osment (no accident, I'm sure). Good for sales. Unfortunately, the message is framed by a total lack of respect.
Toyota, I expect more of you and your Japanese heritage.
Witness the Toyota Sienna commercial (below). Dad has spent four weekends working on a fabulous tree house for his son. Rather than enlist Boy's help and cultivate Boy's vested interest in the project, Dad does all the work himself. Boy seemingly has spent this time sitting in the Sienna with Friend, playing Old Maid, watching movies, all the while enjoying the air conditioning, stereo system and leather seats. While Dad is talking, Boy interrupts repeatedly to ask whether the tree house has the same amenities as the minivan. Even Friend interrupts Dad to ask Boy if he has any three's. This commercial is just wrong, on several levels.
One, it's probably safe to assume that because Dad has been working weekends on the tree house, he works to support his family. Everyone needs to contribute to the household, and Boy needs to be helping Dad on the project. Contrary to what many -- including an ex-husband -- believe, giving children chores and expecting them to help out is not abuse. It is preparing them for life. So, Dad doesn't respect Boy enough to involve him in the project that will benefit him.
Two, Boy has all the power. His father, the slave, spends his free time working on a project for Boy, sans the air conditioning, movies, leather seats and conversation that Boy has enjoyed. Boy dismisses Dad's effort and enthusiasm. Boy is completely void of respect for Dad whose actions do not "look like a man" (thank you, Miss Swan of Mad TV).
Three, in an era when people are trying to reduce consumption, Dad has allowed Boy and Friend to sit in the minivan for four weekends (the equivalent of more than a week!) playing cards and watching movies. Talk about low mileage! No one in the commercial has respect for the environment.
As a former newspaper editor and marketing executive, I know the ad is not meant to be taken literally. Yes, I've seen all the claims that people and children don't learn/mimic behavior they see on TV and movies or hear in songs. Yet, companies like Toyota spend multiple millions to have their 30-second spots aired across the spectrum (they're after reach and frequency) to drive behavior.
In the case of this ad, the list of amenities is repeated articulately by a child actor reminiscent of Haley Joel Osment (no accident, I'm sure). Good for sales. Unfortunately, the message is framed by a total lack of respect.
Toyota, I expect more of you and your Japanese heritage.
Monday, April 21, 2008
Wednesday, April 16, 2008
Out of Hiding and on the Hunt
Well, it surprises me I've been silent for two weeks. It started when I realized I couldn't pay the rent on the business on March 31. That sucks. Really sucks. The economy's "rough patch" has just turned into an economic downturn. No perception here. Just tough reality.
I figure if I have to close up shop and face the creditors, I'm in pretty good company. There are big companies out there who are in real trouble along with thousands of entrepreneurs like me. All day long, I see people traipse in and out of the nail salon next door all day long -- and I also notice the long lines at the fast food dives when I drive by, but there's little disposable income for the gym where people can save money on health costs by losing weight, managing pain and getting their endorphins going. Crazy.
A lifelong friend -- he taught me to bee-bop when I was in sixth grade -- has blessed me with sage advice. He reminded me that I am still above ground with thousands of blessings to count (my family and friends, you know who you are) not the least of which is an unidentified opportunity waiting for me to find it. He set off a bell in my head (I always did like a good mouse hunt) and energized me. Oh, and he made me write this down: Never ever, ever, ever, never ever, never ever, never, never, never give up. (That's a quote after Winston Churchill's heart.)
Here's a screwed up state of affairs. My friend has been a highly successful entrepreneur/business man for decades. He grosses more than a million a year. But he's been hit hard and is making some tough decisions. He consulted a business lawyer who advised him that his business doesn't make enough money to declare bankruptcy -- it takes a minimum of $11 million to handle the accounting and legal reporting that must be done in that situation.
So, I don't know my next move. But I know there will be a move. Whether it's literal or figurative, I'm thankful that cats always land on their feet!
I figure if I have to close up shop and face the creditors, I'm in pretty good company. There are big companies out there who are in real trouble along with thousands of entrepreneurs like me. All day long, I see people traipse in and out of the nail salon next door all day long -- and I also notice the long lines at the fast food dives when I drive by, but there's little disposable income for the gym where people can save money on health costs by losing weight, managing pain and getting their endorphins going. Crazy.
A lifelong friend -- he taught me to bee-bop when I was in sixth grade -- has blessed me with sage advice. He reminded me that I am still above ground with thousands of blessings to count (my family and friends, you know who you are) not the least of which is an unidentified opportunity waiting for me to find it. He set off a bell in my head (I always did like a good mouse hunt) and energized me. Oh, and he made me write this down: Never ever, ever, ever, never ever, never ever, never, never, never give up. (That's a quote after Winston Churchill's heart.)
Here's a screwed up state of affairs. My friend has been a highly successful entrepreneur/business man for decades. He grosses more than a million a year. But he's been hit hard and is making some tough decisions. He consulted a business lawyer who advised him that his business doesn't make enough money to declare bankruptcy -- it takes a minimum of $11 million to handle the accounting and legal reporting that must be done in that situation.
So, I don't know my next move. But I know there will be a move. Whether it's literal or figurative, I'm thankful that cats always land on their feet!
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