Archive for June, 2012

An Investor’s Eye View of the Corporate Income Tax

The Investor’s Eye view of politics is a simplistic, practical, “dot-connecting” approach to sorting things out so that positive (win/win) change can be considered. Real World politics is not concerned with such things, and that is one of the most serious problems facing investors today. As outlined in “Investment Politics 2008″, there are at least ten issues that require government action if we are to maintain our competitive position in the World Economy. Most of these are interrelated and need to be acted upon simultaneously… thus causing a major political dilemma. Politicians are much more interested in talking about change than they are in actually legislating it; they prefer to champion just one specific issue at a time so as not to appear too independent; and they can’t keep themselves from back sliding into the now archaic distinction between investors and poor people. Rich or poor, most Americans have investments. For the small investor to become wealthier, his or her efforts must be encouraged by the tax code… the wealthy will become wealthier in spite of the tax code! And, believe it or don’t, the vast majority of the wealthy (even corporate executives) are good, productive, caring-about-the-environment, people.

At the root of the problem is the tremendous investment the major parties have in nurturing divisiveness, jealousy, and misunderstanding in the electorate. The Republicans or Democrats in power are (always) ruining the country and, of course, the guys who are seeking power, will undoubtedly do the same. Perhaps the most obvious example of misguided political handiwork is the negative attitude of most individuals toward corporations, big business, and international economic collaboration. As non-voting but taxable entities, corporations are easy to blame for all that is wrong in society, easy to sue frivolously with no remorse or control, and popular to tax… by both parties! The sad thing is that most people don’t take the time to appreciate just how important business success and profitability are to their own financial interests, short and long term. Mutual Funds, for example, perform better when businesses, large and small, prosper. Profitable businesses produce more jobs, provide higher salaries, and (once all the extra fees, mandates, taxes, and handouts are eliminated) lower prices.

Politicians have neither been shy about dictating “proper” behavior to individuals nor hesitant in shamelessly picking the pockets of businesses to fund their projects. Self-employed business owners, for example, pay a minimum 35% Federal Income Tax, State and Local taxes of various kinds, and the usual Workers Compensation, Medicare, and double Social Security Taxes. It adds up to better than 50% quickly, and, at every level, all taxes, fees, subsidies, assessments, withholdings, compliance costs, etc. are: 1) added to the price of goods and services, 2) considered in hiring decisions at all levels in all business entities, and 3) factored into decisions regarding new plant locations and service function outsourcing. Businesses will only produce jobs in an environment that recognizes the importance of the contributions they make. Meaningful Tax Reform needs to begin where the jobs begin. Reforms to the Individual Tax Code and the Social Security/Retirement System can then be integrated into the business framework…

Just as Congress picks corporate pockets, Corporations pick those of their shareholders. The compensation of corporate officers is a clear example of how this has gone totally out of control, even if it is understandable under existing tax codes… both corporate and individual. Million Dollar salaries, bonuses, deferred compensation and option packages are all designed to avoid and/or to defer taxes while, at the same time, they are deductible on a dollar for dollar basis from business taxes. Changes on the personal side could clean this up quickly but, for now, politicians need to focus more on protecting shareholders from these creative, and excessive, compensation schemes. Eliminating the Corporate Income Tax, and all tax deferral/option/bonus mechanisms that are not available to all employees at all levels, would be an excellent start. Then cap total compensation packages at a specific number… any excess being paid only in the form of dividends to all shareholders.

The Corporate Income Tax is a non-productive weight on business decision makers, causing expenditures that would not be considered were they not tax deductible. Ironically, salaries are not increased to reduce the tax bite because every dollar of salary brings with it an additional 40% or so in overhead! All the actual costs of doing business (and all the perceived risks associated with doing business) wind up in the price of goods and services. The fact that governments can raise corporate costs so much more easily than they can raise individual’s taxes is perhaps the biggest shell game threatening our economic well being today. If instead, Congress would cultivate the profitability of corporations, while focusing regulatory efforts on the economic abuses of shareholders, employees, and consumers, a whole new era of economic expansion and productivity growth would ensue… and we’re just getting started.

Investors need to impress upon candidates that they expect meaningful change throughout the tax code, and that a second term just won’t happen without it. After the Corporate Tax environment changes, politicians will be able to devote their energies to defining “proper corporate and non-corporate business behavior”, and monitoring compliance with a whole new set of rules and regulations. Converting the United States into a Free Trade Zone, by eliminating all nuisance assessments from all levels of government, would: increase employment, reduce prices, and multiply distributable dividends. Making it happen should not be that difficult, particularly with the growing outrage concerning the obscene compensation of high level corporate executives, and considering how successful the FTZs have been on the local level. Managers will make these changes work because the incentives are where they belong… on the bottom line instead of the tax return. Small businesses would benefit from the reduction in taxation, and fees, and would be less constrained in their efforts to grow. If they don’t do the right thing, they will become less competitive in the marketplace, and that is the way capitalism is supposed to work. But, don’t be naive. Publicly held companies will need direction, guidance, and policing… an excellent new career for displaced accountants and lobbyists!

Steve Selengut
http://www.articlesbase.com/taxes-articles/an-investors-eye-view-of-the-corporate-income-tax-140141.html

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Posted by mark - June 28, 2012 at 1:34 pm

Categories: Government Reform   Tags: , , , , , , , , , , , ,

What are some famous quotes from the founding fathers regarding the right to bear arms?

I already know that Jefferson said:

“The strongest reason for the people to retain the right to bear arms is, as a last resort, to protect themselves against tyranny in government.”

Isn’t there also a quote by one of the other founding fathers which states that your gun should be your constant companion? What about other famous quotes?

Looked this up when the Supreme Court ruling came out… here you go:
“No freeman shall ever be debarred the use of arms
[within his own lands or tenements].” (The Papers of
Thomas Jefferson 344 (J. Boyd ed. 1950)).

"When governments fear the people, there is liberty. When the people fear the government, there is tyranny. The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government."
Thomas Jefferson (attributed without source)

"A strong body makes the mind strong. As to the species of exercise, I advise the gun. While this gives moderate exercise to the body, it gives boldness, enterprise and independence to the mind. Games played with the ball and others of that nature are too violent for the body and stamp no character on the mind. Let your gun therefore be the constant companion of your walks."
Thomas Jefferson’s advice to his 15 year-old nephew

"Among the natural rights of the colonists are these: first, a right to life, secondly to liberty, thirdly to property; together with the right to defend them in the best manner they can."
Samuel Adams

"The said Constitution [shall] be never construed to authorize Congress to infringe the just liberty of the press, or the rights of conscience; or to prevent the people of the United States, who are peaceable citizens, from keeping their own arms."
Samuel Adams of Massachusetts — U.S. Constitution ratification convention, 1788

"(The Constitution preserves) the advantage of being armed which Americans possess over the people of almost every other nation…(where) the governments are afraid to trust the people with arms."
James Madison, The Federalist Number 46

Arms in the hands of individual citizens [may] be used at individual discretion…in private self-defense…"
John Adams, A Defense of the Constitution of Government of the United States of America, 1788

"Arms in the hands of the citizens may be used at individual discretion for the defense of the country, the overthrow of tyranny or private self-defense."
John Adams (1735-1826) Founding Father, 2nd US President

"The best we can hope for concerning the people at large, is that they be properly armed."
Alexander Hamilton

"The right of self-defense never ceases. It is among the most sacred, and alike necessary to nations and to individuals."
President James Monroe (November 16, 1818)

"A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government."
George Washington

"I ask sir, what is the militia? It is the whole body of the people except for a few public officials. To disarm the people is the best and most effectual way to enslave them…"
George Mason

"Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! – I know not what course others may take; but as for me, give me liberty or give me death!"
Patrick Henry

"Are we at least brought to such a humiliating and debasing degradation, that we cannot be trusted with arms for our own defense? Where is the difference between having our arms in our possession and under our own direction, and having them under the management of Congress? If our defense be the real object of having those arms, in whose hands can they be trusted with more propriety, or equal safety to us, as in our own hands?"
Patrick Henry, 3 Elliot Debates 168-169.

"Before a standing army can rule, the people must be disarmed; as they are in almost every kingdom in Europe."
Noah Webster – Author of America’s first dictionary. It is interesting to note, to this day, most of the Citizens of Europe are not allowed firearms except for hunting, and those are limited greatly.

"The balance of power is the scale of peace. The same balance would be preserved were all the world not destitute of arms, for all would be alike; but since some will not, others dare not lay them aside … Horrid mischief would ensue were one half the world deprived of the use of them … the weak will become prey to the strong."
Thomas Paine

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Posted by mark - June 19, 2012 at 11:12 am

Categories: Founding Fathers   Tags:

Get The Classy Conservative Look With Window Tinting Gold Coast

Get The Classy Conservative Look With Window Tinting Gold Coast

When you want to classy tinted window look that complies with local regluations you need to give window tinting gold coast a try. Regardless of whether it is for residential use or business use you can depend on window tinting gold coast for your tinting needs.

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Window Tinting Gold Coast

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Posted by mark - June 12, 2012 at 4:49 pm

Categories: Resources   Tags: , , ,

Introduction To Options Trading, Part 1

The study of options can expand your perceptions about the range of possibilities. Most people are familiar with two forms of investment: equity and debt. There is a third method, however, and that third method is far more interesting than the other two. Its attributes are unlike any that most people understand-and these differences can be viewed as a troubling set of problems, or as a promising set of opportunities.

Let’s begin with a brief review, laying the groundwork about the two basic ways to invest. An equity investment is the purchase of ownership in a company. The best-known example of this is the purchase of stock in publicly listed companies, whose shares are sold through the stock exchanges. Each share of stock represents a portion of the total capital, or ownership, in the company.

When you buy 100 shares of stock, you are in complete control over that investment. You decide how long to hold the shares and when to sell. Stocks provide you with tangible value, because they represent part ownership in the company. Owning stock entitles you to dividends if they are declared, and gives you the right to vote in elections offered to stockholders. (Some special nonvoting stock lacks this right.) If the stock rises in value, you will gain a profit. If you wish, you can keep the stock for many years, even for your whole life. Stocks, because they have tangible value, can be traded over public exchanges, or they can be used as collateral to borrow money.

Example

Equity for Cash: You purchase 100 shares at $27 per share, and place $2,700 plus trading fees into your account. You receive notice that the purchase has been completed. This is an equity investment, and you are a stockholder in the corporation.

The second broadly understood form is a debt investment, also called a debt instrument. This is a loan made by the investor to the company, government, or government agency, which promises to repay the loan plus interest, as a contractual obligation. The best-known form of debt instrument is the bond. Corporations, cities and states, the federal government, agencies, and subdivisions finance their operations and projects through bond issues, and investors in bonds are lenders, not stockholders. When you own a bond, you also own a tangible value, not in stock but in a contractual right with the lender. The bond issuer promises to pay you interest and to repay the amount loaned by a specific date. Like stocks, bonds can be used as collateral to borrow money. They also rise and fall in value based on the interest rate a bond pays compared to current rates in today’s market. In the event an issuer goes broke, bondholders are usually repaid before stockholders as part of their contract, so bonds have that advantage over stocks.

Example

Lending Your Money: You purchase a bond currently valued at $9,700 from the U.S. government. Although you invest your funds in the same manner as a stockholder, you have become a bondholder; this does not provide any equity interest to you. You are a lender and you own a debt instrument.

The third form of investing is less well known. Equity and debt contain a tangible value that we can grasp and visualize. Part ownership in a company or the contractual right for repayment are basic features of equity and debt investments. Not only are these tangible, but they have a specific lifespan as well. Stock ownership lasts as long as you continue to own the stock and cannot be canceled unless the company goes broke; a bond has a contractual repayment schedule and ending date. The third form of investing does not contain these features; it disappears-expires-within a short period of time. You might hesitate at the idea of investing money in a product that evaporates and men ceases to have any value. In fact, there is no tangible value at all.

So we’re talking about investing money in something with no tangible value, that will absolutely be worthless within a few months. To make this even more perplexing, imagine that the value of this intangible is certain to decline just because time passes by. To confuse the point even further, imagine that these attributes can be an advantage or a disadvantage, depending on how you decide to use these products.

These are some of the features of options. Taken alone (and out of context), these attributes certainly do not make this market seem very appealing. These attributes-lack of tangible value, worthlessness in the short term, and decline in value itself-make options seem far too risky for most people. But there are good reasons for you. Not all methods of investing in options are as risky as they might seem; some are quite conservative, because the features just mentioned can work to your advantage. In whatever way you might use options, the many strategies that can be applied make options one of the more interesting avenues for investors. The more you study options, the more you realize that they are flexible; they can be used in numerous situations and to create numerous opportunities; and, most intriguing of all, they can be either exceptionally risky or downright conservative.

Tip

Option strategies range from high-risk to extremely conservative. The risk features on one end of the spectrum work to your advantage on the other. Options provide you with a rich variety of choices.

Mark Crisp
http://www.articlesbase.com/finance-articles/introduction-to-options-trading-part-1-190345.html

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Posted by mark -  at 9:24 am

Categories: Conservative News   Tags:

Good News – Conservative Party Obama, Steve Jobs, Botox Eyelashes

barack obama conservative columns shows up at a conservative party hosted by george will of the washington post, steve jobs steps down as head of apple macintosh illness more serious than originally thought great inventor and leader in technology, botox for your eyelashes hormone called latisse that has a side effect of longer eyelashes grow your eyelashes, good news and views, world and national news, myinboxnews.com,

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Posted by mark - June 10, 2012 at 8:54 am

Categories: Conservative News   Tags:

Rep. Jason Chaffetz Says It’s Time to Return to Conservative Principles

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Posted by mark - June 5, 2012 at 7:35 am

Categories: Conservative Studies   Tags: , , , , , , , , , , , , ,

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