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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SargeK who wrote (2594)	10/5/2006 11:47:48 AM
From: jude_the_cat	Read Replies (2) \| Respond to of 50281

Brilliant, SargeK... Capital Gains Tax (Precious Metals and Stones, Stamps, and Coins) Gold, silver, gems, stamps, coins, etc., are capital assets except when they are held for sale by a dealer. Any gain or loss from their sale or exchange generally is a capital gain or loss. If you are a dealer, the amount received from the sale is ordinary business income. The question arises that if US gold and silver legal tender coins are subject to a capital gains tax because its market value (denominated in US Dollars) has increased, why is it the loss in purchasing power of fiat US dollars against the coins not subject to a capital Loss? Besides the market price, the purchasing power of both legal currencies can be valuated against inflation as measured by the Consumer Price Index (CPI) at any fixed point in time. If a hundred dollar bill loses purchasing power, it is no less a real loss than if it was used to purchase any other asset that failed to keep up with inflation. Again, why is it that this loss in purchasing power not a legitimate tax deduction? “Coin” EXAMPLE: A $50 AGE purchased for $300, then sold 20 years later for $400 is not a real capital gain although nominal gain of $100 is subject to tax when in fact the $400 adjusted for inflation is less than the purchasing power of the $300 at the time of purchase. The Minneapolis Federal Reserve Bank Inflation Calculator demonstrates how the same goods and services purchased with a $100.00 bill in 2006 would have cost only $19.16 in 1970 - an 80% loss in purchasing power. “Stock” EXAMPLE: Boeing Aircraft (BA) common stock sold at an average price of $18.74 in 1970. On June 22, 2006, "BA" closed at $84.06 per share. If sold at the recent price, 1000 shares would have a nominal value of $84,060.00 producing a gross profit of $65,320.00 subject to capital gains tax. Using the Inflation Calculator BA would have to sell at $97.81 per share just to maintain purchasing power against the depreciated US dollar. In inflation adjusted terms, this transaction results in a real loss of $13,750.00. The above examples expose the tax and welfare confusion or fraud created by denominating income tax liabilities in a depreciating currency. Capital gains on assets nominally inflated by a depreciating currency should not be taxed because in terms of purchasing power wealth is diminished not increased; unless, a real gain is realized after adjustment for inflation.

To: SargeK who wrote (2594)	10/10/2006 10:07:24 AM
From: SargeK	Read Replies (3) \| Respond to of 50281

Replace Corporate Income Tax with Excise Tax A 2% (may be modified to economic conditions) excise tax on total business receipts will produce higher revenue to the government than the current Corporate Income Tax. It will also reduce business accounting and tax code compliance costs by $100s of billions. Corporate Tax Revenues: 2000 - $207 billion 2001 - $151 billion 2002 - $148 billion 2003 - $132 billion 2004 - $189 billion 2005 - $278 billion Source: Tax Foundation taxfoundation.org Total Business Receipts in 2002 (most current data available) - $23.4 trillion irs.gov Using 2002 as an example, a flat 2% tax on total US Business receipts would produce IRS income of $468 billion, an amount higher than Corporate tax receipts in any year in history. Replacement of the Corporate Income Tax with an excise tax on total business receipts will eliminate the business expense deduction of individual FIT and FICA taxes withheld from wages. Total, undiluted taxes withheld from employee paychecks may be deposited/credited to the IRS and the Social Security and Medicare Trust Funds. The result would be surpluses in OASDI FICA taxes that could be deposited in a NEWLY CREATED TRUST fund with compounding asset earnings instead of compounding debt in the current construct. These changes may not completely solve the problem of Social Security insolvency, but it damn sure beats the dismal prospects reflected in current law. Government continues to head in the WRONG direction. Example: Tax cuts enacted since President Bush took office are typically described as benefiting individuals and not businesses. Businesses are often depicted as sitting on the sidelines, waiting patiently for their turn to have their taxes reduced. The last two tax-cut measures, however, included substantial tax cuts for businesses, including very generous write-offs for investments in plants and purchases of equipment. Under the package enacted in May 2003, businesses can immediately write off 50 percent of the cost of these new investments; businesses with smaller levels of new investments and purchases can immediately write off the full cost of new investments and purchases up to $100,000. 2% Excise Tax on ALL imports To level the playing field between domestic and foreign production, my proposed excise tax on business receipt would ALSO apply to ALL imports including Canada and Mexico. The latter could respond with a similar tax, thus trashing NAFTA, that I think would be a good idea. Any foreign country that imposes higher tariffs on American imports than the 2% would have tariffs on their exports to the USA MATCHED, whether they like it or not. If this country is to survive, a sound currency linked to a store of value, and tax and welfare policies must be developed that stimulate prosperity instead of DEBT. Politicians must be held accountable for the sorry mess we find ourselves in, but US citizens and businesses must first account for their own actions OR the welfare system will overwhelm our resources to compete. It may be too late, but I don't think so. The journey of a 1000 miles begins with the first step. Citizens must wake up and force their WILL on legislators or face the prospects of a dismal future. Compounding Growth OR Compounding Debt, which do you choose? I've posted more than enough in the past few weeks..... Back to research and analysis, which is the part I enjoy. And, to answer the question of a previous post, - I do not play golf. From the criticisms I receive, I suspect many would prefer I take up the game. I'm growing old and tired, perhaps I should consider it. God Bless America! SargeK Getting Ready for Hard Times" debtism.com