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Commentary About the Blue Marble

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Commentary About the Blue Marble

Category Archives: Taxes

Fair Taxation

03 Tuesday Dec 2024

Posted by Commentary about the Blue Marble in Taxes, U.S. Taxes

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finance, investing, real-estate, tax, Taxes

        I remember the table breaking in half when President Ronald Reagan had all the notebooks containing all the tax laws placed on it. Whether or not it had been weakened is beside the point. It broke because Congress passes laws with hundreds of exemptions every year. Reagan said he would cut taxes by a third, which he did and then had to raise them back up with more exemptions because of the cutting raised the National Debt, which he hated more.

            In the 1980s Representative Kemp tried to push through a universal 6% income tax. His plan sounded good but would not have balanced the budget while keeping most of the exemptions. I think a fair income tax would be 12% over $20,000 base for individuals and 20% for all others. Small business would probably claim individual with companies, corporations, estates, and other financial entities paying the 20% on profits. Social Security and Pensions totaling over $20,000 would be taxed when combined to total over the base. There would be no exemptions for age, children, marital status and real estate taxes. Congress can’t stop with just one one exception and once the door is open its a flood.

            The backlash from the accounting sector would be formidable since any individual could multiply the W-2 by 12% and see if money is to be paid or returned. Companies wouldn’t need thousands of CPAs and attorneys to find loopholes and exemptions. Think of more profit without them and a host of lobbyists figuring out how to bribe legislatures. People making hundreds of millions would pay 12% and corporations that have never paid anything would now pay 20% on their billions.

            Artificial intelligence would allow for more productive checking of all returns and with AI and simpler returns, the Treasury Department could reduce its employees by thousands.

            I would think the additional income would help to end the yearly additions to the National Debt if Congress was responsible with their hand-outs and waste.

            Think about it. Most individuals would need no more than a postcard to do their taxes and corporations would need a page or two. No hiding income by buying land and saying you are a farmer to pass money through the estate exemptions. Hundreds of thousands Professionals buy land so it would be passed on to their children tax free.

            What a dream because no Congress is ever going to give up all those campaign bribes and speaking engagements padding their personal accounts. Graft is a five letter word preventing the dream from happening.

Alabama Tax Break

25 Sunday Feb 2024

Posted by Commentary about the Blue Marble in Taxes

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        The Alabama Supreme Court just handed the people of Alabama a great tax break. Their ruling on a fertilized egg means it is a dependent and therefore a tax dependent. Often that IVF procedure creates ten to twenty or more fertilized eggs. The parents have to pay the storage fee so there is the financial support and housing. Isn’t that the criteria for claiming a dependent in Alabama?

            The procedure isn’t cheap and can cost several thousand dollars but getting an extra few dependents for the rest of a person’s tax life would be a plus in a few years. Maybe the U.S. Supreme Court would give all Americans that tax break! A billionaire could save millions of dollars.

            Of course that ruling does away with the four, six, twelve, or later abortion limit. Isn’t that the conservative bugaboo of court’s deciding society?

Trading Tax

08 Monday Mar 2021

Posted by Commentary about the Blue Marble in Taxes

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            Many Representatives, Senators, and organizations have proposed a transaction tax on Stock and Bond Traders. I don’t make many trades each year, but it will have some effect on my finances. I favor a five cent per hundred dollar trade for two reasons.

            Reason one is the tax is a financial tax levied against those with money to invest. It is a tax solely on finances of those who have usually arrived at their level by benefiting from the activities of the federal government’s borrowing. The money gained from the tax should go to paying down the National Debt. It may allow for more borrowing but language could be added limiting it. The tax would be a start to going back to the Clinton-Gingrich income tax structure to make America Debt Free!

            Reason two is such a tax would go a long way to equalizing the stock and bond markets by decreasing high speed trading based on a few cents per stock. The tax would decrease the volatility and volume making the markets more stable and an even playing field for the average investor like me.

            All those against the tax don’t want to give up their advantages. Senators and Representatives — do something you are not accustomed to doing — ignore lobbyists and massive contributions and pass a tax good for all Americans.

Separation of Church and State

18 Tuesday Feb 2020

Posted by Commentary about the Blue Marble in Taxes

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When I was a student at Murray State University in Murray, Kentucky, one of my urban planning classes involved a study of downtown Murray. Three of the four corners were large churches which reduced not only retail sales footage on the square but down some of the side streets. As the population grew, retailers had been forced away from the square. Now little is downtown and almost all is now on the main highways west of town. During the study I interviewed the retailers who didn’t appreciate being taxed for real estate while the churches benefited from the infrastructure the churches abused. As the retailers were bankrupted the churches bought up the buildings reducing downtown tax receipts even more.

Religious groups do not pay income taxes and thus they are not allowed to promote one person over another for a political office. Several years ago the IRS started threatening some churches about promoting a person by telling their congregation to vote for the pastor’s choice. Read 501(c) (3) rules where it clearly states a religious or non-profit organization cannot promote any political person or party over another. It makes me grit my teeth when I see some political figure addressing a congregation on a Sunday morning. The church then becomes a Super PAC and not a devotional service.

Religious schools should not be getting any funding since any one taxpayer may not agree with that religion’s beliefs or any belief in a supernatural being. Would those who think Christian schools should be supported, agree with supporting a Muslim, Hindu, or some Radical Sect? Once we support one, all are entitled. That’s why we have a separation of Church and State.

Two Mostly Thumbs Up Votes

11 Tuesday Jun 2019

Posted by Commentary about the Blue Marble in Taxes

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As frequent readers know I am completely and absolutely against medical marijuana because hemp has the same supposed medical value without THC’s mind altering effects.

The state just passed the recreational law making its use legal. My Republican Representative, David Welter, was designated by his leadership to make the law bi-partisan. This gave him a unique and outsized opportunity to shape the law. He was able to allow businesses and communities to ban its use. Imagine if it hadn’t been added to the law. We could have had stoners running our nukes. I’m afraid we will still have drivers of cars and big rigs high and the drug is active for hours and days.

We still disagree on whether he should have tilted at the windmill and voted against it but at least he made it more palatable than it would have been without his input. I can give him a little better than a tepid “thanks for your work.”

He also voted for the nineteen cent raise in the gas tax. He expected I would be displeased in his vote to raise but I told him, I had been pushing for 25 cents. So drivers, I can give him a bent thumbs-up for getting 80%. I told him my current Cherokee gets twice the mileage of my van so I pay half the gas tax for the same wear on the roads. A greater tax was necessary.

I also explained my proposal on Toll Roads which affect only the big rigs which cause the most damage. He said he would look into the Rhode Island plan which is where I got the idea.

Tolls Will Fix the Roads

17 Friday May 2019

Posted by Commentary about the Blue Marble in Infrastructure, Taxes

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A few weeks ago I wrote “I-80 from Iowa to Indiana should be a Toll Road.” Since then I have found out how Governor Gina Marie Raimondo of Rhode Island solved her state’s funding for roads and bridges. She put a toll on her roads affecting only trucks. This gets around the family cars getting on and off. I think of Rhode Island as Will County. I have talked with others from Grundy and LaSalle and their plan is to stay on local and two-lanes to avoid the toll.

I would not only put a truck toll on I-80, I would add, I-55, I-57, I-64, I-72, I-39, I-70, and I-94. This would bring in tens of millions each year without affecting the residents in the area. The short haul trucks that don’t leave the state would have to be billed another way. Those that skirt the tollways would be ticketed heavily.

A thousand dollar registration for electrics is stupid! It should be the same as gasoline vehicles plus the average gasoline tax. In a decade a huge percentage of vehicles sold will be electric. This includes six, ten and eighteen wheel trucks.

We should add at least a quarter per gallon to the state tax so the rest of us will contribute. This toll and tax proposal has the vehicles doing the most damage to our highways paying the most. How tolls would be structured and where toll exits would be located is beyond information available to me. Tell your legislator this plan has your approval.

Cut the Debts

14 Thursday Mar 2019

Posted by Commentary about the Blue Marble in Deficits, Politics, Taxes

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I just ate at a Chinese Buffet and my fortune cookie said “Blessed are the children for they will inherit the National Debt.” I would add state debt. Why do we elect people who kick the can down the road and blame the other party? We all need to complain to the gutless legislators in D.C. and Springfield that are more interested in getting re-elected and padding their own pockets than decreasing debts.

Fixing the problem is easy if the people we elected had guts and weren’t full of crap!

Amazon Pays No Fed Tax Again

03 Sunday Mar 2019

Posted by Commentary about the Blue Marble in Amazon, Taxes

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Despite revenue of over $232 Billion, Amazon made only $9.4 Billion in 2019. However with the convoluted bought-and-paid-for tax code they will pay the same as in 2017 — ZERO. By using all the preferences and loop holes written into the code by lobbying, Amazon and most other companies avoid paying taxes the rest of us pay.

Many companies and partnerships give their “shareholders” tax free distributions. Non-profit hospitals make millions but pay no taxes. New York City was going to give Amazon over $3 billion in tax saving to locate there. How much did Will County give for the Amazon warehouses in real estate tax savings and will they leave for another place later? Look at how much those warehouses are costing in infrastructure. Still ZERO Federal Taxes. How about Illinois taxes?

Finally a Smart Tax

09 Sunday Sep 2018

Posted by Commentary about the Blue Marble in Taxes, Transportation

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I have never heard the Democratic nominee for Governor J. B. Pritzker say he wants to tax us a penny and a half a mile every Illinois car drives in Illinois. Oregon has been doing it for many years. I think they are rebated for the tax at the pump I pay when I visit their beautiful state.

Why the mileage tax and not the pump price? I think the last time our gasoline tax was raised I had a Ford van that got 14 mpg. Now I have a Cherokee that has gotten 33 mph on a trip from Southern Illinois. I drove on the road just as far but paid less than half the tax. (Gasoline tax is per gallon and not a percentage of the price.) Hybrids might use a gas like propane, hydrogen, or battery power as well as gasoline. They will wear down the roads just as much as my old van and pay little or nothing. Electrics will pay nothing.

I like to make trips to other parts of our diverse country so the GPS device would keep me from having to pay for the miles outside of Illinois. It would be a lot more honest than me trying to keep records. Most people might not be as honest. One of my friends drives to Michigan most weekends and takes longer trips a couple times each year. Without the device it would seem odd most of his mileage was out-of-state. In an average year, I may have about half of my miles out of state.

If we want good roads we must pay for them somehow and a gasoline and mileage tax is the only fair way to do it. It isn’t fair for non-drivers to pay for my good roads. I have wondered for years when all states would smarten up and do this. I admire this forward thinking idea for Illinois.

Seek Answers Before November

09 Sunday Sep 2018

Posted by Commentary about the Blue Marble in Deficits, Economy, Taxes, Voting

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The average worker has had an 11% raise over inflation since 1977. The average CEO had that much last year alone. The average professional baseball, basketball, football, and hockey player got much more with the stars getting outrageous increases. Many CEOs make over a thousand times more than the median worker. Why aren’t the workers of America rightly upset?

The massive corporate tax cut that was to wend its way down to those median workers who desperately need sizeable raises didn’t make it. Less than ten percent have used the money to help their workers. Most directly or indirectly raised their salaries, increased their stock price using stock buy-backs, or purchased another company. Since almost 90% of our country’s wealth is owned by less than 1% of us, the massive tax cut did nothing for 99% of us.

The trickle down economic philosophy means the fire hydrant water floods into the fire hose but a trickle comes out the nozzle. If that happened at a fire people would demand answers. Why not now? If the economy is doing so well why are millions of workers getting little or no pay increases? Why are the workers on bicycles when the upper managers are in Ferraris? Newspapers, magazines, and TV have shown only a small interest in the situation. The administration and the Republican congress said their tax cut would help low and middle class Americans more than the rich before the cut and while campaigning. Why aren’t they asked why you aren’t being given raises like the upper managers and CEOs? Also ask who is going to pay for the massive debt and deficit of over 1.5 trillion this year. Those are good questions to ask. Let’s see if we get truthful answers.

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