The EU Wants to Impose a Tax for Sharing Links on the Internet

http://libertyblitzkrieg.com/2016/06/14/the-eu-wants-to-impose-a-tax-for-sharing-links-on-the-internet/

Forget IMF’s Tax On Deposits, This Will Truly Destroy Savers

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/1/3_Forget_IMFs_Tax_On_Savings%2C_This_Will_Truly_Destroy_Savers.html

France Gives "Fairness Doctrine" Details; Will Tax Millionaires At 75%

How much do you want to be French financial assets are fleeing to Swiss vaults--and the rich French are flooding out of France to other domiciles?

http://youtu.be/UalY5dyhpHA

Dr. Keynes killed the patient

http://www.realclearmarkets.com/articles/2010/08/20/dr_keynes_killed_the_patient_98632.html

American consumers are trying their best to deleverage. In terms of the story, the patient is actually trying to lose weight. But the government is blocking deleveraging and trying to boost consumption. They are forcing food down the patient's throat. According to the Flow of Funds Report, households reduced debt at a 2.4% annualized rate ($330 billion) during Q1 of 2010. Meanwhile, the federal government was piling on debt at an 18.5% annual rate ($1.44 trillion). Since every dollar of government debt is a promise to tax the private sector in the future with interest, this public spending spree effectively negated the Herculean efforts of the private sector to return to a sustainable path.

That's where the arrogance of Washington is really apparent. Scores of millions of American consumers have made the decision that reducing their debt burden is in their best interests right now. But a few hundred individuals in government believe they know better than the collective wisdom of the entire free market. By leveraging up the public sector, they have used their power to confiscate our savings. In short, they are forbidding us from following the common sense path to fiscal health.

Tax grab bag

This will likely be the beginning of a big tax grab bag as states are going broke and looking to raise tax revenue.

http://news.cnet.com/8301-13578_3-20002870-38.html

Beware of tax consequences from short sales

Each state handles it differently.

http://www.mercurynews.com/real-estate-news/ci_14766648

The 911 tax

http://cbs13.com/local/tracy.911.calls.2.1502690.html

Tracy residents will now have to pay every time they call 9-1-1 for a medical emergency.

Unbelievable.

The true cost of closing failed banks

The FDIC's true cost of closing failed banks into receivership is much higher than initially calculated, thanks to the FASB's "pretend and extend" false accounting methods. This "cooking of the books" throws out GAAP "mark to market" accounting, and overstates the value of toxic assets, in an attempt to feign bank solvency. In the final analysis, this will just be another larger burden on the US taxpayer.

Jim’s Mailbox

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Information released by the FDIC in connection with each new bank closing has been giving us a peek into the real condition of U.S. banks one year after the Financial Accounting Standards Board (“FASB”) suspended fair value accounting requirements. Across the board, we are seeing that banks have radically over-valued their least liquid assets on the basis of a fantasy called “hold to maturity.”

Banks’ fantasy valuations are put to the test when it becomes incumbent upon the FDIC to close the bank and protect depositors’ assets. At that stage, the FDIC has to find a willing buyer for the assets and fair market value is established. As a result, it is now costing the FDIC unprecedented amounts to close banks.

The problem actually goes one step further. As we know, the government’s current economic policy is one of Manipulation of Perspective Economics (“MOPE”) and Pretend and Extend. MOPE does not permit too much bad news to be released at any one time, and Pretend and Extend puts problems off to the future on a presumption that conditions will be quickly improving.

It would be too much bad news all at once to let it be known what banks’ fantasy-valued assets are actually worth. Therefore, instead of selling off banks’ assets “as is” and taking its lumps all at once, the FDIC is now routinely entering into loss-share agreements as to virtually all the assets sold. That allows the FDIC to not have to book the full extent of its losses at the time each bank is closed, but is also leading to the FDIC taking on the risk of huge future losses.

The FDIC is already broke, so any future losses it takes on are liabilities of the U.S. public. The combined policies of MOPE and Pretend and Extend are once again making it inevitable that quantitative easing must continue indefinitely.

Estate planning

With families huddled together, many memorable moments are being shared. Among the laughs and pleasant recollections, the topic of family estate and legacy planning may inevitably come up. It shouldn't be unpleasant or neglected--all families go through transition, and it's best to address these issues honestly and coherently. Here are a few FAQs on estate planning.

1) Why is an estate plan important?
Your estate could potentially dissipate due to taxes and other transfer costs. An effective estate plan reduces estate taxes and probate costs, and enables you to leave a legacy to those important to you.

2) What are the benefits of an effective estate plan?
- Competent asset management in the event of disability.
- Efficient distribution of estate to beneficiaries.
- Reduction of transfer costs and probate costs.
- Asset preservation.
- Maximize tax exemptions.
- Gifting.

3) What transfer costs will your heirs incur?
- Estate tax.
- Gift tax.
- Inheritance tax.
- Income taxes on annuities and qualified retirement accounts.
- Generation-skipping transfer tax.
- Probate costs.
- Professional legal and accounting fees.

4) What are the components of a basic estate plan?
- Unlimited marital deduction.
- Will.
- Credit shelter trust (exclusion amount).
- Living will.
- Durable power of attorney.

5) What can be done to reduce an estate tax liability?
A lifetime gifting program can reduce the size of your estate.

6) What is an ILIT, and what are the benefits?
An irrevocable living insurance trust is created to establish ownership of a life insurance policy such that the proceeds received by the trust are not subject to estate or income taxes upon death of the insured. An ILIT takes advantage of the gifting exclusion and generation-skipping transfer tax exemption, and provides the beneficiaries protection from creditors.

7) What is a Dynasty Trust?
A dynasty trust is an ILIT that can provide protection from estate, gift, and generation-skipping transfer taxes when children and grandchildren die.

8) What other types of ILITs are there?
Spousal ILIT, Single-life spousal ILIT, Survivorship spousal ILIT, Sale to a grantor trust.

9) What options do you have for charitable giving?
Gifts to charity, a charitable remainder trust, wealth replacement trust, charitable lead trust, private foundation.

10) What options are there for estate planning for a family business?
A limited partnership and limited liability company can be integrated into an estate plan to reduce gift and estate taxes, while enabling a successful transition to the next generation. A grantor retained annuity trust can be used to transfer stock, while a qualified personal residence trust can be used to transfer a home into the trust.

11) Who should be part of your team of advisors for effective estate planning?
- Estate attorney
- CPA accountant
- Financial advisor
- Life insurance agent
- Trust officer

Please consult with your team of professional advisors when setting up an estate plan.

Porter Stansberry on the "role" of government

This rant needs no introduction.

I'd like to make you a business offer. Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment...

Here's the deal. You're going to start a business or expand the one you've got now. It doesn't really matter what you do or what you're going to do. I'll partner with you no matter what business you're in – as long as it's legal. But I can't give you any capital – you have to come up with that on your own. I won't give you any labor – that's definitely up to you. What I will do, however, is demand you follow all sorts of rules about what products and services you can offer, how much (and how often) you pay your employees, and where and when you're allowed to operate your business. That's my role in the affair: to tell you what to do.

Now in return for my rules, I'm going to take roughly half of whatever you make in the business, each year. Half seems fair, doesn't it? I think so. Of course, that's half of your profits. You're also going to have to pay me about 12% of whatever you decide to pay your employees because you've got to cover my expenses for promulgating all of the rules about who you can employ, when, where, and how. Come on, you're my partner. It's only "fair."

Now... after you've put your hard-earned savings at risk to start this business and after you've worked hard at it for a few decades (paying me my 50% or a bit more along the way each year), you might decide you'd like to cash out – to finally live the good life.

Whether or not this is "fair" – some people never can afford to retire – is a different argument. As your partner, I'm happy for you to sell whenever you'd like... because our agreement says, if you sell, you have to pay me an additional 20% of whatever the capitalized value of the business is at that time.

I know... I know... you put up all the original capital. You took all the risks. You put in all of the labor. That's all true. But I've done my part, too. I've collected 50% of the profits each year. And I've always come up with more rules for you to follow each year. Therefore, I deserve another, final 20% slice of the business. Oh... and one more thing...

Even after you've sold the business and paid all of my fees... I'd recommend buying lots of life insurance. You see, even after you've been retired for years, when you die, you'll have to pay me 50% of whatever your estate is worth. After all, I've got lots of partners and not all of them are as successful as you and your family. We don't think it's "fair" for your kids to have such a big advantage. But if you buy enough life insurance, you can finance this expense for your children. All in all, if you're a very successful entrepreneur... if you're one of the rare, lucky, and hard-working people who can create a new company, employ lots of people, and satisfy the public... you'll end up paying me more than 75% of your income over your life. Thanks so much.

I'm sure you'll think my offer is reasonable and happily partner with me... but it doesn't really matter how you feel about it because if you ever try to stiff me – or cheat me on any of my fees or rules – I'll break down your door in the middle of the night, threaten you and your family with heavy, automatic weapons, and throw you in jail. That's how civil society is supposed to work, right? This is Amerika, isn't it?

That's the offer Amerika gives its entrepreneurs. And the idiots in Washington wonder why there are no new jobs...

Why raising taxes won't work

And why it never has worked, as capital will flee where it's treated better. Tax the productive to subsidize the non-productive, and capital flight will be pervasive.

http://moneynews.newsmax.com/streettalk/paterson_tax_rich_failing/2009/10/09/270445.html

The Obama un-rally....

As predicted, the market tanked as the Presidential race is over, with Obama being the victor, but the US economy being the loser (this is not an endorsement for McCain). The market is basically showing no confidence that Obama will succeed in stewarding our economy out of this financial crisis. The markets are living down to their negative bias of the President-elect who has repeatedly stated he wants to tax our way out of this slump. History shows it has never worked, and it won't work again. Based on rhetoric, the Obama regime will look more like the Carter years than the Clinton terms--only Obama is inheriting a much worse economy than the other Democratic Presidents.