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Skeptical Debunker

Joe Stack: How to Really Tick Off the IRS - CBS MoneyWatch.com - 0 views

  • However, tax experts say that if you want to really annoy the IRS, you could do one of three things: Fail to file a return completely; loudly maintain that the tax code doesn’t apply to you; or cheat on employment tax filings for your workers. Stack appears to have done all three. And if the tone of his letter is any indication, he not only hit all of these IRS hot buttons, he hit them with a belligerent attitude that could have further exacerbated his tax woes. “The IRS is toughest on people who reject the whole concept and authority of the system, who are not accepting that we do have income tax laws that we are all subject to,” said Philip J. Holthouse, partner at the Santa Monica tax law and accounting firm of Holthouse, Carlin & Van Trigt. “If the anger expressed in this posting is consistent with how he interacted with the government representatives, it would not have enhanced their compassion.” Stack’s note refers to meeting with “a group” in the early 1980s who were holding “tax readings and discussions” that zeroed in on tax exemptions that make “the vulgar, corrupt Catholic Church so incredibly wealthy.” He said in the post that he then began to do “exactly what the ‘big boys’ were doing.” “We took a great deal of care to make it all visible, following all of the rules, exactly the way the law said it was to be done.” Since Stack wasn’t a church, this is like waving a red flag at a bull. The IRS apparently considered this foray into tax avoidance the real corruption. Stacks letter says: “That little lesson in patriotism cost me $40,000.” Incidentally, the notion that anyone (other than a legitimate charity) doesn’t need to pay income taxes is one that’s well familiar–and refuted–by not only the IRS but every legitimate tax preparer in the country. So-called tax protestors or “tax defiers” take bits and pieces of the law, string them together in incomprehensible ways to come up with arguments that they say exempt them from tax. They can sound convincing, so the IRS publishes a long list of “frivolous” tax arguments on its web site, explaining when and where each argument was refuted, in an effort to keep innocent taxpayers from drinking the tax protest KoolAid. But that wasn’t all. Stack also says in his letter that he drained a retirement account and didn’t pay tax on any of that money–didn’t even file a return. The penalties for not filing a tax return are roughly ten times worse than for not paying your taxes. That’s one of the reasons that accountants tell their clients to file returns, even when they don’t have the money to pay, said Holthouse. Finally, Stack rails about independent contractor rules. Experts said the only way this rant could make sense is if Stack started a company that employed other people, who he maintained were independent contractors rather than employees. If an employer maintains he’s hired only independent contractors, he doesn’t need to pay Social Security and Medicare taxes on their wages. But the IRS audits these claims carefully. When an employee is improperly classified as an independent contractor so that the employer can avoid these taxes, the IRS prosecutes aggressively because it considers it tantamount to stealing from workers Social Security and Medicare accounts. Notably, the IRS has a Taxpayer Advocate’s office that helps resolve disputes when taxpayers have a legitimate problem with the agency. People who can’t pay tax bills promptly; have a dispute over the validity of a deduction or think they’ve been improperly penalized are often given some slack. But these are not areas where you’re going to get a lot of sympathy.
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    The rambling note posted by suicide flyer Joe Stack before he crashed a plane into an Austin IRS office indicates that he may have hit every hot button tax authorities have, putting him into a "no mercy" category that's reserved for a relative handful of Americans.\n\nThe IRS won't talk about Stack, simply saying in a prepared statement that it is working with law enforcement to thoroughly investigate the events that lead up to the crash. Otherwise, the agency says it's top priority is ensuring the safety of its employees.
Skeptical Debunker

A job, but there's a catch: a 1,000-mile commute - Yahoo! News - 0 views

  • "I like to say I gave up an eight-minute commute for an eight-hour commute," he says wearily, running a hand though salt-and-pepper hair as he watches his two sons play basketball for the first time this season. After the aging General Motors plant where he worked for 23 years was idled about a year ago, Hanley faced a Hobson's choice: Stay with his family and search for an autoworker's salary ($28 an hour) in a county where more than 40 percent of its manufacturing jobs disappeared from 2006 to 2009. Or hang on to his GM paycheck and health insurance and follow the job, no matter where it leads. In his case, it led to Fairfax, Kan., the same place his brother and two brothers-in-law — also GM workers, and now his roommates — landed. For others, it has been Indiana or Texas. The long commute is not just a story of hard times, tough choices and a shrinking American auto industry. It's also a case study of what happens when an aging industrial town loses an anchor, when workers too old to start over and too young to retire are caught in a squeeze and when economic survival means one family, but two far-flung ZIP codes.
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    In the early dawn, after another week building cars, Michael Hanley leaves his job in Kansas. He quickly zips into Missouri, then heads up a ribbon of highway past grain silos and grazing deer, across the frozen fields of Iowa, over the Mississippi River and into the rolling hills of Wisconsin. Finally, he pulls into his driveway - 530 miles later. It's one heck of a haul: more than 1,000 miles roundtrip, 16-plus hours of driving, every week.
Sarah Eeee

Income Inequality and the 'Superstar Effect' - NYTimes.com - 0 views

  • Yet the increasingly outsize rewards accruing to the nation’s elite clutch of superstars threaten to gum up this incentive mechanism. If only a very lucky few can aspire to a big reward, most workers are likely to conclude that it is not worth the effort to try.
  • It is true that the nation grew quite fast as inequality soared over the last three decades. Since 1980, the country’s gross domestic product per person has increased about 69 percent, even as the share of income accruing to the richest 1 percent of the population jumped to 36 percent from 22 percent. But the economy grew even faster — 83 percent per capita — from 1951 to 1980, when inequality declined when measured as the share of national income going to the very top of the population.
  • The cost for this tonic seems to be a drastic decline in Americans’ economic mobility. Since 1980, the weekly wage of the average worker on the factory floor has increased little more than 3 percent, after inflation. The United States is the rich country with the most skewed income distribution. According to the Organization for Economic Cooperation and Development, the average earnings of the richest 10 percent of Americans are 16 times those for the 10 percent at the bottom of the pile. That compares with a multiple of 8 in Britain and 5 in Sweden.
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  • Not coincidentally, Americans are less economically mobile than people in other developed countries. There is a 42 percent chance that the son of an American man in the bottom fifth of the income distribution will be stuck in the same economic slot. The equivalent odds for a British man are 30 percent, and 25 percent for a Swede.
  • Just as technology gave pop stars a bigger fan base that could buy their CDs, download their singles and snap up their concert tickets, the combination of information technology and deregulation gave bankers an unprecedented opportunity to reap huge rewards. Investors piled into the top-rated funds that generated the highest returns. Rewards flowed in abundance to the most “productive” financiers, those that took the bigger risks and generated the biggest profits. Finance wasn’t always so richly paid. Financiers had a great time in the early decades of the 20th century: from 1909 to the mid-1930s, they typically made about 50 percent to 60 percent more than workers in other industries. But the stock market collapse of 1929 and the Great Depression changed all that. In 1934, corporate profits in the financial sector shrank to $236 million, one-eighth what they were five years earlier. Wages followed. From 1950 through about 1980, bankers and insurers made only 10 percent more than workers outside of finance, on average.
  • Then, in the 1980s, the Reagan administration unleashed a surge of deregulation. By 1999, the Glass-Steagall Act lay repealed. Banks could commingle with insurance companies at will. Ceilings on interest rates vanished. Banks could open branches anywhere. Unsurprisingly, the most highly educated returned to banking and finance. By 2005, the share of workers in the finance industry with a college education exceeded that of other industries by nearly 20 percentage points. By 2006, pay in the financial sector was again 70 percent higher than wages elsewhere in the private sector. A third of the 2009 Princeton graduates who got jobs after graduation went into finance; 6.3 percent took jobs in government.
  • Then the financial industry blew up, taking out a good chunk of the world economy. Finance will not be tamed by tweaking the way bankers are paid. But bankers’ pay could be structured to discourage wanton risk taking
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    (Part 2 of 2 - see first part below) What impact do the incredible salaries of superstars have on the rest of us? What has changed, technologically and socially, to precipitate these inequities? This article also offers a brief look at the relationship between income inequality and economic growth, comparing the US throughout its history and the US vis a vis several European countries.
thinkahol *

Vision: Across the Country, People Are Rising Up to Fight for Change - 0 views

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    "Small acts, when multiplied by millions of people, can quietly become a power no government can suppress, a power than can transform the world." -The late people's historian Howard Zinn (August 24, 1922 - January 27, 2010)
thinkahol *

Glenn Greenwald: How the US Government Strikes Fear in Its Own Citizens and People Arou... - 0 views

  • Everybody knows that if you torture people you don't get good information. It was never about that. Disappearing people and putting them into orange jumpsuits, and into legal black holes and waterboarding them and freezing them and killing detainees was about signaling to the rest of world that you can not challenge or stand up to American power, because if you do, we will respond without constraints, and there is nothing anybody can or will do about it. It was about creating a climate of repression and fear to deter any would-be dissenters or challengers to American power. And that is what this war on whistleblowing and this war on Wikileaks is about as well.
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    Everybody knows that if you torture people you don't get good information. It was never about that. Disappearing people and putting them into orange jumpsuits, and into legal black holes and waterboarding them and freezing them and killing detainees was about signaling to the rest of world that you can not challenge or stand up to American power, because if you do, we will respond without constraints, and there is nothing anybody can or will do about it. It was about creating a climate of repression and fear to deter any would-be dissenters or challengers to American power. And that is what this war on whistleblowing and this war on Wikileaks is about as well.
thinkahol *

Following Arab World's Lead, Mexicans Rise Up : NPR - 0 views

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    Almost 40,000 people have died in apparent drug-related violence since December 2006, when President Felipe Calderon launched an offensive against drug cartels. Thousands of protesters rallied Sunday to condemn the government's strategy and to demand the resignation of the country's public safety se
thinkahol *

The 9/11 Cover-Up | Health Policy | DISCOVER Magazine - 0 views

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    Thousands of New Yorkers were endangered by WTC debris-and government malfeasance.
thinkahol *

Credibility, Chutzpah and Debt - NYTimes.com - 0 views

  • It’s true that an aging population and rising health care costs will, under current policies, push spending up faster than tax receipts. But the United States has far higher health costs than any other advanced country, and very low taxes by international standards. If we could move even part way toward international norms on both these fronts, our budget problems would be solved.
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    These problems have very little to do with short-term or even medium-term budget arithmetic. The U.S. government is having no trouble borrowing to cover its current deficit. It's true that we're building up debt, on which we'll eventually have to pay interest. But if you actually do the math, instead of intoning big numbers in your best Dr. Evil voice, you discover that even very large deficits over the next few years will have remarkably little impact on U.S. fiscal sustainability. No, what makes America look unreliable isn't budget math, it's politics. And please, let's not have the usual declarations that both sides are at fault. Our problems are almost entirely one-sided - specifically, they're caused by the rise of an extremist right that is prepared to create repeated crises rather than give an inch on its demands.
David Corking

The Iain Dale interview | LabourList.org | April 2009 - 0 views

  • Boris Johnson, the test case for a Tory government. He’s overturned the tariff on gas-guzzlers; he’s only building social housing in already deprived areas, he praised the sub-prime mortgages in America; he destroyed cycle lane budgets but still called himself green. And those are the very few things he has done…Good. I like politicians who don’t legislate a lot.
    • David Corking
       
      Great exchange!
  • I don’t regard it as a Socialist Conspiracy, but I do regard it as a monolithic bureaucracy where not enough is spent on direct patient care. To my mind, you could break it up into smaller geographical units, decentralise it more efficiently on a regional basis.
    • David Corking
       
      Is this a vote _for_ the postcode lottery?
  • I was selected as a candidate by a very conservative constituency – having told them I was gay. If you’d said to me ten years ago that that could happen I’d have laughed. Margot James herself was selected in a marginal seat. I willingly pay tribute to Labour on gay rights
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  • I hit back. Having said all of that, I’ve always had a soft spot for Derek, and he shouldn’t lose sight of the fact that he set up LabourList up and it’s going to go on without him,
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    I would love to increase the number of teachers by 20%. I would love to, and to be fair to the Labour government have done a lot on that. But to just say that everything's perfect and we need to spend every pound that we're spending now is just being an ostrich.
Joe La Fleur

Ohio Residents Told They Already Voted When They Showed Up At the Polls Tuesday - 0 views

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    DEMOCRAT VOTER FRAUD STRIKES AGAIN HAPPY NOW?
Joe La Fleur

Petraeus, Clinton, Ham … Benghazi Witnesses Going 'Away' - 0 views

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    ANOTHER DISGUSTING OBAMA COVER UP
Joe La Fleur

Petraeus Resignation: There Are Several Cover-ups Going On - 0 views

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    OBAMAS LIES AND COVERUPS
Joe La Fleur

Petraeus Mistress: Benghazi Cover-up About Secret CIA Prison - 0 views

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    OBAMAS BENGHAZI COVERUP
Joe La Fleur

Benghazi Cover-up About Moving Arms to Syrian Rebels - 0 views

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    REVEALED, THE TRUTH ABOUT BENGHAZI AND THE MURDERS
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