What You NEED TO KNOW About Obama's Tax Plan

[Hirsch]

this will probably affects us after the RV as much as anything long term.

-----------------------------------------------------------------------------------------------------

By Sean Hyman, Editor, Currency Cross Trader

Dear David,

Last Wednesday, my CPA finally sent me my tax forms so I could sign them and send them in by today. Man, I couldn’t believe how much I owed Uncle Sam this year.

Also, my CPA’s timing couldn’t have been worse.

My paperwork arrived just hours after President Obama revealed his new tax plan to the world - a plan that includes less tax breaks and higher taxation to come.

The president announced a $4 trillion deficit reduction plan, which on the surface sounds like a good thing. But this plan will force the Bush tax cuts to expire, and it calls for an ADDITIONAL $1 trillion to be taken (I mean taxed) from the top two income brackets.

Now I’m by no means a millionaire. But this new tax plan is going to affect me and you - and 300 million or so other Americans - whether they realize it or not.

>>Advertisement

New income stream pays 22-times more than treasuries

We’ve uncovered a unique global opportunity that offers yields that crush preferred stocks, treasuries, and regular bank CDs.

It’s a little-known investment called “Income Accelerators”... and some Americans have already begun using them to collect a steady stream of checks, as much as $757- $1,535, every month.

See here for more details.

In fact, it could nudge our still-fragile economy off a cliff. Let me explain...

Why Do They Think the Government Can

Manage This Trillion

...Better than Other Trillions They’ve Had?

If you had $1 trillion to “fix” the economy, would you rather give it to savvy businessmen who would use it to expand and create countless jobs, or our “efficient” government to use at their discretion?

Personally, I’d choose the businessmen every time.

So that’s mistake #1. Obama is increasing the taxes for the wealthiest people in the country... a.k.a the businessmen who create jobs for the rest of us. He’s also going after businesses with his proposal to remove some business tax breaks. He’s cutting industry off at the knees. Take more of that money away and you create unemployment (more on that in a moment).

Mistake #2: Obama mentioned he wants to make the tax system fairer. That sounds great in theory, but here’s his thinking on what’s “fair.”

Obama proposes taking away all the tax breaks you get on your mortgage interest. He also wants to remove all the tax benefits you receive when you give some money away to churches and other charities.

Sound fair to you? In my world, that’s not fair.

Mistake #3 lies in the IRS’s definition of “rich.” It’s simply not rational. Obama wants to raise taxes for the top two tax brackets. That includes any single person making over $200,000 a year, or any married couple making $250,000 a year.

While that may be decent money in the great state of Texas where I live, nobody in California or New York making $200,000 a year would consider themselves “rich.” The cost of housing alone in those areas is so outrageous. That $200,000 may just be enough to consider themselves “middle-class.”

The Rich Create the Jobs...

Over-Tax Them & It Creates Unemployment

When you put it all together, it’s hard to disagree with the Congressman from Ohio who remarked, “Any plan that starts with job-destroying tax hikes is a non-starter.”

This sounds like a man who has his head screwed on straight. In fact, if “sound economics” could talk, I’m guessing it would say that too.

You see, most everyone works for a rich person. How many poor people employ others? None that I know of.

So if you over-tax the rich, you eat away at the heart of the job-creating system. Tax rich people more, and they have to make up for that somewhere. Where is the easiest place to make up for the additional loss of tax money? It’s cutting payrolls.

In the end, tax increases take money away from businessmen and hand it over to the government. Sadly, the government hasn’t been good at managing money in years (case in point: the $14 trillion in debt that this $4 trillion plan is not even likely to help).

Why Obama Could Learn a Few Things from Reagan

Former president Reagan knew how money traveled around in the economy.

Give the rich tax breaks and what do they do? They use the extra money to expand their businesses. They have to hire more people to do this, so more people find jobs. Meanwhile, their current employees get promoted and enjoy higher salaries. In the end, everyone made more money.

When businesses and individuals make more money, you can charge them more in income taxes. So the government makes more money on the back-end. But since everyone is making more money anyway, it’s easier to take.

As a side effect, businesses grow faster. That increases corporate earnings. That gives the stock market a boost - while you’re making more money for the government. Overall, you have a healthier economy.

On the other hand, tax increases are simply transferring wealth from people to the government. The government is one of the most wasteful, inefficient entities around, so that money goes nowhere.

That’s why no matter how high they have ever taxed the people, they still can’t work with that amount of money. If you or I got raise after raise - and we still couldn’t live within our means - our neighbors would think we were idiots. Yet the U.S. government does it and it’s okay? Not in my book!

Obama Reminds Us to Get the Heck out of the Dollar

Think the economy is shaky now?

Take away people’s mortgage interest deductions. Take away the breaks on their charitable contributions. Take away their corporate tax breaks. Then see if we’re on the road to economic expansion and lower unemployment.

Personally I don’t see how that’s possible. If anything I believe it could be a catalyst to send stocks plummeting later this year.

It’s also one more reminder to take some assets and get the heck out of the dollar.

Other nations don’t have these bizarre tax practices - or our dreams of paying off our debts without any kind of fiscal management. That’s why countries like Norway, Sweden, and Australia have some of the soundest currencies to buy and hold over the long-term.

Bottom line: Assuming this tax plan goes through, it could do more harm than good. Make sure you take cover as soon as possible.

Have a Nice Day,

Sean Hyman

Editor, Currency Cross Trader

Blog: Secrets of the Forex Market

[Mongo]

A picture sez it all

[Deathmonkey]

I know most on here are anti-Obama, but it has to be noted that most of the Bush tax breaks going away are the corporate ones. Last years tax filings showed with those tax breaks Exxon had 19 billion in profits, yet paid no $0 in taxes. Actually they got $156 million in tax refunds. That is unacceptable. I am all for those tax breaks going away.

[Lonzworth]

Corportocracy Propaganda.

Let's see if we can find some corporate tax dodgers....

Ah yes, here we go.

Corporations that didn't pay taxes

Don't know about the rest of you, but 30% taken off my paycheck while these guys skate, doesn't leave a good taste in my mouth.

[On_Reserve]

Eventually, 'we' have to address revenue ... as was done with bi-partisanship during the late 90's when the US then ran an annual surplus.

This letter/advertisement from Sean Hyman is (purposely) misleading to say the least. Nothing has changed for him (unless he made much, much more money this year -- 2010) as the federal tax rates and capital gains tax rates for people in his strata are exactly the same for tax year 2010. For those of us in the 'middle class' (with some itemized deductions), we have seen our federal income taxes go down since Obama took office (argue all you want, but this is true).

There is really no evidence, since the point was advanced by Reagan, that dramatically slashing federal income taxes has a job creating effect. Reagan, in fact, during his presidency raised taxes (after reducing them) at least 10 times.

As I see it, our country really is a "national trust" and we are all connected. I will happily pay my fair share of taxes upon an RV in addition to making significant charitable contributions. This doesn't mean that I don't think that some changes are in order ... and it doesn't mean that I won't intelligently maximize my deductions within the rules of the 'system'.

Remember, we are talking about $200K and $250K ADJUSTED GROSS. Therefore, most couples will have around $325K+ gross income before filling at $250K AGI. Should a couple have $1M AGI, then that couple would pay an additional federal income tax of approximately $35K+ (Or, their monthly income would be reduced from $83,000 to about $80,000). No one is seriously discussing eliminating the mortgage deduction for 97+% of us (probably all of us on this board).

This is a pretty accurate snapshot about what all the hubbub is about. All of this rhetoric raises the question of, "how were these people (rich filers) able to put food on the table and survive when they filed their 1999 taxes?". The '99 tax code is the proposed 2014 tax code -- basically.

TS

I believe in the RV; I don't believe in the cult.

[Heavyduty053]

this will probably affects us after the RV as much as anything long term.

-----------------------------------------------------------------------------------------------------

By Sean Hyman, Editor, Currency Cross Trader

Dear David,

Last Wednesday, my CPA finally sent me my tax forms so I could sign them and send them in by today. Man, I couldn’t believe how much I owed Uncle Sam this year.

Also, my CPA’s timing couldn’t have been worse.

My paperwork arrived just hours after President Obama revealed his new tax plan to the world - a plan that includes less tax breaks and higher taxation to come.

The president announced a $4 trillion deficit reduction plan, which on the surface sounds like a good thing. But this plan will force the Bush tax cuts to expire, and it calls for an ADDITIONAL $1 trillion to be taken (I mean taxed) from the top two income brackets.

Now I’m by no means a millionaire. But this new tax plan is going to affect me and you - and 300 million or so other Americans - whether they realize it or not.

>>Advertisement

New income stream pays 22-times more than treasuries

We’ve uncovered a unique global opportunity that offers yields that crush preferred stocks, treasuries, and regular bank CDs.

It’s a little-known investment called “Income Accelerators”... and some Americans have already begun using them to collect a steady stream of checks, as much as $757- $1,535, every month.

See here for more details.

In fact, it could nudge our still-fragile economy off a cliff. Let me explain...

Why Do They Think the Government Can

Manage This Trillion

...Better than Other Trillions They’ve Had?

If you had $1 trillion to “fix” the economy, would you rather give it to savvy businessmen who would use it to expand and create countless jobs, or our “efficient” government to use at their discretion?

Personally, I’d choose the businessmen every time.

So that’s mistake #1. Obama is increasing the taxes for the wealthiest people in the country... a.k.a the businessmen who create jobs for the rest of us. He’s also going after businesses with his proposal to remove some business tax breaks. He’s cutting industry off at the knees. Take more of that money away and you create unemployment (more on that in a moment).

Mistake #2: Obama mentioned he wants to make the tax system fairer. That sounds great in theory, but here’s his thinking on what’s “fair.”

Obama proposes taking away all the tax breaks you get on your mortgage interest. He also wants to remove all the tax benefits you receive when you give some money away to churches and other charities.

Sound fair to you? In my world, that’s not fair.

Mistake #3 lies in the IRS’s definition of “rich.” It’s simply not rational. Obama wants to raise taxes for the top two tax brackets. That includes any single person making over $200,000 a year, or any married couple making $250,000 a year.

While that may be decent money in the great state of Texas where I live, nobody in California or New York making $200,000 a year would consider themselves “rich.” The cost of housing alone in those areas is so outrageous. That $200,000 may just be enough to consider themselves “middle-class.”

The Rich Create the Jobs...

Over-Tax Them & It Creates Unemployment

When you put it all together, it’s hard to disagree with the Congressman from Ohio who remarked, “Any plan that starts with job-destroying tax hikes is a non-starter.”

This sounds like a man who has his head screwed on straight. In fact, if “sound economics” could talk, I’m guessing it would say that too.

You see, most everyone works for a rich person. How many poor people employ others? None that I know of.

So if you over-tax the rich, you eat away at the heart of the job-creating system. Tax rich people more, and they have to make up for that somewhere. Where is the easiest place to make up for the additional loss of tax money? It’s cutting payrolls.

In the end, tax increases take money away from businessmen and hand it over to the government. Sadly, the government hasn’t been good at managing money in years (case in point: the $14 trillion in debt that this $4 trillion plan is not even likely to help).

Why Obama Could Learn a Few Things from Reagan

Former president Reagan knew how money traveled around in the economy.

Give the rich tax breaks and what do they do? They use the extra money to expand their businesses. They have to hire more people to do this, so more people find jobs. Meanwhile, their current employees get promoted and enjoy higher salaries. In the end, everyone made more money.

When businesses and individuals make more money, you can charge them more in income taxes. So the government makes more money on the back-end. But since everyone is making more money anyway, it’s easier to take.

As a side effect, businesses grow faster. That increases corporate earnings. That gives the stock market a boost - while you’re making more money for the government. Overall, you have a healthier economy.

On the other hand, tax increases are simply transferring wealth from people to the government. The government is one of the most wasteful, inefficient entities around, so that money goes nowhere.

That’s why no matter how high they have ever taxed the people, they still can’t work with that amount of money. If you or I got raise after raise - and we still couldn’t live within our means - our neighbors would think we were idiots. Yet the U.S. government does it and it’s okay? Not in my book!

Obama Reminds Us to Get the Heck out of the Dollar

Think the economy is shaky now?

Take away people’s mortgage interest deductions. Take away the breaks on their charitable contributions. Take away their corporate tax breaks. Then see if we’re on the road to economic expansion and lower unemployment.

Personally I don’t see how that’s possible. If anything I believe it could be a catalyst to send stocks plummeting later this year.

It’s also one more reminder to take some assets and get the heck out of the dollar.

Other nations don’t have these bizarre tax practices - or our dreams of paying off our debts without any kind of fiscal management. That’s why countries like Norway, Sweden, and Australia have some of the soundest currencies to buy and hold over the long-term.

Bottom line: Assuming this tax plan goes through, it could do more harm than good. Make sure you take cover as soon as possible.

Have a Nice Day,

Sean Hyman

Editor, Currency Cross Trader

Blog: Secrets of the Forex Market

Giving tax breaks to the corperate or the wealthy in this country used to be a incentive to produce the jobs for increase workforce therefore creating mor revenue but that is not true anymore. Corporation have had their tax breaks but yet they chose to sit on the money or move their companies to another country for higher profits. The govt does not even tax them on the goods they produce in another country then ship them back here to sell to the very people the jobs were taken away from. FACT, how many jobs have been produced by all the bailout money. CEO's are still getting bonuses while workers are unemployed. This blame can't be layed on one person when all of congress and president had something to do with it.......IT is the beginnings of a one world govt as stated in a speech by our president GW BUSH sr. years ago. This country is falling apart everyday at the hands of people governing that has no conscience. SO what do you expect. It's gonna get worse.

[radar12354]

I don't know what this person is saleing.........but i'm not buying......thing are past true doesn't hold anymore

Edited April 18, 2011 by radar12354

[fringe on lamps]

so where is the Belize account information?

[Kevin B]

The one issue that no one mentioned about the corporations that did not pay taxes was, not the point of how much was made, but how much was profit.

That one little piece of information is what will help those who own a business. If you decide to start up a business, and after you start turning a profit, invest the profit back into the company and anything else that is profit, becomes bonuses.

I plan to run in the red as often as possible, maybe to the point of getting refunds.

Everyone pays their 'fair share' when they go to the gas station, the grocery store, when they pay their property taxes.

Their is no fair share when it comes to the federal income tax

The ONLY thing that the federal income tax pays for is the interest our government pays on the loans they receive from the (non) Federal Reserve.

I for one will do whatever I can legally do to not have Uncle Sam relieve me of money

[rtrusty]

There is no doubt that the man has to do something.

But I've a great ideal lets cut spending down to what

we've coming in.

Like we haven't heard this before.

Than we wouldn't have to raise taxes.

[Hirsch]

The one issue that no one mentioned about the corporations that did not pay taxes was, not the point of how much was made, but how much was profit.

That one little piece of information is what will help those who own a business. If you decide to start up a business, and after you start turning a profit, invest the profit back into the company and anything else that is profit, becomes bonuses.

I plan to run in the red as often as possible, maybe to the point of getting refunds.

Everyone pays their 'fair share' when they go to the gas station, the grocery store, when they pay their property taxes.

Their is no fair share when it comes to the federal income tax

The ONLY thing that the federal income tax pays for is the interest our government pays on the loans they receive from the (non) Federal Reserve.

I for one will do whatever I can legally do to not have Uncle Sam relieve me of money

[/quote

totally in agreement. if i felt even one tax dime was really going to were it was going to help I would have a different attitude. do you really think the new tax gouge is going back to help any of us? as we ENCOURAGE manufacturing to leave the US, we become a produce-less society

[On_Reserve]

if i felt even one tax dime was really going to were it was going to help I would have a different attitude. do you really think the new tax gouge is going back to help any of us? as we ENCOURAGE manufacturing to leave the US, we become a produce-less society

This is a fundamental misunderstanding of:

1) Our situation (USA)

2) History -- Historical (US) tax rates; historical (US) prosperity. The outrageous expansion or our national debt (and deficit) since 1980, and who or whom is MOSTLY responsible. Historically, since WWII, federal income tax rates have never been lower than they are today.

3) Business/Manufacturing migration out of US. Approximately 56,000 US manufacturers have moved out of the US in the last 10 years (under current tax structure). And they were basically paid to do it. Why will this worsen if the highest tax rate were to rise (a little)? Yes, a little. First, we need to stop sponsoring sending jobs overseas.

4) Our place in it. I would guess that there aren't more that a couple people on this board who currently find themselves in the highest US tax bracket -- AGI. The vast majority of the people on this board have experienced a federal income tax DECREASE since January 2009. Yes, decrease.

5) How great our country really is. Part of what makes it great is the 50/50 nature of its political body. Checks and balances. We'll see how the latest development of extremes (politically) plays out.

We all need to make sure that we maximize our deductions and legally pay as little in federal income taxes that we can, but this country eventually has to look at its revenues coming in. And 'trickle down' economics has never proven to create jobs or sustain an increase of revenues from a prospering economy. It simply does ... not ... work!

It is simply too easy to claim we pay too much, so cut. Yes, cuts are in order. But to what? Medicare? Social Security? How about Defense? Think about all of the people in your life that are affected (positively) by Medicare and SS ... If we just got rid of Medicare and SS, that would solve most/all of the US financial problems today (on paper). But what new problems would face us then? Rampant poverty of the elderly, for one. And the disabled. And widows and orphans ...

For those of us that are totally fed up ... they are basically paying people to move to the easy climate of Panama with its much cheaper health care and much cheaper housing and much cheaper cost of living ... why not?

But, I'm staying. For now.

RV would help.

TS

I believe in the RV; I don't believe in the cult.

[On_Reserve]

This is a fundamental misunderstanding of:

1) Our situation (USA)

2) History -- Historical (US) tax rates; historical (US) prosperity. The outrageous expansion or our national debt (and deficit) since 1980, and who or whom is MOSTLY responsible. Historically, since WWII, federal income tax rates have never been lower than they are today.

3) Business/Manufacturing migration out of US. Approximately 56,000 US manufacturers have moved out of the US in the last 10 years (under current tax structure). And they were basically paid to do it. Why will this worsen if the highest tax rate were to rise (a little)? Yes, a little. First, we need to stop sponsoring sending jobs overseas.

4) Our place in it. I would guess that there aren't more that a couple people on this board who currently find themselves in the highest US tax bracket -- AGI. The vast majority of the people on this board have experienced a federal income tax DECREASE since January 2009. Yes, decrease.

5) How great our country really is. Part of what makes it great is the 50/50 nature of its political body. Checks and balances. We'll see how the latest development of extremes (politically) plays out.

We all need to make sure that we maximize our deductions and legally pay as little in federal income taxes that we can, but this country eventually has to look at its revenues coming in. And 'trickle down' economics has never proven to create jobs or sustain an increase of revenues from a prospering economy. It simply does ... not ... work!

It is simply too easy to claim we pay too much, so cut. Yes, cuts are in order. But to what? Medicare? Social Security? How about Defense? Think about all of the people in your life that are affected (positively) by Medicare and SS ... If we just got rid of Medicare and SS, that would solve most/all of the US financial problems today (on paper). But what new problems would face us then? Rampant poverty of the elderly, for one. And the disabled. And widows and orphans ...

For those of us that are totally fed up ... they are basically paying people to move to the easy climate of Panama with its much cheaper health care and much cheaper housing and much cheaper cost of living ... why not?

But, I'm staying. For now.

RV would help.

TS

I believe in the RV; I don't believe in the cult.

And in recent news ...

http://news.yahoo.com/s/yblog_thelookout/20110419/bs_yblog_thelookout/with-jobs-czar-under-fire-new-data-confirm-offshoring-trend

[mike l]

this will probably affects us after the RV as much as anything long term.

-----------------------------------------------------------------------------------------------------

By Sean Hyman, Editor, Currency Cross Trader

Dear David,

Last Wednesday, my CPA finally sent me my tax forms so I could sign them and send them in by today. Man, I couldn’t believe how much I owed Uncle Sam this year.

Also, my CPA’s timing couldn’t have been worse.

My paperwork arrived just hours after President Obama revealed his new tax plan to the world - a plan that includes less tax breaks and higher taxation to come.

The president announced a $4 trillion deficit reduction plan, which on the surface sounds like a good thing. But this plan will force the Bush tax cuts to expire, and it calls for an ADDITIONAL $1 trillion to be taken (I mean taxed) from the top two income brackets.

Now I’m by no means a millionaire. But this new tax plan is going to affect me and you - and 300 million or so other Americans - whether they realize it or not.

>>Advertisement

New income stream pays 22-times more than treasuries

We’ve uncovered a unique global opportunity that offers yields that crush preferred stocks, treasuries, and regular bank CDs.

It’s a little-known investment called “Income Accelerators”... and some Americans have already begun using them to collect a steady stream of checks, as much as $757- $1,535, every month.

See here for more details.

In fact, it could nudge our still-fragile economy off a cliff. Let me explain...

Why Do They Think the Government Can

Manage This Trillion

...Better than Other Trillions They’ve Had?

If you had $1 trillion to “fix” the economy, would you rather give it to savvy businessmen who would use it to expand and create countless jobs, or our “efficient” government to use at their discretion?

Personally, I’d choose the businessmen every time.

So that’s mistake #1. Obama is increasing the taxes for the wealthiest people in the country... a.k.a the businessmen who create jobs for the rest of us. He’s also going after businesses with his proposal to remove some business tax breaks. He’s cutting industry off at the knees. Take more of that money away and you create unemployment (more on that in a moment).

Mistake #2: Obama mentioned he wants to make the tax system fairer. That sounds great in theory, but here’s his thinking on what’s “fair.”

Obama proposes taking away all the tax breaks you get on your mortgage interest. He also wants to remove all the tax benefits you receive when you give some money away to churches and other charities.

Sound fair to you? In my world, that’s not fair.

Mistake #3 lies in the IRS’s definition of “rich.” It’s simply not rational. Obama wants to raise taxes for the top two tax brackets. That includes any single person making over $200,000 a year, or any married couple making $250,000 a year.

While that may be decent money in the great state of Texas where I live, nobody in California or New York making $200,000 a year would consider themselves “rich.” The cost of housing alone in those areas is so outrageous. That $200,000 may just be enough to consider themselves “middle-class.”

The Rich Create the Jobs...

Over-Tax Them & It Creates Unemployment

When you put it all together, it’s hard to disagree with the Congressman from Ohio who remarked, “Any plan that starts with job-destroying tax hikes is a non-starter.”

This sounds like a man who has his head screwed on straight. In fact, if “sound economics” could talk, I’m guessing it would say that too.

You see, most everyone works for a rich person. How many poor people employ others? None that I know of.

So if you over-tax the rich, you eat away at the heart of the job-creating system. Tax rich people more, and they have to make up for that somewhere. Where is the easiest place to make up for the additional loss of tax money? It’s cutting payrolls.

In the end, tax increases take money away from businessmen and hand it over to the government. Sadly, the government hasn’t been good at managing money in years (case in point: the $14 trillion in debt that this $4 trillion plan is not even likely to help).

Why Obama Could Learn a Few Things from Reagan

Former president Reagan knew how money traveled around in the economy.

Give the rich tax breaks and what do they do? They use the extra money to expand their businesses. They have to hire more people to do this, so more people find jobs. Meanwhile, their current employees get promoted and enjoy higher salaries. In the end, everyone made more money.

When businesses and individuals make more money, you can charge them more in income taxes. So the government makes more money on the back-end. But since everyone is making more money anyway, it’s easier to take.

As a side effect, businesses grow faster. That increases corporate earnings. That gives the stock market a boost - while you’re making more money for the government. Overall, you have a healthier economy.

On the other hand, tax increases are simply transferring wealth from people to the government. The government is one of the most wasteful, inefficient entities around, so that money goes nowhere.

That’s why no matter how high they have ever taxed the people, they still can’t work with that amount of money. If you or I got raise after raise - and we still couldn’t live within our means - our neighbors would think we were idiots. Yet the U.S. government does it and it’s okay? Not in my book!

Obama Reminds Us to Get the Heck out of the Dollar

Think the economy is shaky now?

Take away people’s mortgage interest deductions. Take away the breaks on their charitable contributions. Take away their corporate tax breaks. Then see if we’re on the road to economic expansion and lower unemployment.

Personally I don’t see how that’s possible. If anything I believe it could be a catalyst to send stocks plummeting later this year.

It’s also one more reminder to take some assets and get the heck out of the dollar.

Other nations don’t have these bizarre tax practices - or our dreams of paying off our debts without any kind of fiscal management. That’s why countries like Norway, Sweden, and Australia have some of the soundest currencies to buy and hold over the long-term.

Bottom line: Assuming this tax plan goes through, it could do more harm than good. Make sure you take cover as soon as possible.

Have a Nice Day,

Sean Hyman

Editor, Currency Cross Trader

Blog: Secrets of the Forex Market

I am in AH. well said sir well said.