Investment Politics 2008: What’s (left) In Your Wallet?
Topics: social security, income tax, IRS, IRC, IRA, investment income, opportunity, government, estate tax, gift taxe
The parade of promises is marching down Main Street. For too many months to come, politicians of all descriptions, parties, and ideologies will be courting our votes… they have the cure for all that is wrong in the world, they tell us. With crystal clear hindsight, every candidate criticizes the decisions of every incumbent, from the Town Council of Podunk to The Presidency itself. You’ve heard it all before; it never changes. But we all know that little will be accomplished. Ten years from now, we’ll be grumbling about the same things that bothered us ten years ago! But we listen to (and sometimes even believe) the same garbage, campaign after campaign. Aren’t you tired of this cycle of frustration? If you thought you could make a difference, would you try?
As Investors, we represent the single biggest voter block in the country. Of the 250 million (+ or -) voting age Americans, no less than 75% have some form of investment portfolio plus an interest in the illusory Social Security Trust Fund. Investors have the power to elect the next president, change the tax code, fix Social Security, and strengthen the economy. We have the power to produce significant changes in our society, but we need to start sending the right message to politicians… collectively, constructively, and quickly. In this rapidly “flattening” world, our non-leaders (in both parties) are unwittingly making us less competitive globally, more protectionist at home, and less attractive to foreign investment than ever before. It’s no wonder that we export more rhetoric than we do goods and services…
In addition to being Democrats, Republicans, Libertarians, Independents, etc, why not pledge our allegiance to the multi-partisan “MT~BSW” Supra-Party. This (hypothetical) political party could well become the first choice of most investors, regardless of their portfolio size. Investors must respond in one voice to the endless political drivel with a resounding “Money Talks, BS Walks”. We are tired of trite promises, and circus sideshow antics. As Investors, we want less government, no name-calling, and fewer regulations. We want decision makers who design laws that aid economic freedoms, not lawmakers who make decisions that restrict them. Incumbent bashing is not a political platform and neither is picking the pockets of the most productive members of society. We want a change in attitude and we will fire those who don’t appreciate the problem. The MT~BSW Party can rebuild a productive government, and without nominating our own representatives.
The writing is on Walls of Congress, and it is telling us that we need to replace old school power politicians with a new breed of decision-making managers who can lead us back to the creative space in the global economy that we once dominated. Here’s the MT~BSW “Financial Plan” for the 2008 Election… Dot Connectors Wanted:
The first step is to get the politicians out of Politics. Leave the “newbies” alone on the assumption that they still have the ability to think for themselves. But do what you can to get rid of any two-term person in any elected position, anywhere, regardless of name or party affiliation. If they’ve been in office that long, and Social Security Payments are still taxable, they do not share our agenda. Next, absolutely do not vote for any new person who has not issued a brief (300 words or less) (personally written and delivered under some form of oath) (in adult English without legalese) position statement on each of the following list of Ten Issues that we, as Investors, consider of primary importance if we (the US of A) are to continue as the most powerful economic force in the world.
The MT~BSW Party demands reform, change, and improvement in government attitudes toward investors. We will not support any candidate, regardless of party affiliation, who does not pledge to work toward a return to government that supports the principles of Capitalism, and rewards productivity, ingenuity, and creativity, as much as it respects the needs of the sick, the poor, and the environment. Briefly (but to be expanded upon in future articles):
1. Investment Income: Abolish the taxation of all forms of investment income at all levels, Federal, State, or Local. This includes all rents, royalties, interest, dividends, capital gains, etc. Similarly, abolish taxation of any form of retirement income… regardless of source.
2. Corporate Income Tax: Eliminate the Corporate Income Tax… and observe the increase in employment and employee compensation that follows.
3. Social Security Reform: Take Social Security out of the Public Sector and replace it with a mandatory, Deferred, Fixed-Annuity program within the private sector, funded by a 2% or less employee only premium. Absolutely never allow access to these retirement annuity accounts prior to retirement.
4. Tort Reform: Reform Tort Law at every level, and protect both businesses and individuals from frivolous lawsuits. Adopt a rule of personal responsibility for one’s own stupidity, ignorance, and clumsiness.
5. Estate & Gift Taxes: Eliminate Estate and Gift Taxes at all levels. Find a way to reward charitable contributions through 25% government matching payments.
6. Government Regulation: Examine the destructive economic impact of Government Regulation and oversight in many industries, particularly small business practitioners in personal services fields. Provide an arbitration and review system to identify and control abuses of regulatory power and a separate Department in each agency to deal with Small Business entities.
7. Obscene Executive Compensation: Adopt Amount Guidelines and Tax Rules that will control abusive Corporate Executive Compensation levels, and which would include all forms of compensation not available proportionately to all employees and/or shareholders.
8. Federal Income Tax Reform: Revise, rewrite, and actually simplify the Internal Revenue Code, starting with a top rate of 25% on income, a general non-specific single deduction and no subsection of more than two sentences or with more than two levels of subsections.
9. Size of Government: Reduce Government Staff at all levels by at least 10% per year for the next three to five years.
10. Individual Retirement Plans: Combine all forms of voluntary Employee and personal retirement programs into one IRA plan with tax deductible contributions up to a $5,000 per year limit per person (employed or not).
Of course there can be more than ten planks in the Investors’ MT~BSW platform, but let’s have some fun with these. Maybe some of you will get real serious about it and actually make change happen. I welcome your contributions to later articles, and your efforts to spread the “investors’ manifesto” however you can.
Steve Selengut
www.sancoservices.com www.valuestockindex.com Portfolio Management since 1979
Author of: “The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read”, and “A Millionaire’s Secret Investment Strategy”
Previous Articles Highlighter:
FAQ - What Is Financial Spread Betting (1)
On any given day you can find out on the web or by placing a call to a spread betting firm to find the "spread" on the FTSE 100. They will give a spread such 6350-6500 (6500 to place a "buy" or "up" bet and 6350 for a "sell" or "down" bet).
Dealing With IRS Appeals (2)
This normally takes around 90 days and if you do not get a date within that time, then you can also give them a reminder. This move has already started saving you money since you will not have to pay any taxes for the next 2 or 3 months.
How Do You Spell Correction? (3)
More than half the cars you see are SUV gas-guzzlers. (3) Trade deficits, and jobs leaving the country are really not news; they are the result of misguided tax and tariff policies.
Personal Debts: Getting Out Of The Debt Trap (4)
Its better for you to live with two or three credits cards than having more than five of those plastic things. Live frugally If you have been drinking coffee that cost you 2, you will need to give up that coffee.
How To Cope With Chapter 13 Bankruptcy (5)
These specialized attorneys will be able to best guide you toward the correct option that will best suit your needs. Peter Kenny is a writer for The Thrifty Scot, please visit us at www.thriftymortgages.co.uk and www.thriftyscot.com www.thriftyscot.com
Cashflow Clinic: Common Questions Asked When Businesses Want To Expand Using Invoice Finance (6)
The trade finance company and the Factoring Company can even be the same funder. This means the funder will open the letter of credit for you and purchase the goods from your overseas supplier.
Using A Reverse Mortgage To Purchase A Home (7)
However, there are also a growing number who need to downsize, have decided that their current home just doesn't fit their needs and can't easily be changed to do so(like wheel chair access or multiple stories) or have amenities that they wish to get away from that they no longer desire (like large lots with pools and excessive landscaping, etc).
HUD Insures First Fixed Rate Reverse Mortgage (8)
Also, if you don't want all the money up front, then you need to consider the adjustable rate mortgage. But remember, if you do want to take all your funds up front, the numbers work for you, and you like the security of a fixed rate mortgage, then the new fixed rate HECM reverse mortgage might be perfect for you!
What Are Certificates Of Deposts? (9)
Because they can be purchased for relatively small amounts of cash, they are often affordable to many families that otherwise might not be able to invest. Most banks and credit unions will have literature that you can read to learn much more about CD's and how they work.
How To Pay Back A Lot Of Student Loans To Save Your Credit (10)
This is also a good time to learn practical skills, and earn money from doing so. Learning skills like foreign languages, which are offered on weekends or evenings would help you any time in life.
Should I Use My Loans To Invest (11)
Government-insured programs, while not offering the same potential for returns, might be a safer bet. Now let's look at student loans which are presumably used for education. The government subsidized some student-loan interest because it is a good investment in the country.
Uncovering Reverse Mortgage Myths & Misconceptions (12)
Reverse mortgages do not affect a senior's social security benefits. We recommend that seniors consult with a trusted financial advisor because need-based programs such as Medicaid, can be affected if the reverse mortgage is not administered correctly.
Where Can Mothers Get Small Business Loans (13)
Topics: business loans, personal women loans, student loan consolidation, mortgages, home loans Mothers are more likely to work in part-time jobs and often interrupt their careers to take care of family members.
Borrowers 'Need To Plan Ahead' (14)
In addition, it was claimed that a "much larger" balance of lenders believe house price expectations to have an impact on borrowing during the next three months. Those concerned about how they will manage their money in the coming months and if they can access loans and other types of credit in the future may be advised to apply for a secured loan immediately.
Securing Your Account Details (15)
Other banks have taken a more direct route. One bank has produced a 'key fob' that generates a six digit code every thirty seconds to be used in conjunction with usernames and passwords; whilst other banks have also produced number generators to ensure the security of account details.
Is It Smarter To Invest My Money Or Pay Off Debt (16)
Several ways are: putting the card away so you don't put additional charges on it, paying more than the minimum amount due each month, transferring the balance to one of your lower interest rate cards.
What Does A Credit Repair Service Offer For Loan And Debt Consolidation (17)
No accreditation: Legitimate credit services are affiliated with the Association of Independent Consumer Credit Counseling Agencies. Delayed or missing payments: Some companies pocket your first months' payments as a fee, rather than paying your creditors.
Something Every Investor Needs To Know (18)
Moderate investing may be low risks. Moderate investors often invest in cash and bonds to make double in the stock market. They also invest in real estate, providing that it is low risk real estate.
Stock Option Trading Tips And Tricks (19)
It allows you to control 100 shares for a fraction of the price, less out of pocket money for you and the chance for better profit per dollar for you.
What Is The Relationship Between Interest Rates And Bond Prices? (20)
Topics: home loans, loans, bad credit loans In the world today there exist several various strategies that investors can utilize that will help them save their money that allow it to increase and become quite valuable.
Newer Articles Highlighter:
Can They Come After My Home If My Investment Property Goes Into Foreclosure? (1)
For example, if you allow one piece of property to into foreclosure because you lack the necessary funds to pay off the mortgage, then it will have an immediate effect on the success of your other investment properties.
Do Not Take On Your IRS Problems On Your Own (2)
Yet one fine day you receive the dreaded certified mail from the IRS you open it and you find a 30-day notice to pay the amount the IRS says you owe it, or you receive a telephone call from the IRS.
How Much Can Credit Card Debt Hurt Your Finances? (3)
Makes your life just that much harder. Credit card debt is quite simply a strain on the finances. I've been working for a few years myself trying to get out of credit card debt.
Options Trading Lesson: Volatility (4)
The chart below shows what the spread's value does as expiration approaches. Month Months to Expiration 65 - 70 call spread value Change from prior Jan. 05 (8 month option) 2.06 N/A Oct.
Differences In Tax Services (5)
Some tax programs will transfer old information into the current year's tax return program and the taxpayer who prepares the individual tax return might not realize that the tax form contains any errors until the tax information has been entered in several blocks.
Which Is Better, Investing Or Owning A Business? (6)
Investing in a business is much like investing in the stock market. You are spending money on something right now that you hope will produce more money in the future.
Here's How You Can Buy A Home - Even If You've Had A Foreclosure (7)
The initial task that you have to perform in this kind of scenario is to place your home on the selling market and sell it as soon as possible. Depending on the value of your property and home, this process can take quite a bit of time or happen fairly quickly.
What Is An Installment Loan And How Do You Use One? (8)
When you have finally obtained a specific and complete picture of the kind of loan that is being offered, you can then decide whether or not this specific loan will meet your financial needs.
Cash Flow Management Issues Relating To Funding And Investment In A Credit Crunch (9)
During a credit crunch the products offering the highest gross profit, fastest turn round and most economic use of working capital would offer the best options to reduce the credit crunch effect.
Guidelines For Settlement Loans In India (10)
Some specifics of the guidelines will be addressed in this particular article. These brand new settlement guidelines that are now implemented by the RBI can only be applied to loans that have been overturned by courts of law and those that have been decreed by the government to be abolished.
How To Get Debt Consolidation Online (11)
What such a plan does is to take the whole amount of the debt and reduce it by up to 70 per cent (some businesses have adverts claiming to reduce this by up to 95 per cent but this is extremely unlikely and you should give these companies a wide berth).
Types Of Business Insurance In Sacramento (12)
In case any item gets stolen, its replacement is also insured with it. When you buy replacement insurance, check whether it is full or partial replacement. Full is always a good option as item replacement could be a costly affair.
Grandpa Is Playing With Risky Stocks Again (13)
There is always potential, great potential, for profits that come with those risks. So if you are a year out from retirement should you be investing in penny stocks?
4 Key Factors Concerning Your Future Career In The Stock Market (14)
Do you have the drive and ambition it takes to make bold and unpopular decisions? Then this just may be the right career path for you. While there is no cookie cutter mold you have to match up with to be successful in the stock market there does seem to be a common thread among those who have succeeded in this career.
The Benefits Of A Direct Consolidation Loan For Students (15)
The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged on a borrower's Federal education loans. Retention of Subsidy Benefits: There are two (2) possible portions to a Direct Consolidation Loan: Subsidized and the unsubsidized.
Foreclosures - A Brief Explanation (16)
Short sales are homes that are about to become another foreclosures; however not all home foreclosures will result in a short sale. Short sales are what they sound like; it is home sold for less then what the balance of the loan to the mortgage company.
The Bulletproof Investment Portfolio (17)
Micro caps are often called penny stocks and dont trade on the normal stock exchanges. Keep in mind that penny stocks are only for those with a big tolerance for risk.
Pre-Foreclosures: A Guide To Contacting The Owner To Purchase Before Auction (18)
Topics: Pre-Foreclosure, investing, real estate, foreclosure, buying foreclosures Contacting the homeowner in most cases is a challenge. They likely are bring been bombarded with calls and a full mailbox from lenders, attorneys, bill collectors and creditors showing up at the front door.
Stock Trading Online - What You Should Know About Stock Trading Online (19)
You may have heard about the NASDAQ engaged in stock trading over net. Now you needn't deal with people who are busy in the market place. When you trade over the net the computer replaces the need of both the broker as well as the floor clerk.
Small Business Loan: How To Obtain One Without Going To A Bank (20)
Many businesses that apply at banks are declined for multiple reasons: not thoroughly prepared application package, not meeting the bank's lending criteria, or not presenting the package correctly. In addition, most of us would prefer to avoid a nerve-wrecking meeting with a business loan officer when the fate of your business is being decided.
Permalink to Investment Politics 2008: What’s (left) In Your Wallet?