Hold On To Your Wallets and Purses!
The voice of one crying in the wilderness: "Watch out! They are coming after you!"
Who, you say?
Oh, stop it, you sound like an extremist.
It's the government that's extreme.
And they are after your money.
The problem? They can't stop spending.
You've done it yourself. The economy presses in, and you decide to spend less. Then you spot a sale on (name the item). Yep, it's difficult to back it down.
But the government? Oh, my.
The feds have spent 3 TRILLION dollars 'stimulating' the economy. Money that they don't have. Now we're saddled with $50,000 in debt for every man, woman, and child.
Where's the money coming from?
That's the rub. Half a million people unemployed. So not only are they not contributing, (i.e., paying taxes), they are depleting resources. It's like a prize fighter throwing you a left hook and you lean into it. Or as Dave Ramsey says, if you dig yourself into a hole (debt), you can't keep digging to get yourself out.
Another analogy? You lose your job so you go home and remodel the house to make the family feel better.
The result? The government needs more money. Yours. How will they get it? Get ready.
Here's a great example. I know this woman. Lived in California for the past five years. But for one year, she lived out of state. Filled out the proper paperwork. (That's right, you must tell them you're leaving!) Two weeks ago Visa canceled her card. She never missed a payment, no late fees, nothing. What happened?
The State of California filed a tax lien against her for $5,600 for taxes she didn't pay the year she didn't live there. Okay, follow this now. She hires a CPA,and gets them off her back.
So,the sate of Cally attempts to raise revenue. They attack people like her. The victim (darn right she's a victim!) spends her money to prove them wrong, and they collect nothing. How much money did they spend trying to collect bogus money?
And what about 'innocent until proven guilty?' That's the rub, right? Granted it isn't criminal charges, but the government of California is out of control.
More? The City of Reno, due to the economy, doubled permit fees. Now, should a builder decide to build a house in Reno, he pays twice as much. He gets nothing more for the fee, but too bad. Perhaps he'll build somewhere else.
The spending side? Last quarter, Reno issued 30 permits. That's one every two days. One person could easily handle that. And how many people work in the permit department?
It is difficult to spend less.
Watch for increases in fess, fines, and compliance. We are getting taxed to death, but here's the biggest problem:
We don't see it.
An example. We pay gasoline tax. First we pay it at the pump. But we don't know how much it is, do we? I remember when pumps displayed the tax on them.
Wonder why they stopped that.
Now, pay attention. You pay for the gasoline with after tax money. You already paid tax on that cash. But the fuel got to the station by way of a truck. The truck paid:
Fuel use tax (Don't ask. I have no idea what that means, or how they justify it).
Excise tax on the components of the truck.
Excise tax on the tires.
Over $5,000 for the license fee. (That's for the pretty sticker on the license plate).
Oh, and don't forget the company paid payroll taxes for the driver, social security taxes, and of course taxes on their profits.
Oops Forgot overweight fees. That means the truck is hauling more than is legally allowed, but since the company paid a fee, they can do it. That's like getting a permit to speed. Wait a minute. I like that idea!
If the truck crossed a state line, that company paid many more fees. Why? It's the same country.
Just how much of each gallon of gas is tax?
Speeding tickets will become exorbitant.
New fees will pop up for anything.
What can you do?
Pay more taxes.
Write your congressman.
Hire a CPA to mitigate taxes as much as possible. That's the 'hold on to your wallet.'
An old friend of mine used to say, "Thank God we don't get all the government we pay for."
We seem to be getting more of our money's worth.
At least we're paying more.
Enough whining, stay tuned Thursday. We're going on a road trip, to Kelso Station.
See you Thursday.