Are You Paying an Unfair Share of Taxes?

Tell Those Bossy “Tax the Rich”
Obama Cronies to Shut Up!

A friend went on a weekend camping trip with his young son and “youth group.” Before the first dinner, one boy, starving from the day’s activities, opened up his bag of potato chips and started eating.
When that happened all the other boys mobbed him for a few chips. But he didn’t want to share his only bag, so he moved away from the horde.
The group leader saw what was happening and took it upon herself to “teach” the boy a life lesson (even though his parents were also on the trip). “Hey, you have to share all your potato chips with the boys,” she yelled at the kid.
In defiance, the boy folded the bag and put it away; no one got any. This is understandable behavior when someone is forced to part with personal property.

Just Shut Up!

That was a headline on CNNMoney. Responding to questions about tax rates and Warren Buffett’s obsessive support for further raising taxes on the rich, New Jersey Governor Chris Christie said this about the Obama backer: “He should just write a check and shut up. I’m tired of hearing about it. If he wants to give the government more money, he’s got the ability to write a check – go ahead and write it.
When someone demands that you part with personal property – another understandable response is to take that property somewhere safer.
The president wants to teach everyone a lesson, too. We (especially the rich) must all “do our part” and pay our so-called “fair share” in taxes. It sounds noble, but it’s just a gimmick to take away more of our money.

U.S. Taxpayers Are Disappearing… Overseas

International tax attorney Andrew Mitchel wrote that, in 2011, “the quarterly average number of expatriates continues to increase.” He defines an expatriate as an individual who renounced United States citizenship or terminated long-term U.S. residency.
National Taxpayer Advocate Nina E. Olson seconds that trend and says renunciations (U.S. citizens dropping their citizenship outright) have increased sharply. In 2008, just 146 renunciations occurred; in 2010, it jumped to 1,534. And, 1,024 Americans cancelled their citizenship in the first half of 2011 alone!
The AllGov website reports: Olsen mentions one reason for the rapid increase is the Internal Revenue Service’s “bait and switch” tactics. It tells Americans they can resolve their unpaid taxes under “older voluntary disclosure programs with the promise of reduced penalties, only to find themselves subjected to steeper penalties.
What’s also revealing is the U.S. is just one of a handful of countries that require citizens, who permanently live and work outside of the U.S., to still file and pay taxes to the U.S. It’s almost like saying: even if you no longer live in the U.S. and all your money is earned outside of the U.S., you are still property of the IRS.
As eye-opening as the numbers are, it’s important to mention many of these renunciations and expatriations are chosen by those already permanently living abroad or holders of dual citizenship. Indeed, as the U.S. government continues to spend without restraint and put American asset holders at greater risk, Americans here in the U.S. could start heading for the exits.

We Have a Spending Problem,
Not a Tax Problem!

The IRS wants to collect what it considers a “fair share” from each of us. But too little tax collection or low tax rates are not the problem. Uncontrolled government spending and irresponsible government borrowing cause all the trouble.

What’s Wrong with a Zero Tax Rate?

Congressman Ron Paul (R-TX) has frequently pointed out that, until 1913, the U.S. survived and prospered without a federal income tax or the IRS.
The current push to tax “the rich” by repeating the mantra that everyone should “pay their fair share” is a sly way to play on people’s envy. All it will do is open the door for more taxes for everyone, or at least those who work for a living.
To get support for our current tax system, which gave birth to the IRS in 1913 (and the Fed), the sales pitch was to tax the rich just a little bit – the rate started at just 1% and topped out at 7%.
We all know what happened since then. Anyone who is productive, industrious, and works for a living pays a much bigger percentage of their income to the IRS today.
IRS  Shakedown
The top rate in 1913 was 7% on income above $500,000. Adjusted for government-underreported 2011 inflation numbers, this is the same as $11.3 million in income today. Look at what’s happened, the top rate is now 35% on income above only $379,150! The direction and trend has not been favorable for anyone who earns a living!
The noise coming out of the White House is to tax “rich” people even more – rich currently being defined as those who earn only $250,000 a year or more.
This income may seem high to some people, but with the elimination of numerous tax breaks, deductions, and a booby trap known as the minimum alternative tax, local entrepreneurs (such as your dentist, auto mechanic, plumber, owner of a local restaurant, and others) are easily dragged into the “rich” category.
While $250,000 may seem like a high income, these are not the same people who own private jets, oceangoing yachts, or ski chalets in Switzerland. What’s more, compared to 1913 inflation adjusted numbers, $250,000 is a far cry from earning $11.3 million a year.
The good news is that a number of smart financial moves exist to lower your tax burden. You don’t have to be a victim of forced sharing! Plus, you can use each tax dollar saved to spend and enjoy, buy gold and silver, or invest in your own future and preparedness.
As you gear up for tax-filing season, we want to encourage to be diligent about cutting your tax obligation to the bone. Remember, it’s your civic duty NOT to overpay the government!