TAXING INCOME FOR EVERGREEN COLORADO REAL ESTATE INCOME EARNERS.
The perditions sixteenth Amendment to the Constitution has damned all Americans, who earn income in this country, to never ending punishment. So the first question that comes to mind is what is income. The Supreme court ruled in Goodrich v. Edwards that income is only the gain received from an investment but not the principle. It is the gain derived from Profit or Labor or both after expenses. It is the true increase in the amount of wealth accruing to the individual or corporation.
Today there is much talk about eliminating individual and corporate deductions from the tax code. All Americans should strenuously object to this trendy solution to further punish earners in the U.S. The government has the right to tax profits and that amount above hard costs but they can not tax the costs incurred in producing incomes.
So individuals should be able to deduct their housing, their clothing, their food, their health care, their travel expenses, their household expenses because without keeping body and soul together, well cared for, and healthy they can’t earn income. Likewise corporations and business must be able to deduct the costs of the goods and services they produce. If we tax them on their costs we will eventually put them out of business.
Income is not the total gain from labor or profits but only that portion above the cost to produce the labor or the profit. Obama is trying to demonize individuals and corporations for what he calls corporate welfare when they deduct depreciation expenses used up or burned out in producing income. An oil company can write off their oil reserves as they are used up just like a restaurant can write off the food they use up to produce a meal for their customers; a landlord can write off the depreciation of his building as its useful life is consumed just like a trucking company can write off its trucks as they are worn out and eventually sent to the junk yard.
If we tax away the truck, or the food, or the building then society would eventually run out of restaurants, and delivery trucks, and rental units. If we increase the costs of these items, by disallowing deductions, the producers will have to raise prices far above what they charge now and the consumer will ultimately pay the higher tax.
We continually think that some wicked rich man or women, some demon possessed wealthy corporation will pay while we benefit from stealing away their over abundance; but we fail to realize that it is we the buying public who always pays. If the business community is forced to pay without passing along the cost they will close shop and all those jobs, all the income taxes on their profits, and all their benefit to the public will go away. Sound familiar. We have chased all our manufacturing, business backend service industries, all our digital producers, and now our professional firms over seas-how has that worked out for the job market. The dirty little secret that the news is not reporting is that American jobs have been declining since 1990. Our production has relocated offshore, and then there is no taxes collect because the profits are taxed by another country.
The big discussion about bringing back the trillions of dollars that are off shore is really a discussion about businesses and corporations moving out of the reach of the IRS. America has become just a cog in the global gear and businesses can easily move away and simply sell to the American consumer without supporting America. Look around your home, your car, you place of work-90% of everything you see has been produced somewhere else. These foreign producers are paying little or no taxes to support America.
The secret is that there is no secret: tax away income and you will chase away the producers.
Why has common sense become so hard to understand for American politicians and voters; why don’t we think about why we are in the situation we are in? Why don’t we see the mess the politicians have made of our country? Why don’t we put a stop to the destruction of America?
Americans are sad and depressed and with good reason, there seems to be no relief in sight. It’s time to return to good old fashioned American ingenuity and thriftiness, and use what resources you have left to protect yourself and your financial future from the government. A home is a hard asset and is historically the best investment in difficult times. Not only will you make money but You can live in your investment, while you will enjoy special income tax treatment. We are MARK ENGLISH REAL ESTATE and DISCOUNT MORTGAGES SERVICES (www.aloan2own.com) and are Your one stop shop for all Your EVERGREEN COLORADO REAL ESTATE and CONIFER COLORADO REAL ESTATE. We are also an EVERGREEN COLORADO CUSTOM HOME BUILDER and are looking forward to serving You with all Your Real Estate needs. Please, give us a call at 303-674-0148, Email us at markenglishrealestate@msn.com or visit us on the web at www.evergreencoloradoliving.com . Don’t forget to register for Your FREE BUYER INCENTIVES.
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