Tap and Tax

Cap and Trade will cost all of us. I discovered Tax Foundation and have included a link to their calculator. It's a wonderful website. Full of details on sales tax, state income tax, and costs of things like the Tap and Tax and the proposed health care bill in the House.

I hope it's helpful.

www.taxfoundation.org/capandtrade

'til later

Profit Margin

Profit (less taxes) divided by revenues equals profit margin. It is always portrayed as a percentage. If our revenues (all incomes) equal $100,000 and our Profit & Loss statement shows net profit of $15,000, our profit margin is 15%. It turns out that's a great profit margin.

Breweries average a profit margin of over 25% while drug manufacturers operate for a 16.% profit. Other examples: Railroads 12.9%, Wireless Communications 11.7%, Oil/Gas Drilling 9.7%, Medical Research Labs 8.2%, Periodical publishers 5.2%, Hospitals 3.6%, Heavy Construction 3.3%.

Also aiming for 3.3% profit margin are Health Care Plans such as Cigna and Aetna.

Health care insurance companies usually hit less than 4% profit margins. Those greedy companies.

These figures are from Yahoo Finance. I found them eye opening. I would have guessed heavy construction and hospitals to have higher profits. I think the lower the profit margin percent, the higher the risk from the viewpoint of an investor.

'til later

Reforms

I have read part of the House Bill for health care reform. I do not believe it will pass as written. I know there are other bills being worked on. I have 3 suggestions that I assure you will change health insurance to the better.

First - open the state borders. Competition will bring down costs. States set standards now. Have the federal government override those and open the borders.

Second - make all health costs deductible. Now, if one itemizes on their tax return, only that which exceeds 7.5% of your AGI (adjusted gross income) count against taxable income.

Third - reform tort. I would almost go as far as to suggest the settling health claims without a jury. A bench decision can be fair.

I refuse to fall for the criticism that I am without compassion and do not want everyone to get health care. Citizens who earn nothing or very little can get Medicaid benefits. Everyone can get health care through Emergency Rooms across the land. We need to reform insurance.

I know that since medical procedures will be covered under Obamacare that We The People will be paying for abortions. He is lying to us. Again. There are no death panels but there are panels that will decide treatments in the HR bill. He is lying to us. Again.

Stronger is the country that lets individuals control their own lives. Stronger is the government who controls the lives of individuals. One is slavery in the worse way.

'til later

Clunkers

Cash for Clunkers took about 690,000 seasoned cars off our roads. Gone are those assets, those sources of parts and cheaper wheels for the less healed.

I have heard many voices reporting that the $4,500 will be taxed to the new car owners as ordinary income on their 2009 income taxes.

Much research does not bear that out; however, several states have tax codes that consider the event taxable. And, besides, most states with sales tax collected on the full cost before the government "gift" was deducted. A $20,500 car that earned a $4,500 deal would cost the consumer $16,000 out of pocket or on credit plus sales tax on $20,500.

Now if the US government, which is hungry for revenues, comes back and levies against the $4,500, the owners should be allowed to deduct from that number a reasonable value of their clunker such as Blue Book. Time will tell on that.

'til later

Email Scare

I have been off my blog for several weeks. Most of you know about the White House asking that emails and blogs that contain fishy health care information be forwarded them.

I became scared soon after my 2nd of 4 emails from David Axelrod landed in my email box. I understood that the White House had my email address because of several correspondences I sent regarding my concerns.

Axelrod's email of July 23 was titled: "This isn't a game".

It caught my attention! It appeared to be a form letter regarding the President's big news conference about health care reform. Soon thereafter came the White House plea for fishy information.

That request has been changed and I feel the threats are over. I'm still shaken but I will continue to speak in this forum about financial matters and question the spending of this administration which now exceeds the combined deficits of W's 8 years. Quite a record in less than 8 months.

'til later

Shutting Down

Since the White House has called out the forces to turn in emails, blogs, and other communique containing dis-information, I am shutting down this blog.

I have used this forum to communicate what I believe are truths.

Obama in his own words on Youtube states that his goal is single payer (government run) health care. He knows it will take a long time but will get it started as soon as the Congress and White House are controlled by the Liberals.

I believe from the bottom of my heart that most of the town home meetings are attended by concerned citizens from all parties and all wardrobes. Even one closed door Democrat town home gathering experienced the frustrations of many regarding the "insurance reform" bill.

Note: It is no longer health reform. It is insurance reform. Spin, spin, spin.

I have read nearly 80 pages of the over 1,000 page bill. I am convinced that if your insurance changes, your only option will be the socialized medicine program.

I am convinced that the committee of government employees who will decide my treatments is pure socialism and rationed care. I am convinced the government consultants who will visit every home of a new born or home expecting a new born and every citizen over 65 will be untrained, propaganda spewing robots.

In the book 1984 it was called Newspeak. Warning, warning, warning.

I am convinced our freedoms are threatened.

I wish you all the freedoms of life, liberty and the pursuit of happiness. I wish you the freedom of speech and assembly. I pray we are not witnessing the end of all of these.

I can not sign off with 'til later because there will likely be no later once this blog is turned into the whitehouse.gov website for dis-information.

Live with God.

Game Rule Changes

The House approved an expansion of the Cash for Clunker program. The Senate is considering it this week.

However, one rule of the game has been changed. The new car does not have to be manufactured in the United States.

This wildly popular give away (and destroy assets and cost millions to administer) program has provided the local Hummer dealer with several sales.

Does this make a whole lot of sense if the target was partially to help clean our air.

'til later

Who Cares?

Sergeant Crowley is the sole class act in this photo.

It tells it all. The lowly cop is the helper. Isn't that what we learned in school - Cops are our friends.

He reaches out while the others demand apologies for his actions. Give me a break.

'til later

Rebates = Green?

More cash for clunker rebate $ will likely be approved today. The program is a success.

We The People are throwing more $ into the car industry under the guise of helping the environment. Of course, there will be some carbon released into the atmosphere to accomplish this. The smashed cars will be trucked to rail cars and shipped west. Then they will be loaded onto ships and transported to China where they will be melted down. I'm not sure there are any clean air rules in China.

I understand if your clunker gets 18 miles per gallon and you purchase a new 22 mpg car, you could get as much as $4,500 rebate. However, if your clunker gets 19 mpg and you purchase one of those hybrids that get near 40 mpg and cost nearly $40,000, you get no rebate. Interesting.

So this rebate program is just a prop to our investment in the auto industry. Think of all those union jobs Obama has saved. Is anyone keeping track of the cost of these "saved" jobs? How about the cost of the stimulus?

If Uncle Sam had cut each household a check for $4,500, that would have been a stimulus. It would have been cheaper than what Obama has spent since January. It's all on him.

'til later

A Gift

If you missed out on the zero down or interest only or creative financing that were the norm before last fall to get into your own house, Uncle Sam has a gift for you.





If you are a U.S. citizen, have not owned a home in the past 3 years, earn less than $150,000 (married and $75,000 single), purchase your house or condo or town home in 2009, live in this house as your primary residence, and spend $80,000 on the house, you will qualify for the full $8,000 tax credit.





If your new house costs less than $80,000, your credit will be limited to 10% of the purchase price. If you earn between $150,000 and $170,000 (married and $75,000 to $90,000), you qualify for a partial tax credit.





Actually the earned income I referred to is your Adjusted Gross Income, the bottom line of page 1 of your 1040 tax form. Your AGI includes all income - your W2 earnings, your self employed earnings, and $ that your $ made such as dividends and interest, etc.





You need to live in this new house as your primary residence for 3 years. Do not worry, Uncle Sam will not required repayment of this credit. I wonder why this rule, if it has no teeth.





A tax credit is applied toward your tax liability on page 2 of your 1040. If you are due a refund from the IRS, the $8,000 will be added to your refund! If you owe, that balance is covered by part or all of the $8,000. You will owe if your tax liability exceeds $8,000.



I have heard there are lenders who will cover the $8,000 through a side loan which you can repay next Spring. So, maybe you can still buy a house with zero down.

'til later