Financial Moves To Make Before And After The Fiscal Cliff

fiscal-cliff-santoriniI never thought we’d go over the fiscal cliff, but it turns out the chances are now over 50% after Boehner’s Plan B can’t even get enough Republican support. Raising the absurdly low income threshold for tax increases from $250,000 per couple to $1 million per couple sounds like a fantastic compromise.

Nobody making over $1 million will ever publicly complain about their taxes going up unless they want to face the mob. Those making less than $1 million a year will get their moral victory of sticking it to the real rich, who are the millionaires and billionaires of America, not the couple making $350,000 living in San Francisco with two kids. They are well to do, but they aren’t rich when it costs $1.5 million for a starter home!

Since Obama proposed a $400,000 income level before taxes will go up, and Republicans can’t even agree on a $1 million income level until taxes go up, it’ll come to no surprise if a deal doesn’t happen before year end. I was really hoping for something in between $400,000 and $1 million so they could move on with the real issue, which is overspending! It’s baffling why the government can’t take steps to spend within its means.

It doesn’t sit well with me that our politicians went home for the holidays with such a huge issue still unresolved. We pay their salaries and huge pensions! I still have some hope for at least a “Fiscal Patch,” but just in case, here are some things to consider.


How Tax Collectors Like The IRS Cleverly Rob You Of Your Money

Action Figure In HKEvery IRS person I’ve spoken to has curiously been kind. Yet, despite their kindness, I still feel my heart drop every time I get a letter from them. I’m not sure whether it’s because the movies always portrays the IRS agent as a bad man in a rain jacket, looking to shake down individuals for all they are worth. Or, perhaps it’s the fact it’s little ‘ol you vs. the omnipotent government that presents a no way out scenario. Whatever the case may be, dealing with the IRS sucks.

Those who work at the IRS or State Tax Collectors agencies are actually on your side. Sure, some have mandates from higher ups to milk you dry. However, most are willing to help you resolve your issues because they know how complicated taxes are in America. Perhaps this is one of the reasons why so many citizens have decided to just call it quits and not work!

One acquaintance I know worked for the IRS so of course I peppered him with questions to extract all the juicy details. I am against anybody paying more taxes than they need to. It’s just not right for the government to tax more than a typical person saves a year. If the government could show they can efficiently spend our money, then fine. But, they can’t even come up with a darn budget so forget it!

For all you conspiracy theorists out there, I think you’ll really enjoy this post.


Solutions To The Fiscal Cliff: Time To Start Investing?

Fiscal Cliff Of Santorini, GreeceEverybody is worried about a fiscal cliff, so what the hell is it? In a nut shell, Bernanke coined the term in Feb 2012 as a way to describe massive spending cuts and tax hikes in January 2013 if there is no budget deal in Washington DC. Because the House is still controlled by the Republicans, and the Senate is still controlled by the Democrats, there is worry no legislation will pass given what happened during the debt ceiling debacle.

If no budget resolution passes, here’s what happens: 1) Federal income tax rates increase for those in the 33% and 35% tax brackets as the Bush tax cuts expire, 2) the payroll tax holiday disappears, 3) federal unemployment benefits completely vanish, 4) reimbursements get reduced to Medicare doctors, and 5) the debt ceiling stays the same, which forces across-the-board government spending cuts, including slashes in defense spending.

The fiscal cliff could amount to some $7 trillion worth of tax increases and spending cuts over a decade. This would do wonders to balance the budget to the dismay of free-spending politicians everywhere. The problem with such budget balance awesomeness is the abruptness by which policies are implemented. Even though ALL of us have known about the fiscal cliff for years, no policitian is willing to do anything until the last moment…. or more importantly, until they win the November 2012 elections to ensure power for the next four years!

I know I sound cynical about politicians, but open your eyes already! We work for the politicians, not the other way around. It’s our job to work as much as possible to keep our politicians in power so they can live great lifestyles and make lots of money while telling people what to do. Every single politician has told me, “Screw pension reform, because that’s my money!” Sweet.

Let’s address some key bickering points.


Investment And Economic Outlook Post President Obama Victory

Now that President Obama has won, I’d like for us to have a mature discussion on the investment and economic outlook for the next four years. Let’s also touch upon how we should act in public now that big government is here to stay.

In order to create wealth, we must make reasonable assumptions about the future and invest accordingly. It’s important to remove our biases from the equation given we often see what we want to see and ignore everything else. We shouldn’t harp on the fact that over $2 billion dollars of campaign spending went into this election, which could have gone to help people in need.

If you are a raging right wing Republican, sorry, but your guy lost. Get over it. I got over the fact I stopped growing in the 9th grade. Your hope for smaller government, less taxes, less red tape, less welfare, less marriage equality, and a supposed balanced budget isn’t likely going to happen!

Remember to keep an open mind because creating wealth is the name of the game. Don’t let your stubbornness blind you. Let us begin.


Presidential Election Time: Policies To Win America’s Vote

Occupy The Government!The presidential election is just days away! This is when candidates start hamming it up and telling us all the great things they will do for us to gain or retain power. My favorite policies are ones that redistribute money from those who’ve earned it to those who haven’t. That rocks!

Given politicians love power, I hereby declare my wish list of things if they promise to do, will buy my vote. Everybody needs to think about what type of goodies you want from the government as well. For those of you who have the privilege of paying federal income taxes, do not let your tax dollars go to waste! You will be thrown in jail if you do not pay your federal income taxes, so it’s important to demand concessions.

Obama and Mitt, if you’re still reading my site (I see those White House IP addresses hit on occasion), think long and hard about my list of demands. Mitt, you should be especially vigilant because my crystal ball says you are on track to lose big time. Obama is doing a much, much better job convincing the middle class he will provide us more benefits. You don’t want to waste all that time and donor’s money again now would you?


I’ve Seen The Future And It Looks So Bright

Copenhagen Sunrise

Part of creating great wealth and happiness is anticipating the future, understanding the future, betting on the future, and adapting to the future.

With President Obama in power until 2016, he can be more aggressive with his policy initiatives given he no longer has to compete for another term. If Obama gets his way, taxes will go up for higher income citizens, government spending will go up to help care for our most impoverished, debt will increase, and more people will be saved from the perils of capitalism.

In other words, America will become more like Europe. We just need to be careful not to be Europe in its existing form where too much debt torpedoes our entire economic livelihood. But even if we go overboard, there will always be the Federal Reserves of our greatest nations to help us out. As the world police, they owe us!

Given America is becoming more like Europe, I decided to go to Europe and see for myself what our future might be like. You thought I was just going on a 2.5 week vacation to inject $10,000 into the Eurozone to help save the world didn’t you? Au contraire mon frere. My main purpose was to conduct some front lines investigative reporting to provide readers with unique, real-time insight into how to live and prosper over the next four years!


Growing Up As A Republican Black Woman In America Today

Mia Love Mayor of Saratoga Springs, Utah

Mia Love Mayor of Saratoga Springs, Utah

In a Presidential Election year, it’s important we all discuss, understand and get involved. It’s irresponsible not to have a view when so much of our future is at stake. The popular vote is divided down the middle, where many are unwilling to see the other side of the story. It is my pleasure to highlight a unique viewpoint from an old friend. Hope you gain some perspective, no matter which side of the party line you are on. Having perspective makes everything better. S

I’m going to tell you a little secret, which is rarely spoken in the African American community. There are some of us who live in fear because we went to college, found good jobs, and do not fully support President Obama. Because I am black, everybody just assumes that I support him. Although I think he is a magnificent orator who is much more entertaining than all others, the fact of the matter is that I do not support his policies that expand the ever growing powers of government. I’m sorely disappointed by the racial and socio-economic divide he has perpetuated since coming to office.

In an earlier post Sam asked, “Why Isn’t President Obama Considered White To The World?” The reason is, he doesn’t speak of or identify with a full 50% of his ethnic heritage. He says he’s black and that’s that. Forget about his Caucasian mother and her heritage. He is one of us, and no matter what, my community has to support him. He’s deemed courageous because he denounces his white half. As someone who is majority black, there’s no way I can go against him.

I knew after reading Sam’s post that I had to speak about my consternation as a black woman in America today.  Perhaps I can clear up some misconceptions that not everything is as “black and white” as it seems. I hope you’ll spend the time to read my story and share your thoughts below.