Ponder This

July 5, 2010

This amazed me when I read it. “Just three years ago, Apple wasn’t in the mobile-phone business”. And now they literally cannot make those iSuckers fast enough to supply GLOBAL (ye-gads I hate that word and here I am using it!@*%$!) demand.

What will happen to Apple’s innovative spirit, know-how and willingness the keep jammin’ the way they have been as free enterprise is stifled more and more by the regulations, taxes and the over reaching arm of the federal government? There’s a case to be made for why more and more businesses and corporations head overseas drawn by cheaper labor, offshore financial centers and lower taxes.

On January 1, 2011 (just around the corner) there’s a ton of new taxes kicking in and believe me they aren’t just for the rich. Here’s a sampling sent to me by a CPA friend who knows what he’s talking about. But first put the theme from JAWS on for special effect . . . ;o)

  1. The Tax Cuts of 2001 & 2003 for investors (like almost everyone with an IRA, 401K plan or a pension), small business owners and families will expire.
  2. Personal income tax rates will rise for everyone in the 10% or higher bracket.
  3. The child tax credit will be cut from $1000 to $500/child.
  4. The standard deduction for a married couple reverts to the single level.
  5. The Death Tax returns which mean dying may very likely pass along a death tax bill to loved ones.
  6. Pre-tax dollar Health Savings Accounts go away.
  7. Small business expensing will disappear replaced by depreciating expenses over a longer period.
  8. Teachers will no longer be able to deduct classroom expenses.

So if you think any of these will affect you but you don’t consider yourself rich, you’re right. If you think any of these will affect businesses like Apple and the many much smaller businesses that are the backbone of our economy, or their employees or customers, bingo. You’re right again! But at some point it doesn’t feel so great to be right any more. In fact, it feels sorta crappy to be lied to – again.

If you missed the Fair Tax program on TV yesterday check this out:

And do yourself a favor, educate yourself on H.R. 25 and S. 25 or go FAIRTAX.org to learn more.

Aloha, Mikie


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