Taxes and Tax Avoidance

Because this country encourages, or at least used to, entrepreneurism. As a person who wants to make more money, more often, I have ambitions.

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This election season has brought this idea to the forefront. It happens to be on my mind often. As an individual who makes a decent living, I think about taxes more than most people.  Looking at a post I wrote last week (Here), you can see that taxes drive my thinking.

Over the weekend, the New York Times decided to print Donald Trump’s taxes from the 1990’s, show almost a Billion dollar loss. Thus, he not paying taxes for 16 years.

What drives me crazy this morning, is that, that’s all I see this morning on my Facebook feed. Every other person has posted this, like it’s some terrible crime, and he’s an awful person.

The problem with this, of course, is that everything he did was perfectly legal, and justified. Not only did he have a horrendous year, losing almost a billion dollars, but was public about it! He told the government what he did, and used the tax code to make sure he was covered.

I have a small farm on the side. Its brand new, and I’m hoping to make something out of it. I hope to make a lot of money, selling apples and hops. (Odd combination, I know, but they are both fun and profitable) In my first year, as is common, I took a loss. I had purchased a tractor, planting equipment, trees and plants. I bought fertilizer, weed control, and deer repellent. As with any perennial crop, it takes a bit to get going. The first year is never a success. And for apples, I’m looking at 5 years before I really am able to see any return.

Because this country encourages, or at least used to, entrepreneurism. As a person who wants to make more money, more often, I have ambitions. The government has written these in to encourage business building.

The fact that Mr. Trump’s tax returns were (illegally) released, is an attempt to show how much he has absconded the taxes he is supposed to pay.

Too many people in this country do not know enough about politics, the candidates, or the law that they are trying to pin to Trump. And this is why the New York Times can get away with this.

Make no mistake. This is a hit piece, from a newspaper who contends that they are neutral, giving only the news you need to know. Zero Hedge and others have reported that Hillary Clinton has used the same tax avoidance as Trump did. LEGALLY!

Breitbart has reported the New York Times hasn’t paid taxes either. Why? Because they are losing money. And when you lose money, you don’t pay taxes. That’s the law. Millions take advantage of this every year.

But, the New York Times hasn’t told their readers about themselves not paying. They haven’t told their readers about Hillary using the same tax code. They simply put out one side, and expect it to be passed on as gospel. Which it has been in a lot of circles.

So, why doesn’t the New York Times feel it’s necessary to tell people what others are doing? Why do they feel the need to break the law (or at least bend it very close to breaking) to try and discredit someone?

I can understand if you don’t like a specific candidate. I can understand if you want to promote someone, or discredit someone. You’re a citizen, with opinions. Makes complete sense. I do it every day.

As a news organization, don’t give me the story you want to push, unless you’re clean on the other side. If you, as the New York Times, had paid “your share” of taxes, then I wouldn’t be writing today. But you didn’t. Keep losing money, and not paying into the tax pool. Until then, I’m not sure you’ve got the right to jump on Trump, for using the laws that are written.

Finally, when piling onto Trump for all the evil he has done to this world, perhaps you should look at how you treated him before. Even after he had filed bankruptcy, and built himself back up, you were there for him, New York Times, to laud him. You called him ‘The Comeback King.’

Don’t worry about that part. It’s just now, that he’s evil for doing the business that he’s done. You can read that here, and see for yourself.

Trickle. Down.

Trickle. Down. It’s how water works, in order to keep plants alive. Its how I’m able to have water every day. It’s a ton easier to work with water, than with electric, because electric can go anywhere, at any time. Water has one way to go. Down.

Once rain falls onto the ground, the runoff begins, and it helps everything that it passes through, or lands on. Pretty simple concept.

With that in mind, it’s time to learn about trickle-down economics, which of course, doesn’t work, if you listen to certain people.

I make 1 million dollars a year. I’m doing pretty well. I’m comfortable with where I am. But, take into account the taxes I have to pay. Living in New York, I have to pay $68500 to the state, plus another $432,368 in federal taxes. Over $500,000 in taxes! (New York is 6.85%, and Federal taxes $119,996 plus 39.6%. $500,861…in one year)

Now, it doesn’t matter what the government does with your money. You don’t need to know. Or, read the hundreds of thousands of pages of legislation to see where your money goes. Good luck with that.

So, now I’m left with $499,139. Still pretty great, considering I’m above what most of this country, as far as income goes.

With that much money, I’m now in a position to have things done for me. Addition to the house, cleaning service, pool maintenance, or new blacktop for the driveway.

I’ve also been looking into a boat lately, and my wife needs a new car. She’s had her eye on the new Chevy Silverado. Can’t scrimp there. And don’t forget the boy, who wants a new gun, and bow and arrow.

I don’t have a problem with spending that money. It keeps everyone comfortable. We get what we want or need. And we do it comfortably. What the biggest advantage to all this spending is all the people I’m going to benefit.

The carpenter that I’ve hired can hire a couple guys to put my addition on. I can get the cleaning service to come in once a week, instead of once a month, keeping money going to the employees. The pool company down the street can keep their employees on longer, because I’m one more customer that they have to close a pool on. They get paid too.

My wife gets her new truck, getting her salesman 1 sale closer to his bonus for the month, and another business has income coming in. The local sporting goods store now has two new sales, plus service customers until it’s time for a replacement gun or bow.

Now, with all the money that I’ve just spent, I’ve paid for at least 15 employees, kept the lights on in multiple businesses, and let them keep passing the money around. The trickle down has begun. And everyone that has been paid from my business, gets to do things like I have just done, and keep the money moving.

If the government were to allow me to keep more of the money I make, less than 50%, I would be able to do even more with my money. Spreading it around to more businesses and companies.

Poor people don’t hire people. I know. I’ve done manual labor most of my life. I was given opportunities by a lot of people who hired me, to pull my way up the economic ladder. People with money, hired me to do work for them, when I didn’t have much.

Lower taxes means more money in your pocket. More money in your pocket, means you’re going to spend more. When you spend more, other people make more money. When those people make more money, they can spend more. And on and on it goes.

Trickle-down economics works. It worked in the mid-80s, and it will work today. It just needs to be implemented again.