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In our September, October, November, & December issues we discussed retirement, unemployment, Tax Planning, & LLCs vs S Corps respectively.  With the onset of what we in the industry call, The Tax Season, I felt it timely to talk about your taxes.

A starting point would be to go back to the enactment of the imposition of taxes in 1913 and the passage of the 16th Amendment.   As imposing as this was, what took place after the New Deal and the creation of the Social Security system, is even more profound.  What am I talking about, you ask?  How about Tax Withholding, introduced in 1943.  Just think, people getting paychecks prior to 1943 got all their money.  Their Gross and Net paycheck amounts were the same every time.   How would you like that?

Do you remember your first job?  You had figured out how much you were making an hour and how many hours you had worked.  But when that check came and it was for less than you had calculated, you were immediately alarmed and wondered who had stolen your money and besides, what’s this FICA thing?  Do you remember your shock?   Do you think this is happening today to our kids when they get their first check?   This is when the brainwashing begins and each of us has been brainwashed to accept what Walter Williams calls “Legal Theft” in his September, 2009 Imprimis article.

  As hard working Americans we have come to accept as normal the legal theft of our money every time we get paid.   It is right there in our paystubs, taken out before we can get our hands on it and the lawmakers in Washington, D.C.  have passed laws to make this legal.  Do you know why?  I’ll tell you why.  Because if each of us had to write a check at the end of the year, we’d realize how much they are stealing from us and there would be a revolution in this country.

Every dime the federal government has is taken from us.  The government does not earn any money in and of itself.   We, the hard working people of this great nation, are the ones working and earning our pay each and every day and every dollar the government gets, it gets from us.  So those 535 legislators in Washington, D.C. do not earn a single penny and all those dollars they are constantly spending are ours and ours alone.  What people don’t see is that the federal government does not produce anything.   They don’t make toilet paper, nor raise cattle, build laptops, nor manufacture televisions.   The federal government does none of this.  This is all done by all of us – the private sector.   The government has no money of its own, only what they steal from us.  They made it legal to steal our money back in 1913 and in 1943 started to steal it from us before we could get it ourselves.  For many hard working Americans our largest bill is not our mortgage interest, it’s our taxes and it’s only getting worse as our government continues to get bigger and fatter.

As a final note, think for a minute how much you pay in taxes.   Taxes are imbedded in just about everything.  Taking a flight – taxes.   Paying your cable TV bill – taxes.   Pumping gasoline into your car – taxes.   Eating at a restaurant – taxes.   Staying in a hotel – taxes.  Paying your utility bill – taxes.   I’m sure you get it.  Even after you’re dead you pay taxes.  The challenge is finding something that is not taxed.  See if you can determine in one year how much you paid – keep a tally, you’ll be shocked to see it’s probably your largest bill.

We’ll keep our topic open for our next issue.  If you have an interest in a topic, write us, otherwise, I promise to keep it interesting in any event.….   Until next time, dream big, stay safe, and always, be kind …     Please forward any questions or comments to: Edwin@enccpas.com

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