The IRS God ... Guilty until Proven Innocent

There are two areas where our rights of innocent until proven guilty and a trial in front of our peers are not honored in this country:  in dealings with  1) the IRS Gods, and 2) the Drug Gods. Today, we speak of the IRS Gods.

Early in 2012 I filed my withholding taxes for the 3rd and 4th quarter for my small business, Metallurgical Viability, Inc.  I sent about $20K along with Form 944.  Unfortunately, I was supposed to use Form 941.  My bad.  Of course they took my money.  Then late summer, 2012, they tell me I have not paid my taxes for 2011.  After many letters, and several calls, I got them to realize they had my money.  I thought good.  Wrong.  I still had not sent them Form 941.  I eventually understood they wanted Form 941 and sent it in late summer 2012. 

The following is a little guess work on my part since I have never received any letters back from IRS in response to a dozen plus letters.  When I call, they tell me to send a letter with the details.

Okay.  When do they count getting my money.  You guessed it, when they received the Form 941.  Originally they fined me about $7K.  Then I wrote more letters and now it is $4K.  I found that out when I received a notice, below, that they were placing a lien against my MV property.  Of course, I have written more letters and requested a hearing.  But, the hearing is only to stop the lien, not to get any explanation of why I am being fined.

So, my conclusion is that I am being fined $4K for using the wrong form -- of course, not confirmed by IRS.  They are big on the stick, short on the explanations. Apparently, the IRS Gods do not have to explain anything to anyone. 

s

   

Political Righteousness

* So, someone is telling me I need to believe these old books that says there is one god, name Allah, and if I don’t, I am not going to heaven.  Further, I have lost all spiritual good. And, they think they are right, they are righteous about it.

"Salvation" in Islam refers to the eventual entrance to heaven. The word does not cover the possible entry to hellfire, or the different levels of hellfire and heaven. Islam teaches that people who die disbelieving in the God do not receive salvation. It also teaches that non-Muslims who die believing in the God but disbelieving in his message (Islam), are left to His will. Those who die believing in the “One God” and his message “Islam” receive salvation.[23] Narrated Anas that Muhammad said, Islam teaches that all righteous Christians, Jews, Sabaeans before the coming of Muhammad will enter Heaven but those who appeared after Muhammad must accept Islam.[24] "If anyone desires a religion other than Islam (submission to Allah), never will it be accepted of him; and in the Hereafter He will be in the ranks of those who have lost (all spiritual good)." — Quran, sura 3 (Al Imran), ayat 85

Democrats believe among other things that  we should invest in education, social services, infrastructure, and  give immigrants in this country a path to citizenship.  They believe in taxing the rich more to pay for this agenda.  They are concerned with wealth inequality in this nation.   They prefer negotiating instead of using the military to impose our views on the world. But they believe in increasing military spending

Republicans believe we must balance the budget by making cuts in education, social services and require immigrants to go back to their country and get at the back of the line. believe in a strong military and imposing our values around the world. they don't believe in taxing more including the rich.   They believe in increasing military spending.

Neither Republicans or Democrats are willing to touch social security, medicare or the military to balance the budget.  Of course, the budget can not really be balanced without touching these programs. Neither is willing to make fundamental changes in the way we are taxed.  Neither believe in ending the war on drugs, or decriminalizing pot. Neither believe in bringing by our troops from the 50 odd countries that they are stationed in. Neither believe in outlawing PAC's controlled by the wealthy. Neither believe in doing away with the IRS, replacing the income tax with the carbon tax or national sales tax or flat tax, etc. Neither believe in encouraging a third party, or making it fair for a third party. Neither believe in Congress having the same retirement (social security) or medical plan as the people they represent. Neither believe in working with the other.

Both republicans and democrats are righteous about their views.  Their way is right and those that do not believe in their point of view are wrong.  They spend a lot of time pointing out the wrongs (sins) of the other side.

They say insanity if doing the same thing over and over again and expecting a different result. So, we keeping voting for democrats or republicans and expecting a real change. So are we insane?

Plan B: Gary Johnson versus status quo with the Democrats or Republicans. Or, do you have another Plan B?

Cutting the Poor out of Higher Education, Who Loses?

Cutting the Poor Out of Higher Education, Who Loses?, 2/22/14 My dad made $100 per week from about 1951 to 1968 being a automobile mechanic (Son of an Automobile Mechanic).  It was very good pay in 1951, it was below poverty level in 1968.  And yet, in 1967 my dad was able to pay college tuition for me for my first semester at the Texas Western College, now UTEP.  It cost the family nearly two weeks of his salary.  In contrast, my oldest daughter has about $100, 000 in school loans and is in a field that pays about half of what I earned in my early years as an engineer adjusted for inflation.  And, I can assure you it cost more than two weeks of an engineer’s salary for much of her education. (She did have the Hope Scholarship in SC that gives free college education to anyone maintaining a B average in high school.)

*

Our nation now has about a trillion dollars in school loan debt, or a little more debt than Apple Inc. has cash, mostly in foreign country banks - but that is another blog.  Students rightly are starting to push back against this debt and considering not getting an education or delaying it.  To bad for them you say.  Yes, but too bad for us too.

*

Our nation is facing a huge shortage of engineers, scientists, and other highly skilled workers as our place as the leading economic power in the world plumets downward.  We may still be in place where we can respond effectively, but we obviously lack the will.

*

It is simply about priorities and delayed gratification (investing in our future). What expenditures are we willing to cut to be able to invest in our nations future. The answer is apparently nothing.  We are not willing to touch social security, medicare, military, stupid drug laws that fill our prisons, or anything else.  Our prognosis is simple: continue our decline into a third world status.  At some point, like Rome, we will not even be able to support our mighty army that attempts to force its view of right and wrong upon the world. Ironically,  our military failures, the harbinger of our social failures, are beginning in the same geographic region that destroyed the mighty Roman army.

Plan B: Gary Johnson versus status quo with the Democrats or Republicans. Or do you have another Plan B?

$10.10 / hr Will Cause Job Loses. Really?

Let's take stock.  60% of the available work force is employed.  The improvement in the unemployment numbers are primarily from people giving up looking for work and only a little from our sluggish jobless recovery. Mission control, we have a problem: NO JOBS.

So now a proposal comes along to raise the minimum wage. Reaction, oh my god, look at all the jobs we will destroy by giving the poorest in this economy a raise.  When the President of Leman Brothers, Richard Fuld, Jr., crashed his company but he pocketed a half billion dollar bonus, did anyone point out that a) some jobs have been lost by management's blunders and b) that a lot of lower end people could have been hired with a modest decrease in Fry's salary/bonus.  Mission control, we have another problem: INCOME INEQUALITY. (see Four Shocking Examples of American Inequality, if you haven't noticed.)

Some people blame the lack of jobs on public policy and not technology and others blame it on technology: More Jobs for Machines not People. Guess what, it could be both since a lot of jobs are missing.

Public policy problems with job creation:
1) Management getting huge salaries ...
2) Congress / government in general, who are supposed to protect the public's interest, is chosen and elected via PAC funding, which is primarily controlled by the wealthy,
3) Unions decline and the laws being stacked against them for organizing workers, and
4) Little support from government or our culture in promoting social responsibility with regard to the hiring and training of new workers, and
5) Trade agreements where level playing fields with regard to worker safety (Walmart Bangladesh), environmental standards, and worker rights were not included and/or enforced.
6) Providing childcare for single parents.

Technology drivers for less workers:
1) better communications
2) robots etc.
3) better utilization of factors of production

Impact of Raising the Minimum Wage
1) A small step forward in reducing wealth inequality since million people would be lifted (barely) above the poverty line. 
2) An unknown effect on the number of jobs since

• Competitors in the service industry are equally impacted.
• Service industry can pass costs of labor increases into products/services.
• Service industry is not significantly impacted by foreign competition.

3) COB forcasts the the loss of half million jobs.

• What is the impact of a minimum wage (or living wage even better) if it is restricted to the service industry?
• Does this decrease the percentage of people employed from 60% to 59%?
• What is the relative impact of a higher minimum wage on job creation compared to improved public policy on job creation?
• How does a service industry lose jobs to foreign competition?
• How do we compare in minimum wage to the rest of the world?

Duke Energy CFA Spill and Income Inequality, 2/20/14

Duke Energy will past the cost of Coal Fly Ash Spill on to Customers, not Shareholders.   Coal Fly Ash (CFA) is a waste generated from combusting coal.  The waste is often slurried with water and pumped into large settling ponds.  One would think that negligence in maintaining such ponds would be a criminal offense, or at least a civil crime.  When BP spilled oil in the Gulf their shareholders lost billions (I was one of them, I lost thousands) as their share value plummeted.  There is some justice there. Billions of dollars will probably be spent on this clean-up.  

But, Duke Energy is a public utility and as such their profits are set by agreement.  Add up all the costs and then set the cost of electricity to cover the costs and guarantee them their agreed profit.  A CFA just becomes a cost.  And in most states, competition between power companies is not encouraged, so all is good for Duke.  Who would set such rules.  Politicians that are supported by PAC’s that get donations from Duke et al.  Is the public best served, probably not.  

When we talk about wealth inequality in America, we like to assume the brilliant, deserving people made it to the top of the pyramid, the bums sunk to the bottom.  That may have been true at the dawn of the American experiment, but for now that is the huge exception not the rule.  The rules are set up to maintain the wealth inequality ( Four Shocking Examples of American Inequality), and they are by no means fair.  In the example above, the Company, the Shareholders win, the customers (mostly poor and middle class Americans, what’s left of them) lose.  It is a form of wealth distribution from the poor to the rich.  There are thousands of rules set up to the benefit the rich at the expense of the poor.  That’s one of the themes of this blog is to point out that the world ain’t fair, the rich get richer and the poor get poorer, thems the rules, baby. 

Adult Relationships, 2/18/14

I believe consenting adults should be free to have relationships of their choice with other consenting adults including gays, straights, polyamory, polyfidelity, swingers, polygamy, or whatever.  I also believe we should have the freedom to marry whoever we want, two or more. I don’t have any complicated arguments, I just believe in freedom to live one’s life by your own rules;  you know, land of the FREE stuff.   I’m agnostic so I don’t have many religious rules except those I make up for myself like kindness, being my brother’s keeper, honesty, transparency with friends, courage, and a few others.  Yea, I know the Bible is pretty down on all this freedom, but that is for you to rationalize and follow if you chose … I chose to believe in freedom for myself and others.

I also don’t mind interracial relationships, or those that want to be transgender, or have a sex change.  More power to them.  I hope they enjoy their life and that whatever changes or relationships they have enhance their happiness.  Enjoy.

I also believe in honesty and transparency in my own relationship.  I have not always been that way, but I am glad I finally made it.  If I am attracted to another woman, or have a sweet interaction with one of god’s lovely creatures, I rush home to tell my lady.  There are a few other women that I love, and my wife knows all about it.  No secrets.  Same with her.  Yea, we have some fear reactions from time to time, but we both own our fears (or try to) and don’t blame the other.  We are explorers in life and don’t have a rigid script except to be honest and transparent with each other.  I anticipate being with my lady until I die, but are both here only as long as it works for both of us … that we stay in-love.  And, we both recognize that we are human and capable of loving others. 

Hopeful about Obamacare and America, 2/13/14

Hopeful about Obamacare and America, 2/13/14

I am thankful that people with pre-existing conditions can get medical insurance.  Thank you for caring America.   I would be one of those people, but I married into healthcare since my lady was a professor.  My daughter is one of those people.  Thanks again for caring, America. 

I am very grateful that Obamacare changed the rules that allows one’s children to stay on the parent’s policy until 26.  My daughter, Olesia, would either not be alive, or I would be bankrupt at this point in time, or perhaps, we could have gotten her on Medicaid if we lived in the right state?  She takes one medicine, Abilify that costs over $1 K a month, plus about 13 other medicines at last count.  She has been to ER, hospitals, doctors, etc. more in the last couple of years that I have probably been in my lifetime, although I am starting to catch-up as stress wears me down.  Admittedly, some of her poor health has been her own fault.  She tried cigarettes for two years - yes not smart for someone that has asthma.  And, she lived for too long in an apartment that we suspect has mold. 

The apartment flooded often because the landlord has a washing machine which requires the hose to be stuck out the window, otherwise it flooded her apartment.  You can guess how that worked out with four young adults using the machines.  Her lung problems became very severe during her year stay in this apartment. 

*

*

In a year, Olesia will be allowed to buy health insurance (yea, probably with my help) under Obamacare even with pre-existing conditions -- assuming we are successful dealing with the mold issue.  Or perhaps, if she marries, her husband’s company may offer some insurance, or not.   Her fate would be much less certain without Obamacare - thank you America for caring.

As an agnostic, I really do believe I am my brother’s keeper.  This belief is not widely held in America where our wealth inequality is now equal to China’s with theirs improving while ours continues to decline.  Obamacare is a very small step in the direction of less wealth inequality in America.  A more generous minimum wage or living wage would also be in the direction of less wealth inequality in America, but that is not going to happen in conservative / religious America where both taxing the wealthy and extending unemployment benefits is unpopular.  Our actions say we like our wealth inequality in America, in China their actions say the opposite. I’m sure Fox News is about to have a breaking news story on this conundrum of conservative politics.

Of course, Obamacare needs improvement.  In States where Medicaid has not been extended if you make less than $11K per year, like my brother in Texas, then you are screwed.  ER is your only health option, and then only if you pledge to make payments on your $1K per day bill in ER.   My brother had a blood clot in his leg, ER gave him a prescription to get shots for $500.  They said he needed them or he would probably die.  I guess that is a new way of not taking care of people even in the ER.  I used to be proud to be a Texan.  So, again we say with our actions the poor don’t deserve help even when their life is on the line.

I look at Obamacare and think it is first step toward us being a kinder America. Then I look at the Republicans in the House passing bills to repeal it like 50 times knowing the Senate would not go along.  I guess that is why they get the big bucks, pensions, good health plans, etc.  Who would have thought that passing a bill over and over was a way to earn your salary. It is not that I think the democrats are saints and reached out to the republicans in trying to craft something that would work well - they didn’t, it was just power politics.  Perhaps democrats need to look at our much Clinton got down when the Republicans controlled congress.

But, I digress. I just want to be a part of a country like I witnessed in Australia where the greater majority thought of themselves as their brother’s keeper.  How to pull that off effectively admittedly is a challenge, but the road we are going down which increasingly is screw-you, we-are-sure-you-deserve-where-you-are-attitude doesn’t cut it for me.The Cherokee blood in me believes I need to walk a mile in someone else’s moccasins before I judge them.  What I stole from Christianity, that I am my brother’s keeper,  says thanks for those Americans that believe all humans deserve basic medical care and then provided a mechanism in Obamacare to put some actions behind the the words.