Oligarchies Don’t Pay Taxes

Dear ContraFolk,

Let’s face this $5 trillion-dollar spending bill plan objectively, as it really is just more feudal extortion of the middle class.  We must deal with this $5 trillion-dollar 10 year taxpayer-funded stimulus for what it is, and what it is not.  It is not a job stimulus program but rather a Wealth Transfer and Estate Tax minimization technique, to extend further big bushy Oligarchical gifts to Ritchie Rich’s family office’s in the form of reduced marginal tax.


Add that amount not being paid by Ritchie Rich to the ever-growing middle class taxpayer’s balance of underfunded tax liabilities, who once again, must “pay it forward” in favor of the Rich Oligarch’s 0-15% taxable trust fund offspring, who are just managing to keep class warfare alive and well for yet another generation.


How great is democracy when really just 2% of (R’s) control 98% of the tax laws of the land, and influence, to the point of absolute legislative minority control, and somehow near powerful enough to continuously oppose a majority of the democratic voting electorate’s wishes and chanted demands?


Those who are elected by you to govern (R) + (D), must pull together both parties, at this (always important last minute) point in time, and make a “deal” in the best interests of the rich oligarchies (O), and meet below the middle somewhere, for the benefit of the middle class – we are always told.


Our people (D) demand a compromise, for we must work together to show them (middle class) that we (R) + (D) can pass a bill that extends a few auto union workers’ unemployment benefits into a 3rd year – along with giving everybody $83.33 a month ($1000/yr) payroll tax break.  This will be given up for you, in order to alternatively receive, in exchange for, or to make a compromise deal with Oligarchies (O=R=D), to effectively make permanent, the near endless tax deferral of the Oligarch’s estate value worth trillions borrowed from the past, accrued to the present day, and yet now, apparently deferred off well into the future.


Along with low corporate and estate rates, this materially enables the avoidance (not evasion) and minimized payment of most taxes and estate equalization payment values for all Richie Riches (O).


Remember ContraFolk, all taxes (estate/investment/income incl.) presently due, but deferred long enough…, eventually disappears to effectively become “a zero”, as that money “now past due” ends up doubling through “pre-tax compounding”, and therefore, on a simple 50% after-tax basis, doubles over time and thus costs effectively nothing as the other half’s end value more than adequately covers all of the taxes once due – and never paid for in full, at that point in time.

Yable Dable Double Doo: The Present Value of An Insured Deferred Annuity 


So compounding the last ten at 10%, or now twelve years at 8%, results in a doubling of the final after-tax amount, as this occurs mathematically, since most wealth creation occurs on the final compounding flip (8%) of the last year or two of one’s lifetime wealth accumulation, and so one can see how this ultimately eliminates all tax amounts previously owed – at that past point in time long ago.


You now see how taxes owed, or through the use of other people’s money through taxpayer borrowings, deferred tax amounts just “disappear” as the net final payable value, which is also paid from future inflated (non-pv adjusted) insured dollars, doubles as well.   This through an electoral system that allows near free taxpayer funding that results in a hyper-inflationary compounding of everyone else’s basic cost of living, through increases in material costs, unemployment, food costs, and even through higher inflation expectations or whatever.  It all costs someone, something, somewhere.

Nice to be in control of Da House.


So ContraFolk, let’s learn how to Deduct, Defer, and Divide your taxes otherwise payable at that “specific point in time in the future” and you too can compound tax once owing, think and grow rich.


Unlike the rest of the middle class, who must not get “too rich”, for they are the ones that must pay their 45% taxes in full, each and every year, and thus avoid any tax deferral opportunities, and help keep unemployment suffering along at 20% and corporate bankster borrowing costs at near record lows because of the 20% U-6 rate in EI perpetuity.


Now that theory now gives a whole new meaning to the word, “working class poor”!


This, like Obamacare, all will be likely contrived and passed deep under the cover of darkness in a 24 hour news cycle, so it will likely be attempted in the wee AM hours of a sleepy morning as soon as sometime this week, and likely before European markets open.


Notice how all (R) votes now are being manipulated into “pay no tax” votes for the GOP?


In effect, the Bush Tax Cuts Extension Bill allows for a series of extendable tax cuts on the Estates of the Rich, the Special Corporations of the Rich, and the Income of Multi-Billionaires (Nationals) Rich – who are paying very close to 0-15% of net tax for the top 2% who control over 25% of all material wealth.


So as can be seen from the above, easiest answer is the simple raising of the middle classes’ debt limits as that should solve the output gap problem presented and pass on higher taxation levels to the middle classes of the future.


The other choice: Wait Till Next Year!


Don’t collapse, but dare negotiate on a Billionaire Tax Avoidance and just hold off voting until the new (R) House is sworn in, and let those Republicans control the agenda? You’re Nuts.


What will be “given up” if we all just wait out a tax deal until next year? Well, let’s just look and see what really happens:

High Estate Taxes on million dollar estates from the lapsed and discontinued low estate tax deferral for the inequitable and “lowly-taxed” Rich. Check off a big “Yes” for that – and get ready write a big fat check mid-April.

-Continued UI, check YES to the newly unemployed ones, unfortunately check no to the class of ’99ers let go from GM, Chrysler, and Ford assembly lines in 2008.

Higher Payroll Taxes on mostly the upper and middle income classes with marginal impact on paychecks of most people (with reduction of tax withholding offsets) and so most everyone’s taxes go back to old levels (which we all survived & thrived).

No $83.33 Monthy Tax Credit as we all fail to receive a small $1,000 tax refund bribe of $83.33 per month from Fedsury (O) starting next year

–No Machinery Write Offs, until next year when machines will get back more subsidies to go along with 100% write offs of Cisco, Deer, Cat gear with soon 100% corporate expensed (non-human network) write-offs.


That is pretty much all that is being “held hostage” by the Democrats, and Republicans in their “deal” for the benefit of middle class vs. Billionaires.


Besides disproportionately disgorging large sums of wealth from the rich Oligopoly, nothing else really changes next year for the middle class, as we all await the much feared new mantra of the “no tax payable” party of the Republican Elites.


Many “Double Dips” in a Continuing “Boom Bust” Depression Cycle,

ContraMan

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About ContraManFund

Fictional (maybe not if you are an accredited investor) trading of a long/short contrarian-driven investment model portfolio based upon current economic environments and counter-intuitive trends. Legal Disclaimer The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions. NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES. The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility. Please consult your own investment advisor before making any investments anywhere, and always do your own due diligence before undertaking any individual investment.
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