Tag Archives: Taxes

Social Security Admin’s $700K Boondoggle!

Arizona Biltmore, The Site of Pressing Government Business

Arizona Biltmore, The Site of 'Pressing Government Business'

The Social Security Administration, which manages programs on track to be utterly insolvent by 2037, just spent a heap of taxpayer (read: YOUR!) money sending its executives and family members to a weekend getaway at a lavish spa:

A Social Security Administration motivational management conference held at a high-end Valley resort this week cost $700,000, the SSA told the ABC15 INVESTIGATORS. Costs for the conference at the Arizona Biltmore Resort & Spa included airfare, hotel, entertainment, dancers, motivational speakers, and food, an administration official said. The SSA provided ABC15 with a list of courses provided at the conference, which included “Techniques to Empower You,” “Mentoring the Generations,” and “Emotional Intelligence.” But the information provided by the SSA does not mention an after-hours casino trip, family members staying at the hotel, or the 20-minute dance party ABC15 observed. The conference cost was still a tough pill to swallow for taxpayers. “It sounds like a big rip off to me,” one Phoenix resident said.[EMPH Added].

$700,000 could buy plenty of video-teleconferencing equipment, obviating the need for expensive conferences at posh resorts, no? Of course, the dancing lessons are hard to do over a VTC I’m told, and probably not as fun, either.  Here’s a little video to go along with the post, too. Hat Tip: Just a Girl!

acreofindependence

AOI Comes Back and Makes a Top 100 List!

Libertarian Top 100 AOI made the “Top 100 Libertarian Websites and Blogs” list a few weeks back, while I was on my little work-induced hiatus. Thanks, and yet another impetus to keep on writing! I wonder if Secretary Napolitano and the folks at DHS are taking notice too, ha!

Over the past several months since I re-launched (after combining my two previous blogs I ran on Google’s Blogger), I have maligned the stimulus frequently, even pointed out that the government’s non-partisan watchdog declared the recession would end even without spending a deficit-digging $1 trillion; I derided early Obama administration plans (quickly shelved, apparently) to make public service mandatory; and I drew the ire of many Detroit Auto Industry backers when I stated that rather than bailing out the big three, the government should allow them to go bankrupt (in Chrysler’s case,  that looks like it is going to be win-win for everyone on all sides of the issue, since they received billions from the government AND are going bankrupt!). Occasionally I wrote about the beer I brew, too! It has been  fun to write here a few times a week, then sit back and read the comments that come in.

As stated earlier, I took a month off to focus on work, but it is great to be back. And with an award for the blog to boot! The blog is not standing still, either. AOI has now ventured into twitter; you can find the feed HERE. I’ve done just about everything else online, so I decided to bite the bullet and complete the circle with Twitter. The circle of unlife that is!

circle of unlife

The Circle of Unlife*

Thanks to all the people who stop by here regularly and read this blog, post comments,  or email me to see why the heck I am not manning the keyboard. Keep reading if you find the stuff here interesting, and if not, let me know, and bail out for greener pastures!

*Thanks to Hoyawolf, who posted the original,  non-defaced Circle of Unlife on, of all places, Facebook!

Avoiding the Taxman under the New Tax Plan

The Sign of the Dollar

Moderately wealthy people are unhappy with President Obama’s budget plan, and are devising ways to avoid the trillion dollars in proposed new taxes:

President Barack Obama’s tax proposal – which promises to increase taxes for those families with incomes of $250,000 or more — has some Americans brainstorming ways to decrease their pay, even if it’s just by a dollar. A 63-year-old attorney based in Lafayette, La., who asked not to be named, told ABCNews.com that she plans to cut back on her business to get her annual income under the quarter million mark should the Obama tax plan be passed by Congress and become law. We are going to try to figure out how to make our income $249,999.00,” she said. “Why kill yourself working if you’re going to give it all away to people who aren’t working as hard? [emph added]

Simply earning less reportable income sounds like a much simpler plan than destroying your businesses altogether, and retreating to an enclave of entrepreneurs in the mountainous West and waiting out the “looters”, as has been imagined in the past. Of course, the win-win solution these days seems to be to get nominated for a cabinet position in the government, and simply not pay your taxes at all!

What Our Tax Money Buys

The Federal Pack o Gum Entitlement

The Federal Pack o' Gum Entitlement

Even if you believe in entitlements and social welfare programs, $1 worth of food stamps sent to 250,000 people seems like a total waste of money:

The state of Washington sent out $1 checks to the 250,000 food stamp recipients in the state. The director of the Community Services Division for the Department of Social and Health Services, Leo Ribas, says the checks mailed Feb. 17 trigger an additional $43 million in federal food benefits. They also connect recipients to an energy assistance program. Ribas says the $1 check is a one-time move to leverage the federal money [Emph Added].

Was there no way to send $250K of foodstamps to say, 5000 people, so the recipients could have bought something besides a pack of gum, and still “triggered” the additional federal entitlement money? When talking about trillion dollar budgets, special calculators are likely needed to measure the impact of 250,000 dollars. But when governments waste a taxpayer-funded entitlement in a manner that does not help the people it is intended for, solely for the purpose of obtaining more entitlement money, it causes taxpayers to question the entitlement in the first place. And the governments administering them.

Update: Speaking of questioning government and entitlements,  House Dems are preparing to unveil a brand new $410 billion dollar spending bill

to keep the government running through the end of the fiscal year, setting up the second political struggle over federal funds in less than a month with Republicans. The measure includes thousands of earmarks, the pet projects favored by lawmakers but often criticized by the public in opinion polls. There was no official total of the bill’s earmarks, which accounted for at least $3.8 billion.Democrats defended the spending increases, saying they were needed to make up for cuts enacted in recent years or proposed a year ago by then-President George W. Bush in health, education, energy and other programs. Republicans countered that the spending in the bill far outpaced inflation, and amounted to much higher increases when combined with spending in the stimulus legislation that President Barack Obama signed last week.     .     . Congressional expenses are included. The bill provides $500,000 for what is described as a Senate “pilot program” that will defray the cost of mass mail postcards to households notifying them of a nearby town meeting to be attended by any senator [Emph added].

Question indeed.

Chicago Tea Party In July?

UPATE 3: Will the news about the government raising taxes increase the amount of impromptu tea parties occurring around the USA? I bet it will. Probably will roil the markets (again), too.

The Boston Tea Party

Did you all see this clip of Rick Santelli, calling for the “Chicago Tea Party in July”? Everyone has, apparently.

Well, Press secretary Robert Gibbs responded to Santelli in kind today:

The White House press corps dug the “decaf” comment at the end. Pretty harsh takedown of a journalist though, no? And the ticker showing the Dow in the toilet puts a damper on the rebuttal a bit, doesn’t it?

Gibbs’ focused response to Santelli’s rant was not the end, however;  the administration also

Dispatched two high-level officials onto CNBC to rebut Santelli in more detail, Vice President Joe Biden’s economic adviser Jared Bernstein and Housing Secretary Shaun Donovan.  CNBC hosts pressed Bernstein to explain why Obama’s plan calls for allowing borrowers to refinance loans even if they have less than 20% equity in their homes. “To refinance can save a family $4000, $5000, $6000 a year in an economy that’s been extremely tough,” Bernstein said.“I don’t know that they deserve to refinance because those are the terms they signed up for in the first place,” CNBC’s Melissa Francis said.“I think we perhaps have a very different perspective,” Bernstein allowed.

Later on, Gibbs also acknowledged:there will be people that made bad decisions that in some ways will get help,” but that they are not the focus.

I haven’t read the Homeowner Affordability and Stability Plan yet, and in truth I have not found the actual plan, only a four page executive summary. There has got to be more to it than that, right? Does anyone have the actual document anywhere? Looks like I have my searching and reading cut out for me this weekend, and then a reasoned response. No rants, I promise.

And now for a cup of chamomile tea.  .  .

UPDATE: Why did this story ever grow legs and start running? The administration felt strongly enough about it that the Press Secretary rebuked the journalist by name, and sent two advisors to CNBC to defend their mortgage plan. Do people even watch CNBC? I don’t think I’ve ever tuned in! But I check out Drudge, though.  And Drudge makes news happen.

UPDATE 2: This tax proposal would likely lead to some serious outrage, though; I am glad the administration IMMEDIATELY backed away from it.



Don’t Let ‘em Tax Our, er, Your Porn

Tea-Party Worthy or a Test of Darwinian Theory?

Porn Tax: Tea-Party Worthy or a Test of Darwinian Theory?

That’s what New York is planning on doing:

A state proposal to add a 4% tax for downloading movies and music will also apply to Internet porn. Gov. Paterson recently suggested the so-called iPod tax to help close a $15 billion budget deficit, but few realized the levy would also apply to XXX-rated material. The skin industry denounced the move as a cheap political stunt.” The last thing any of us need is an additional tax,” said Steven Hirsch, the CEO of Vivid Entertainment Group and self-proclaimed King of Porn. “These are very difficult times and nobody can afford to lose even one customer.” It would also apply only to businesses located in New York State, leaving some to wonder if companies would relocate to avoid the tax. Conservatives railed against the tax, but for a very different reason.”By taxing it you’re legitimizing it,” said New York Conservative Party Chairman Michael Long, adding that government shouldn’t profit from porn. “If you’re taxing it – how can it be wrong? I don’t know how you can sink much deeper [emph added].

Here at the Acre of Independence, we approach the notion of a proposed internet porn tax as a test of darwinian theory. Sure, like libertarian porn king Steve Hirsch, we balk at all tax increases on principle alone. But anyone who actually pays for adult internet entertainment deserves to be taxed. Internet porn tax is a tax on the ignorant, pure and simple.  The ignorant in this case being the uninitiated, who don’t realize that there is so much free internet porn out there that you can practically (as Drew Carey once said) see it from space.  A hint for all you newly-subscribed AOL dial-up users: Free Porn is not a myth, I HAVE SEEN IT!

Steve Hirsch probably knows this as well, and my guess is that incremental cost increases to his readily available, commoditized product will drive the remainder of Vivid’s internet customers to hit “the google” a little bit more to find the promised land of free adult entertainment . So goodbye, Vivid Internet download division, we hardly knew ye. But don’t count Vivid down for the count yet. Hirsch still his DVD division, and the cash cow of piping Vivid films into hotels for $9.95 a pop, at least until people stuck in crappy hotels figure out that the promised land of free porn is simply one wireless connection away.

Post Script: A special thanks to all of my co-workers and friends (and especially my brother), who educated me on the ins and outs of adult internet  entertainment, a subject I obviously know nothing (less than nothing, actually) about, as I prepared this post.

Post Post Script: New Yorkers, is there some wiggle room on that iTunes tax? Find a way to make that tax uncollectable, so those of us who buy EVERYTHING on the internet do not suddenly find ourselves funding the social welfare provisions of the stimulus bill!

UPDATE: Once the government starts taxing your porn, nothing is sacred; Oregon state lawmakers have proposed a 1900%, yes, that’s NINETEEN-HUNDRED PERCENT, tax on each barrel of beer produced in Oregon.That’s an increase of $49.71 per barrel of beer produced in the state.  A pint of beer, after brewers passed the tax down to consumers, would go from $4.50 to $6.oo. This proposed tax increase is certainly worthy of 10,000 smashed kegs on the steps of the state capitol, no? Well, maybe 10,000 kegs of Busch, anyway, blecch.

Of course, you can still brew 200 gallons of your own beer and wine each year, as we do here at the Acre of Independence; no one feels the sting of sin taxes here. If you want to avoid funding your local or state government’s stupid, failing programs, or protest their attempts to balance the budget by raising taxes on the things you love (and calling those things a costly sin), then consider buying your homebrewing kit.  What better way to thumb your nose at an encroaching, failed bureaucracy than drinking five gallons of home-brewed IPA?

Alcohol Taxes

booze

CNN ran a story today about a study showing correlation between higher taxes on alcohol and less alcohol-related deaths:

Each time the state of Alaska raised its alcoholic beverage tax, fewer deaths were caused by or related to alcohol, according to the study that examined 28 years of data.  .  . [an increased tax margin on alcohol would tap into] an available source of revenue that has not been looked to for a very long time,” Hacker said. “The tax increases are long overdue. The product doesn’t pay its way in covering economic and social costs associated with its use.”

If alcohol is consumed in a responsible manner, the product has minimal negative social costs, and there are even studies that suggest health benefits from alcohol consumption. Millions of Americans, as a matter of fact, are somehow able to buy and consume alcohol and manage their affairs, so one has to question the overall fairness of choosing one product class and dramatically raising the tax rate on it, if a primary intent is to change social mores and behavior.

Other studies indicate that so-called sin taxes are truly regressive, hurting the poor more than the middle or upper classes, and facilitate the development of black market economies and organized crime as well.

It would also be interesting to see the effects on overall sales tax revenue for a state after it raises its alcohol taxes dramatically; does total state sales tax revenue increase when the tax on alcohol is raised? Drinks at chain restaurants often make up a significant portion of the tab. Everyone likes to kick back a pair of giant-sized margaritas at On the Border, but if the taxes go up, are people going to just cut back on dining out and mix their own at home? And do the overwhelming majority of people who use alcohol responsibly cut back on consumption completely thus lowering sales tax revenues as well? Does decreased demand for alcohol have cascading effects, decreasing gross taxable income for restaurants, liquor stores, and distributors, therefore dampening any benefit from the state gets from the increased alcohol tax rate?

Good questions to answer before deciding to raise taxes on people, right? Readers (and there are about 200-250 people checking into this blog daily now, thank you very much!), please place comments to this post that link to anything that has empirical data answering the above questions.

And here is the other assignment: In the comments section, link to any media story that shows either a) the benefits of paying higher taxes or b) the eagerness of Americans to pay higher taxes in order to gain a positive social benefit. Let’s see if a narrative is being created, consciously or otherwise, to make the prospect of increased taxes more palatable to Americans.

Post Script: If you absolutely do not want to pay a single penny more of your hard-earned money to the government, especially for the “sin” of having a well-stocked liquor cabinet, learn how to brew your own beer and wine. Check in here from time to time too, and learn from my mistakes!

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