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Entries in IRS (2)

Tuesday
Feb032009

Government

A word that taking on an increasingly negative connotation by the day, across the world. A word for which we will consult the Dictionary, nay Wiki..

Obviously Wiki tells you the meaning as understood by the lay internet person, ergo the LCM of this blogs readers..

"A government is the organization,
that is the governing authority of a political unit,
the ruling power in a political society,
and the apparatus through which a governing body functions and exercises authority.

Government,

with the authority to make laws,
to adjudicate disputes,
and to issue administrative decisions,
and with a monopoly of authorized force where it fails to persuade,
is an indispensable means, proximately, to the peace of communal life.

A compulsory territorial monopolist of protection and jurisdiction equipped with the power to tax without unanimous consent.
Statist theorists maintain that the necessity of government derives from the fact that the people need to live in communities, yet personal autonomy must be constrained in these communities.

Thank you Wiki for the definition !!

If you look at the ground reality

We work hard
We pay taxes (no choice there!)
The taxes go to the government
That tax money gets redistributed to things that the majority of the governed would not approve of
The folks who do the redistibuting get compensated for doing this and

the redistribution of tax money has the following effect

a. we work more
b. we get paid less for working more
c. we pay more taxes on the smaller amount we make while working more

Sometimes I wonder if the last eight years in the USA were under "government" or some kind of dictatorship.

These days it is hard to find a few people with a clean tax record to run the country!

Bah!

As a dude who has always worked his butt off and paid his taxes, maybe I should go for a government position?

Then again, will the government corrupt me? If yes, then it is better to stick to my day job, no?

San asked me innocently "I don't like how our tax money is being given to people who make lousy cars, fraudulent banks etc. How can I make sure my tax is used properly?!"

Gave the longest Siiiiiiiiiiiiiiiggggggggghhhhhhhhhhhhhh I could remember. My innocent lovely wife, if only we could control how our tax money was spent!!!

Maybe just like they ask us in the IRS 1040 EZ in the

Presidential Election Campaign section:

"Check here if you, or your spouse if a joint return, want $3 to go to this fund" You (check box) | Spouse (check box)

they would also ask

"Check here if you, or your spouse if a joint return, want 15% to go to the Lenders bailout" You (check box) | Spouse (check box)

"Check here if you, or your spouse if a joint return, want 10% to go to the Insurance Bailout" You (check box) | Spouse (check box)

"Check here if you, or your spouse if a joint return, want 10% to go to the Bank Bailout" You (check box) | Spouse (check box)

"Check here if you, or your spouse if a joint return, want %5 to go to the Big3 auto Industry Bailout" You (check box) | Spouse (check box)

"Check here if you, or your spouse if a joint return, want 1% to go to the Porn Industry Bailout" You (check box) | Spouse (check box)

etc.

etc.

That would be some day!

.

Sunday
Oct192008

They do get the bad guys

Was having dinner at a friends place saturday and the conversation veered towards the one thing at all conversations veer towards these days..

Yes. Note that down..

All party conversations lead to the Bailout!

The probability of this happening is actually higher than all roads leading to Rome.

A tax accountant there answered my question "so what does happen to the bad guys? Do they go free?"

He said "Lets say the guy bought a house for 400k with 10k down, which he should not have in the first place and lets also say that the house is now worth 200k, if his loan is forgiven to an extent of 200k, not only does he lose his 10k, he gets a 1099 from the IRS for the forgiven 200k on which he has to pay taxes!"

This, made me happy for all of 10 minutes.

While driving back home, I was just thinking... wait a second.. The guy declared bankruptcy? So how is he going to pay taxes?

Also he is supposed to be a credit risk and this is supposed to make it difficult for him to borrow going forward and make me, a five-star borrower?

He is going to go to the same banker who gave him that 390k loan and get himself some more money?

No?

Let me know....

ps. A corollary to Bob Dylan singing "when you got nothing, you got nothing to lose" is "when you are bankrupt, you got no taxes to pay"...

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