Category: Taxation

When Did Taxation Begin?

You guys know how much I like history and will take any opportunity to bring it to the forefront.

I apologize this was suppose to be posted on 15 April, the day we file our taxes with the IRS.

We all bitch and moan about paying taxes but the idea of imposing taxes has a very early history…..for now we believe the idea of taxation began in Mesopotamia around 3300BC and has continued until today.

Taxes are a familiar part of modern life, showing up in paychecks, receipts and annual filings. Yet even in our digital era, traces of older systems persist. When archaeologists recently uncovered a 2,000-year-old pyramid-shaped structure in the Judean Desert—believed to be a Ptolemaic tax collector’s post—they weren’t just digging up the past. They were brushing dust off a blueprint of ancient governance.

“Most governments were quite highly motivated to extract as much revenue as possible within perceived political constraints,” says Taisu Zhang, a professor of law at Yale Law School.

What remains today, such as stone inscriptions, clay tablets and bamboo records, tells a story far beyond administration. These tax relics reveal how early states governed, what they valued and how they balanced power with the burden on taxpayers. From Sumer to China, civilizations devised ingenious, and sometimes bizarre, ways to track, collect and enforce taxes, leaving behind vivid clues of how they funded their ambitions—and proved that even in the Bronze Age, nothing was certain but death and taxes.

The clay tablets of ancient Sumer represent some of the earliest examples of economic record-keeping. In the city of Uruk, scribes used reed styluses to press proto-cuneiform symbols into wet clay, documenting grain, livestock and labor owed to temples. Each mark stood for a tangible asset—a bundle of wheat, a head of cattle or a day’s work. By around 2,600 B.C., in the city of Lagash, the system had grown more sophisticated, with some tablets recording instances of tax evasion and penalties for non-payment.

The Standard of Ur, a wooden box inlaid with lapis lazuli, shell and red limestone, offers a striking visual of early resource distribution. One side shows nobles at a feast; the other, soldiers and laborers—an implicit hierarchy supported by the upward flow of goods. Though not a literal tax record, the artifact reflects a redistributive economy likely sustained by tribute or taxation.

https://www.history.com/articles/tax-artifacts

Taxation is nothing new….while it can be a burden to those that are unfortunate to be taxed while others get a free ride (thinking the US wealthy)….they are a needed revenue for any government to continue to ‘serve’ the people they represent.

It would not be such a burden if EVERYONE paid their taxes but unfortunately there are some that do not and that is okay for some.

I hope you made the deadline for the IRS.

I Read, I Write, You Know

“lego ergo scribo”

Worried About Those High Food Prices?

Consequences of a mindless vote.

I know that everyone has had sticker shock when they go grocery shopping…..but we have a new president and that will soon change, right?

Let’s start with fresh produce….do you buy such items as…. Corn, beans, tomatoes, squash, cotton, vanilla, avocados, cacao, and various spices….or maybe such items as….fresh cucumbers, eggplant, lettuce, squash, and strawberries….

Those items are grown and brought into the US in Mexico and Canada…and in 2025 those and other items will be hit with tariffs….

President-elect Donald Trump vowed Monday that on his first day in office he would impose a 25% tariff on all products coming into the United States from Mexico and Canada.

“As everyone is aware, thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” Trump wrote in a post on his social media platform Truth Social.

Trump said that on Jan. 20, in one of his first executive orders, he would sign all the necessary paperwork to levy a 25% tariff on all products arriving from the U.S.’s North American neighbors.

“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” he wrote. “Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!”

Trump said in another Truth Social post that he also would levy an additional 10% tariff on top of existing tariffs on Chinese products coming into the United States.

(usatoday.com)

The key to that statement is the word ‘ALL’….

That means that YOU will be paying higher prices for your fresh veggies and fruit.

Let me help you understand…..the cost of the tariffs will be paid by the importers not the nations affected….and that means YOU will pay for the tariffs because importers will stick you with the extra cost.

So people get ready….bend over and spread ’em….

But not to worry the wealthy will be making lots more money while you spend more just to feed your family….

Trump is not even president yet and already the wealthy has made a killing….and that does not include the proposed tax cuts they will be getting…

An analysis released Wednesday showed that the United States’ 815 billionaires have seen their combined wealth surge by roughly $280 billion since Donald Trump’s victory in the 2024 presidential election earlier this month, a finding that came as Republicans continued to lay the groundwork for another massive tax giveaway for the rich.

Citing Forbes data, Americans for Tax Fairness (ATF) noted that the collective net worth of the nation’s billionaires jumped $276 billion between November 4—the day before Election Day—and November 12. Elon Musk, the world’s wealthiest man and a Trump confidant, accounted for 20% of the total billionaire wealth surge, with his net worth growing by $57 billion in just a week.

ATF found that U.S. billionaire wealth is now at an all-time high of $6.7 trillion—a fact that hasn’t deterred Republican lawmakers from pursuing additional tax cuts for the wealthiest Americans, which they want to pay for in part by slashing Medicaid and federal nutrition assistance.

(commondreams.org)

Something for us all to look forward to in the coming Trump administration…

But not to worry the GOP will blame the Dems or immigrants for their screwing of the American people and the humorous thing is morons will believe the bullshit.

This is what YOU voted for….merry christmas.

I Read, I Write, You Know

“lego ergo scribo”

2024 Issues: Taxes

The election is less than 2 months away and the perfect time to learn about the issues and what your candidate has to say about them….

Financebuzz has broken it down very simply for easy understanding…..

As voters wait on both presidential candidates to unveil more details on their economic agendas, Trump and Harris are calling for tax changes that could impact millions of people in the United States. Both have proposed tax cuts and increases that would require congressional approval.

Trump on tax cuts

It may be no surprise that Trump plans to preserve at least some of the individual and business tax cuts put in place via his TCJA. According to the Trump campaign, those tax cuts benefited millions of Americans and can help the millions of people who are dealing with the impacts of inflation and higher prices.

The campaign said the individual tax cuts and business tax reforms would help spur economic growth and confront higher costs of living without inflationary government spending.

Harris on tax cuts

Though Harris herself may not have directly addressed TCJA extensions so far on the campaign trail, there has been some Democratic support. In fact, President Joe Biden’s top economic advisor voiced support for partial extensions. According to the Tax Foundation, Harris has a record of favoring steeper tax hikes on businesses and people than President Biden.

Harris on tax increases

Trump and Harris have both said they will address the budget deficit. They have both proposed plans to raise revenue. Again, keep in mind tax law changes require approval by Congress.

According to the Harris campaign, she will push to increase the corporate tax rate to 28%, up from the 21% put in place through the TCJA. That could potentially reduce the deficit by $1.3 trillion over a decade, according to the Treasury Department.

She also proposes to raise taxes on high-income people, raising the top marginal income rate to 39.6% from 37%. She also proposes taxing investment gains of $1 million or more at the ordinary income rate instead of the lower capital gains rate.

Trump on tax increases

In a pitch that seems to find great support from his base, Trump has called for sweeping tariffs, which are taxes levied on imported goods. Further, the former president suggested he’s looking at putting in place a policy of tariffs that would lead to the elimination of the federal income tax.

Trump on tip taxes

The Trump and Harris campaigns have both talked about the idea of eliminating income tax on tip income. Trump made the proposal well before Harris. In fact, his pitch drew a mixed reaction.

The former president has also called for no taxes on Social Security income. Social Security has been a hot issue this election season amid fears of the finances for the program and related ones.

Harris on tip taxes

In a more recent move, Harris also talked about the idea of eliminating taxes on tip income. She said it’s part of her commitment to fight for working families, which she said also includes a plan to raise the minimum wage.

I do not see where either candidate will improve low income workers’ lives.

Former President Donald Trump wants to increase tariffs, while his Democratic opponent, Vice President Kamala Harris, wants to raise the corporate income tax rate. They say you need not worry about the consequences of these tax hikes because someone else will pay the tab.

Don’t believe them. Both proposals would impair economic growth and impose substantial costs on ordinary Americans, extending far beyond the advertised targets.

Trump and Harris Both Favor Tax Hikes That Would Hurt Ordinary Americans

Vote for the best person to improve your life not the one that feeds your petty biases.

I Read, I Write, You Know

“lego ergo scribo”

Closing thought–15Apr24

Today is tax day….get your paperwork in or pay the penalty….what better day to inform my readers about where some of their tax dollars go.

I bitch about the massive amount of money thrown at the War Department….well I do this for good reason….as you will soon realize….

The average U.S. taxpayer was forced to contribute more to militarized programs than to Medicare and Medicaid combined in 2023, according to a new analysis released Tuesday by the National Priorities Project.

Published ahead of Tax Day, the analysis sheds light on the extent to which the federal income tax dollars of ordinary Americans are fueling “militarism and its support systems” such as the Pentagon, which currently accounts for roughly half of the federal government’s total discretionary budget.

“Overall, in 2023, the average taxpayer contributed $5,109 for militarism and its support systems—including war and the Pentagon, veterans’ programs, deportations and border militarization, and federal spending on policing and prisons,” according to NPP, which is a project of the Institute for Policy Studies.

By comparison, the typical U.S. taxpayer contributed $4,308 to Medicare and Medicaid, $346 to K-12 education, $516 to nutrition assistance for low-income Americans, and $58 to diplomacy-related programs.

“Right now, millions of Americans are struggling to stay afloat—it’s become so expensive to live, eat, and have a home. Yet, instead of addressing the cost-of-living crisis or funding measures to address our communities’ needs, this year $5,109 of the average American’s taxpayer dollars went to fund the military and its support systems,” said Alliyah Lusuegro, NPP’s outreach coordinator and a co-author of the new analysis.

https://www.commondreams.org/news/us-taxpayers-funding-militarism

The Pentagon gets a budget that is pushing one trillion dollars and programs to help the American people scrambles for the crumbs that Congress gives them.

I wish the American people cared where their money goes….instead they fall for every lie the government tells them that is in their best interest….that is such bullsh*t!

This country always has enough money to piss away on some new weapon system but little to nothing for hungry children….why is that?

But I will keep bitching and complaining for it is what I do.

I Read, I Write, You Know

“lego ergo scribo”

Can Social Security Be Saved?

Yes it can….but not under the system we have now.

For instance you pay your social security on every dime you earn…..but not so for the wealthy….

Most Americans contribute to Social Security year-round, but U.S. millionaires will stop paying into the critical program on March 2—just over two months into 2024.

That’s because Social Security’s payroll tax doesn’t apply to earned income above a certain level. For 2024, the cut-off is $168,600, and capital gains—such as stock appreciation—are not subject to the payroll levy at all. Elon Musk, the CEO of Tesla and the world’s richest man, pays nothing into Social Security because he doesn’t take a salary.

Emma Curchin, domestic outreach and research assistant at the Center for Economic and Policy Research (CEPR), noted Thursday that with the $168,600 payroll tax cap in place, a millionaire’s effective Social Security tax rate “is less than 1%.”

“This is compared to the 6.2% that any worker making less than $168,600 pays,” Curchin wrote. “The burden of paying for Social Security rests on working class people in this country.”

https://www.commondreams.org/news/millionaires-social-security

So yes the benefit can be saved….just let those that pretend to care about the Middle Class work on a bill where everybody pays the same.

Can Social Security be saved?

Not if the dullards elect Trump in November….

The Republican Study Committee, which claims 175 of the House’s 219 Republican members of Congress, released their annual budget proposals last summer, and, sure to form, they also called for the setup of draconian cuts to Social Security.

Weirdly, the title of the section of their budget that cuts Social Security is titled Preventing Biden’s Cuts to Social Security. If you’re baffled by that because Biden has never called for cuts to Social Security, you live in the reality-based world.

In other words: “the system is going broke and we’re going to gut it, but not for the older voters the GOP needs: we’ll just stick Millennials, Gen Z, and Gen X with the pain.”

Having been sponsored by billionaires and bankers who’ve been lusting for decades over the trillions in cash in the Social Security trust fund, it makes perfect sense that it would also contain explicit threats to Social Security.

https://www.alternet.org/social-security-trump/

This is for all the old farts that will undoubtedly vote for Trump….if you like your retirement and your Social Security then pl;ease look elsewhere to place your vote for you will be eternally sorry if you choose wrongly.

Be Smart!

Learn Stuff!

I Read, I Write, You Know

“lego ergo scribo”

Peanuts For The Peasants

A pathetic tax deal.

Last week the miracle of miracles took place….in the House there was an amazing come together moment on a tax deal….bipartisanship at long last.

The House accomplished something unusual Wednesday in passing with broad, bipartisan support a roughly $79 billion tax cut package that would enhance the child tax credit for millions of lower-income families and boost three tax breaks for businesses, a combination that gives lawmakers on both stripes coveted policy wins, the AP reports. Prospects for the measure becoming law are uncertain with the Senate still having to take it up, but for a House that has struggled to get bills of consequence over the finish line, the tax legislation could represent a rare breakthrough. The bill passed by a vote of 357-70.

Speaker Mike Johnson, R-La., threw his support behind the bill on Wednesday morning. He spent part of the previous day meeting with GOP lawmakers who were concerned about particular features of the bill, namely the expanded child tax credit. Some were also unhappy that it failed to address the $10,000 cap on the total amount of property taxes or state or local taxes that consumers can deduct on their federal returns. Raising the cap is a top priority of lawmakers from the Republican members of the New York congressional delegation, whose victories in 2022 helped the GOP take the majority. Johnson committed to moving a bill that addresses the cap, but there is no bill text yet and legislation would have to move through the House Rules Committee, which leaves the timing very much in flux.

Democrats focused on boosting the child tax credit. The tax credit is $2,000 per child, but not all of that is refundable. The bill would incrementally raise the amount of the credit available as a refund, increasing it to $1,800 for 2023 tax returns, $1,900 for the following year and $2,000 for 2025 tax returns. The bill also adjusts the topline credit amount to temporarily grow at the rate of inflation. Households benefitting as a result of the changes in the child tax credit would see an average tax cut of $680 in the first year, according to estimates from the nonpartisan Tax Policy Center. “What’s in front of us tonight is pretty simple,” said Rep. Richard Neal, D-Mass. “Sixteen million children will benefit from the improvement to the child tax credit. That’s a fact.”

As usual the Dems caved to the GOP.

This bill saves the people peanuts while giving business all the benefits…..this is the pathetic Dems looking for some small win they can take on the campaign trail.

U.S. Rep. Rashida Tlaib is calling on her fellow Democrats to “stay at the table and demand a better deal for our children” instead of supporting the Tax Relief for American Families and Workers Act, a bill that pairs a partial expansion of the child tax credit with major tax breaks for corporations and the wealthy, which was expected to reach the House floor for a vote Wednesday evening.

Tlaib (D-Mich.) echoed the concerns of Rep. Rosa DeLauro (D-Conn.), a longtime champion of an expanded child tax credit (CTC), saying Democrats and Republicans have negotiated a bill that “gives billions of dollars in tax breaks to the rich, while leaving behind millions of children living in poverty.”

https://www.commondreams.org/news/tlaib-ctc

The only thing that can squash this piece of manure is the Senate….are they going to be as pathetic as the House Dems?

Special interests should be working overtime and spending like a drunken sailor to get this passed in the Senate.

The typical bi-partisan deal……peons get little…..corporations get it all.

We will see.

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–09Jan24

Do you pay your taxes?

Of course you…..but there are some that get a free ride on their taxes…..

An analysis released Wednesday shows that in 2022, the wealthiest people in the United States collectively held a “staggering” $8.5 trillion in wealth that is not—and might never be—subject to taxation.

Examining recently released data Federal Reserve data for 2022, Americans for Tax Fairness (ATF) found that the roughly 64,000 U.S. households with at least $100 million in wealth—less than 0.05% of the population—controlled more than one in every six dollars of the country’s “unrealized gains,” profits that aren’t taxable until the underlying asset, such as a stock position, is sold.

“But the ultra-wealthy don’t need to sell to benefit: They can live off low-cost loans secured against their growing fortunes. And once inherited, such gains disappear completely for tax purposes,” ATF’s Zachary Tashman and William Rice explained in the new analysis. “While most Americans predominantly live off the income they earn from a job—income that is taxed all year, every year—the very richest households live lavishly off capital gains that may never be taxed.”

That small, ultra-rich fraction of U.S. society is sitting on more unrealized capital gains than the bottom 84% of the country—roughly 110 million households—combined, Tashman and Rice noted.

Most of the typical U.S. household’s unrealized capital gains are in the form of their homes, which face state and local property taxes. But 93% of the unrealized gains of America’s wealthiest are tied up in businesses, stock portfolios, and mutual funds, ATF found. As a result, mega-rich individuals such as Tesla CEO Elon Musk—the wealthiest man on the planet—wind up paying little to nothing in federal income taxes.

https://www.commondreams.org/news/rich-untaxed-wealth

This country has a debt of $34 trillion….

In September, the United States broke its national debt record, reaching $33 trillion. Now, just three months later, a new record has been set. CNN Business notes that, per year-end figures released by the Treasury Department last month, our government’s debt shot up to $34.001 trillion on Dec. 29, which Maya MacGuineas, head of the watchdog group Committee for a Responsible Federal Budget, calls “a truly depressing ‘achievement.'” She adds in a Tuesday statement: “Though our level of debt is dangerous for both our economy and for national security, America just cannot stop borrowing.”

Here is a couple ideas…..stop funding every goddam war on the planet…..tax the bastards that are escaping their debt to the country and find and return all the offshore cash these rich bastards have squirreled away.

So yeah I am all for a ‘billionaire tax’.

I Read, I Write, You Know

“lego ergo scribo”

The Rent Is Too Damn High

Land Value Tax

An idea that is coming of age?

About 15 years ago here on IST, I wrote about the idea of Land Value taxation…..not much of an interest in those dark days…..but I still thought it was an excellent idea then as I do now.

But let my post explain what LVT is all about….

Land Value Taxation–An Answer To The Problem

Then there was this post as well….

Ever Hear Of Land Value Taxation?

Rent in my area is out of sight…..a one bedroom apartment can go for as much as $900….a friend of mine lives in a pretty good area and rents his 3 bedroom house for $1000 a month his land lord just dropped a bomb in his lap….his rent next month will go up to $1400 a month….like I said a nice area but not that damn nice.

Is their a cure for these astronomical rising rents?

Why yes there is.

Cities and towns across America are dealing with either an abundance of underused land or a shortage of housing — or both.

Economists and policymakers are increasingly promoting a relatively simple policy that could go a long way to addressing both of these crises, simultaneously bringing housing costs down in the most expensive places and boosting investments in struggling communities.

It all started in 1879 when the American political economist Henry George published a bestselling book: “Progress and Poverty.” The opus, decrying industrial capitalism and the oppression of the working class, made George a popular hero and, eventually, spawned a whole school of thought called Georgism.

The ideology is centered on the idea that natural resources should be shared by everybody, rather than monopolized by the wealthy elite. Fast-forward nearly 150 years, and a Georgist proposal — land-value taxation — is being promoted by urbanists and pro-development advocates as a solution to the housing affordability crisis and much more.

The idea is to tax landowners annually based on the value of their land and reduce or eliminate taxes on any developments made to it, such as apartments, office buildings, or retails stores.

The principle is: “tax what you take out of the natural world, not what you make,” said Stephen Hoskins, research director at Resource Justice and a self-described Georgist.

https://www.businessinsider.com/real-estate-costs-lower-rents-housing-prices-land-value-tax-2023-11

Yes it is a great idea and people like me have been writing that for well over 50 years.  It was a great idea in 1879 and it is an even greater idea today.

I you want answers to the problem of constantly rising rent then LVT is that answer and possibly an answer to other problems as well.

Be Smart!

Learn Stuff!

I Read, I W rite, You KNow

“lego ergo scribo”

 

Second Amendment Week

Here in Mississippi we have a special tax free week for the buying of guns and ammo…..and we are in the middle of that tax free week.

A sales tax holiday is an annual event during which the Mississippi Department of Revenue allows certain items to be purchased sales-tax-free at any participating retailer within the state.

Mississippi allows you to purchase the following items tax-free during their annual sales tax holidays: $100 worth of clothing and footwear in July; all firearms, ammunition, archery, and certain hunting supplies in September.  (we got started early this year)

The September firearms and hunting supplies sales tax holiday is officially called the Mississippi Second Amendment Weekend (MSAW).

This is not something new….Mississippi has had an annual “Second Amendment” sales tax holiday since 2014. This tax holiday is meant to encourage participation in the upcoming hunting season, and enables sportsmen to purchase guns, ammunition, and other hunting supplies tax-free. 

There you go an incentive for people to buy more guns and ammo….just what this state needs….more idiots packing heat in a time when we have a major problem with gun violence….it all seems so logical (sarcasm)….

I do not know if other states have this benefit for gun lovers….I just know that my state does not need an incentive to sell more guns.

But what can I expect from a deep Red State where logic is a dirty word.

I Read, I Write, You Know

“lego ergo scribo”

Fair Tax Act Of 2023

This post is for all who have no idea what the ‘Act’ is all about….those that spend all their time on TicTac or Twatter….or are more concerned with what new song some skinny blonde porks out or what celeb was wearing a sheer dress….the Act will effect all of us mere mortals and you should be aware before you start some dialog with little knowledge.

First of all….what is the Fair Tax Act of 2023?

This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions.

Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines.

The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury.

Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund.

No funding is authorized for the operations of the Internal Revenue Service after FY2027.

Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

https://www.congress.gov/bill/118th-congress/house-bill/25

Now a break down how this act would work and effect you…..

Imagine this: Instead of paying federal taxes to the IRS, you pay them to your local cafe every time you buy a latte or to your supermarket when you make a grocery run — or to countless other businesses when you make purchases.

That’s a future proponents of the Fair Tax Act would like to see. The idea of implementing a national sales tax in lieu of our current federal tax apparatus is once again gaining steam after Rep. Buddy Carter (R. Ga.) introduced the bill to the House of Representatives earlier this month, and House Speaker Kevin McCarthy has agreed to bring the bill to a vote.

“This bill will eliminate the need for the [IRS] entirely by simplifying the tax code with provisions that work for the American people and encourage growth and innovation,” Carter said in an announcement.

The Fair Tax Act is unlikely to become law due to opposition from Democrats, and President Joe Biden has already said that he will veto the bill if it does manage to pass both the House and the Senate.

Still, the proposal has many wondering what a national sales tax or “fair tax” would look like.

https://money.com/fair-tax-act-national-sales-tax/

I love it when we are told that it is for us that this type of screwing is pointed to….but in reality it is aimed for the rich to pay less taxes than they pay now (and some pay no tax at all)

DO NOT BUY the hype…none of this is for you.

Be Smart!

Learn Stuff!

I Read, I Write, You Know

“lego ergo scribo”