As Obama stated today, a time of crisis is indeed a time of opportunity, but not in the fashion that Obama had in mind. I won’t be salting any money away in the bargains available on the market, because I’m not convinced that the market has reached it bottom yet, even if The One has been calling the bottom all this week.
I thnk Obama was being disingenously honest when he said he is not for big government. He’s not. He is for TOTAL government.
Better for us to find ways to ‘JohnGalt’ – to legally reduce your income and make ther very best investment available to you today. That ‘best investment’ is the investment over which you have total control and can leverage to your best advantage: start a small part-time business where your profit leverage is that you place sweat equity alongside your capital investment and produce the strongest results and the strongest returns.
Why does this help you JohnGalt? By lowering your income (or not, if you can’t) and shifting household expenses to your part-time small company so you can better abide the reduced or steady income. Of course, check with your tax advisor, but I’m pretty sure you are going to see the following benefits obtain:
1. You may get personal tax credits for your investment in a new venture.
2. As cash flow builds, you can move personal expense items like car payment, cell phone, internet bill, 20% of your house payment (for office space in your home) over to the company and reduce the stress on your regular paycheck accordingly. A little creative thought will reveal a lot more bills that you company could legitimately pay or partially pay – perhaps much of your energy and gasoline bills.
3. Your new part-time company may receive tax benefits as a new venture. Shoot, pick the right business (like green energy) and you could probably get government grants (although your basic business model may fail since green energy is not profitable in the marketplace yet).
4. Since an entire offshore financial industry has sprung up to service small businesses, and is accessible electronically on the internet, you may be able to offshore significant parts of your new venture – or even offshore the entire thing. Globalization is for the little guy now, too. In most of the civilized world, bank accounts and credit/debit/ATM cards are just like the ones you use here – they are managed online and you can use the card anywhere. It’s true that business profits that you repatriate (spend) in the US are taxable. But business expenses paid with offshore funds are not taxable – they are before-profit expense items. So if you are paying, say, a US cell phone bill as a business expense with an offshore debit card, no tax obtains. Just as no income tax (but perhaps a sales tax) obtains when a foreign visitor visits us and buys a meal in a US restaurant with a VISA card from home.
And one final thought: with government bureaucrats becoming accustomed to thinking in trillions of dollars this year, figures in the tens and hundreds of thousands of dollars might easily avoid scrutiny – simply flying under the radar. Know your audit risk and avoid them of course, because even small sums misapplied can quickly result in an audit.
Unless you are the type of patriot who REALLY wants to fight and know you are ‘bombproof’ from an audit standpoint, and want to further JohnGalt by inviting an epxensive (to the government) audit that will net the government nothing. Nice idea…
Our opportunity now is to patriotically punish the idea of big government by legally witholding our tax dollars to bankrupt the government, or at least stress the government’s income so that the lawmakers have to take alarm.
You may already have the sense that you are ‘at war’ with national and local lawmakers who are vigorously and creatively trying to find many new ways to increase your taxes. You would be correct. And this is how you arm yourself: position yourself to pay fewer taxes. Force the politicians into budget deficit pictures that even they cannot ignore. And be vocal about it. Let them know that you are Galting.
The date chosed for the next round of Tea Parties is perfectly appropriate: April 15, tax day. Remember that the original tea party was not just feet in the street. THe real strategic goal of the Boston Tea party was to prevent sale of the tea, and thus prevent the resulting revnues to the Crown and Lord North’s government.
Post on blogs and comment on blog posts about it. Stir up the discussion.
Oh yes, and plant a kitchen garden.
Because when Atlas finally shrugs, it won’t bve pretty. It’ll be tough.
If we pull together on this, Obama and his treasury will realize by June that his spending is in real trouble. By July 2010, it will be a very real government crisis. And the election is only 4 months after that.
In the meantime, the governments (local and national) will make themselves look more and more ridiculous and greedy by trying to find even more silly (and scary) ways to tax us. As they see revenues falter, they will pass, or try to pass, more and more taxes that will simply prove the tryannical intent of a government that knows no limits.
Anybody care to predict the result in Nov 2010 after that?