Archived posting to the Leica Users Group, 2011/10/16

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Subject: [Leica] PESO: America, from Occupy Philadelphia
From: kcarney1 at cox.net (Ken Carney)
Date: Sun, 16 Oct 2011 19:16:20 -0500
References: <f527156d0467a0f6e34642a52280bb1d@mail.gmail.com> <4E9B63BA.3010500@cox.net> <63FAF8CA-D821-40D4-9BA4-84C6D5B99CAF@mac.com>

On 10/16/2011 6:33 PM, George Lottermoser wrote:
> On Oct 16, 2011, at 6:07 PM, Ken Carney<kcarney1 at cox.net>  wrote:
>
>> Wonder how all these occupiers were able to get off work for so long?
> Many of the Milwaukee "Occupiers" (a one Saturday event) were "laid off" 
> or otherwise unemployed; part of that 9.1% as well as the 99%. I spoke 
> with quite a few degreed professionals with 20 plus year professional 
> careers who have been unable to find "any" work for 4 to 12 months. Others 
> have been forced into early retirement. Others are serious students who 
> can no longer finance their educations; or find employment. The stories 
> are many and sad. Minorities in Milwaukee have more than 4 times that 9% 
> unemployment rate. And those rates do not include the people who have 
> simply given up on the prospect of finding work.
>
> Regards, George
>
> _______________________________________________
> Leica Users Group.
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>
I hear you.  It also relates to Richard's comments about corporations 
hoarding cash and banks not lending...the reason is that there aren't as 
many opportunities for investment now.  The reverse, actually.  The 
question is, what can our government do about it?   The government 
doesn't create jobs, except in a temporary and largely wasteful sense.  
Large CEO salaries and taxes on the rich are irrelevant - the most 
draconian measures would not put a small dent in the debt.  What is 
needed, IMHO, is competent fiscal administration, something not present 
now (IMHO).  I have now escalated into a rant, which needs at least a 
couple of constructive suggestions.  As a tax adviser, I will probably 
be excommunicated for this one, but I think the current policies 
regarding transfer of intangible assets offshore should be revisited 
(Google, Cisco et al.).  All that is happening there is that the income 
escaping U.S. tax must be reinvested in another offshore business, else 
it will become income subject to U.S. tax.  So, the U.S. tax break is 
building industries and infrastructure in other countries.   A U.S. 
citizen is taxable on worldwide income, now matter where earned.  Why 
should it be different for a corporate business?  A second suggestion is 
to stop U.S. military intervention in hopeless causes, e.g., 
Afghanistan.  OK, a third bonus suggestion would be some way to 
eliminate federal pork spending, a lost cause I know.

Lastly, I have numerous clients who have taxable income in excess of $1 
million.  They all pay taxes at the highest rate.  They are also usually 
high charitable givers.  Who pays taxes at a lower rate?  Two instances 
come to mind.  One is the risk taker who is able to take a deduction for 
intangible drilling costs in the exploration for oil and natural gas, 
and that is a temporary thing.  The other is someone who has bitten on a 
tax shelter, with blowback potential that will greatly exceed the 
temporary tax savings.  EOR!

Ken



Replies: Reply from jhnichols at lighttube.net (Jim Nichols) ([Leica] PESO: America, from Occupy Philadelphia)
Reply from robertmeier at usjet.net (Robert Meier) ([Leica] PESO: America, from Occupy Philadelphia)
In reply to: Message from jshulman at judgecrater.com (Jim Shulman) ([Leica] PESO: America, from Occupy Philadelphia)
Message from kcarney1 at cox.net (Ken Carney) ([Leica] PESO: America, from Occupy Philadelphia)
Message from imagist3 at mac.com (George Lottermoser) ([Leica] PESO: America, from Occupy Philadelphia)