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Obama's Dividend Assault
A plan to triple the tax rate would hurt all shareholders.

President Obama's 2013 budget is the gift that keeps on giving—to government. One buried surprise is his proposal to triple the tax rate on corporate dividends, which believe it or not is higher than in his previous budgets.

Mr. Obama is proposing to raise the dividend tax rate to the higher personal income tax rate of 39.6% that will kick in next year. Add in the planned phase-out of deductions and exemptions, and the rate hits 41%. Then add the 3.8% investment tax surcharge in ObamaCare, and the new dividend tax rate in 2013 would be 44.8%—nearly three times today's 15% rate.

Keep in mind that dividends are paid to shareholders only after the corporation pays taxes on its profits. So assuming a maximum 35% corporate tax rate and a 44.8% dividend tax, the total tax on corporate earnings passed through as dividends would be 64.1%.

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In previous budgets, Mr. Obama proposed an increase to 23.8% on both dividends and capital gains. That's roughly a 60% increase in the tax on investments, but at least it would maintain parity between taxes on capital gains and dividends, a principle established as part of George W. Bush's 2003 tax cut.

With the same rate on both forms of income, the tax code doesn't bias corporate decisions on whether to retain and reinvest profits (and allow the earnings to be capitalized into the stock price), or distribute the money as dividends at the time they are earned.

Of course, the White House wants everyone to know that this new rate would apply only to those filthy rich individuals who make $200,000 a year, or $250,000 if you're a greedy couple. We're all supposed to believe that no one would be hurt other than rich folks who can afford it......................>>>>.....................>>>>.................http://online.wsj.com/article/.....SJ_hp_LEFTTopStories

Quoted from senders

the rate should be FLAT......see the actual ladder for what it is......any kind of 'progressive' talk completely obfuscates the view from the 'commoner'....leading to stupid conversations of "I want that. They obtained it. Someone should
get one for me, or atleast make a system that I dont know anything about but can FEEL it's effects."........

progressive allows for podium puck rhetoric and class warfare.....shame shame shame

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Understanding the IRS Tax Code


January 28, 2009 by Bob Livingston



While in office, President Ronald Reagan said that the Internal Revenue Service (IRS) collection process and its code is a system of voodoo and witchcraft.

The IRS has been in existence so long that few question its legality or even its existence. But the longevity and general acceptability of the IRS in no way means that it is not immoral, illegal or against public policy.

The IRS system is actually the foundation of the Federal Reserve fiat money system. It is life support for paper money. Huge amounts of money have to be continually withdrawn so that the system isn’t overwhelmed with fiat and collapses.

By its name, the Internal Revenue Service implies that it collects revenue for the government. This is what Americans believe.

Lord John Maynard Keynes said in his 1920 book, Economic Consequences of the Peace, that collection of taxes is a regulation system that hides the “worthlessness” of paper money. Taking money under the pretense of collecting taxes covers the fraud of printing press money.

It is not taxes that the IRS is collecting. It is regulating the volume of fiat money so as to hold up its “value.”

But the IRS says that its tax collection system is “voluntary compliance.” No one need be intimidated. Let’s see!

Unless you sign the IRS 1040 tax return, the IRS will refuse it. If it is voluntary, why sign it? Big things happen when you do sign the 1040. You waive your rights, meaning that you are guilty until you can prove otherwise.

The burden of proof is on you.  Furthermore, once you sign a tax form, you are no longer protected under the U.S. Constitution. You are under Merchant Law or Admiralty Law or the King’s Law. Your status changes from sovereign to subject.

Also, after you once sign a 1040, you are under a new jurisdiction. If you later learn there is no law requiring you to file and pay taxes, and you decide that you will not file, you will be prosecuted under IRS Code 7203 or “Willful Failure to File.” This is a conclusion that once you file, you can’t just decide to quit. You are no longer sovereign. You are a subject.

Remember that this is all “voluntary.’

The IRS Handbook for Special Agents states, “An individual taxpayer may refuse to exhibit his/her books and records for examination…under the Fifth Amendment.”

Yes, you can do this, but then the IRS files your return for you, disallowing all deductions.

You can also refuse to sign an assessment, but then the IRS begins collection procedures taking any visible property or bank account by seizure.

IRS agents who move against the “taxpayer” have no idea what they are doing. I think most are not malicious, but they do believe that you owe taxes. They don’t know that the money creators create unlimited fiat that voids any concept or definition of payment or debt as relates to government. It is a world-class ponzi.

The federal tax system is entrenched because tens of thousands of lawyers, accountants and parasites profit from the system. They don’t care if the deceptive system is illegal, immoral or against public policy. They are numb to their bones.

Disclaimer: I do not advocate tax protesting or any acts of disobedience as defined by the government that will disorder your life and confiscate your assets. This item is for information purposes only. It is intended that you will see the full consequences of any action you decide while understanding what your government and politicians have done to America. This is a subject that none of them will discuss.

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A Few Basic Tax Terms That 'The Man' Doesn't Want You to Understand
By Bruce Watson
Posted 11:50AM 02/16/12 Taxes
140Comments Text Size A A A  
Is the American tax code designed to be confusing?

Looking at the thing, it's hard to escape that conclusion. To begin with, there's its size: The full code is over 70,000 pages long -- 22 times as long as Remembrance of Things Past, 62 times as long as the King James Bible, and 54 times as long as the complete works of William Shakespeare. Or, to put it another way, it's about 175 times as long as its first edition, which was published in 1913.

Contained within its 3.7 million words are thousands of exemptions, definitions, deductions and loopholes, and teasing them out requires an estimated 7.6 billion hours of tax preparation per year. That's more than 24 hours for every man, woman and child in the country. Even the head of the IRS hires an accountant to do his taxes.

Given all that, it's hard to dismiss the notion that the tax code is deliberately designed to confuse the average taxpayer: Its byzantine structure supports an army of accountants and attorneys, computer programmers and bean counters who rake in an estimated $27.7 billion per year helping us prepare our taxes.

But the tax prep industry isn't the only group that benefits. Arguments about cuts and deductions, minimums and premiums have fueled many a political campaign. And whether you're inclined to raise tax rates or lower them, increase incentives or decrease exemptions, chances are that you've been tripped up at least once or twice by a confusing term -- or a slick politician wielding it. With that in mind, we decided to unpack a few of the most weaselly of the IRS's weasel words -- and look at how they may affect your yearly taxpaying ritual.


Income vs. Taxable Income

One of the most slippery tax phrases is income. Taken at face value, its definition seems obvious -- clearly, "income" is supposed to refer to the amount of money that a worker brings home in a year. But in the hands of the tax industry, even this clearest of words becomes cloudy. Recently, The New York Times highlighted this with its tale of the ridiculous tax rate paid by James Ross (right). The founder of an investment firm, Ross paid 102% of his 2010 income to the taxman.

The tale was tailor-made for tax critics: Ross -- a job-creator, a graduate of Yale and Columbia, and a one-man economic powerhouse -- was clearly being charged a cruel and unusual tax rate. How could the government possibly rob such an upstanding citizen like that? Where do we live, Sweden? By God, Ross had to withdraw money from his savings account to cover his taxes!

Of course, there was more to the story. Ross didn't actually pay 102% of his income, but rather 102% of his taxable income -- the money left over after he subtracted out his mortgage interest, state taxes, and all the other clever deductions and exemptions he was allowed to take from his total income. In fact, Ross actually paid only 20% of his real earnings in 2011 -- about 4 percentage points less than the average tax paid by someone at his level. Thanks to his impressive list of deductions and business-related expenses, he actually scored a nice tax cut, rather than the brutal burn that the Times story would at first seem to suggest.

Income should be an straightforward, clear term, but it's often muddied for political purposes. Total income -- the amount of money that one makes in a year -- can be hard to quantify, so pundits and politicians tend to focus on more easily-defined terms. For example, depending on a politician's leanings, he or she may consistently discuss earned income (all the taxable wages and tips that one gets from a job), adjusted gross income (earned income, minus personal exemptions), or taxable income (earned income, minus all exemptions and all deductions). Because wealthy people often have more deductions and exemptions than lower-level earners, changing which term you use can radically alter how you frame any tax debate -- not to mention the degree to which the rich seem to be unfairly targeted by the tax code.


Dividends: Qualified to Cause Trouble

By all rights, a dividend should be easy to understand: It's money that a company pays out to its stockholders, and for most of the modern era, it was generally taxed at the same rate as any other income. Beginning in 2003, however, special tax breaks for stockholders muddied the waters, turning a relatively simple idea into a complicated -- and controversial -- tax nightmare.



Nowadays, there are two basic classes of dividends -- "ordinary" and "qualified." Ordinary dividends, which come from stocks that have been held for a short period of time, are taxed at the same rate as ordinary income. "Qualified" dividends, on the other hand, come from stocks that have been held for longer periods, and are taxed at a much lower rate.

The differences between the rates are major. People who earn up to $33,950 per year pay a basic tax rate of 10% to 15%. But people who make that money from qualified tax dividends don't pay any tax on it at all. Meanwhile, those who earn more than $33,951 per year pay between 25% and 35% on their taxes, but those who get that money from qualified dividends pay only 15%. This, by the way, explains how tycoons like Mitt Romney and Warren Buffett reach overall tax rates of 15% or lower, while people who make $34,000 per year pay a base rate of 25%.

While the qualified dividend tax rate is attractive, it is also confusing: The IRS' rulebook states that qualified dividends must come from stocks that the owner has held "for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date." But there's also qualified preferred stock, which must have been held "more than 90 days during the 181-day period that begins 90 days before the ex-dividend date if the dividends are due to periods totaling more than 366 days."

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Interest Gets Too Interesting

As if dividends weren't confusing enough, some things classed as "dividends" are actually misnamed -- and are taxed as regular income. For example, the "dividends" that you get from your credit union or savings and loan bank are actually classed as interest. This money counts as regular income, and is taxed as such.

(Of course, interest income isn't a huge problem these days. As long as the Federal Reserve keeps its interest rate at or near zero, most financial institutions aren't going pay much interest to their customers. This, incidentally, is part of why banks have been piling on fees and charges over the last few years. But that's another story.)


Interest itself is another tax oddity. For example, in the current election cycle, something called "carried interest" has come under scrutiny. Essentially, it's a payment method used by many hedge funds and investment firms that pays fund managers and execs out of the proceeds of the funds they manage. By linking paychecks directly to investment income instead of salary, carried interest enables these high-earners to pay a 15% tax rate instead of the 35% that wage earners pay. President Obama's 2013 tax proposal suggests that Congress close the carried interest loophole.

But even regular interest can be confusing. The interest that one gets from a standard bank account, CD or money market account is taxed at the same rate as regular income, but interest from a savings bond doesn't count until the bond matures or until you redeem it. And, if you use your savings bond interest to pay for some of your college expenses, you may be able to avoid paying taxes on it.

If you own U.S. Treasury bills, notes or bonds, the interest that you get from them is subject to federal tax, but not to state tax. On the other hand, interest on bonds that are issued by states may be exempt from federal tax! For that matter, some of the interest you pay -- specifically the interest on your mortgage and your student loans -- may be deductible.

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Income Taxes: Not Required by most Americans… so says the IRS Code and U.S. Constitution!


By
Tulsa Liberty
– September 21, 2011Posted in: big brother, Financial, News





The Matrix Has You

Income tax preparation costs Americans more than $225 billion and more than 5 billion hours per year in nonproductive labor complying with the federal tax code. These estimated compliance costs, conservatively topping $225 billion annually, are costs that are ultimately embedded in retail prices paid by consumers. This alone is a monumental drain on the average American’s resources. The IR Code itself is a monstrous piece of convoluted reading that very few, if any, human being can fully understand, let alone even read.

However, we have learned over the years to believe that “income taxes” are a normal, natural part of life… like they say, “nothing is sure but death and taxes.” However, today, a growing body of well educated attorneys, X-IRS agents, CPA’s, and others have begun to challenge this “conventional wisdom” about income taxes, by researching the actual IR Code book, statutory law, case law and Congressional records to determine the actual facts in America for what most Americans have “volunteered” to declare themselves by willingly filling their yearly 1040 forms… “taxpayers,” and which NONE have proven they actually, legally, owe:

This may sound unbelievable but it is TRUE and can be clearly proven if you want the truth and are willing to seek it out and then stand for it. Not only is income tax being taken illegally and unconstitutionally, so are social security taxes and withholding taxes. Question: HAVE YOU EVER PROVEN WHETHER YOU ACTUALLY LEGALLY OWE INCOME TAXES? Have you investigated the IR Code book (26 U.S.C.) yourself, or have you, like the rest of us, taken what you were told as “truth” and simply paid income taxes all your life?

In addition to the IRS taxes, the Federal Reserve (neither a federal body NOR a reserve for anything but greed and American debt) is ALSO provably illegal and unconstitutional.

Don’t allow fear and intimidation, IRS extortion threats and deceit stop you from obtaining the truth on these and other issues. If you wish to remain free, you need to take all the lawful steps available to you to defend that freedom. At the very least, you can substantially change your financial condition.

Below are the most critical sources of information (although there are many more sources that support these truths) you need to get to prove this for yourself. Take the time to study these issues because they will profoundly affect your finances and future. Educating yourself on the law and facts is your best defense against illegal and tyrannical government actions.



Tax information sources: Legal Disclaimer

Recently Filed: I received an IRS “Notice of Deficiency.”
I filed my Petition in Response!
I received an IRS Motion to Dismiss my Petition!
I responded with My Reply to Motion to Dismiss as of 7-21-11!

Complete Motion against IRS for attempting third party Summons is available that has a substantial amount of case law and evidence proving the IRS is illegally acting under the color of law. Be sure to read this material carefully, and implement what you firmly have proven and believe.

Texas Petition to Quash”: Updated Texas Petition to Quash with best law and challenge to quash a 3rd party summons

Other cases pending:

What is “income?” 1 PDF file.

What is “income?” 2

The Lie about your “income.”

Fraud on the Court – PDF file.

FOIA Request to IRS on definition of Income: Send something similar to your IRS office, certified mail, return receipt requested, to show good faith in requesting clarification on the “income” definition laws, and include a version of Attachment A with your request.

FOIA Request to IRS with basic questions to ask to create a paper trail showing good faith attempts to obtain truthful and legal answers. You could also send the “what is Income” case law letter later, per above.

A Second series of Questions to send to the IRS Commissioner on how to determine your tax liability. Good for more proof of your good faith efforts to understand the law.

A Individual Master File Request: Letter to send to the IRS to determine where they have falsified your file to “make” you a taxpayer, such as being a drug runner, or living in another country. You’ll be amazed at what they do to people’s records. You can correct this document and return it for them to file.

Here is the Treasury Department/IRS Response to Questions on income I personally sent the IRS. (You will notice that they evade completely the questions asked, and even state in their response that the laws “may be challenged through the judicial system” and that they don’t have to respond to these types of questions under the FOIA (or any other request I would presume), so this means the average citizen who has questions won’t be getting any answers from the IRS. I also sent this request to my two Senators and Congressman as well… and they SHOULD be able and willing to obtain the answers.

Treasury Secretary Geithner letter and NOTICE of Fraud

Government documents revealing IRS fraud on the public: PDF file… The first document signed by a congressional member states “…’Internal Revenue Service’ was not established by law.” The second document from the Department of the Treasury states the U.S. Attorney General’s Office has no authority to defend IRS agents in a civil or criminal matter. The third document from the U.S. Department of Justice also states U.S. Attorney General’s Office has no authority to defend IRS agents in a civil or criminal matter. The last document from IRS Director of Customer Service Center contradicts the Congressman, Dept. of Treasury and the Dept. of Justice.

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Evidence the Department of Justice has no authority to be representing the IRS

Recent Adjudicated Evidence entered against IRS position as further evidence of IRS fraud. Keep in mind that this material is “adjudicated evidence” which means the Judge HAS to, by law, read this evidence, word for word, to the Jury in this trial, and MUST tell the Jury that this evidence is unrefuted facts of law. Want to bet the government drops this case?

America: Freedom to Fascism Video Expose on the IRS and income tax fraud!



What is Taxed? Here is a secret you are not supposed to know… There are more deductions and excluded income than your tax software will show you. It can be demonstrated (and proven) with any computer that U.S. Income tax is fraudulently imposed. According to the code, only “foreign earned income” is “taxable income.” Most Americans owe nothing! The result is digitally precise, because “code” does not lie.

Don’t take our word for it… Research what 7 X-IRS agents have proven and teach to this day.

Illegal IRS Case Presentation documentation

The “We The People” organization’s Class Action law suit proceedings against the Federal Government had a major victory.
•An excellent book which goes well with the above info on the actual law that will help you truly understand the actual tax code. The book is titled, “Constitutional Income: Do you have any?” By Phil Hart. You can find this book at Constitutional Income Website

For a synopsis of the above three sources for you to get a good feel of what the law and IR Code actually says, review this actual Original Affidavit of Truth and Notice!, which covers a wide range of illegal and fraudulent government activities, which was actually filed with various agencies on March 25th, 2006. (Updated, expanded affidavit, containing much more case law is available). NOTICE: It may be tempting to copy and use this Affidavit of Truth without actually researching the laws and code books. To copy this and use it as your own without actually understanding the law and facts could be a dangerous step, as unless you actually believe and understand the facts presented, you won’t be able to defend yourself adequately, should you have to. True knowledge is the key, so don’t short-change yourself in not taking the responsibility to educate yourself as completely as you can!

Petition to Quash Summons: The IRS Summonses were served to 4 companies in their efforts to obtain my private records. (IRS tried to obtain mine but failed, so they are getting desperate.)

Brief and Memorandum of Law in response to IRS Motion to Deny my Petition to Quash third Party Summons!

Property Taxes:

Most property taxes for private citizens… homes, etc., are illegally being applied. Your house and property are being unconstitutionally taxed. Many people have lost their homes because of not being able to pay this tax. It is time to stop this and legally challenge your local property assessor with the law. Get the facts and Take Steps to remove unconstitutional taxes!
.

The Rest Of The Story: http://tulsachange.com/income-.....tution#ixzz1nSGKTjhK

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Income vs. Taxable Income

One of the most slippery tax phrases is income. Taken at face value, its definition seems obvious -- clearly, "income" is supposed to refer to the amount of money that a worker brings home in a year. But in the hands of the tax industry, even this clearest of words becomes cloudy. Recently, The New York Times highlighted this with its tale of the ridiculous tax rate paid by James Ross (right). The founder of an investment firm, Ross paid 102% of his 2010 income to the taxman.

The tale was tailor-made for tax critics: Ross -- a job-creator, a graduate of Yale and Columbia, and a one-man economic powerhouse -- was clearly being charged a cruel and unusual tax rate. How could the government possibly rob such an upstanding citizen like that? Where do we live, Sweden? By God, Ross had to withdraw money from his savings account to cover his taxes!

Of course, there was more to the story. Ross didn't actually pay 102% of his income, but rather 102% of his taxable income -- the money left over after he subtracted out his mortgage interest, state taxes, and all the other clever deductions and exemptions he was allowed to take from his total income. In fact, Ross actually paid only 20% of his real earnings in 2011 -- about 4 percentage points less than the average tax paid by someone at his level. Thanks to his impressive list of deductions and business-related expenses, he actually scored a nice tax cut, rather than the brutal burn that the Times story would at first seem to suggest.

Income should be an straightforward, clear term, but it's often muddied for political purposes. Total income -- the amount of money that one makes in a year -- can be hard to quantify, so pundits and politicians tend to focus on more easily-defined terms. For example, depending on a politician's leanings, he or she may consistently discuss earned income (all the taxable wages and tips that one gets from a job), adjusted gross income (earned income, minus personal exemptions), or taxable income (earned income, minus all exemptions and all deductions). Because wealthy people often have more deductions and exemptions than lower-level earners, changing which term you use can radically alter how you frame any tax debate -- not to mention the degree to which the rich seem to be unfairly targeted by the tax code.