Home Forums Hunting & Shooting Hunter's Campfire debt ceiling update

Concur and replace the IRS with the FAIR TAX

The more I think about it..maybe elimination of the federal income tax and replace it with a national sales tax. At least that way we would get tax value for all the stuff we import.

The dictator is giving his next propaganda lecture at 0720 eastern.

A Fair Tax or sales tax would be less costly for the government to manage and certainly more equitable for the general public as ALL would contribute. A huge problem with the current system is the about 50% don't contribute anything to the federal government and thus, are happy for them to spend more because they have no commitment. The current system is also fraught with loopholes and exemptions for many --- and what's fair about that.

The biggest problem with the current system imo is that politicians can pick winner and losers, redistribute wealth and buy votes for themselves with our money. When the tax code is not a tool of the politicians, it is by definition more fair that what we have now.

Getting rid of ALL Departments and programs (except DOD at 20% of budget, Social Security at 20%, Medicare/Medicaid at 23% and Debt Interest at 18%) and you only have 18% left. This will not do the job!

WE all need to take a hit, and revenue enhancements (like eliminating legal loopholes that allow some companies to pay NO tax) are needed. These companies include Exxon-Mobil, Bank of America and GE. See: http://blogs.suntimes.com/sweet/2011/03/ten_giant_us_companies_avoidin.html

Yes, about 47% of US households pay no income taxes. See: http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0

I know one person who has paid no income taxes for the past several years (at least 5) yet has an income of over $500,000 per year from municipal bonds. By the way, he is hoping that the US defaults on the debt so the interest rates in new bonds he'll buy will go up several points.

A wise man. So he has about ten million invested in munis. Nothing wrong with that.

If he's hoping that he's a dumbass.....cities are far more likely to default on their bonds than the US since they can file bankruptcy and they can't print money....as the county where Birmingham is will do next week. And if Uncle Sugar is busted, all that revenue sharing that the cities have been sucking off of for forty years comes to a halt.

Well Steve, you probably would consider him a dumbass; after all, he is an attorney (corporate merger and venture capital) who has amassed a sizable muni portfolio. He carefully weighs the strengths of the individual munis he buys and in some cases the bonds are backed by city assets (that can be liquidated). He is also my daughter's father- in- law.

Buying munis can be tricky like many other investments. I'm not buying any California State issues.

Wasn't/isn't there a class of insured munis? If I recall correctly the ROI beat passbook but not by much. So I never paid any attention.

GOP House passed the bill with the balanced budget clause.

Some bonds have extra insurance attached to them. The municipalities pay for this extra layer of insurance. Problem is some of those insurers are now out of business for backing terrible projects. Always look at the underlying credit rating of the bond.
Rates aren't going to spike that high in my humble opinion. Maybe 25 basis points in short end and 50 on the long end for a short period of time before coming back down.

In the big picture a lot of the above needs to be done. Simplify the tax code. Wealthy people higher CPA's to find the loopholes and there all over the place, Warren Buffet pays an average of 10percent. Tax backet as they are except for those over 25 million. Increased by only 5 percent. Tough subject and no disrespect intended but True pension reform for city, state and military. The union comment about working crazy house the last year or last two years to get a higher rate just isn't fair. Know cops, firefighters that have done this. Yes you risk your life, but you chose this profession and shouldn't game the system. Same for military, maybe different pensions if ever in combat situation. I respect what cops firefighters and are military have done for us and are doing but tough decisions and cuts need to occur. My dad retired from navy after serving 26 years. Only one 3 month stint in combat. Retired and ran nuclear power plants at TVA after that for 20 years and now gets two really great pension checks along with free health care for him and mom rest of their life......Even they can't believe is hasn't been changed. Plus no federal taxes on military pay.
Entitlement programs.....welfare: can you say drug testing, would probably save some money there........

djs....if he's that smart he's kidding about hoping for a federal default.

very few cities or municipalities have assets that have any real market value. Birmingham's host county is about to go under because of billions of sewer bond debt....and the bondholders are going to get poured out or agree to a total refinance, because they have no option.

I'd be scared motherless of buying munis now.....I expect to see a whole flock of municipal b'ruptcy filings before the year is out.

Senate kills Boehner debt-limit bill - Democrats table GOP-baked House bill

This could get ugly.

Now is when Reid attempts to blend his Bill with Boehner's. I'd love to be a fly on those office walls. Senate has a long cluster-[bleep] of a weekend ahead of them only to maybe come up with a Bill the House won't pass. This is where the dem leadership will begin feeling their deserved share of the heat.

Steve - He does not like many city munis. Many of the bonds are state bonds and hospitals, and water/sewer works, etc. that pledge revenues to back the bonds. In some cases the assets themselves are pledged (I don't know the liquidity of a hospital or water works, but there is a market).

Oh yes, he owns NO California or Birmingham (AL) bonds. And again, he pays no taxes.

Bonds=Certificates of Confiscation. Give your money to some .gov entity with the promise of repayment at some future date-depending upon the revenue stream of course-at a coupon rate that doesn't come near to compensation for the risk involved.

Gold and silver gents. No counterparty risk. Anything else are just promises to pay. Check's in the mail, etc., etc.

Precious metals have storage, security, handling and assaying costs. Plus they are commodities that exhibit high volatility (up is good, down is bad). These take from any profit.

Remember the Hunt Brothers and their silver experience.