Taxes

This is what government has figured out. Cities like Philadelphia are dead broke. They have chased the
rich out of town, imposed wage taxes on anyone who flies in for business, they think it is their right to
demand money and provide you with nothing in return. So what are they up to now? PROPERTY
TAXES! You will see property taxes start to rise exponentially because it has nothing to do with income. If
you can’t pay, well sorry – then they get to take the property and sell it. Taxes will rise where income is no
longer an issue. They chased the rich out – someone has to pay for public servants to live.
Obama has asked for the Bush Tax Cuts to be extended for ONE YEAR only on HOUSEHOLD incomes
of less than $250,000. This shows he wants the taxes on investment to jump to over 40%. He is likely to
destroy more jobs and send the economy into a spiral nosedive faster than any president in history. The
sad thing is, it really doesn’t matter who wins the elections despite the fact that Obama may win by the
skin of his teeth. We are talking about a Lame-Duck Congress and the extension is in December so
technically whoever wins, the event will have taken place already.
Obamacare Tax
It is true that there have been a lot of unfounded rumors concerning the Obamacare Tax that portray the
3.8 percent federal health care tax on the sale of your house. It is very true that this does in fact apply.
However, it will more likely affect the wealthy, not the average American, but it is likely to kill commercial
business properties.
Obamacare will impose a 3.8 percent tax on all home sales and real estate transactions – TRUE!
However, this 3.8 percent tax will be on ALL investment profits and other non-wage income starting in
2013. But that tax applies ONLY to couples with adjusted gross income of $250,000 (or individuals with
AGI of $200,000). About 95 percent of households make less than that, and will be exempt from the law
no matter what. Furthermore, couples who sell a personal residence can exclude the first $500,000 in
profit from tax ($250,000 for singles). This suggests that profit from a home sale, not proceeds, would
more than likely be exempt. It is unlikely that this will amount to a hill of beans given the state of the real
estate market in any event.

Expect the 3.8% tax to dampen commercial real estate at probably the worst point in time. The little
bound we saw in the model, well we got it, and now it looks like it will turn down again. The real concern
is how this could set off a selling spree in time for the elections. The Democrats are death, dumb, and
blind when it comes to taxation. They refuse to look at just plotting the economy alongside the tax rates. If
they did just once, they might see the light. Hiring government workers is ANTI-GROWTH. It is like hiring
a maid at home. She produces nothing. Adds no income to the HOUSEHOLD; she consumes income.
This is why they call government workers PUBLIC SERVANTS. The more you hire, the lower the
economic growth – HELLO!

Of course, then we have the question of a definition. When the politicians say they will make those rich
bastards pay, the majority cheer since they think they will get something for nothing. However, when the
chase the rich out of town, what is left are the people who cheered. How does government deal with this?
They change the definition of the rich. When they sold this nonsense to everyone, $1 million was a ton of
money. If you consider a Cadillac was $600 when the rich were defined as $5 million, with the definition
now $250,000 HOUSHOLD, not individual, then a Cadillac should be over $415 million to keep the same
ratio.

Tax revolts are common throughout history. We are approaching such a period in 2016. The question is
how much will the markets be influenced starting in September 2012. Yet sadly to say, it is ALL of
Western society that is going down the drain just as the Communist world collapsed. It is just our turn for
the same fiscal mismanagement sins. Even India has offered amnesty to more than 100 wealthy citizens
who evaded taxes by hiding funds in accounts at HSBC Holdings Plc (HSBA)’s Swiss unit. The India
income tax department has agreed not to start criminal proceedings or levy a penalty if the Indians
repatriate the money from Geneva and pay the taxes right now.
Numerous countries are now trolling looking for assets they can seize and people they can imprison to
confiscate their wealth. India is joining the USAm UK, Germany, and many others out for blood money.
The politicians get to squander your wealth, and they they get to imprison you for refusing to give them
whatever they demand. What is the difference with the Maffia demanding protection money? There is no
way to stop this collapse because government insists upon holding on to power as is. They are not
prepared to listen to any reason.
Taxes
The very word “suburbium” is what the Romans called it. People left the cities fleeing taxes. The
population of Rome itself just collapsed. No city ever matched that size again until the Victorian era in
London. This is how empires die. The cost of government always rises oppressing the private sector
since the public sector is like a drunk – it just consumes and has the hand out claiming he needs money
to eat instead of drink. The people either leave or revolt in their struggle to cope with the persistent
unpredictable demands of government that historically NEVER lives within its means.
During economic crisis, money is hoarded. People curtail their spending to survive. Grover Cleveland
addressed the Congress is a Special Session where he criticized his own party stating:

“At times like the present, when the evils of unsound finance threaten us, the speculator may
anticipate a harvest gathered from the misfortune of others, the capitalist may protect himself by
hoarding or may even find profit in the fluctuations of values; but the wage earner – the first to be
injured by a depreciated currency – is practically defenseless. He relies for work upon the
ventures of confident and contented capital. This failing him, his condition is without alleviation,
for he can neither prey on the misfortunes of others nor hoard his labour.”

Gold’s role will be as the alternative UNDERGROUND economy and a store of wealth in time of political
crisis. Remember – institutions will always be vulnerable to seizure. So never leave your gold in a bank
that could be seized. You are defeating the very purpose of buying gold in such circumstances.