New Update from MONEY MATTERS! April 20, 2014 READ !

Marc’s notes:

Well, we had an email issue so you are not crazy. We failed to send out weeks of newsletters due to our webmaster’s mistake. He has been sent to row below decks.

The good news is hopefully it is fixed so now you should have received a few back issues and then this one.

The markets meanwhile are meandering down but again, I put no stock in panicking.  (Pun intended).

I doubt the Federal Reserve will let a major crash happen and as I have been saying for years now (has it been that long for QE?), the “taper” will not be completed. If the markets start down hard, the Feds will use that as an excuse to stop the taper.

The US is tapering off on its bond purchases or QE as it is called, and with 2 cutbacks in the bag sort of speak and the Federal Reserve looks to ease off the monetary gas pedal and taper some more in the months to come. The current QE program started a few years back printing up 85 billion a month and with 2 cutbacks of 10 billion each. Now the Feds are only printing up 65 billion a month and look to scale back another 10 billion every so often to eventually arrive at zero. In other words., no more money printing by the end of the year or so.

85 billion is a ton of money and a lot of that is and has been flowing around the globe boosting foreign economies as well as ours.

Unfortunately now some of those economies are feeling the jock strap tighten and their feeling the cool chill of recession. Their respective central banks are now gearing up and talking about more QE of their own to stave off the fall in output. In other words, as our central bank slows its printing, the other central banks will ramp it up again.

Since the global economies are now more intertwined then ever, it begs the question:
What good is a taper on our end if the other end starts to “untaper”.

What money we don’t print now the others will. Net- Net: there is no change really, and as predicted by this analyst many times before, the central banks of the world have addicted their economies and their markets to oodles of free money.

And addicted means addicted. There will be no way collectively the central banks of the world will be able to taper. Where one central bank tapers, the other will take up the slack. It’s all a big shell game don’t ya know with the tax paying citizens of the world as the stooge. Look for free money and QE to infinity, no matter which central bank is doing it and with that stocks have limited downside.

Gold and silver meanwhile may have sniffed this out. They may have one more severe downdraft in store as I have mentioned before but they may, repeat, may have bottomed. I am waiting to see what happens but I still sniff one more possible correction before its “to the moon Alice” .

For now, summer is coming and is usually a slow or down time for markets so a little downdraft may be in store. As always follow the Money Matters portfolio (Dream Portfolio) and add up to 15 % or so of Super Dividend Payers on my list on the site.

Email me to meet as always and stay tuned!

Tax season question

Double taxation?

You bet and right here in America.

One would think you would only pay tax only once on income in the land of free and fair but think again.

The IRS loves to tax money twice and you’re probably paying tax on money that was already taxed as well.

We’re talking about dividends, inheritance and a host of other “gotchas” implemented by the IRS so they can grab and grab again.

Dividends are those checks you receive from stocks you own. The company whose stock you bought made a profit and paid its income tax on that profit and that money the IRS gladly gobbled up.

But now the company pays you from what’s left over in the form of a dividend check.

So guess what? The IRS says now you owe them even more tax on what you received. 

You accept this as fair but stop and think for a minute.

How many times can the IRS tax money from money that was already taxed?

As many times as the law allows apparently.

This double taxation is repeated in many areas. Your parents worked hard and made some money and paid tax on every penny, yet when they die and leave that money to you the IRS wants to tax it again. If your parents earned any of that money from dividends, the company that paid your parents paid tax, then your parents paid tax then you did again. It has now been triple taxed.

If you then leave any of that money to your kids they will tax it yet again.

Why we put up with this is anyone’s guess. We are well trained to accept whatever they dish out and as long as Washington gets its share, they probably won’t change it.

If we do some simple math, pass the money around enough times and the IRS will get almost every cent of what was earned by everyone. Quite a racket if I do say so myself.

And how much is it costing us to figure out how much we owe?

The Tax Foundation estimates the cost of compliance for individuals is 2.8 billion hours, or $110 billion; the cost for businesses exceeds 3.1 billion hours or $148 billion; and the cost for nonprofits come in at a whopping 141 million hours or $6.8 billion. I’ve seen estimates as high as one half a trillion annually and that doesn’t include the cost of the new healthcare compliance.

Even more unpalatable, in a paper just out from Matthew Kerkoff of Financial Sense,

the US has the highest corporate tax rate of the industrialized world so US corporations face a very high corporate tax rate. Unfortunately, says Kerkoff, many are extremely good at not paying it.

In a recent report by the Citizens for Tax Justice, they looked at the profits and federal income taxes of the 288 Fortune 500 companies that were consistently profitable in each of the five years from 2008 to 2012. Here are some key takeaways:

• As a group, the 288 corporations examined paid an effective federal income tax rate of just 19.4 percent over the five-year period — far less than the statutory 35 percent tax rate.
• Twenty-six of the corporations, including Boeing, General Electric, Priceline.com and Verizon, paid no federal income tax at all over the five year period. A third of the corporations (93) paid an effective tax rate of less than ten percent over that period.
• One hundred and eleven of the 288 companies paid zero or less in federal income taxes in at least one year from 2008 to 2012. In the years they paid no income tax, these 111 companies earned $227 billion in pretax profits. But instead of paying $79 billion in federal income taxes, as the 35% corporate tax rate would seem to require, these companies generated so many excess tax breaks that they reported negative taxes; in other words they made money by filing their taxes.

In conclusion, something appears extremely out of whack when it comes to our tax structure, the cost of compliance and the ultimate result in who is paying what. Its way past the time where we should seriously consider scrapping the whole mess and looking at a simpler and less costly way of paying taxes and making sure the burden is equally shared by all.

That’s about it for now. Look for my new report coming out soon:

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It’s truly a remarkable strategy and perfectly legal and anyone can do it.

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You get the report AND the class! The class will likely be very exclusive with only a small amount of people in each class so you will get a lot of one on one attention from me. We can go thru the report with a fine tooth comb; you can take notes and execute mock or real trades! You will save money on stocks you want to own and/or make free money by getting paid NOT to buy the stock at all. Either you get in ON SALE or get FREE money! No gimmicks, no tricks; just a simple seldom used strategy. We will also cover if time allows a strategy to make money on stocks you currently own even if they don’t pay dividends!

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All for now,

Marc

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