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Friday, June 29, 2012

Tax, Spend, Regulate and Borrow, VICTORY!

Thankfully the Supreme Court debate pulled back the curtain and gave Americans a full transparency on Obamacare. This bill was never intended to be fully transparent and was passed by selling a bait and switch to the American public. Of course the 2010 election cycle proved that the American Public wasn't to happen to begin with, now that antagonism can be re-kindled as we finally learn that the mandate is a TAX. So as is ususal for this aministration the formula is tax, spend, regulate and borrow, that mantra is a high octane recipe for bankruptcy ala Greece, Italy, Spain and France.

The Supreme Court decision is the best rsult possible for the American public. Those who haven't read the bill ( 99+% of the US public) never knew that the IRS was being expanded to become the collector of the so-called mandate penalty. This is in the bill already, it just wasn't being fully disclosed by the legislators who crafted this albatross to the US economy. The US public was consistently promised by Obama and the Dems in Congress that this was not a tax driven issue. It took the Supreme Court debate where the government argued that it was a tax (this is the same people who promised it wasn't a tax) to bring full transparency to the matter. Now we know without any debate or flim-flam that the mandate is a tax and will be policed by the IRS. Therefore, you will now have the IRS with greater intrusion into your finances. Now whether or not you have health care will be dictated by penalties from the IRS. More intrusion from the ever growing and expanding government. We now have another super charged entitlement program which America has absolutely no ability to pay for. What a Victory!

Thursday, June 28, 2012

It's a Tax stupid!

The Supreme Court made its decision on the Obamacare mandate and it is no surprise that they determined Congress has the constitutional right to tax its citizentry. No problem, of course Congress did not tell the US citizentry that the IRS would collect the penalties for not purchasing insurance through the mandate. Of course had they been transparent on that small issue the bill probably couldn't have passed quietly in a late night run through a Democratic controlled vote on this bill.

Now there is transparency as to what the 2500+ pages of this bill really intended. The IRS (The bill always had the IRS set up to collect the penalties, therefore it was always a tax, yet that is not what the President or any of those who pushed this bill publicly stated)  has been given a full control over the mandate for health insurance and every American is now subjetc to purchasing health insurance or having the IRS on your back. There has never been anything similar to this other then the ERISA controls over qualified retirement plans. I mention this because get ready for it, the next move is the tax grab though your IRA and 401k plans. How will this happen? It will be in the format of a mandate which forces a percentage of the IRA and 401k to be invested in US Treasuries. The Fed can then keep rates artificially low and this new ERISA mandate can successfully reach into the American pocket and assure that the US citizens continue to be stuck with the bill run up by the government. (as the appetite for US debt dies globally this will be the only pocket left for the US government to pass the aged and poor debt to). If you think Donald Milliken was the King of the Junk bond you are in for a real shock.

It is time to make serious decisions about moving your qualified investments into non-qualified vehilces where the government cannot mandate what you invest in. If you wait too long there will be no option for your dollars as a simple mandate will force the issue of where you may invest your qualified dollars. Caveat Emptor on all IRA's and 401k's.