11/21 Consumerism Commentary: A Personal Finance Blog Since 2003

Please add updates@feedmyinbox.com to your address book to make sure you receive these messages in the future. Consumerism Commentary: A Personal Finance Blog Since 2003 Enforcing Tax Laws Works. Go Figure. November 20, 2009 at 11:56 am Earlier this Fall, the IRS was offering an amnesty program for offshore tax cheats to come forward and admit their wrongdoing, thereby getting a more lenient punishment. Nearly 15,000 Americans who knew they were cheating came forward and admitted their bad behavior. From Reuters: While IRS officials were still analyzing the amount of offshore assets declared in the amnesty program, Shulman said, “we are talking about billions of dollars coming into the U.S. Treasury” from the new disclosures. This is not the end of the story. Combining these (perhaps) brave souls to the 4,450 accounts which are forcibly being turned over from the Swiss bank UBS, there are just under 20,000 leads that the IRS is now following. For example, they may find that some of the largest account holders were advised by the same unscrupulous high-powered tax adviser. And now we know his or her name, and we can investigate, and find even more cheaters. This is happening on a State level, as well. According to the Wall Street Journal: This year, 12 states had amnesties, up from the annual average of two or three. Another 10 or 15 are likely to follow suit in 2010. If you live in a State with a State Income Tax, and you suspect you might be guilty of tax evasion, I’d recommend you set up a news alert for “[state name] tax amnesty” so that you can have plenty of time to weigh your options. The Editorial Part On a personal note, this will probably end up being my favorite story of the year. It takes the cynical view that if you’re wealthy enough, you can buy the power needed to keep more than you’re supposed to, and makes a big ol’ dent in that belief. We have a big budget deficit, and I believe that’s because the previous administration’s ideas didn’t work out the way they were supposed to. Many people fear that their taxes will be raised as a result, though the only plans I’ve seen to raise taxes will affect maybe 5% of Americans. Amazingly, some people think that their taxes have already been raised (these people are either getting their news from some untrustworthy sources, or their paychecks are coming with a free mirage). Happily, sometimes you don’t have to raise taxes; you just have to be serious about collecting them. Nearly 15,000 Americans admit offshore tax cheating, Kim Dixon, Reuters, 17 Nov. 2009 More States Jump on Tax-Amnesty Bandwagon, Arden Dale, Wall Street Journal, 19 Nov. 2009 Rating: 0.0/5 (0 votes cast) The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now! Enforcing Tax Laws Works. Go Figure. Ben Stein Offers Four Lessons From the Recession November 20, 2009 at 8:00 am The United States must be approaching the end of the recession when economists begin offering their retrospectives. Even if the data are pointing to an end to the recession, in technical terms, the economy is a long way from recovery. Just look around at the people out of work. Even those who have maintained their jobs are finding it difficult to qualify for mortgages, keeping the real estate industry itching for more handouts like the extension to the home buyers’ tax credit. And some economists are not convinced that the worst is over. We may be in the lull of a double-dip recession. Wherever the economy is, making predictions, like critiquing wine, is often no more accurate than randomness. For Fortune Magazine, economist and actor Ben Stein contributed four of the lessons he learned during the recession. Economic forecasting is still an extremely difficult gambit Financial market forecasting is even more troublesome The amount of lying and deception by the financial sector of this country has been breathtaking The government has no special abilities to forecast or predict a darned thing Ben Stein is usually a strong supporter of the financial industry, so it’s nice to see him pointing out some of the flaws inherent in the system. He goes on to reassure investors that staying invested in stocks and bonds while keeping enough liquidity is the best way to weather recessions in the long term. If the second dip rears its head, I would like to believe it will provide more opportunities for investing for growth over the coming decades. Are you prepared for the next recession? Photo credit: simonhn 4 lessons from the recession, Ben Stein, Fortune, November 19, 2009 Rating: 0.0/5 (0 votes cast) The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now! Ben Stein Offers Four Lessons From the Recession   This email was sent to carpenter.autoblog@gmail.com.  Manage Your Account Don't want to receive this feed any longer? Unsubscribe here.