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Senior Advisor

Re: Jim Rogers & Ron Paul discuss - force and intimidation by government

Don't forget that most of those taxes are deductable  before you calculate your adjusted gross income. So how did you cope before the current tax rates when they were even higher? I'll bet your tenant is paying enough rent to satisfy your real estate taxes. Did you pay them or did he? Most of us know about real estate taxes. We know that before we buy real estate. Yet I bought houses and farms even after I knew that.

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Senior Advisor

Re: Jim Rogers & Ron Paul discuss - force and intimidation by government

WT excellent points - It was documented in the business section the spread between CEO management pay and labor at record high of 358 to 1 - prime example of the over board of management and  the labor folks - and I'm sure these guys "refuse their government perks" due to their red white and blue attitude ---reminds one not long ago there was a  BIG  fuss when EWG posted all of the welfare checks recipients of the farm subsidies ---   

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Senior Contributor

Re: Jim Rogers & Ron Paul discuss/EWG DATABASE & Farm ROI Ratios after the Farm Crisis

Yes, the funny part of the EWG posting the Farm Subsidies we got was that mainly other farmers looked up each other to see what the neighbors got for subsidy payments. The city/non-farmer people didn't really know what they where looking at when they pulled up the information. Plus most city people had enough problems just supporting there own families that what farmers got was no interest to them. Many city people still think the average Iowa farm consistes of 160 acres of corn, 100 hogs, 50 chickens, and 2 Dairy cows. Also, they think that farmers are all dirt poor. Most would be very surprised if you told them that just a 1/4 section/160 acres of high-quality farmland was worth $2.4 Million Dollars today. And we all know that very few farmers own only a 160 acres today. The guys that survived the 1980's Farm Crisis were the best off money-wise, didn't get carried away buying farmland in the late-1970's when the Return On Investments Ratios were way out-of-line. They did however, when land dropped back to just $1,000/acre in the 1986 to 1989 time period and had just a cash-rent return of 14% buy alot of farmland at that time. If just the cash-rent return was 14%,you know the ROI Ratio for either farming it yourself or paying to have it Custom Farmed was much higher than 14% at the time. Hell, I remember when you could put $1,000/acre land in the CRP Program for a $120/acre goverment check which is a 12% ROI. That is like having a 12% Goverment Bond for 10 to 15 years!!!!!!! Yes, the price of farmland dropped much lower than the pure economics of the situation should have allowed.

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Re: Jim Rogers & Ron Paul discuss - force and intimidation by government


@old man wrote:

I am 88 years young. Our  income comes from our IRA , SS, and farm rent. Our total tax bill is over 50% of our net income.  It consists of US Income tax, state income tax, personal property tax which includes our autos, real property (land) for schools, county taxes, city taxes, taxes on household water and sewer, telephone taxes like for phones for the poor ( I see them leave the stores with liquor, soda, snacks, etc.) excise taxes on auto tires etc, a bike trails tax and a sales tax on almost everything that we buy. Our next biggest expense is medical expenses. There was even taxes on much when we prepaid our funerals

I think that we are taxed enough


I will offer a "second amen".  

 

you also left off, the fees to get into public parks, boat licenses, etc. the list of taxes and fees goes on and on, even a dollar fee to get a culvert added on to a driveway.  But . . . with 50% of the population benefiting from the printing presses that the Burnank has control, we will continue to get poorer.  Soon this will be the Socialist Republic of America.  

 

We no longer have control of our government, the Feds have one responsiblility and that is "defense of our country", and they have been fabricating that duty since the Korean war, creating controversies and fighting undeclared wars.   What we have is a nation of drones, farming the worker bees.  Of course, I guess as long as we have a nation of "takers" instead of "risk takers we are going to become a mutch poorer nation. adios amigos. John

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Senior Contributor

Re: Jim Rogers & Ron Paul discuss - force and intimidation by government

Faust, Thanks for the vote of confidence.

 

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Senior Contributor

Re: Jim Rogers & Ron Paul discuss - force and intimidation by government

Don said, "Don't forget that most of those taxes are deductable...." BTW take a look at Old Man's list; many he listed are not deductable.

  

Don, you do understand that deductions aren't subtacted directly from your tax bill,don't you? They are only subtracted from the income. So you only "save" what ever your tax bracket is e.g. 28%, 35% or in your case maybe 55%. If you have a deduction of$1 you save $0.35. etc. on your taxes.

 

People give the impression that they think deductions are direct savings (100%) off your taxes. Surely you understane this, as good of a business man as you are.

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Senior Advisor

Re: Jim Rogers & Ron Paul discuss - force and intimidation by government

Yes I do Arnfarm and that is a good point to clarify.   Many of us measure our income by gross taxable income and that number is established after the deductable items are subtracted. Thus if he pays $10,000 in real estate taxes off his $100k gross taxable income, real estate tax would equal 10% of his gross taxable income.

 

However, if he calculates his total income of $300K and subtracts the $10K real estate tax from that number then his real estate tax would be 3..333% of total income.

 

The point being that when you take those deductions to arrive at gross taxable income you don't deduct them again to determine percentage  of income that go in taxes. Is that clear or clear as mud?

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