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The Tax Song

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Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his tractor,
tax his mule,
Teach him taxes
are the rule

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries, then
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass

Tax all he has
then let him know
that you won't be done
till he has no dough.

When he screams and hollers,
Then tax him some more,
Tax him till
he's good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

Put these words
upon his tomb,
"Taxes drove me
to my doom..."

When he's gone,
Do not relax,
It's time to apply
The inheritance tax.

One of the things as a country we generally approve is that competition breeds excellence. Competition between Firefox and Internet Explorer has made both better (well, okay, it has made IE better as the copy Firefox features and look and feel). Competition made Harley Davidson do better at making motor cycles; Japan finally got quality on the radar of American auto makers; telephone prices have come down, and telephone services have gone up (I remember $4 a minute for phone calls to California from Maryland before competition).

What about education? What choice do most people have for education? If you are rich, you can afford the taxes you already pay, and then the tens of thousands it costs for separate tuition. (Just one non-sectarian school charges upwards of $27,000/year Burke and there are others just as expensive.)

I was reading Tom Rust's website trying to find out why this man (the ex-mayor of Herndondo whose watch allowed the significant increase of illegals in the town) would initiate such ridiculous and prejudice fines on the drivers of Virginia. On his site was most recently asked questions as to why only Virginians? The response was...constitutionality...working on ways....unfortunately...

Yes, I believe that it is unfortunate that the thinking is that stiffer fines on Virginia drivers will help fill the transportation coffiers of our area. This under the guise of "reducing drunk and reckless driving". In reality, it is a sham for non-enforcement of all driving code laws. Much of this comes from the areas police forces and lack of monies for additional officers or the courts being overworked and understaffed. I have heard this arguement for years.

As all of you know, I am no fan of tax increases. In this case, well, I still don't.

Here's the deal. Private Equity Fund managers take a certain percentage of the profits, say 20%, leaving 80% for the investors. That's right, the manager need not have any of his own money in the fund. Despite having none of his own money in the fund, his 20% is taxed as "capital gains," rather than as ordinary income. That, to me, is ridiculous.

The Private Equity Council, a recently formed industry lobbying group, opposes any change to the taxation of carried interest. General partners not only contribute time and energy to managing a fund's assets but are required to mitigate losses so that investors get back the capital they put in, according to Council spokesman Robert Stewart. "They take entrepreneurial risk. (Carried interest) is not akin to getting a fee for service." He calls it a profit share.

What a load. I doubt that these managers take money out of their own pockets and give it to the investors if there is a loss. If they do, fine, they can deduct it from their ordinary income.

One potential consequence of raising the tax on carried interest is the risk of lower returns, Stewart said, noting that managers might be less willing to take risks with investments if they know their tax bill will be higher.

It just keeps getting better. "I'm not going to make more money, because 40% will be taken in tax instead of 20%." I'm making up the tax rates, but you get the idea.

Another consequence is that partnerships may find ways around any new regulations.

Translation: "Let's not do the right thing, because some people will find a way to avoid it."

People exploit loopholes in the tax laws all the time, but these people don't advocate scrapping the income tax completely. (I do, but that's another story.)

Sorry, folks, but when I get a bonus, it's taxed as ordinary income. Performance bonuses of major-league players and coaches are taxed as ordinary income. These are no different.

So while I am not supporting a tax increase per se, but I do support changing the classification of this income from "capital gains" to "ordinary income."

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