Business Do Not Pay Taxes

Companies and individuals are in business to make a profit. In order to make a profit the products or services they provide must include all their costs plus their profit. What are business taxes? Business taxes are one of the costs either in their product or service, on the business as an entity and/or on the net income the business generates.

If a business/individual does not include all costs (taxes included) in the price of their goods and services, then the business/individual will lose money and eventually go bankrupt.

The customer pays the business taxes - the company/individual proprietor writes the checks for the taxes. So when the government imposes taxes, fees, assessments, licenses, etc. on businesses, it is an indirect tax on you.

Another myth I have heard many times is that renters do not pay property taxes and are looked down upon by many home owners because of this misunderstanding. Renters do pay property taxes, the landlord only writes the check for the taxes.

One local business owner said "I hope Congress does not pass a new tax reduction bill. I cannot afford another tax reduction. The bill that increased the minimum wage a few years ago almost put me under."

I responded and asked "Were the minimum wage increases that much?" He responded with, "The wage increases were not a burden at all. It was the 50 small business tax provisions in that bill. He said he was lucky because he was able to increase prices enough to cover the tax increases and still stay competitive."

In order to stay in business he had to increase his prices. You, the consumer, paid his tax increases, but he actually wrote the check for the taxes.

Were you told about the 50 small business tax provisions by your Congressional representative or the national news media about these taxes. They were really indirect taxes on you?


Also, please watch out for "averages." Here is an example of how averages can distort the truth.

Let's assume that the following were individual tax reductions under the plan Congress passes: 1 individual with a $1 million tax reduction, 1 individual with $500,000 tax reduction, 1 individual with $250,00 tax reduction and 500 individuals with $1,000 tax reduction. The average tax reduction then is $4,473 for each individual. This is the figure you will hear ringing from each politician and the news media, "An average tax reduction per individual of $4,473". Actually, 99% of the individuals would get only a $1,000 tax reduction.

The American people fall for this tactic every time a tax reduction is proposed and passed. Most of the tax reductions will be nothing more than a shift in wealth from the middle class to the wealthy. It has worked for 40 years. Why change the strategy now. But at least you will know what really is going on.

Electrical Outlet Sealers Work

I am old enough to vividly remember the first contrived energy crisis. During that crisis many energy saving products and procedures were developed that worked. One became part of my life since that time. Have you ever heard of Electrical Outlet Sealers? Probably not, but they work.

I have no financial interest or receive any compensation or consideration in these sealers or the companies that sell or make these sealers, directly or indirectly. I don't even know the company(s) that make these sealers and don't care. They work and that is what is important.

Save 10% on Your Energy Costs Year Round for about $20.00

Electrical Outlet Sealers are small pads that fit behind your electrical outlets and form a seal between the wall and the electrical outlet plate. This is what they look like.

                             Electrical Outlet Sealers
  Outlet Sealers

I have installed these sealers in every one of my residences since the last energy crisis.

In my current residence with 57 outlets/switches, these sealers cost me $12.59. It took less than an hour to take off the electrical outlet plate, place the sealer over the outlet/switch and replace the plate. A very simple operation.

They can be purchased at most hardware stores, such as Ace Hardware, Home Depot, Payless, Builders Square, etc. Also, there are a couple of companies that make them. Call around to see who has them in your area. Emails from many individuals AND GROUPS, who want to tell their members, indicate that in certain areas the local stores are out-of-stock and have back ordered. Put in an order any way.

These sealers were developed during the energy crisis of the 70's. A few States made them mandatory for all new construction. In fact in a couple States the manufacturers of electrical outlet plates included the sealers as part of the plate. They were proven in 1970's energy studies to save between 5% and 15% in energy costs depending on the original construction of the building. In 1999 these sealers were presented on Home and Garden TV as saving 10% in energy costs.

But these sealers also serve two other important tasks. First, they drastically reduce the amount of dirt and pollution that is drawn in when forced air heating or air conditioning units are running. Second, they almost eliminate one way that bugs and insects can enter a building. They just following the wires throughout the building till they come to an electrical outlet and then work their way in. These sealers prevent their entering the living or work area of the building.

Think of every outlet without sealers to have an opening the size of a reference marker. Now take 57 (our current residence) of those markers and hold them together. This is the size of the opening that the electrical outlets provide to the outside, dirt, and insects. It would probably be equivalent to a 12 inch diameter pipe opening to the outside.

Just think of what this one simple and very inexpensive item could do to help the overall energy consumption in the U.S.A.., a 10% reduction in energy consumption. Such reductions in energy means hundreds of billions of dollars destined for OPEC's pockets would remain in the U.S.A.. economy, creating millions of jobs, increase wages, and provide the money to keep the economy in a boom environment instead of the current slow down and recession we may already be in. Also, it would mean lower oil prices and that benefits every segment of our economy, especially gasoline prices and anything made of plastic.

But more importantly to you the average residence, apartment and business will probably recover their initial cost in about one to two months. The rest of the time it is just pure savings. So no matter if you own a residence or business or just renting, these sealers are a worthwhile investment. The returns beat the stock market, even the high tech stocks.

Don't forget that the building you work in probably also has electrical outlets and switches. Companies and building landlords also like to save money. A 10% savings would be big money to them. Put it in your company's suggestion box. You may get a reward or bonus. With my luck it would be a pat on the back. But that would be OK if it was above the waist.

If you have friends or relatives living in other areas, please help them by telling them about electrical outlet sealers. Americans must help other Americans. Utility companies and the U.S.A.. and OPEC oil cartels do not consider these electrical outlet sealers to be one of their favorite products for Americans to use.

China Pollution and Kyoto Protocol

Now we can spend hours discussing the pros and cons of the 1997 Kyoto Protocol and how Americans are targeted to pay dearly for some mythical claim that we are the cause of all the world's pollution.

But before this discussion there is an interesting story going around about what happened at a recent meeting in Washington, D.C. of the experts on global warming and climate changes. After the meeting it was raining outside. One observer noticed that about 80% of the expert attendees failed to bring an umbrella. Conclusion: If these experts do not know when it is going to rain in D.C. and were not prepared with an umbrella, how can we rely on their projections of what will happen 100 years from now.

This information is mostly from Dr. Evelyn Browning Garriss' newsletter of June 22. 2001. Dr. Garriss is the daughter of Dr. Eben Browning, who was probably one of the great geniuses of our time. She is carry on with his work and is an expert in her own right on world climate and its affects on our world.

The section is entitled: "Flying Dust and Crud".

Here are excerpts from this article which is an amazing revelation.

"The U.S.A.. National Aeronautics and Space Administration (NASA) has developed a new Earth-orbiting monitor that provides the most comprehensive view to date of world air pollution transcending continents and oceans."

"...the satellite showed a major proportion of the world's pollution comes from peasant economies and natural causes."

"An important finding of the observations was that the air pollution generated in one area could be carried globally. For example, air pollution plumes from Southeast Asia move over the Pacific Ocean and reach North America, frequently in fairly high concentrations."

"Asian pollution typically takes from 4 to 10 days to cross the Pacific... Measurements of air coming from the Pacific show a jump in the concentrations of carbon monoxide, hydrocarbons and other pollutants from fossil-fuel combustion. "

"In 1998 a series of strong dust storms in China lifted 140 million tons of fine soil particles into the atmosphere where they were swept up by winds moving east. It took a week for the dust to reach western North America, where it turned the sky milky white.

In late April, the Asian dust was so thick that the concentrations of fine particles in the air at the usually pristine Crater Lake, Oregon, equaled 40 percent of the EPA daily allowable limit for the United States. Along with the dust came measurable quantities of arsenic, copper, lead, and zinc. The heavy metals were traced to smelters in Manchuria."

In the 1997 Kyoto Protocol the U.S.A.. will be severely fined for exceeding standards set by the treaty; your tax dollars. So here we are about to be fined because China and other Asian countries pollute our air.

I forgot to mention that China, India, Mexico, and a host of third world developing countries are EXEMPT from the standards established for a period of 10 to 15 years. China is the second-largest emitter of greenhouse gases after the U.S.A..

The Wall Street Journal talking about Kyoto said,

"What's really interesting, however, is that the EU not only demands that the U.S.A.. adopt Kyoto, but that it adopt the most expensive version of it... Meanwhile, not a single EU member state has ratified Kyoto..."

This is all a scheme to lower the living standards of all Americans and transfer our wealth to other countries and their economies.

Dr. Garriss' newsletter also states:

"...that African dust that crosses the Atlantic and brings beautiful sunsets to Florida also carries potentially harmful bacteria and fungi as well." A little scary-no?

In the March 25, 2002 issue of the Browning Newsletter, Dr. Garris said:

"Recent findings indicate that large Chinese dust storms pick up industrial pollutants and cross the Pacific Ocean. The last great storm, in 200, caused heavy rainfall in the Pacific Northwest and hazed American skies as far east as the Great Lakes. Expect to feel China's pain (current dust storms) in Late March and early April."

Alaskan Oil - Fact or Fiction

Well it is time you get the truth on the Alaskan oil situation so you can make up your own minds, rather than being brain washed by the news media and the environmentalists that promote this type of propaganda and the other side that says everything is fine.

The environmentalists believe the U.S.A.. should not have oil as an energy source because of global warming regardless of the cost. If all Americans, except the wealthy, have to live in poverty that is OK because they are saving the world. We should all be immediately required, regardless of cost, to drive fuel cell or other types of vehicles that do not use hydrocarbons.

If the environmentalists were true to their cause, they would have required the 87 miles per gallon carburetor I mentioned in one of my recent emails be used years ago. Their position sometimes is a little hypocritical.

Why aren't they advocating the installation electrical outlet sealers as described in this section? This would reduce energy usage 10% and help save the environment.

I wonder who funds the environmentalists. I ask this because most of their actions seem to favor the American and OPEC oil cartels rather than solve our energy and their environmental problems.

However, those advocating that using the Alaskan oil will solve all of our energy problems and not effect global warming are also not telling the truth.

I believe neither side has enough proof to stipulate that global warming is or is not associated with the use of oil and natural gas for energy and driving our vehicles.

But this writing is not to take either side. The facts will be presented. Each must decide on the Alaskan oil situation.

From a January 2001 article in the Wall Street Journal we read:

"If Louisiana can do it, why can't Alaska? We already have experience in Alaska. A good example is Prudhoe Bay, which has produced 20% of our domestic oil since it was developed more than 26 years ago. It has done so in a way that is both economically viable and environmentally safe.

The Arctic Refuge is estimated to have even larger reserves than Prudhoe Bay and it could replace our oil imports from Saudi Arabia for the next 30 years. The Arctic Refuge could produce up to 1.5 million barrels a day for at least 25 years, a figure equal to nearly 25% of our current daily oil consumption.

In 1987, after studying the area for five years and finding there would be no significant adverse environmental effects on the region, the Department of Interior recommended the Arctic Refuge be developed. In a poll conducted just last April, nearly 71% of Alaskans support exploration on the refuge.

We also know that, thanks to advances in technology, fewer than 2,000 of the refuge's 19.6 million acres would be affected by oil development. The area would only be explored during the winter months..."

A February 15, 2001 Wall Street Journal article is entitled "Study Predicts U.S.A.. Need for Oil From Middle East Will Increase." Why do we need all that Middle East oil? The 2,000 acres in the Arctic National Wildlife Refuge in a recent survey puts the supply at up to 16 billion barrels, which would replace what we currently import from Saudi Arabia for 20 to 30 years.

To put the oil drilling area in proper perspective learn these facts:

"Alaska has 378 million acres. The Arctic National Wildlife Refuge is 19.6 million acres. The area open for drilling is 1.5 million acres; it is about 100 miles across and 30 miles wide. Of this 2,000 acres are needed (for drilling). Dulles Airport is 11,000 acres."

Let us look at this economically. This area can produce 1.5 million barrels of oil a day for at least 25 years. At $25 per barrel we are currently paying OPEC that equals $13.7 billion a year. That is $13.7 billion that will go into the U.S.A.. economy to create jobs and lower Federal, State and local taxes and not help the OPEC counties economies. It increases the economic activity in the U.S.A.. by $27.4 billion instead of decreasing it by $13.7 billion to pay OPEC, which results in a decrease of $27.4 billion in our economy. That is a $54.8 billion difference. It is equivalent to $195 per year for every man, women and child in the U.S.A.. or $780 for a family of 4. That is every year for 25 years.

In addition, with that additional amount of oil coming from U.S.A.. sources rather OPEC, OPEC's power to reduce oil production in order to raise prices would diminish considerably and oil prices probably would fall dramatically.

Also, in the Prudhoe Bay which is currently producing 4,000 barrels a day, natural gas is readily available. There are 48 747-jet engines pumping one billion cubic feet of natural gas back into the ground 24 hours a day, 365 days a year. They have nowhere else to put the natural gas. We do not know how much natural gas is available on the 2,000 acres for drilling in the Arctic National Wildlife Refuge. Have you checked the price of natural gas these days?

What the environmentalists and the national news media want you to believe is that all this drilling will destroy the wildlife, especially the caribou. You saw it every day on TV. But the Alaska Fish and Game Department recently did a study that showed that since 1969 the caribou herds around Prudhoe Bay have increased 35%. That's the national news media - distort or not tell the other half of the truth.

But the environmentalists always go back to the global warming position and they may be right someday. But I think there is insufficient data to prove or disprove the global warming theory.

Now you can decide on what your position should be on the issue. May be this will help some of you have more data in order to express an informed opinion based on the facts.

Tax Reductions are Unfairly and Inequitably Applied

The Wall Street Journal (WSJ) editorial section recently stated that individual Federal income taxes account for more than half of all federal revenues. This means that only half of the current and projected surpluses are derived and will be derived from the individual income tax.

One half of the current and projected surpluses are based on all other taxes and revenues the Federal government receives, such as gasoline and fuel taxes, telephone assessments/fees, and many more too numerous to mention.

Yet all of the surplus revenues will be returned to the people based on the individual income tax. This means that middle and lower income individuals and families who pay little in income tax but contribute to one half the surpluses are again getting the short end of the stick.

This is a brilliant method of transferring the wealth of the country from the 90% to the wealthy 10%.

The above deals with the Federal government, but the same is true for State and local governments. The most common tax reductions are in the income and property tax. But there are many more taxes/revenue collections that mostly go unnoticed.

Here is a list of some of the various taxes/revenues collected by most State and local governments:

From Taxes:  
   Personal income  
   Single business  
   Real estate transfer  
   Tobacco products  
   Beer and wine  
   Casino gambling wagering  
   Horse race wagering  
   Estate and inheritance  
   Telephone and telegraph company  
   Commercial mobile radio service  
   Insurance company  
   Motor vehicle weight  
   Aviation fuel  
   Diesel fuel  
   Gas and oil severance  
   Industrial facilities  
   Convention hotel accommodation  
   Airport parking  
   Penalties and interest  
From Services:  
   Charges for furnishing vehicle driver records  
   Revenue for patient, ward, and inmate care  
From Licenses and Permits:  
   Liquor retailers', Manufacturers' and    wholesalers' licenses  
   Motor vehicle operators' and chauffeurs'    licenses  
   Examination fees- financial institutions and    insurance industry  
   Concession and privilege fees - parks  
   Motor vehicle related  
   Hunting, fishing and trapping licenses  
   Public utility assessment fees  
   Consumer and industry Services licenses and    permits  
   Auto repair facilities and mechanics licenses    and fees  
   Corporation franchise fees  
   Income from investments  
   Tobacco settlement proceeds  
   Various fines, fees and assessments  
   Court fines, fees, and assessments  
   Oil and gas royalties, fees, assignments and    rentals  
   Environmental pollution settlements  
   Fair revenues  
   Child support  

Notice that the income tax and property tax are just two of many revenues collected by State and local governments.

As the qualifications on my site show I worked in cost allocation accounting for approximately 15 years. Based on my experience the proper method of returning the surpluses to the people should be to allocate tax/revenue reductions based on what CAFR fund and revenue contributed to the surpluses.

The CAFR Budget System explained in this site insures that surpluses do not accumulate and allocates any excesses as reductions to the source of the excesses.