With tax day rapidly approaching I thought it wise to see if blame the wealthy has kicked in yet. Not to my surprise one of the largest California papers stayed true to my blame prediction. If you own or soon will own silver or gold please pay close attention to today’s post. We are about to enter an age of blame that will with all certainty include folks just like you. Your plan for 2012 must include precautionary wealth.
The Sacramento Bee is the proud originator of this article. I want to hit the high points before adding our two cents.
If California taxpayers paid up, state’s deficit would disappear. THE SACRAMENTO BEE
As Californians put the finishing touches on their income tax returns, tax collectors say the state’s $9.2 billion deficit would drop to zero if all taxpayers submitted what they owe.
That means every resident claiming the market value of tattered jackets donated to charity. Every business reporting every dollar of income they receive even when paid in cash. Every service worker reporting every tip. And every resident paying use tax on Internet purchases.
But full compliance does not occur.
In a new estimate, the Franchise Tax Board says that $10 billion in state income taxes go unpaid each year, often when workers receive payments under the table, businesses skirt reporting requirements or people take deductions for which they do not qualify. The state Board of Equalization says an additional $2.3 billion in sales and use taxes go unpaid.
“It’s our way of investing in society for the various benefits we receive,” said Jerome Horton, who helps oversee the state’s two major tax agencies as chairman of the Board of Equalization and board member at the Franchise Tax Board.
Horton is pushing Senate Bill 1185 with Sen. Curren Price, D-Los Angeles, to create a “Centralized Intelligence Partnership” that would coordinate data across state agencies to flag tax evaders and people selling illegal goods and services. It would incorporate data from agencies ranging from the DMV to the Department of Consumer Affairs. READ MORE HERE.
PROSPECTOR: I want to make full disclosure from the start. I’ve owned multiple businesses in California and very familiar with the state’s monetary miscues. I read this article two times just to make sure I didn’t miss anything, I did not. But what the article should have said I’m saying right here.
Articles like the one above must serve as a giant red flag to PM (precious metal) owners.
We mustn’t view this as an alarmist but realist. The article screams “look out” loudly and all with wealth must understand what is not written into the article. It is quick to continuously point out the need for all to pay fair share echoing the same tune from DC. Personally, it only validates my savings in silver and gold.
There is no mention of massive regulation and the multiple layers of bureaucracy necessary to administer business busting policy. No mention of millions illegally manipulating a welfare system, health care system, and multiple other programs too. Nothing mentioned of swollen entitlements imploding from an unsustainable system regardless of tax revenue.
So what is the truth?
The truth is some taxable revenue always falls through the cracks. Not everyone completely stops at a four way. Not everyone drives the speed limit, not everyone pays taxes on 100% of their taxable income, sorry. The truth is most business owners (independent employees) are simply trying to survive.
But this is a prime example how bigger government or states like California don’t get it. To focus on the 10% unpaid and not on real issues is ridiculous. Why? Because to squeeze hard enough to juice the remaining 10% requires driving out thousands of compliant taxpayers and businesses. This is exactly why I’m not writing this from California.
But this goes beyond what most see as apparent!
This is about taking sides. This is about us against them. This is about if only the ones not paying fair share paid more. This diverts attention away from state level monetary miscues and puts the blame on the tax payers. Who needs to shrink government if we can milk a few more billion from captive Californians?
This is where we must tie today’s post into silver and gold.
We are now entering an era where all wealth targeted. Do you actually think the big squeeze stops with the guy mowing lawns for cash? Look around to prove my point. How much wealth do you store in indefensible assets? Your home targeted by property taxation, all your vehicles too. Your savings fall victim to inflation. Washington now has big plans for private retirements. The list of defensible assets is short.
The freedom to own silver and gold provides an opportunity to practice precautionary wealth.
Let me explain. Silver and gold provide hidden savings and wealth, few assets can say this. Here is a list explaining the benefits of hidden wealth (precautionary wealth)
- Precious metals still offer unrecorded ownership.
- Precious metals are a worldwide universal currency.
- Precious metals can be stored outside of country of citizenship.
- Precious metals ignored as a store of wealth.
Not a day passes without someone mentioning silver or gold confiscation. To me, this is less likely compared to confiscating more traditional assets via inflation and government overreach. Articles like today must serve as a sign of what’s to come. “Yes” it’s time to turn up the savings in silver and gold.