I feel better knowing that our politicians will fly in the comfort that they deserve. The House of Representatives added $330 million to the defense budget to purchase 4 brand new planes for the Air Force “VIP” fleet. These planes are used to fly White House Officials and Generals around the world. They are also used by politicians on trips that need to be taken.

Of course, this is necessary. The House of Representatives state that they need to replace those “aging airplanes.” You know, the leather isn’t quite as comfortable. The planes are not as fast as the new ones. They are “last years” model. Plus, I am sure spouses (who get to fly for free) are just not as comfortable as they could be. I can completely understand the need to spend $330 million when Americans are suffering during the worst recession since the Great Depression.

Ok, politicians will be politicians and spend this type of money. However, it is the sheer arrogance of spending this type of money ($330 million – well I guess it isn’t a trillion) on a luxury item when this country is struggling. That should have every American in an uproar.

So, I have an idea. I think that the problem in Washington is simply that they are out of touch. Maybe given a dose of reality of how the common folk live might make them better lawmakers. It costs $6,100 an hour to fly these planes. How about saving taxpayers some money and make the politicians fly commercial with the rest of us peons. They can wait in long lines and endure air travel with the rest of us. They can even fly their entire entourage first class and still save money. Better yet, they can get to know the common folk while waiting in airports. After all, it is the common folk who put them in office. Surely, they are not so important that they need special air travel.

My second dose of reality is to remove all of the special medical serves that they have at their disposal 24 hours a day and make them use the healthcare program that they are ramroding down the throats of America.

Politicians need a dose of reality. The entitlement attitude is destroying this country.

Tags: Air Force, Bob Brooks, Deceptive Money, Generals, Great Depression, House of Representatives, politicians, Prudent Money, recession, taxpayers, Washington, White House Officials

Tags: Bob Brooks, Deceptive Money, federal withholding, Government, joint return, Prudent Money, refund check, retroactive credit, Stimulus package, tax credit, tax free loan, taxpayer, withholding's

Oh another day, another billion dollars of our money going right down the toilet.  After Chrysler filed for bankruptcy today, President Obama pledged to reward Chrysler for bankruptcy by pledging up to another 8 billion dollars.  So, let me see…all I have to do is run a company into the ground, live off of the government for roughly 4 months, file bankruptcy, and then get another fat pay-day? 

After bankruptcy (if Chrysler pulls this off) the United Auto Workers will own 55% of the company and the US Government will own 8%.  It is amazing how these unions continue to get protected under the Obama Administration.  Well, not really…he has to take care of the unions.  The United Auto Workers are a very big reason why the auto industry is failing and they are going to be 55% owners. 

The better news is that the Government is 50% owners of GM.  Would you have thought just last year that the Government would have owned or had ownership interests in insurance companies, automakers, banks, investment companies, mortgage companies, etc…

Socialism - a political theory advocating state ownership (Government) of industry (business)

I was having this discussion with my wife and she kept saying that it would never happen.  The problem is that it is happening.  The bigger problem is that the American people don’t believe that it could happen.  I see this happening quickly at all levels.

Tags: bankruptcy, Bob Brooks, Chrysler, Deceptive Money, Obama Administration, President Obama, Prudent Money, socialism, United Auto Workers, US Government

Now, taxpayers who owe taxes get to deal with the debt collection department of IRS.  Owing money to the IRS is much like owing money to a payday lender.  If you have a big tax debt, it can take forever to pay it back due to the outrageous interest and penalty charges.  It is no different than the exorbitant interest rates charged by payday lenders. 

What about the rest of us?  Well, one of the many major initiatives that Obama is undertaking includes overhauling the tax code.  We already know that anyone with an income less than $250,000 will not get their tax “brackets” increased.  However, what about the rise in other forms of taxes?  How can the government accomplish that?  They do it by tinkering with the tax code.  The raising of taxes for ALL Americans is being done under the radar.  Most Americans will feel the pain of an increase in taxes and never know what has happened to them.  

The bottom line is that an increase in tax revenue is the only thing that is going to pay for this irresponsible spending in Washington.  We are going to be paying for more than just AIG bonus plans.  We are going to pay for everything.  You just cannot spend your way out of a financial crisis.

Tags: 401(k), Bob Brooks, Deceptive Money, financial crisis, interest charges, IRS, President Obama, Prudent Money, Retirement account, Tax Bill, tax brackets, Tax Code, tax revenue, taxes, taxpayers

IPOD

I was reading that President Obama gave the Queen an iPod as a gift.  It got me thinking that he had the opportunity to clear up two problems at once.  He can save the taxpayers a little money and he can fix the tax problems of some of his appointees.

The last count that I have shows 5 appointees for the Obama administration either forgot, didn’t know, didn’t understand or didn’t think they had to pay…You get the picture. They conveniently forgot and abused their power.  Politicians are entitled to do so.

The biggest tax abuser had to be Treasury Secretary Geithner.  Since he is head of the Treasury, we really need to make sure that his tax bills are paid up.  By taking advantage of the American Express tax payment plan, President Obama could get Geithner to pay his taxes online with American Express and garnish enough reward points to buy the iPod thus saving tax-payer dollars.  Of course, it would take a tax bill of $26,000 which would cost Mr. Geithner $647 for the transaction. 

So, who thought it was a good idea to give the Queen an iPod?  It is almost like one of his staff members ran down to the Apple Store right before Air Force One took off.

Tags: Air Force One, American Express, Bob Brooks, Deceptive Money, iPod, President Obama, Prudent Money, Queen, Tax, Tax abuser, tax-payer dollars, Treasury Secretary Geithner

The marketing slogan encourages you to use your American Express to pay your taxes and accumulate reward miles.  So if you pay $10,000 worth of taxes on your credit card, you get 10,000 reward points.  You then use your points to buy merchandise. 

Of course, there is one little catch.  The program does cost you an up-front fee of 2.49% of the total amount charged.  So for a $10,000 tax payment you would pay $250. 

Let’s look at a few examples – $10,000 tax payment on American Express

You would receive 10,000 reward points that would cost you $249.  Well, for 10,000 points you could get a $100 gift card to Saks Fifth Avenue or you could get a $249 gift card to Saks Fifth Avenue and just send a check into the IRS.

Let’s see what the big bucks will get you.  If you paid a $26,000 tax bill on your American Express, you would get 26,000 points and could get a brand new 8 GB iPod Nano.  The convenience fee for that tax bill would cost you $647.40.  Of course, you can buy the same iPodNano for $132.88 on-line. 

American Express, I thought you were better than that!  I hope that I read the terms and condition wrong.  If not, that is a huge rip-off.

Tags: American Express, Bob Brooks, Deceptive Money, iPod, Marketing slogan, Prudent Money, tax payment

If you were thrown a lifeline, wouldn’t you be as frugal and responsible with that lifeline as possible?  Well companies that are receiving our taxpayer money just to survive are still showing that they don’t deserve it.

Bank of America just dropped 10 million dollars (estimated – they will not release the actual dollar amount) in sponsorships for the Super Bowl.  Now when you are talking about billions of dollars, $10 million is nothing, right?  Any financial institution that is receiving taxpayer money should not be going about business as usual and spending money throwing parties.  There is no telling what amount of money is being wasted that we can’t see.

Then there is Morgan Stanley.   The 10 billion dollar tax payer money recipient held a three-day conference for clients at the Breakers, a five-star oceanfront resort in Palm Beach, FL.  They say that they make the attendees pay for their airline ticket and their room.  Regardless of how it is spun, this is a complete waste of taxpayer money.  I have been to these types of conferences and they are extremely nice and expensive to host.

Unfortunately, there is one more story to tell you about.  Wells Fargo was planning on a Big Vegus trip in April.  They booked 12 nights at two different casinos.  Nothing wrong with a little gambling with our money.

Will these financial institutions ever learn?  Unfortunately, as long as the Government just hands over taxpayer money, they have no incentive to be responsible.  This is the unintended consequence of bail-outs.  Now we get to watch as the Government wastes over a trillion dollars that apparantly does little to meet the objective of stimulating the economy or creating jobs.

This is a situation that is completely out of control.

Tags: Bank of America, Bob Brooks, Deceptive Money, Prudent Money, Taxpayer Money, Wells Fargo

I get many questions about tax situations through Ask Bob. I want to make sure that you aware of Dan Pilla. He considered the foremost expert on the IRS.

The Associated Press once said, “Dan Pilla knows more about the IRS than the Commissioner.” He has been on Prudent Money numerous times. For those listeners who are dealing with IRS issues, there are several resources.

First, there is Dan’s latest book The IRS Problem Solver. It is one of the most excellent resources that I have found on dealing with the IRS. It covers everything.

Second, Dan has an excellent web-site that is packed full of information along with a consultation service that is very reasonable.

Third, Dan is having a Taxpayer Defense Conference that might interest you.

WHAT WILL YOU LEARN?
1. How to Protect Yourself from Aggressive Audit and Collection Tactics.
2. How to Challenge Tax Audits
3. How to Stop Wage Levies and Bank Levies, and Lift Tax Liens
4. How to Negotiate Reasonable Payment Terms with the IRS.
5. How to use the U.S. Tax Court to Your
6. How to deal with Delinquent Tax Problems.
7. How to Avoid Audits and Enforcement actions.

As a registered attendee, you can receive – at no additional cost – a personal, private consultation with Dan or a member of his private network of attorneys or and accountants who specialize in IRS issues. You will walk away with specific answers to your specific IRS questions and problems. Often, this consultation is all you need to solve your problem.

Tags: Aggressive Audit, avoid audits, Bob Brooks, Collection tactics, Dan Pilla, how to challenge tax audits, IRS, Prudent Money, tax issues, tax problems, The IRS Problem Solver