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You May Need Awhile To Let This Tax Pretzel Digest

Home - by - December 9, 2012 - 21:00 America/New_York - 35 Comments

HT/ JC LAdy

Breitbart-

Let’s say you own a home and your mortgage is $1,000 a month. If, however, you instead rented the home from a landlord your rent, let’s say, would be $2,000 a month. To the mandarins at the IRS, you are “earning” an implied $1,000 a month because you own and not rent, and that “value” should be added to your taxable income. If you own your home out-right and don’t have a mortgage at all, you would be “earning” $2,000 a month which the IRS thinks should be added to your taxable income.

I have no doubt there is an elaborate, overly complicated theory for how this makes sense. But elaborate, overly complicated theories are also often silly. I own a car. If I didn’t, I would have to rent one from a rental firm, which would be considerably more expensive. Is the difference between my car payment and hypothetical rental fees something I “earned” which should be added to my taxable income?

Yes it is, say the bureaucrats in Washington.

This, to me, is a sign of how big a challenge we face in reigning in Washington. When the feds consider money I don’t have to pay because of a choice I made as a taxable event, then the leviathan is truly all-consuming.

Oh, and the feds list this exemption as one of the top “loopholes” in the tax code. They estimate that it “costs” the feds over $50 billion a year to not levy this tax. Yes, in Washington, items exempt from taxation are considered “costs” the government bears.

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» 35 Comments

  1. eternal ¼ cracker p

    December 9th, 2012

    So by the same logic, those who use LED and CFL light bulbs should pony up their savings versus incandescent and halogen. Those who drive a prius, volt, etc, need to pony up their savings realized thru government incentives and reduced MPGs. Those who have only a cheap ass Obamafone need to throw some dollars up versus the iphone5. Fair is fair.

    Noteworthy Comment Thumb up +19

     
  2. Blink

    December 9th, 2012

    Be responsible, play by the rules. Get screwed.
    Be irresponsible, break the rules. Be rewarded.

    Noteworthy Comment Thumb up +17

     
  3. Nutjob

    December 9th, 2012

    EXACTLY Eternal cracker!

    ISn’t it funny how they want to tax capital gains on the wealthy and now because of their spending have to resort to unrealized capital gains.

    Whats next potential gains tax.

    Mr. eternal Cracker, we believe you could’ve made more last year and aren’t living up to your potential, so by our calculations, you intentionally made less money to evade taxes.
    So were ging to tax you on what we think you could’ve or should’ve made.

    Noteworthy Comment Thumb up +16

     
  4. J. Galt

    December 9th, 2012

    Keep doing what you are, dot-gov. Tax and regulate away ALL incentive for production. Graduate high school students with the education level of 1960′s grammar school kids. Graduate college students with debt to their asses who cannot get a job.

    Yea, so you’ll be in control, dot-gov. But, in control of what? A freaking shit pile, that’s what. Reap what you sow, dot-gov. Enjoy the taste.

    Noteworthy Comment Thumb up +13

     
  5. Xavier

    December 9th, 2012

    Sooner or later we’re going to be taxed on our IQ.
    And sunlight.

    Thumb up +9

     
  6. RosalindJ

    December 9th, 2012

    There is no end to what will be considered taxable.

    One of the funniest lines ever on the topic was from an old Dr. Who, talking about a repressive overseer group (I’m talking about 30 years ago, so I don’t recall the episode): “like a double vision tax on people with more than one eye”.

    Because I know several older couples who have gone the reverse-mortgage route, how does this affect them? Any idea?

    Thumb up +7

     
  7. "That Guy"

    December 9th, 2012

    Next up, the money healthy people don’t spend on health car will be considered taxable income…

    @Nutjob
    They can call it the “Galt Tax.”

    Noteworthy Comment Thumb up +12

     
  8. Boobie the Rocket Dog

    December 9th, 2012

    So… NOT paying the highest price possible for something counts as income?

    Shopping for food at Wal-Mart rather than Krogers?

    They can’t tax something as income until it comes in.

    Don’t think that would stand up in court, not that Obumfuk wouldn’t try, NOW THAT HE HAS NOTHING TO LOSE.

    Noteworthy Comment Thumb up +11

     
  9. eternal ¼ cracker p

    December 9th, 2012

    Those damn rainbows casting light on a unicorn, man, if I could do that it would cost a fucking boat load. I mean, they have every single color. That has got to cost a fortune. If only I could ask the rainbow man what it cost, I would pay him.

    If my payment was accepted, I would kindly ask he point me in the direction of the person responsible for creating the double rainbow.

    Thumb up +5

     
  10. Nutjob

    December 9th, 2012

    Sooner or later we’re going to be taxed on our IQ.
    And sunlight.

    @xavier,
    I fear that one would be unconstitutional, because it would mean democrats would get a tax break based on party voting affiliation.

    Thumb up +6

     
  11. Nutjob

    December 9th, 2012

    Next up, the money healthy people don’t spend on health car will be considered taxable income

    @Thatguy, its already in the books for Obamacare, you don’t buy it you get taxed on it, they even argued it was a tax to the SC.

    Thumb up +8

     
  12. Mary Jane Anklestraps

    December 9th, 2012

    “Golly, your honor. I have no idea how my boot ended up in that IRS agent’s ass.”

    Noteworthy Comment Thumb up +15

     
  13. Bad Brad

    December 9th, 2012

    Nutjob, The secret is, everyone pay the penalty. It’s cheaper. This guy and his socialist buddies just ain’t that smart. Disturbingly, they seem to be smarter then our elected conservatives. Give this bitch everything he wants now, save anything to do with the 2cnd, he will own it. It;s the only quick way out of this Marxist regime. Give em full rein.

    Thumb up +5

     
  14. Nutjob

    December 9th, 2012

    @Brad,
    I hear ya, the only problem is it comes down to the media once again……who’ll never allow them to own up to anything….Its always someone elses fault..its the liberal mantra.

    Thumb up +5

     
  15. Xavier

    December 9th, 2012

    @Nutjob

    “I fear that one would be unconstitutional”

    What is this “unconstitutional’ of which you speak?

    ————————————————-

    But really, what’s the difference between being taxed on hypothetical rental fees and hypothetical unrealized income? I’m not kidding.

    Thumb up +7

     
  16. Nutjob

    December 9th, 2012

    So I wonder if the section 8 and EBT card users are going to have to pay taxes on something they should’ve bought based on the realized savings from using other peoples money?

    Oh, wait, my bad, they get the useless scumbag worthless piece of shit exemption.

    Thumb up +5

     
  17. Nutjob

    December 9th, 2012

    This whole thing could open up a pandoras box of taxes…….not like the spendocrats will care but farmers could be taxed for not fall plowing and saving money, college students for getting lower interest loans or grants…ok maybe not that one.

    But what about FLuke, shouldn’t she get charged for services she should be charging for?

    Thumb up +7

     
  18. Nutjob

    December 9th, 2012

    But really, what’s the difference between being taxed on hypothetical rental fees and hypothetical unrealized income? I’m not kidding.

    None Xavier, this is exactly the kind of free-for-all the spendocrats want.
    The sad thing is the bootstomping ignorant bootlicking kool-aid drinkers think its for the bettermeant of society, when all it does is enriches the elitist and appointed decision makers.

    Amazing how these math illiterates could care less of the wasted billions for their free phone, or 1/2 off electric bill, or rent.

    Thumb up +4

     
  19. Bad Brad

    December 9th, 2012

    Nutjob

    “I hear ya, the only problem is it comes down to the media once again”

    That the point. Hold a press conference after they vote out the sobbing idiot.
    Barry won the election, we are giving him anything he want’s unimpeded, except for the 2cnd. Enjoy your self bitch’s. They freaken know. They’d be slitting their wrists. It’s the only logical move.

    Thumb up +4

     
  20. Wyatt, Insensitive Progressive Jerk

    December 9th, 2012

    Economically, any such plan is based upon stupid assumptions. Assume I have a mortgage of $1000 per month. My real estate taxes are about $400 per month, insurance is about $100 per month, and maintenance runs about $400 per month (landscape, upkeep, etc.). As a result, I spend about $100.00 per month less than the $2,000 per month renter, who normally pays none of these particular expenses.

    The Administration, if they are proposing this, is proposing nothing more than punishing responsible people. But then again, that’s nothing unusual for this bunch.

    Noteworthy Comment Thumb up +14

     
  21. Name Redacted™

    December 9th, 2012

    This will hurt the left coast home-owning elitist leftards pretty good. Sooner or later the Demon voters who actually function like responsible conservatives are going to get a hard slap.

    Thumb up +5

     
  22. Bad Brad

    December 9th, 2012

    Wyatt, YOUR PAYING 40% IN PROPERTY TAX. Oh yea, forgot you live in Cali.

    Thumb up +5

     
  23. Ann Barnhardt

    December 9th, 2012

    Cough. TAX STRIKE. Cough.

    Noteworthy Comment Thumb up +12

     
  24. Bad Brad

    December 9th, 2012

    How’s that working out?

    Thumb up +6

     
  25. Wyatt, Insensitive Progressive Jerk

    December 10th, 2012

    @Bad Brad: No, I’m not paying 40% property tax, and the above was for illustration only. I have never refinanced my house, have lived in the same place for 20 years, and even with this recession, I could not really afford to buy my house now.

    Thumb up +4

     
  26. piers quare

    December 10th, 2012

    OK, since I own this property, I am therefore the landlord. Thus, I am losing $1000/mo in potential rent…hmmm, I see deductions for the clever, instead.

    Thumb up +5

     
  27. Dadof3

    December 10th, 2012

    Bad Brad,
    Me, Anne B. and hopefully a hell of a lot more aint paying any penalty for not buying the scam.

    They will have to jail us (I for one am not going peacefully)

    or kill us (not going quietly into the night, either)

    This shit has to stop and playing along won’t stop it!

    Thumb up +2

     
  28. Czar of Defenestration

    December 10th, 2012

    Remember ObamaCare…and “Justice” John Roberts’ remarks?

    His “Enabling Law of 1933 2012″
    argumentation will be only the opening gambit, if this nonsense is allowed to continue.

    Commerce. Clause. Gone. Wild.

    Thumb up +1

     
  29. Czar of Defenestration

    December 10th, 2012

    Taxation as the new version of slavery:

    http://www.americanthinker.com/2012/12/obama_and_slavery.html

    Thumb up +1

     
  30. Billy Fuster

    December 10th, 2012

    Regardless of how it seems on the surface the federal government knows better that us. After all they are our protectors. As good citizens of the state we should volunteer to send more than our share of taxes to them.

    Thumb up +1

     
  31. Czar of Defenestration

    December 10th, 2012

    FROM
    http://www.theobjectivestandard.com/blog/index.php/2012/12/the-lefts-egalitarian-trap-and-why-republicans-must-not-step-in/

    “The left’s immediate goal is to forcibly redistribute the wealth of the top one percent. But if—as the left asserts—this is the “moral” thing to do, why stop there? The top 2 percent have more wealth than everyone else, too. So do the top 3 and the top 5 and the top 11 percent. If Republicans accept that it is “moral” to confiscate and redistribute someone’s wealth because he is wealthier than others, then Republicans have no defense against tax hikes on anyone and everyone who earns more than anyone else.

    The left’s “one percent” strategy is an egalitarian trap. The logical endgame of their premises is a collectivist society of universal economic, rather than legal, equality—a society in which everyone is equally poor. This scheme is an assault not only on the so-called rich, but on every productive American. If the Republicans accede to the Democrats’ demands, the Republicans will have handed the left a political “gift that will keep on giving”—which here means redistributing—as long as there are differences in income.

    Everyone who understands arithmetic knows that whatever increase in tax “revenues” follows from increasing the top tax rate from 35 percent to the pre-Bush 39.6 percent will barely dent the deficit, but the left calls for the increase anyway. Why? Because the left’s goal is not to reduce the deficit, but to redistribute wealth—and this is just the beginning.”

    Thumb up +3

     
  32. jeckelmyhyde

    December 10th, 2012

    They will be stepping up the effort to get your guns.

    Thumb up +2

     
  33. Nutjob

    December 10th, 2012

    Bullets are next jeckel,

    You reload, then you owe taxes to the government for bullets you should’ve bought and paid taxes on, and being the tax crime involves a gun now its a mandatory felony with prison time.

    Thumb up +1

     
  34. Bad Brad

    December 10th, 2012

    Dadof3, I don’t know if you’ve stopped to consider this, but the Federal Government in essence has facilitated it own tax strike. Hasn’t stopped a damn thing. They just keep borrowing more money. You will never get enough people organized to make an impact. It’s zero sum.

    Thumb up 0

     
  35. Dadof3

    December 10th, 2012

    So the choice is either:

    Play along and…. what? make no difference except be broke and lost rights? Become a New World Order Slave like they want? Hope they come for you last? Pray I survive a crime wave that would ensue a loss of rule-by-just-law with no means to fight back (let them have your guns, etc.)

    Not play along and… stand on your rights and put your heart and soul into making America as it once was a long time ago. Actually free.

    I choose to be free until they try to physically take them away and I will make them pay the biggest price possible if they go there. They will be putting their life on the line too.

    At this point I have only one thing to say, if I truly am alone in in taking a stand about this.

    Leave me the Eff alone. Risk that at your own peril.

    Go ahead and pay your penalty. Fill out your Doctor/IRS info sheet when you visit for your flu shot and whatever else they decide you must do because you haven’t been broken enough yet if you’re still playing.

    Question is… Where is your line that is “too far” and you say Enough! ?

    They passed it for me already. I’m standing ground.

    So… where is your line at? Never? Just take the legalese route and try to work them by just paying a penalty and yet allowing all your rights to vansih? Good luck. They make it up as they go along anyway. They want you to do what you are doing. You are not disrupting them at all with that plan.

    Thumb up +1