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"Time is Money"We Save You Time So You Can Make More Money!Previous Newsletters |
TFS Online NewsletterThe following is from our periodic newsletter. Tax laws change every day, therefore we provide our customers an informative newsletter to keep you informed on the changing tax laws that effect the trucking business. If you would like us to contact you concerning our newsletter and our other services, click here."EVER WONDER WHY THE IRS CALLS IT A FORM 1040?" ASKS JAY LANO. "FOR EVERY $50 YOU EARN, YOU GET 10 AND THEY GET 40." If you want a good list of deductions that truckers can deduct then fill out the "CLIENT CONTACT FORM" at the end of the web site. I get asked, quite often, what my views are on the flat tax, sales tax or just keep the system we have. I am not a complete expert on the subject, if'in I was I would be in Congress and on them there Sunday TV talk shows. I have spent the last 18 years fighting for the FLAT SALES TAX. Everyone that followed my column in THE TRUCKER for six years knows how I feel. That is why President Hilary got me canceled. This change is on the magnitude of the writing of the Bill of Rights and the Constitution of the United States. I am not going to spend paper and time calling the IRS names. You already know all those names and practices. The INTERNAL REVENUE SERVICE does not collect enough money to pay for its own expenses! Read that again. Most of the money collected by the UNITED STATES government does not go thru the IRS. It goes to the US Treasury. The moneys that companies deduct from employees wage does not go to the IRS it goes to the US treasury. When you file your taxes, pay your estimated taxes, your FHUT, and self employment taxes, you pay them to the US Treasury. The IRS collects from people that they audit (many incorrectly), catch not filing, and some that are just plain not in the system. The INTERNAL REVENUE SERVICE says that 75% of the letters they send out telling taxpayers they owe money are incorrect....90% of the people that get these letters pay them. Because of the "TAX CODE" most of the large companies are able to haul freight for next to nothing and still make huge profit! HOW you say? First off the US Government subsidies the truck driving schools by guaranteed loans, and grants for under employed or unemployed. Then the US Government though the "TAX CODE" gives these companies tax credits for hiring these people, then subsidies their wages for the first year. That tax credit is for every person they hire no matter how long they stay with the company. The subsidy goes some thing like this: 100% first three months, 75% second three months, 50% third three months and 25% last three months. Do you see a pattern here? Even it the person stays for a whole year the US Government pays half of the salary Then there is the depreciation set up by the "TAX CODE". What a way to go, the trucking companies can now deduct the entire cost of the truck from their corporate taxes. So now you have FREE trucks, tax credits and paid employees by the US Government! How many trucks you gonna buy???? All this and at your expense...thank you "TAX CODE". Think about this. When there is a shortage of anything, coffee, meat, water, the price goes up and up and up. There ain't no shortage of truckers. There is a shortage of brains. A dispatcher can't figure out how to dispatch a truck until it has sat for a few hours. And all the time the company is making money while the trucker is sitting! You want to make more money? Join the union or get rid of the INTERNAL REVENUE SERVICE and the "TAX CODE" Fifty percent (50%) of the people living and working in the United States are not paying income tax. These are not rich people as some would like you to think. They are the people that work for cash, the lumpers, people that own a business that receives cash. Look at it this way, the only reason that the other half pays taxes is because they get W-2s or 1099s. By getting rid of the INTERNAL REVENUE SERVICE and the "TAX CODE" will also at the same time get rid of all other taxes imposed by the US Government. Excise tax, FHUT, fuel tax, capital gain tax, and a host of other taxes including Social Security (self-employment) tax. Did you know that more than 45% of the cost of a new truck is Federal Taxes? It is about the same for a new automobile. Most of the tax on vehicles is EXCISE TAX. Webster defines EXCISE TAX: an internal tax levied on the manufacture, sale, or consumption of a commodity within a country. 2: any of various taxes on privileges often assessed in the form of a license or fee. When was the last time you knew that any excise tax was raised, or even when the last or any time the income tax was raised? Sure every day we are told that taxes are coming down! OK! Then how come "freedom day," gets further into the year? How come we pay more than 50% of our income in taxes? I will tell you one thing, you know when the sales tax goes up even a quarter of a percent. You say, "look at all the people that will be unemployed?" That is right. When people have more money to spend, the economy grows and more people are employed. Don't worry about the people that work for the INTERNAL REVENUE SERVICE. I promise you that each and every truck will have an IRS agent serving you a toothpick from the sleeper berth. So what is wrong with a FEDERAL SALES TAX? Everyone buys something! The dope pedlar when he buys his Mercedes, the prostitute when she buys cloths, the Gardner, the pool cleaner, and the "honest" people that are working for cash. Just the fact that the lumpers will be paying taxes on everything they buy, makes me want the FEDERAL SALES TAX. A flat income tax where you fill out a post card and file your taxes with the INTERNAL REVENUE SERVICE is no change. The same 50% will not be paying taxes. The same problems will still exist with the over staffed, over paid, under achieving IRS people. The believers say that the sales tax will be 17%. OK lets look at that. Now everyone will be paying taxes on everything they buy. People will be buying more! There is another side to this also. The states will be collecting the tax and paying it to the Federal Government. WHO controls the money? It is easier for us to control our state politicians than the federal ones. Now the states are in control of the money. Remember in 1972 when the Federal Government told the states that if they didn't enforce a 55 miles per hour speed limit, they, the FEDERAL GOVERNMENT, would withhold their money???? How about seat belt, helmet, and a host of other FEDERAL LAW that were imposed by a bunch of politicians that we can't control? After we get rid of the INTERNAL REVENUE SERVICE, lets then overhaul the Federal Government and really make it efferent and smaller! If you are really interest in helping to get this great country back on track go to www.not4irs.org and see what just one vote can do. How many people were at Boston, or signed the CONSTITUTION OF THE UNITED STATES? It is tax time again, maybe one of the last tax times, if I can be of any help please E-mail me or call me. 1-800-328-2937 Check out some of the other news letters, let me know what you think. HAPPY MOTORING AND I WILL...SEE YOU AT THE TOP. RUSSELL E. FULLINGIM, CTP
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