[no_such_reality]

No, I’m saying the companies are choosing to pay out now because they estimate that their investors will get less in the future even after they grow it at their rate of return.

So the companies are saying it’s better to give the money to investors today at 15% dividend rates, than invest it and provide a capital gain which will likely be taxed at 20% next year.

In essence, if they’re just going to hold the money to pay a dividend in the future, that future dividend could be taxed at up to 43.4% plus State Taxes.

Which all just boils down to they can’t productively use their available capital.

For example: Let’s say Oracle has $10,000 in dividends they’re prematurely divesting. If they didn’t divest them, they would managing them as an asset. Oracle’s Return on Assets is 11% (let’s call it 10% for easy math). That $10,000 invested by Oracle at their current return on asset rates would generate $1000 of earnings. At Oracle’s current 16 P/E ratio, the $1000 of earning’s is work $16,000 of market cap gain, which is $16,000 stock value.

So $10000 given to you today at 15% tax means you get $8500 and Oracle says that’s better than paying 20% tax on $16,000 of their current return on asset (which is $12,800) or if distributed as future dividends at max tax rate (43.4%), $9056.

So it’s either a knee jerk reaction by petulant CEOs and boards or those companies doing it basically are saying they can’t maintain their return on assets going forward by investing more.

[no_such_reality]

Actually, I think what the companies behaving is foretelling is a change in investor perception of retained earnings. And whether those earnings are better sitting in company for potential acquisitions versus in the investor’s pocket looking for another investment.

People need to really pay attention, because all the companies doing this are openly admitting that they cannot provide a greater return on that money than marginal tax increase.

[no_such_reality]

When it comes to freelance, it really depends on your connections, the hotness of your skillset (i.e. seasoned mobile developer can pretty much write their ticket), and their ability to not work and be picky.

There is a lot of bottom feeding going on in the free lance space from companies to body shops. If you need a job, you’re not going to get paid well. If you have a job , you can continue to push you wage scale up.

That said, freelance pays better for developer types than FTE. FTE pays better than freelance for support/admin types if you can manage your hours. If you can’t, the hourly pay works out better as you start to bill 60 hours a week.

[no_such_reality]

[quote=harlyd]It is possible to have to pay tax, but that is in the case where the entire property is not wholly owned by the IRA. If the IRA does not own %100 of the property it can be subject to UDFI aka (Unrelated Debt Financed Income) http://www.broadfinancial.com/udfi

There are others things I would say to be aware of and that is prohibited transactions. http://www.broadfinancial.com/prohibited-transactions%5B/quote%5D

A side effect of UDFI is you can’t use a loan or mortgage to buy the property. You have to use all cash.

[no_such_reality]

Except the glaring issue, while pollution levels have dramatically fallen, Autism rates have dramatically increased.

So we may have a correlation to living near a freeway (high traffic related pollution), it doesn’t explain the over-all rise in Autism.

[no_such_reality]

BG, you just described the primary problem with our education system.

It used to be a job training program.

It’s now shifted to education for education sake. I can see some potential usefulness of italian cultural studies. Slightly more limited for italian languange or italian literature.

http://www.italian.ucla.edu/programs/grad.html

But really, apply this across virtually any culture.

I’m not opposed to education, but I truely believe, 99% of us, need an education in practical skills to allow us to have productive jobs and should reserve the enrichment education to a more modest level of expense.

And when we decide to truely get serious about education, we’ll separate the professional sports farm teams from the colleges.

[no_such_reality]

The real problem according to my tax guy is if you ever sell the property.

At least that’s what I remember. But then again, the conversation was around the IRA owning an LLC and the LLC owning the property.

[no_such_reality]

How much of that $700 Billion is the war efforts?

The war efforts that we’ve been waiting to turn down for the last four years…

[no_such_reality]

[quote=flu][quote=squat250]I kinda doubt it too. But it should be taken off the table and placed on the couch where it can get lOst under a cushion.[/quote]

Well I think a lot of this is MSM speculating on what one or two crazy politicians might think….Who knows, they might start taxing money that isn’t spent from a savings account for all we can think of..[/quote]

We want to remove the mortgage deduction.
We want to remove the 401K deduction.
We want to raise income tax.
We want to raise sales tax.

Okay, now be reasonable and compromise with us.

They’re playing the game of asking for a ton of things and then whining about compromise not getting them half of them.

[no_such_reality]

[quote=CA renter][quote=spdrun]Frankly, in an ideal state, R.E. taxes would approach zero, and all revenue would be from income and sales tax.[/quote]

I tend to agree with that, but only for a single primary residence. For corporations/entities that make their money in RE, it’s appropriate to tax it, IMHO.[/quote]

Wow you guys are completely wrong.

In an ideal and fair world, income taxes would be zero and R.E and property (ASSETS) taxes and sales taxes would pay it all.

in other words, actually tax wealth and consumption, not production.

The tax on consumption, sales tax, is so those that consume their entire production have some skin in the game.

[no_such_reality]

That’s easy. We have the same issue today.

The perception of big government nannyism telling you what to do.

Think ‘death panels’ and Obamacare.

Think ‘no child left behind’.

Imagine a Federal Same Sex Marriage law.

etc.

[no_such_reality]

Actually, the civil war was really about State Authority versus Federal Authority.

[no_such_reality]

Actually, Squat’s kid missed it.

It’s not access to resources. It’s stress.

The research continued the investigation and concluded that it’s actually the chronic stress of being low in the pecking order, that shortened the life spans.

[no_such_reality]

How bad was it last year? I haven’t a challenge finding parking at any mall or store we’ve gone to yesterday or today.

The big ticket sale items are still in stock in many stores.

I have noticed the more upper middle income the store complex, the busier it is. The lower the income target, the lighter it is…

[no_such_reality]

Keep in mind that the $4.44 per day average is per person.

As stated in the article , $133/month

Is it a lessor amount per child? Otherwise its $500/ month for a family of four

And lets be honest $500/month sounds a whole lot less dramatic that $4.44/day

As for AN’s budget. Ive found superior grocers fruit and veggies consistently run 1/2 to 1/10th the cost of the big three grocery stores. Other targeted grocery stores are similar.

Meanwhile given the day, I’ll be thankful that buying groceries is a whine issue for us and not a struggle.

edit(really hating Android posting features)

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