Deregulation is not making Texas power supplies more reliable.

 

It seems that my electricity is going off much more than it did before deregulation.

 

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There are many gangs after your money.

 

They engage in identity theft and credit card fraud. The heritage of one of the groups may surprise you.

 

 

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Tax tips for landlords.

 

LandlordDo you rent property to others? If so, you’ll want to read the following seven tips from the IRS about rental income and expenses.

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Accounting for government debt.

 

How are governments going to cut their debts? Reduce salaries?

How are governments going to cut their debts? Reduce salaries?

The debt owed by federal, state and local governments is huge and growing.

 

The daunting tower of national, state and local debt in the United States will reach a level this year unmatched just after World War II and already exceeds the size of the entire economy, according to government estimates.  Scarier, the debts are still climbing and even deep cuts in spending won’t completely change that for several years.

Statehouses and governors face real challenges.  State and municipal governments across the country have racked up about $2.4 trillion in debt, or more than 15 percent of GDP.

Everyone took on too much debt, citizens and governments.

Everyone took on too much debt, citizens and governments.

Today the labor force is aging, US manufacturing often lags behind Asian and European rivals, households are in hock up to their eyeballs, and consumer appetite for goods is tepid. In addition, inflation is tame and government spending is locked into entitlement programs and debt service that will be hard or impossible to alter.  Inflation makes fixed debt easier to pay off if property values increase sharply.

Inflation also reduced the value of World War II-era debts because the United States could pay them back with money that had less buying power. Inflation reached 14 percent in 1947. Many investors fear that inflation is looming now, too, and may be the only way to ease the debt burden. But with high unemployment and slow growth, so far there is little sign of it.  The Labor Department said inflation was 1.2 percent during 2010.

Moreover the debt held by Social Security, which is in surplus now, will have to be paid later as the ranks of senior citizens grow.

Federal debt (not including debt held by the Social Security fund) fell to a post-World War II low of about 24 percent in 1974. After tax cuts and increased defense spending under President Ronald Reagan, it rose to about 49 percent in 1993, before President Bill Clinton’s budget deal took effect. It then fell to 32.5 percent in 2000, but starting rising again when President George W. Bush took office. Tax cuts, war spending and recession costs have more than doubled that level since.

To lower the % of debt, raise the denominator, GDP value.

To lower the % of debt, raise the denominator, GDP value.

Recent increases in commodity prices (especially oil prices) may bring back inflation.  But the real solution is increasing the value of incomes and property of Americans.  This means making more products in the US, creating more jobs, and achieving higher productivity.  Warren Buffet said he is confident that Americans can still do it, it is still “morning in America.”

The future of America is in the balance.

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One way to lower the deficit is to stop wasteful federal IT.

 

Federal technology management wastes money.

Federal technology management wastes money.

Government generally does not do development efficiently, especially when developing technology.  Here are some examples.

 

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See these IRS rules regarding capital gains and losses.

 

Here is the IRS advice for documenting your capital gains and losses.

Here is the IRS advice for documenting your capital gains and losses.

There are separate rates for capital gains, usually lower. 

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