Saturday, November 17, 2012

A Sartorial History of USA

Victorious USA guerilla general.  Real job: surveying. Defeated the world's sole superpower.





The last USA general to defeat a guerrilla movement.   5'2" tall.  Liked to draw. In the military against his will.  One of America's best horsemen.



General Black Jack Pershing after fighting in WWI.  Indian fighter, Phillipines, Cuba, fought Pancho Villa. Won.



USA's top World War Two general.



USA's top general, as of a few days ago.  Never in combat, but accidentally shot during a training exercise.



A Libyan general.



North Korean generals.



Taliban's top general.  Defeating the world's sole superpower.



We did better when our generals had jobs and came out to fight when we were threatened.  What have you learned?  No, not that they have the same nose.  The lesson is real generals don't wear ribbons and pins.



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Honeywell Against Consumer Choice in Thermostats

I have had several very bad experiences with Honeywell thermostats.  One time I tried to contact them to help programming an odd model.  Their customer service is the worst I have ever seen.

Honeywell need not care because they are a huge defense contractor.  Money will pour in anyway.

They use IPR to crush innovators attempting to provide custoemrs what they want.  Nest is a start-up with a new thermostat.


“Honeywell stands by its claims of patent infringement by Nest Labs, and we are confident the Patent Office will affirm the validity of our patented intellectual property related to thermostat technology,” a company spokesman told AllThingsD in a statement.


USA is goving over a cliff.  These pattterns and practices will end in time.  The pendulum will swing back.  Sometimes the old rotten system comes crashing down over something silly.  Like thermostats.

Our enemy are the patent attorneys who keep this system alive by participating in it.  (There are patent attorneys who are as keen on ridding ourselves of the regime as I am, so not all patent attarneys are harming our economy.)

Nest wins Red Dot design award.


At some point, the system will fail.  You need to know how a free market works, so you can thrive in a renaissance.

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Taking A Swing At Russia

This seems very unwise....

If this bill becomes law, we should expect a response from Russia and perhaps other of our trading partners-- particularly as many of our colleagues have suggested that the Magnitsky bill should serve as a model for our relations with the rest of the world. We might imagine the Russians or the Chinese passing similar legislation, banning Americans from entry and seizing the assets of Americans allegedly involved in "human rights violations."  What if they considered the US bombing of Libya, which resulted in the death of thousands of civilians from NATO bombs, such a violation?

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Friday, November 16, 2012

Ding Dong The Hostess is Dead!

Long live the Hostess! The Wall Street Pirates who bought Hostess Twinkies and Wonder Bread have killed it off.  And now we can say with confidence, Long Live Hostess.

Mustn't blame the unions.  Management, by definition calls the shots.

 “Despite Greg Rayburn’s insulting and disingenuous statements of the last several months, the truth is that Hostess workers and the union have absolutely no responsibility for the failure of this company. That responsibility rests squarely on the shoulders of the company’s decision makers.”

Just so.

We cannot have economic recovery without price reduction.  With a brand as valuable as Hostess and Wonder Bread, the name alone is worth hundreds of millions, and with no union contracts associated with the brand, they just got more valuable.

luux.com

Not only do Twinkies, Wonder Bread and Ho Hos have a shelf life of 33 million years, the brand will live on forever because the delicacies will be made under contract probably at the same plants by people who will buy up individual plants and continue the business of selling cupcakes to minimarts


May I tempt madam with a SnoBall?

I tell you, I recall eating these in my youth, but my stomach is turning just looking at these.

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Business Start Up & Write Offs

Following up on an earlier post, here is an article that might help people understand that the tax laws are written to encourage business start up.


Doug Stives, a CPA from Red Bank, N.J., went skiing in Utah.
"I always dreamed of coming here for peak conditions," he said in mid-March between runs at Snowbasin Resort.
The trip is among the many perks that have accrued from his decision, in 2006, to become, in effect, The Most Tax-Efficient Man in America. The experiment has led to a new career, frequent travel and obsessive documentation of expenses, such as a $6 hot dog he recently bought in the Philadelphia airport.
Mr. Stives says he is careful to observe IRS rules. He has a contract for each speaking gig, and keeps one for his wife's arrangement, too. He uses one credit card for business expenses, making sure it provides a year-end summary by category.


You see, Google has massive business expense, your business small expenses.  Whereas Google expenses relate to electricity payments and payroll, your small business has expenses such as your travel, meals, books, research, museum visits, etc.  You personally spend the time and money doing what you love, therefore you need less money as a paycheck.

Here is Sen. Reid explaining that payment of Federal taxes is voluntary, and most for employees.  

Ignore the obtuse interrogator and just focus on what Sen. Reid says.


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Working With Designers

If you are competing on design, then it is likely you need designers to help you advance your mission.  The people I worked for way back when all hired designers even though they themselves were not bad at it.  Also, Apple and leading companies all hire outside designers to work on all sorts of aspect of the product and image.

Designers design everything from menus to clothes to scents to lighting to fruit to anything you can think of.  In the book I have some ideas on finding designers, and today I would add mechanical Turk and 99designs.com.   I have a .pdf of a template designer royalty agreement, and here are some notes on working with a designer.  Here are some other notes:


So some principals...

The designer does not want to waste his time, nor does he want to get ripped off.

To address these concerns, having a list of customers who said it is a good idea and does not exist is something tangible against which he can judge your perspicacity, if not your prospects for success.  

A designer who demands a flat fee ought to be ignored.  Serious ones want royalties, so if you make money, they make money.  Even with promising names, a designer is likely to demand and advance against those royalties,  Agree they deserve it, but plead what money that would be used as an advance is robbed form the money for samples and marketing, meaning a rock and a hard place.  The designer needs to agree to no advance, but yes royalties.  If they wave the requirement, you'll move faster and they will be earning royalties soon enough.

Below are elements I would include in the "approach" letter to a designer:

1. I found your name....

2. here is the problem I am solving....

3. here are the retailers who said it is a good idea and does not exist...

4. here is the research as to the best place in the world to get it made.

5. I propose to get samples and take them back to the retailers for feedback and possible business initiation.

6. I desire superior design, and I am happy to work up a royalty agreement should this project look promising to you.  Any IPR I am happy to let you own.  I have not retained legal representation, but I am not offended if you do.  Attached is a copy of what I would propose as a royalty agreement as a starting point.

Let me know if this is of interest to you, and we can visit and discuss it further.


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Thursday, November 15, 2012

China Currency Moves

Here is a lesson in currency exchange.


BEIJING, Nov. 13 (Xinhua) -- The spot price of the yuan against the U.S. dollar rose to 6.2262 on Tuesday, marking a record high since China's foreign exchange reforms seven years ago.
Tuesday was the second consecutive day that the spot price of the yuan against the U.S. dollar hit a record high since China launched its foreign exchange reforms in 2005.


This is from the point of view of Chinese exporters.  News reports are always form the point of view of the nation's exporters.  There are four different points of view, for example: USA Exporter, USA Importer, China Exporter, China Importer.   So say I am the USA importer, what do I see?

Today US$1.00 = RMBY6.2252









Here is another view  RMBY1.00 = US$0.1606








This is the exact same event over the same time frame presented as a conversion from one currency to another, and back.  See how complicated it gets? Today it is about 6 Yuan to the Dollar, roughly.

At some point in 2008 it was roughly 7 Yuan to the Dollar.

So as an importer from China to USA, I need more dollars today to pay for the same goods as in 2008. So Chinese goods have gotten more expensive. Today a dollar gets me 6 yuan, while on 2008 a dollar got me 7 Yuan.  My dollar gets me less today.  This is largely due to USA economic policies.

This is not to say Chinese exporters have not lowered their prices to maintain market share, by either taking less or introducing more efficiencies.  Specific cases of effect are too numerous to cover here.

In the reverse, as an exporter from China to USA, a Chinese exporter gets more dollars today in pay for the same goods as in 2008. This might seem good for them, but it creates headwinds in selling to USA.

Now the USA exporter to China finds his dollar prices do not buy the Chinese importer as much USA goods.  USA goods have gotten more expensive to the Chinese importer.  It is unlikely that any USA exporter will make any effort to create efficiencies or otherwise make prices more attractive to Chinese importers. The reason is that what USA sells to China, almost all heavily subsidized goods, and the big businessmen behind the exports rely on the power of government for their markets.  This is why in spite of the economic problems are the result of USA economic policies, candidate Romney promised his first act as president would be to declare China a currency manipulator.  Funny that, coming from the worlds #1 currency manipulator.

News reports are pretty much useless on this topic because the point of view is extremely narrow and in any given case the circumstances may mean nothing at all.

I once heard Treasury Sec Volcker say exchange rates do not matter, it is the economic health of the trading partners.  Exactly.

We at the small business level manage currency risk by trading in velocity (frequency) not volume.  Otherwise, any news on currency moves is pointless.


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Wednesday, November 14, 2012

Meanwhile, Back In China...

As the FDA seeks more funding to provide street theatre regulation, the Chinese are interested in lambic beer.

According to wikipedia:

Unlike conventional ales and lagers, which are fermented by carefully cultivated strains of brewer's yeasts, lambic beer is produced by spontaneous fermentation: it is exposed to the wild yeasts and bacteria that are said to be native to the Senne valley, in which Brussels lies. It is this unusual process which gives the beer its distinctive flavour: dry, vinous, and cidery, usually with a sour aftertaste.

Traditional beer brewer Cantillon in Belgium

Now that airborne microorganisms are very important to food and health.  An excellent book to read on this is Salt, by Kurlansky.



Salt is a preservative, but so is fermentation.  And in its relation to salt, Kurlansky has some wonderful stories about fermentation as a preservative too.  With fermentation you get so many good bugs that eat bad bugs.  Stories in this book may lead you to some excellent business ideas, if you love food.  It did one of my daughters, who read this when she was ten.  At a Ritz Carlton Hotel.  She was carrying it in the elevator when a man noticed it.  He had read it.  They discussed it together.  Quite funny.  It is not written at a ten year old level, and my kid is not brilliant (well, I think so) it's just that she was home schooled and such kids can handle more advanced stuff.

In medicine, bugs eating bugs is called bacteriophage.  We cannot have this in USA, because the FDA forbids anything that threatens the profits of Big Drug. Never mind bacteriophages have been used for nearly a century in the Republic of Georgia, and are advanced.  But do notice there is a wonderful "medical tourism" destination in Tbilisi.

What the FDA does allow, and covers for, and ignores when it happens, is when bad bugs get into medicine and kills people, as outlined in the blogpost below.

Lambic beer, raw cheese, tofu, all sorts of items have wonderful health benefits if allowed to be made and distributed.

With the arrival of fascism in USA, compliments of the progressives,  we switched from small is beautiful to "get big or get out."  All was collectivized.  Our mass transportation and mass banking plus onerous regulating crushed the small business. Beer had to be Budweiser, cheese Velveeta, and tofu toxic.  Hazardous waste from aluminum smelting was dumped into the drinking water supply (except in places where aluminum is smelted, because they know.)

A young man with a passion for healthy foods and a joy in recreating the good things emailed me today.  He asked where he should base his business.  He covered various options.  Curiously, I thought, he did not mention USA.  Well, he probably already knows.  He was thinking China, where people are free to develop good things.

On one hand I worry that so many young people are going into only one field (that matters), and that is food.  On the other hand, there is probably no field that more desperately needs a revolution.  But between good health, fine food and the obese American is the FDA, protecting Fritos and crushing the small raw milk farmer.

Eliminate the FDA entirely (and cut the govt budget by that much), take the social security numbers of all employees, and forbid them to ever work for a government again.  Force them to come onto the other side, and be productive citizens.

We need a renaissance in food and drugs in USA.  Let it start with unregulating both.

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How & Why The FDA Harms the USA

Wheee... another general goes down for his partying ways.  Yes there is more to this than meets the eye, and we'll probably find out there was a slow moving military coup underway and President Obama masterfully saved the Union from a military takeover, or whatever.  But let's go on to important things.

We need to eliminate the FDA immediately.  They failed miserably again in their work, and as is always the case with Federal Agencies, when they fail to do their job, they ask for more power and budget.

11:45AM EST November 14. 2012 - The country's top medical regulator is preparing to tell Congress that laws are needed to police large specialty pharmacies like the one at the center of a deadly meningitis outbreak.

Really?  The FDA has been responded lackadaisically to complaints about this place for a decade.  They have known all along about the lethal threat clear and present. 32 people died because the FDA does not do its job.


Less than a year after it opened its doors in 1998, complaints about the New England Compounding Center began coming to the Massachusetts board that had granted it a license.
Complaints came from regulators, pharmacists and physicians from more than a half dozen states. Many were serious and warned of death or serious injury.

The media is reporting that there is a "regulation gap" and this is just a case that fell between the cracks.  Absolute lies.

The complaints, meanwhile, continued to come in to the FDA and the Massachusetts board. Many charged that New England Compounding was marketing and distributing drugs without patient-specific prescriptions as required by state and federal law.

So as usual, like in the financial industry, the regulators are owned by the regulated.  People have to die, family savings have to be destroyed, before anyone quits surfing the net for porn and begins to do his job.  Read the articles.  The FDA was regulating the place.  And inspecting.

A New York hospital complained that two patients contracted meningitis-like symptoms after treatment with NECC's injections. The two, who did recover, had been injected in 2002 with the same drug blamed for the current outbreak.

Hey who cares?  Same problem for a decade.  We work for the government and there are no circumstances in which we can ever lose our jobs, our pensions, our partay lifestyles.  Maybe generals, but not us.  How do we respond to dead people because of our failure to act?  Ask for more money and power!

So what happened when the FDA and the State regulators a decade ago were looking intently at this clear and present danger?


The board made clear in the letter that if the company turned down the consent agreement, the state would open formal disciplinary hearings. The agreement would have placed the company on probation for three years and included a formal reprimand...
But the threat to hold formal disciplinary hearings inexplicably evaporated, according to the report.

How come?  Someone got paid to make the investigation go away. Well, maybe it was who owned the company making the drugs, the next door neighbors.

Federal officials also drew attention to the company’s proximity to a recycling plant where excavators and freight trucks heaped old mattresses, plastics and other materials, generating large amounts of dust. The plant, which is owned by one of the same people as the pharmacy, has not always complied with regulations and has drawn complaints, according to records in Framingham, Mass., where the company is located.

Recycling and drug making.  Nice combination of talents.  With Romneycare, when it comes to medicine, who cares? And again, of course, there is this:

And as the death toll continues to rise, the F.D.A.’s commissioner, Dr. Margaret Hamburg, who was appointed by President Obama, has stayed mostly silent.

No kidding!  Politics as usual.  Tag 'em and drag 'em.  We'll deal with people dropping dead after the election. But here is where the real problem lies:


At Children’s National Medical Center in Washington, the hospital’s own pharmacy is compounding medications it used to buy from New England Compounding. The hospital trusted the company, said Dr. Gerard Martin, senior vice president, because it believed that federal and state regulators were making sure its products were safe.
“You believe that when a company is being regulated, they’re following good practices,” Dr. Martin said.

And there is exactly the problem, Dr. Martin is not doubt a fine doctor, but otherwise he is an idiot.  How can an agency the size of the FDA watch everything?  It is statistically impossible.  And if he is unaware the FDA is owned by such firms as new England Compounding, then he is probably too obtuse to be on the decision end of a stethoscope.  Even if anyone at the FDA desired to do their job, there simply is not the budget to do so.  As I have worked out elsewhere, to do so would require a budget of some 200 trillion per year to meet their mandate.  I suppose "impossible" and "uninterested" go hand in hand.

So is it impossible to have safe drugs?  No, it is just impossible to depend on an FDA.  In a free market, first, doctors as obtuse as Dr. Martin would not have patients.  We would have different people become doctors. Second, scientists would be attracted to the field of medicine, and as such they would make sure their supply chains were only the best.  Right now we live in a fantasy world where regulators assure quality and everyone is safe.  Serious scientists do not want to work in fantasy worlds.

"Regulation" is natural in a market, and the cost is borne by the patient, not the taxpayer.  It is extremely efficient, so the price to the patient is negligible, but the efficicacy of the supervision is near-perfect.   It is only when there is an FDA can those who could care less about customers get away with negligent homicide.

Do you really think this is the only such drug maker in USA?  Another reason we import is to make sure our quality is superior than what can be had in USA.

When we did the impossible and deregulated telecommunications we got an explosion of economic benefits.  It is time to unregulate medicine, and let a renaissance in health care bloom.  We'd get more, better, cheaper,  faster in all things medicine.  Our economy will grow out of our problems.  But no.  People want to pretend they can get the government to "fight their battles for them" instead of taking responsibility for themselves.

Bu there is a market for good medicine.  There is the opportunity.

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Tuesday, November 13, 2012

Generals Gone Wild: Soldiers, Suicides and Afghanistan

Two more soldiers committed suicide in Afghanistan, this time Generals. Generals Petraeus and Allen.  Their activities have ended their careers, in disgrace, if not in prison. We learned this year that more US soldiers in Afghanistan commit suicide than are killed by the Taliban.

What is so awful about Afghanistan?  Ennui?  Pointless boredom?  The realization that it is an occupation to control oil.  It's a big business "protect our interests" gig.  An unjust war and an unjust cause.

Bored soldiers do stupid things.  A General who has time to create 20,000 to 30,000 emails to a groupie has serious mission focus problems.  Or a realization there is no mission.

People who believe their own PR do stupid things.  This week a young marine beat up a wheelchair-bound army veteran because the marine though the veteran was faking it.  This "thank you for your service stuff" goes to peoples heads.

The United States Congress, picks our generals.  They pick who gets to go to USMilitary academies too.  Nobody puts on stars in any service without the say-so of the people.  And The president can take those stars off.

So, this gets to congress.  These elective wars have ruined our economy and our country.  People blame Obama, when he did not start them.  Congress keeps them going with funding.  People voted for Romney to keep the wars going.  Romney lost.

We have an automatic military spending cut coming up.  Everyone says, "this ain't about generals and groupies, it is something bigger" and likely so.  (It may just be video, Paris Hilton style, and why not, people so stupid as to leave email trails, you just know, the cameras were rolling too.) But congress is going to have the job of sorting out the military.  So whatever it is, take care of it.

We have plenty of excellent officers to draw on, we know, because over the years they had the honor to resign rather than to play in the military of Petraeus and Allen.  They were generals who did not take orders form their privates.

The USA was never designed to have a standing military. Start there.    Cut back to one general, like Switzerland.  Revive the citizen militias.  We'll be as safe from invasion as Switzerland is, and as unable to pursue suicidal adventures as Switzerland is unable.

Let foreign potentates hire out "Seals" and "Deltas" like the Vatican has its Swiss Guard.

And let's get as peaceful and prosperous as Switzerland.

Update, here is the fellow who brought down Petraeus and Allen, in the picture he tweeted to one of the Pentagon groupie gals.

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Did This Guy Lose an Election?

So a guy steals a Chinese food delivery wagon.  He continues the rounds.  He sells the Chinese food to the customers, and keeps the money for himself.  Leave the Chinese with a risible IOU? Does this not sound just like USA economic policy? Is the fellow just a unemployed politician?  Feel free to forward this by email to three of your friends.


Monday, November 12, 2012

Tax Avoidance and Starbucks

Here we go again.  Starbucks is being attacked in the UK for tax avoidance.


Sarah Greene, a UK Uncut activist, said funding for refuges and rape crisis centres faced cuts unless companies paid their fair share of tax. HMRC estimates around £32bn was lost to tax avoidance last year.
Greene said the government could easily bring in billions that could fund vital services by clamping down on tax avoidance, but was instead "making cuts that are forcing women to choose between motherhood and work, and trapping them in abusive relationships".

No, nothing is "lost" if it was never due to begin with.

No, since companies do pay their fair share of taxes, non-due taxes cannot fund anything.  None of these companies are breaking the law.

Cuts in putative services do not force women to face a dilemma, when any such dilemma is a false dilemma anyway.  There are more alternatives than that.

And again, no corporation can ever pay taxes.


"Over the last three years alone, our company has paid more than £160m in various taxes, including national insurance contributions, VAT and business rates."
However, MPs will no doubt point out that VAT is paid by the customers at point of sale and collected by Starbucks.

Yes, VAT is collected at the cash register, but corporate taxes are collected at the cash register too.  When you buy a Starbucks coffee, you pay any and all of Starbucks taxes.  If Starbucks paid more taxes, then you'd just pay more for Starbucks. Or not.  There is a point when people will by an alternative.

If you think a good way to fund women's services is to have Starbucks charge more at the cash register,  since they pay more taxes (or not avoid more taxes) then your commitment to women's services cannot be too serious.

Yes, all of these big nontax paying companies get huge benefits by being big.  They can pay the millions a year necessary to comply with the legal loopholes.  The corner independent coffee shop cannot.

Cost of government is a huge drag on the economy.  One cost of government are whimsical programs proved after decades to be risible, such as the pointless centibillion dollar Head Start program in USA.

Now, if you say eliminate the funding for these programs, people will scream that you are against kids getting a chance or women escaping abusive relationships.  That may be true, but it does not change the fact that these programs are independently proven worthless.  It would be two separate issues.

It also ignores there is a better way to provide a chance for kids and a sanctuary for abused women.  It shows that the people who want to tax Starbucks more do not understand how economics work, and are hardly in a position to advocate for a better way.  Too bad, since I would like to join them myself, because I agree on the goal.  The solution is called freedom, something most people automatically reject.

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Countries With Free Trade Zones

Hong Kong is technically a Chinese Special Economic Zone, under the Chinese "One Country/Two Systems" regime.  China opened a dozen more such places, more or less, such as Zhejiang, after recognizing the success of Hong Kong.  A better name for what China has is Free Trade Zones, since the Chinese Government has such a laissez faire, hands-off approach to Hong Kong.

Almost all countries have "free trade" zones of some sort, a tribute to the fact that their economic systems are somewhat lacking.

The USA has foreign trade zones, FTZs. which are pretty useless since the rules and regs rather overwhelm any benefits.  Essentially, you can bring parts in from around the world, assemble them into something else, and then ship them into the USA or back out to 3rd countries.  The classic example is radio parts have a higher duty than radios, so people would import radio parts into an FTZ, assemble radios, and then import radio-parts-as-radios in the USA at the lower duty.  This scheme lasted about 15 minutes.

What makes FTZs useless in the USA is people may not live in them (except government workers) and the heavy regulation.  if the USA could have an FTZ of say about 500 square miles, with self-government, and freedom to live within the zone, then there might be some value.

§ 81o. Residents of zone
  • (a) Persons allowed to reside in zoneNo person shall be allowed to reside within the zone except Federal, State, or municipal officers or agents whose resident presence is deemed necessary by the Board.

Some residents of Louisiana have the right idea, turning the entire state into a free trade zone.

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Sunday, November 11, 2012

Government Workers Get Free Start-up Money Automatically

And this is very good news.  Follow this:  anyone who gets paycheck from any government agency has taxes taken out.  This is rather absurd, since the money they are paid is taken from taxpayers.  Just as it is impossible to tax a corporation, so it is impossible to tax government workers.  What is taken from their paychecks was already taken from someone else's paycheck.  It is all theatre.

So say the Undersecretary for Whimsical Things is paid $150,000 per year.  Uncle Sam takes say 1/3rd in taxes, so the Undersecretary takes home $100,000.  The $50,000 in taxes is recycled through again. The reason, I am sure, has something to do with street theatre suggesting the army of government workers pay taxes.  Could we save tens of millions in transaction costs by just paying government workers net?   Of course, but not so fast.

In individual cases, this should be run past a CPA, but say that Undersecretary was to spend $50,000 on a start-up business, yet made no money for his efforts yet.  Then his net would be $100,000, not $150,000.  He would be taxed on his $100,000, say about $30,000 for $70,000 take home.

No way!  Why would anyone do that?  Look at that $50,000... that is money that is actually spent by the Undersecretary in his new family biz.  I talk about what business, ideas for start-ups, here.  Time, creativity passion, joy...  and the start of a business.  Sure the take home is only $70,000, but the household spends $120,000 for the year, not $100,000.  (70 take home + 50 expended in business start up = 120.)

What few people realize is the the tax codes are written to encourage people to start up businesses.  The $50,000 is spent in time and money on what you love to do. It will necessarily be around the most satisfying part of your life. Talk this over with a CPA, and see what can be "written off" and how that matches what you would be doing anyway.

The government may decide to raise taxes on your government income, but they will never cut your salary.  The government must, it has no choice, but to give us all, including you, some derogation of what we get for our money, in some way, to some degree.

To have a business cooking up something over the next few years is likely to be the best bet anyone can make over the next 30 years.

I'd welcome a critique of this idea from any CPAs out there.

Update:

If you are an employee, the problem is that "unreimbursed employee expenses" are only deductible to the extent they exceed 2% of your Adjusted Gross Income. I never wanted to open that can of worms for the relatively small deduction I would get once I subtracted that 2%.
If you file a Schedule C (Profit or Loss from a Business), you can deduct ski relates expenses there. If I were an equipment rep, or had some other kind of ski business, I would use Schedule C to deduct all my skiing expenses. There are special rules for "hobby businesses," and eventually you will need to show a profit, or they will limit your deduction to the gross revenue from the business. I could deduct my skiing expenses on the Schedule C for my consulting business, but I am afraid that it would not pass the laugh test in an audit.
Maybe you might better ... consult an actual CPA.


I am surprised people are not aware of this, but apparently not.  Here

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Are You Successful?

Occasionally I get asked that question by a prospective student, and it is difficult to answer, for the questioner has trapped himself.

So I answer, “I would not wish my life on a dog.”

Usually, this startles my questioner.  But but but...

Then I follow up “But I would not trade my life for anyone else's.”

And that is absolutely true.  I certainly envy some people’s talent, this singer, that athlete,  here an artist, that cook, but never would I trade places.  And even if I had their talent, I would not use it in the way they do, so what would be the point?  They do wonderful things with their talent, and I wouldn’t do what they do.  The Bible says something about being happy with your portion.

And then, how do you explain to anyone who does not have the gift of ADD/ADHD that you have the finest gift God can bestow on a human, short of salvation itself?  It is cruel to tell people who do not have this gift that you have it, and they will never have it, this side of the parousia.

You see, the questioner wants to judge my “success” not by my standards, or his standards, by a third standard, accumulation of things.  Do I have a waterfront home, do I have nice cars, a boat on the dock, a summer place, do I have this and that, do I golf, etc.

I hesitate to answer directly because of the assumptions:

1. That those things are my idea of success.  That any “successful” people care about those things.

2. That if I had those things, I could show others how to get those things. That is delusional. One person’s path is like no others.

3. That copying someone else is a way forward. This denies that an individual has creative options.  It is an escape from responsibility.

And all for what? More stuff?

A better question than are you successful is “are you happy?”

To this question I can honestly and unhesitatingly answer, “Hell no.  War, bailouts, disease, fascism, rotten medicine, illegal search and seizure, porn, torture, spying, poverty, it all makes me sick.”

Yikes, then who would want to learn anything from me?

Because I find joy in working on solutions to all of those problems.  it is exactly the problems that give us an opportunity to make the world a better place.  Ourselves.

We have wine.  The next valley over has none.  Problems:  barrelling wine for travel, making barrells, making carts to carry wine, clearing roads over the pass, raising oxen to pull the wagon, making wagons, new clothes for 3 season travel.  Trade is solutions to problems, being aware of the problems, and experiencing the pain of realizing gthe problems, is the way forward.

Somebody who asks if I am successful is heading in exactly the opposite direction. They do not want to solve problems, they want to store up stuff.  There is no possible way I’ll ever head in that direction, and it is dicey they will ever want to go where I am going.  So when I am asked “are you successful,?’ I cringe.  Some people have been turned around, sure.  But many just want more.

There are some people whose orientation is to figure out where they can position themselves to take.  Like politicians.  Michael Lewis wrote Liar’s Poker, a cautionary tale of how Wall Street works, and he was astonished to get so many people, smart people at top schools, who missed the point and wanted to know how to get a job doing what Lewis regretted.



I just tell them the class will save them time and money getting to where they would get anyway.  Nothing more nothing less.  Whatever definition they have for success, they’ll get there faster at less cost.  That’s all i can do.  Is that worth more than what anyone might pay?  For 25 years the answer has been yes.  I keep treaching becuase people keep saying thanks.

Feel free to forward this by email to three of your friends.