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    Economy

    Deep within Black Bart's "Uncle" post is his commentary about the poor economy -- I suppose in the location where he prepares taxes.

    Actually, I don't know anyone more qualified as a group to comment on the economy than tax preparers. It seems like we see EVERYTHING whether we want to or not. W-2s for rich and poor alike, business returns, etc.

    What I see is a polarization. The rich getting richer, and rich suburbia getting richer. The poor are getting poorer, and inner cities and rural small towns getting poorer. Most of you know I am a ferocious conservative, but surprisingly a Democrat. Without getting into politics, I can point to issues such as the weakening of Labor Unions, unbridled illegal immigration, sovereignty issues like NAFTA, increased government selling out to wealthy special interests, and compromising of moral fiber as contributing factors -- and I believe this is across the board without respect to political party.

    This by definition is a tax forum and if we want to dwell on social issues we can find a blog somewhere else. But what I want to point out is there is scarcely an occupation more qualified to observe the economy than tax preparation. We know more about most of our clients than their own next-door-neighbors.

    Before I lost my Dad, he would tell me his guage of the economy would be to wait nearby at the old L&N railroad crossing and count the cars. A long train meant the economy was good, but if he didn't have to wait long, the economy was poor. In a weeks time he could tell about the economy without having to read the paper.

    No one can count boxcars like we can. If anyone can figure out a way to capitalize on this first-hand information, please let me know.
    Last edited by Snaggletooth; 01-24-2007, 06:55 PM.

    #2
    Counting boxcars.

    The "Train Index," eh? That's pretty good, Snag. It sounds a lot like my janitor's "Trash Index."

    I guess sea-tax is right; economies vary by region and there are probably lots of high-tech jobs in Seattle (sounds like a beautiful place to live, per his other-thread post). But high-tech in small towns here simply means something like running a computer-repair shop (which can't really do well enough to stay open full-time).

    Factories were the life-blood of the South, but NAFTA has killed off a very large number or them. A client (62) came by the office today asking about tax on his severance pay ($10K--not exactly a "golden parachute"). "His" factory (ten miles from here) is moving -- half to Mexico; half to China. He's lucky enough to be SS-eligible; others (55+) aren't so lucky. I once saw the TV interview of a closing factory's terminated manager by a rep from our state Employment Security Department. Referring to the factory "hands," ESD guy says "We'll re-train them." TM candidly replied "As what? Astronauts?"

    I've been a Republican for 25 years, but I have to say that there seems (to me) to be no question but what the GOP leadership feels like if Exxon and Pfizer are doing okay, then "what's the problem?" Still, there's the alternative -- so; should we slowly starve or become quickly radioactive?

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      #3
      The most disturbing trend I see

      Is the outflow of wealthy retirees from this state (Nebraska) to other surrounding states with lower tax burdens, especially property taxes. So far the W-2's look better than last year. Too early for the small business filers except that total receipts gauged by sales tax filings has fallen.

      I don't expect the Republicans or Democrats to feather any nest other than their own. As far as I can see the two party system consists of those in Washington D.C. having the party and the rest of us paying for the party.
      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
      Alexis de Tocqueville

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