Skip to main content
I have a tough time giving politicians any slack when they fail to pay their taxes. I'm a honest tax paying citizen of the USA. I have several businesses and I declare all of my income (yes, including cash payments). I carefully account for every sale and source of revenue as well as tracking legitimate expenses. The law states that you do not have to pay more tax than you owe under the law. Law is not about just "word" but also "spirit".

The article that follows is in regards to a politician owing taxes on expenses she (or more likely, her financial advisers) claimed as "Per Diem". Anyone with any understanding of the concept of Per Diem can see that these payments do not qualify for this classification but, instead, fall under the category of income. The spirit of the law was violated. But who violated it?

Was she an innocent in this situation? Did some financial adviser steer her down a slippery slope? Could be. If your employer sends you a W-2 or other tax statement showing the income you must declare, you trust their knowledge of the matter, right? Perhaps someone on her financial advisory staff told her that her expenses while living at her home could be considered travel expenses for work. If they did, they need to be sanctioned and fired pronto!

Unfortunately, ignorance is no excuse under the law. Let this story serve as a lesson to you...You need to know as much if not more than your advisers. You need to give everything they say the "gut test". If it seems too good to be true, it probably is.

http://politicalticker.blogs.cnn.com/2009/02/18/palin-told-to-pay-back-taxes/

Comments

Popular posts from this blog

Get Organized to Save Money

How "Being Organized" can save you money... Taking a small amount of time up front to get organized can save you time and money.  Here are a few simply steps you can take today to keep more money in your pocket. Set up autopilot for your bills -  Take advantage of your bank's online bill pay service to automatically send payments for your monthly recurring charges.  Set it and forget it!  Taking a few minutes to set up auto bill pay will pay off by preventing late charges and finance charges due to missed payments. Take inventory - You can avoid buying duplicate items when you know what you and have and where it is located.  Take a quick inventory  your pantry, the medicine cabinet, laundry room, and your office before shopping (online or brick-and-mortar). Stock up on consumables - You will always need shampoo, toothpaste, laundry soap, etc. so buy these items that get used up in bulk when on sale.  Of course, don't go overboard.  Buy what you

Eating Seasonal Foods - Good for your Body, Good for your Wallet!

Eating foods in season is supportive of our well being.  For example, in the summer Mother Nature provides a bounty of high-water-content foods to help us stay hydrated...water melon, cucumber, tomatoes all add refreshment to hot days. In addition to supporting your physical well being seasonal produce treats are wallets with kindness.  Local in-season produce doesn't have to travel as far as out-of-season fruits and veggies which often travel thousands of miles from other countries.  Combine the lower transportation costs with the abundance of the local in-season crops and you get lower prices.  How do you know what's in season?  Two ways: Prices in the store - when the grocery store offers strawberries at 2 baskets for $1.00 or tomatoes at $1.29 per pound you are looking at in-season foods! Visit this website - CUESA which shows you the produce in season and provides recipes for incorporating these physically and fiscally health goods into your diet What's yo

Career Shift Budgeting (Part 1): Finding Your Next Career

Are you dissatisfied with your career and want to make a change?  Did you recently lose your job due to a layoff and want to pursue a new career? The first step to making such a shift is to identify potential careers to pursue. There are many resources available to assist you with this process, including working with a career development professional.  For you do-it-yourself types, here are a few of my favorite resources for finding a fulfilling career: Do What You Are: Discover the Perfect Career for You Through the Secrets of Personality Type What Color Is Your Parachute? 2011: A Practical Manual for Job-Hunters and Career-Changers   Occupational Outlook Handbook (online version) I Could Do Anything if I Only Knew What It Was: How to Discover What You Really Want and How to Get It   Career Briefs Once you've narrowed in on a few potential careers, you will want to explore the following:  Nature of the work - What does t