Dear Kettle, You're black. Sincerly, Pot.

Yesterday it was announced that there will be changes in the tax code to remove loopholes and catch tax cheats that have been getting away with not paying their share of taxes.

President Obama made this announcement with Treasury Secretary, Timothy Geithner.

(It should be noted that this announcement was made with a straight face)



The Kettle.....

Current tax laws have many 'loop holes' that allow for ferreting money away so that a person or a corporation can avoid being penalized for being successful. Off shore accounts are a common means by which to do this. Write-offs are another. These loop holes were put in place by the people that have the power to do so. And who is that? Lets take a look at the U.S. Constitution to figure that out. It can be seen here The U.S. Constitution

From Section 8 of Article 1:

The Congress shall have Power To lay and collect Taxes, Duties, Imposts and
Excises, to pay the Debts and provide for the common Defence and general Welfare
of the United States; but all Duties, Imposts and Excises shall be uniform
throughout the United States;

If you guessed Congress, give yourself a cigar (while they are still legal). Why would the members of Congress do such things as allow for legal loopholes for people to escape paying their taxes?

Power. By having the ability to open and close loopholes, members of Congress hold their power over the heads of corporations and private citizens. Especially ones that they need finical support from. It gives them some muscle to persuade people into continuing to vote for and support them. I will not even go into bribes (that's "earmarks" to you and I). And I suppose we can strike out "but all Duties, Imposts and Excises shall be uniform throughout the United States" from that these days.

Rather than having some guts, the pansies in Congress prefer to be passive aggressive about their dealings and instead, broker their power. Were the tax code simplified from assloads of pages to one line, this would become a thing of the past. Something like "All persons subject to the protections provided by the Constitution of The United States shall pay 10% of income in the form of taxes."

Just imagine a world where the members of Congress no longer had the power over an individual person or corporations tax liability. They might actually be productive, and the tax code might actually be fair!



The Pot....

Mr. Geithner.

Apparently he is supposed to be some financial wizard.

Currently, he is serving as the Treasury Secretary. Prior to that posting he was President of the Federal Reserve Bank of New York. One would think a person of his pedigree would understand taxes and money.

But one would be wrong.

Mr. Geithner failed to pay taxes on his personal income while serving as the President of the Fed in NY. He claimed it was a mistake, careless, and avoidable. That's like saying George Lucas thought that the Death Star really was a moon. If he is the financial wizard that all the politicians say he is, then it is either intentional, or he is incompetent (circle the most correct answer).

I wont even go into the deductions. Rest assured, if I were to use the mindset he did, I think I could find a way to deduct internet porn as a business expense.

He did pay some of the taxes back, once it became public knowledge after his appointment by the President. But he did not have to pay a fine for late payment.

So, Mr. Geithner was there to make an announcement on catching "tax cheats" that use loop holes.
Or so said the Pot to the Kettle.

On the other hand, Mr. Geithner didn't use loopholes, he just didn't pay.

I wonder if I can get a Secretary posting if I quit paying my taxes?