Wednesday, October 27, 2010

Employer Contributions to Healthcare Insurance Costs To Be Taxed Next Year? In General, No; Unless “Excess Benefits” are Involved.,

October 27, 2010

So today, I was on the distribution list of a forwarded email which alarmingly claimed that employer contributions to healthcare insurance costs would be taxed as income - starting next year. So, I did some research to ascertain whether this was true or not, prior to my raising the alarm flag on this same issue.

Well…, at first I was unable to find the quoted document in the email: “On page 25 of 29: TITLE IX REVENUE PROVISIONS- SUBTITLE A: REVENUE OFFSET PROVISIONS-(sec.9001, as modified by sec. 10901) Sec.9002.”

As I persevered and continued to peruse through the rumor mill in self-claimed conservative blogs - which never ceased in the criticism of ‘Obama-Care,’ I found a reference that stated the source of the claim of any upcoming increase to taxable income as a result of employer healthcare costs contributions. The blog claimed that Kiplinger’s Taxation Letters and Website had initially warned of increased taxable income as a result of employer contributions to healthcare costs. See: (Note my comment at the bottom of that blog.)

So, as I researched Kiplinger’s website, I discovered that Kiplinger’s explicitly addressed any claims/credit attributed to Kiplinger that there would be a tax on employer contributions to healthcare costs. Kiplinger emphatically stated that any credit given to them for such a statement was in error. In fact, they say there will not be a tax on such employer provided benefits. See: , and see: (item number 3).

So, I was determined to find the actual document and, on the U.S. Dept. of Health and Human Services website, I did find the document: .

So, in the end and in general, the answer is no, there will not be a tax on employer contributions to healthcare benefits. Nevertheless, the employer is to include the employers’ healthcare insurance contributions as a line item on the W-2. But the item is not included as taxable income unless the amount totals “excess benefits.”

So, the answer continues, well possibly…. As is often the case with the laws in our nation, the real answer is, in fact, there is a possibility that employer contributions to healthcare benefits could be taxed. As stated in TITLE IX REVENUE PROVISIONS- SUBTITLE A, an excise tax will be assessed on “excess benefits” – with “excess benefits” being “applicable benefits” / employer contributions of over $8300 for a single employee and over $23000 for an employee and family in fiscal year 2013.

So the final answer is that it is unlikely that one will be taxed for employer contributions to healthcare costs unless they are being given ‘excess benefits.’ At least, according to my brief and cursory research.

Does this begin to explain the matter? Of course, what the future may hold in this regard is anyone’s guess at this point in time.

Adam V. Trotter / AVT

Fyi: Most employers, such as the Federal government, pay 60% of healthcare insurance costs with the employee paying 40% of the cost - which is taken from the employees’ paycheck.

After thought:  June, 2016.
I might have to revisit this blog entry and make some changes or a rare blog-entry deletion, methinks.  

Tuesday, October 26, 2010

New X-Ray Truck to Search Unsuspecting Moving Vehicles on Roadways

October 26th, 2010

Today on Fox Cable News, a new vehicle was profiled. This vehicle is a truck outfitted with [high-powered] x-ray gear to inspect the contents of unknowing vehicles that happen alongside this x-ray truck. Of course, any such x-ray inspection is without the knowledge of the occupants of any targeted vehicle. No information was reported as to the dosage of radiation to which the occupants of targeted are subjected.

I have to wonder, is there no end to which the authorities will stretch/diminish our Rights under the Federal Constitution? Has the Right against Unlawful Search and Seizure merely become a challenge to our authorities and politicians as to how thin this Right can be stretched before the same fascist-type authorities are held accountable for their disregard of the Peoples’ Rights? Clearly, it would seem that for a long time, many of our government authorities would have preferred no Rights existed to protect the People against Unlawful Search and Seizure. (If you don’t know of any specifics of which I speak, just ask.)

I mean…, the thing is…, on one hand, if this technology were able to prevent my having to stop and was to prevent the threat of search of my vehicle at the Border Patrol Station when traversing from San Diego to Los Angeles on the Interstate 5 Freeway, that would be great. But if this x-ray vehicle is going to be utilized by local authorities to search our vehicles without our knowledge or consent, then I would say that it appears fascism is again on the rise in the United States – with such fascism apparently again being promoted by our government authorities. Of course, I could envision situations where such x-ray truck technology would be of benefit. However, the overall threat to our basic Rights and the threat to our health by being subjected to any such radiation would seem to outweigh any possible benefits.

Once again, by allowing this x-ray truck technology to make its way to the streets, it would appear that the nation’s dysfunctional Court Systems, lawyers, and politicians care little of the substantive Rights of the American people and appear to only care what benefits the ends of the would-be fascists in positions of power. This matter also brings to mind the quote attributed to Benjamin Franklin: “They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.”

Adam Trotter / AVT


Thursday, October 14, 2010

The Fed to Buy Back Government Debt, European Central Bank Warns Against War of Currencies. Dollar: Fifteen Year Low Against Yen. Gold: Record High

October 14th, 2010

Yesterday, it was reported on Los Angeles Radio (KNX 1070AM) that the Federal Reserve System (The Fed) plans to buy back some of the Federal government’s outstanding debt. The Fed said this move would hopefully stimulate economic growth - by putting more dollars into the economic markets. Later the same day (or the next morning European time) the European Central Bank warned against perceived currency wars whereby currencies would be continually devalued to gain an advantage in exchange rates relevant to the exporting of goods. This evening, it was reported on San Diego’s Fox Radio affiliate (600 AM) that the dollar hit a fifteen-year low in exchange rates against the Japanese yen. Also today, it was reported that the value of an ounce of gold attained a record high dollar value of approximately thirteen-hundred and seventy-five dollars ($1375/ounce).

Despite the fact that the Federal Reserve System claims no fiduciary responsibility to the American nation, one could argue that the long continued effort by The Fed to forever devalue the dollar will help the American nation and workforce by stimulating exports as the dollar would then be less valued than the currency of foreign nations that buy our exports. However, as the fiat dollar has been devalued for decades on end to date, the continued devaluation is a likely culprit to the continued economic depression to which the nation is currently afflicted. Therefore, any continued devaluation of the dollar is likely another as yet unforeseen debt to be paid by the populace or by our future descendants.

Also worthy of note, to continue decreasing the value of the dollar aids any presidential administration by inflating prices which helps with any economic reporting concerning the Consumer Price Index (CPI) and the Gross Domestic Product (GDP). If the GDP were shown to increase because of the devalued dollar, then the current economic recession/depression officially could be ended by the definition of a recession (which is dependant on a repeatedly decreased GDP). Any official ending of the recession/depression is to the political advantage of any administration in power. But a devalued dollar also increases prices which severely hurts the American people. (Remember when a gallon of gas cost five dollars a few years back? Most of the increased price was probably due to a devalued dollar, not the oil producers trying to gouge us.) However, such a numbers game to reflect a better economy is nothing new - regardless of the presidential election drawing closer. But as The Fed has no stated fiduciary responsibility to the president either, if The Fed moves to better the economic appearances of the presidential administration, one can only wonder what type of relationship truly exists between the White House and The Fed. For instance, do the President and his people have all their asset holdings in gold as well, or is The Fed actually trying to help the American people?

Reiterating the point of many of my previous blogs/diatribes, as The Fed maintains no fiduciary responsibility to the American people and The Fed, of course, has massive gold holdings, one can only make assumptions as to what is the true intent of any actions taken by the U.S. Federal Reserve System. That is, are the actions of The Fed to benefit the American people or to further line the pockets of those in power at The Fed and those in power within our government? As our politicians, court systems, state governments, and lawyers don’t seem to have any distaste for this forever continued devaluing of our currency nor do they seem to have any other difficulties with any actions or on-going policy regime at The Fed, one sooner or later has to assume that the lawyers, state governments, court systems, and politicians must also be profiting by the continued policy regime of the Federal Reserve System – a policy regime which is arguably nearly criminal. As such, I must wonder, do the lawyers, court systems, and politicians have all their asset holdings in gold as well?

Anyway, is anyone out there still waiting for ‘change.’? Well, you just got some change, that is to say, more change in the form of the further-decreased value of the dollar. Sometimes I wonder if by merely insinuating these types of questions as in this blog, whether one may need to seek political asylum in a nearby neighbor nation.

Adam Trotter / AVT

Update, November 9th, 2010:

Over the last few days, it has been widely reported that the Chinese government is warning against this move by the Fed in that such an infusion of dollars, according to the Chinese, will cause widespread instabilities in the [currency and debt] markets. Duh, ya’ think? To their credit, though, the Chinese did catch on before the Fed really took them to the cleaners any further, anyhow. It’s been said that the Chinese have sold off much of their holdings in US Government debt some months ago (back in February), regardless.

PS. For more information on this topic of the Fed's actions and an interesting attempt at interpretation/"translation into plain english" for laymen of the Fed's recent statement, See:

PSS. So whose been reading the textbook as to what to do in a liquidity trap? But they still have not hired me. :)

November 11th, 2010,

Devaluing the currency to inflate prices for the upcoming election - or whatever, is most likely not the answer to our economic mess. Funny, even The Fed doesnt seem to understand what probably constitutes much of the problem. Guess I better apply for a job there, huh? Think they will have me? Doubt it, prbbly huh?

Sunday, October 10, 2010

On the Federal Government and on Governments in General…

October 9th, 2010

Governments should not be concerned with protecting every individual from one’s own stupidity. Neither should governments look to profit from such stupidity either. And, merely on specific and limited fronts, should governments be concerned with protecting the individual from the stupidity of others. People should be empowered to protect themselves as they are able until the point whereby extraneous government intervention might be needed.

As for this blogger’s repeated critiques concerning the actions of the governments across our land and particularly for his repeated critiques of the U.S. Federal government, the point is not to merely focus on negative energy – such a focus that I prefer to avoid. The point of complaining and blogging about the failures and shortcomings of our nation’s governments is to highlight issues with hopes to remedy any noted shortcomings to better the overall situation for all. Surely, no one entity is expected to be perfect all the time. However, when an error in course is clearly illuminated, then such an error should demand an all-hands effort to recognize and repair the revealed fault – such as with the current state of the nation’s economy. Furthermore, mere words are typically not sufficient to repair the necessary, overlooked, and damaged staples of any given system.

Adam Vernon Trotter / AVT

Concerning the Federal Reserve System and Fiduciary Responsibility….

October 9th, 2010

The point of all my prior diatribes and rants on this subject of the Federal Reserve System is that if any organization – public or private – is given the economic advantage of essentially controlling the fiscal and monetary policy of the United States, then at a minimum, said organization should claim a fiduciary responsibility to the government and people of the United States of America. Preferably and presumably, if not obviously, it would seem best that such an organization be an arm of the U.S. Federal government which is therefore sworn to uphold the U.S. Federal Constitution. However, reiterating from earlier blogs, the Federal Reserve System (The Fed) is not part of the United States Federal government and neither does it clam any fiduciary responsibility to the people of the United States nor any fiduciary responsibility to the Federal government of the United States (which of course would equate to a fiduciary responsibility to the people of the United States by default).

In the end and at the risk of sounding arrogant, to date, it is likely that I [operating in a single-handed mode] could have done a better job controlling the economy of the United States then what has been accomplished by the banking cartel known as the Federal Reserve System. Moreover so, by the fact that I would have always acted in the best interest of the people of the United States! That’s not to say, arguendo, that all policy regime pursued by The Fed has necessarily been to the detriment of the people of the United States. I’m just saying better results likely could have been accomplished by nearly anyone. Better results with the nation’s economy could also have been likely achieved by having no such organization resembling the government-empowered Federal Reserve System.

Adam V. Trotter / AVT

Friday, October 1, 2010

Clinton-Era Political Tactics Seem Alive and Well and Being Utilized Against Non-Establishment Candidates

September 30, 2010

With the upcoming general elections across the land, it appears that Clinton-Era political tactics are alive and well. What are Clinton-Era political tactics you might ask? Per my definition, Clinton-Era political tactics include personally attacking an adversary in any political election with the intent of these attacks merely to publicly sully the targeted adversary - regardless of who launches the attack or if any foundation exists for the attack. We can see this type of political tactics currently being utilized in an apparent widespread manner in the gubernatorial elections in California and New York in addition to the U.S. Senate race in Delaware. I am not overly surprised, however, that such Clinton-Era attacks seem only to be focused upon non-establishment candidates such as those in the races noted above.

What should a candidate do to avoid the typical fate of becoming political road-kill when battling focused and concerted Clinton-Era-type politically motivated personal attacks? Well, to be brief, the embattled candidate should hire me to help them field these attacks. Long ago, I became well-versed at nullifying such attacks launched by mean-spirited simpletons – as such describes many in the Federal workforce where I worked for fifteen years. However, short of employing me to make lemonade of the political lemons being thrown, any viable political entity under attack should learn the ABC’s of these Clinton-Era tactics and reverse the tide against the attackers – to be concise. If one is unable to do this then they should call me.

Adam Trotter / AVT