According to a report on Israel Channel 10, Shelly Yechimovitch, the head of the Labor party, said that if she is appointed Minister of Finance, she would increase healthcare taxes, legislate an inheritance tax, and increase the corporate tax rate.
Posts Tagged ‘tax’
In 1648 and 1649 Bogdan Chmelnitzky and his hordes of Cossack warriors perpetrated an annihilation campaign against the Jews of Poland and the Ukraine. Almost 100,000 Jews and 300 communities perished at the hands of these murderous mobs. All of the Jews, including infants, were targeted for murder; the general populaces nearly always joined in the attacks, and the torture and degradation of Jews was an integral aspect of the murderer’s procedures. None of those who survived were spared pillage and plunder, looting and larceny.
The Chmelnitzky massacres were a holocaust – no different than the Holocaust we are all familiar with. Only the techniques were not as efficient and modernized, as it was not captured on film.
After these devastations it was only natural to hope for – indeed to expect – the arrival of the Messiah to redeem the tattered masses from their misery and squalor. Their desperation was so great that they were ready to believe the outlandish assertions of a Greek Jew named Shabbetai Zvi, who claimed to be the messianic redeemer.
But Shabbetai Zvi was an imposter, a persuasive one with a good public relations team, but no more than a charlatan that misled an anxious and desperate people. And if his deceit was not great enough, he dealt a crushing blow when he converted to Islam to avoid punishment.
The Shabbetai Zvi debacle brought on its heels a subsequent fiasco with the emergence of Yaakov Frank, who claimed to receive Divine revelations. Against the warnings of the rabbis, Frank managed to keep Shabbetainism alive until he encouraged his followers to adopt
The debacles in the Jewish community were concomitant with Poland’s inner convulsions that followed the Chmelnitzky massacres. There were the Tatar incursions from Crimea, the Moscow War and the Swedish War, each one ratcheting more bloodshed, suffering and destruction to the beleaguered Jews of Poland. Thousands were killed, thousands were forcibly converted to Christianity, and the remainder were uprooted, scattered, persecuted and exiled.
It was at this time that the Church renewed and strengthened the blood libels, accusing entire Jewish communities of having murdered a Christian child so that the victim’s blood could be utilized as an ingredient for matzah. From 1700-1760 not a single year passed when a libel was not attempted, and dozens of court cases were brought to trial in order to further aggravate the hatred of the Jew.
Eventually, the central institution of the Eastern European Jews, the Vaad Arba Artzos (Council of Four Lands), was compelled to send a delegation to Rome to appeal to the pope to issue a decree clarifying that Jewish law does not require the sacrifice of a Christian child prior to Passover for the purpose of matzah-baking.
The governments of the region could barely have been more anti-Semitic. There was a stiff head tax on every single Jew, a communal tax and additional taxes and fines were periodically imposed. The inability to pay one’s tax to a local landowner meant imprisonment – often for the entire family.
The ability to earn the most modest livelihood, let alone the execrable taxes and fines Polish Jewry was burdened with, was no easy feat. Vast numbers of professions were forbidden to Jews, leaving only a few realms of despised employment available, such as moneylending and running taverns for the local Polish landowners.
For the simple, peasant Jews, and even for the modestly more successful ones, the situation was extraordinarily bleak. The only person that had offered any hope was Shabbetai Zvi, and the aftershocks of that disaster were still palpable.
The rabbinic leadership was unable to relate to the masses and offer solace or comfort, the consequence being a disconnect between the rabbis and the people. The few rabbis that dared to speak out about the corruption that prevailed among their colleagues who had acquired their positions by bribing officials faced punishment or banishment. The less courageous blamed the suffering on the diminishment of Torah learning. The solution to the privations, the torment, the poverty and the false accusations, they pressed, lay, as always was the case, in repentance.
The rabbis had no novel ideas to suggest or a formula that was specifically adapted to the times. On the contrary, anything that seemed to vary in even the minutest detail from age-old tradition was viewed as dangerous and squarely verboten.
As a financial adviser I notice that certain money mistakes are very commonplace. Are you making these kinds of errors that can destroy a fortune?
Instead of learning from your own mistakes, try learning from other people’s mistakes. Below is a list of some of the most common mistakes in financial planning:
1. Putting off buying life or health insurance. Even if you are still young and you belong to the mindset of “it will never happen to me,” the truth is that you never know. Accidents, terror attacks, and sudden illnesses are all in the hands of the One Above, and although no one should ever go through life in a constant state of fear and worry, it’s important to be prepared for any eventuality. Think of your insurance policy as “risk management.”
2. Passing up tax breaks. When considering whether to buy or sell an investment, don’t only look at the figures. Find out what this means in terms of tax. How will the dividends/interest be taxed? Does the investment have any kind of tax deferral or tax-free status? While tax status shouldn’t be your sole concern in purchasing investments, make sure to keep tax liabilities in mind.
3. Buying or holding stocks for the wrong reasons. Are you holding onto a stock out of sentimental reasons, because you inherited it from a loved one? Are you thinking of buying a stock simply because you enjoy the company’s products? Don’t base your decisions on emotions. Do your homework, and only buy the stocks that make the most financial sense for you. If you are not sure how to work this out, consult with a financial planner.
4. Not taking enough risk. Some people are very cautious by nature, and they would prefer to invest their money with the least risk of loss. Although this might sound prudent because it minimizes the chance of loss, the other side of the equation means that your gains will be limited. Of course, the appropriate level of risk for you depends very much on your personal situation, so speak to your financial adviser about what is appropriate for you.
Keeping these four points in mind should help you avoid some of the most common money mistakes. Don’t make these mistakes, and if you do, visit a qualified Certified Financial Planner (CFP®) for help in fixing them.
President Obama was asked on 60 Minutes Sunday: “You‘re saying you don’t feel any pressure from Prime Minister Netanyahu in the middle of a campaign, to try to get you to change your policy and draw a line in the sand…?”
The president responded: “When it comes to our national security decisions—any pressure that I feel is simply to do what’s right for the American people. And I am going to block out any noise that’s out there. Now I feel an obligation, not pressure but obligation, to make sure that we’re in close consultation with the Israelis—on these issues because it affects them deeply. They’re one of our closest allies in the region. And we’ve got an Iranian regime that has said horrible things that directly threaten Israel’s existence.”
Obama sounded belligerent later on, when he commented on Mitt Romney’s charge that his foreign policy is “a policy of paralysis,” blurting: “If Gov. Romney is suggesting that we should start another war, he should say so.”
Romney’s Press Secretary Andrea Saul commented:
“Tonight on 60 Minutes, President Obama called Israel’s legitimate concern about the impact of an Iran armed with nuclear weapons ‘noise’ and referred to Israel as merely ‘one of our closest allies in the region.’ This is just the latest evidence of his chronic disregard for the security of our closest ally in the Middle East… As president, Governor Romney will restore and protect the close alliance between our nation and the state of Israel.”
Romney worked hard to make “more elegant” his secretly taped remarks to an audience of wealthy donors in May, that 47 percent of the American people paid no income taxes, were dependent on government and would never vote for him.
He also distanced himself from his running mate’s reputation regarding the future of Social Security and Medicare.
Congressman Paul Ryan wanted to reduce payments to the Medicare program by about $700 billion.
“Yeah, he was going to use that money to reduce the budget deficit,” Romney said of Ryan’s proposal. “I’m putting it back into Medicare, and I’m the guy running for president, not him.”
Romney discussed his plan to reduce income tax rates by 20%, adding that the plan would also limit deductions and exemptions. Responding to criticism that his tax reductions would favor the rich, Romney said in his tax plan “there should be no tax reduction for high income people.”
He said he wants to give middle class families a tax reduction by cutting taxes on interest, dividends and capital gains. But he wouldn’t name the specific tax deductions and exemptions he would cut.
Skip to 10:59 for the ‘noise’ segment.
David Axelrod was manhandled across cyberspace for tweeting an attack against Republican donors Sheldon and Miriam Adelson on the morning of September 11th. Let’s be charitable here and forgive Axelrod his breech of etiquette given that campaigns become so intense you can easily get carried away without meaning to. Whatever the case, Axelrod was reacting to a report in the Huffington Post that if Mitt Romney won the election people like the Adelsons could save billions in taxes. The report also said that a repeal of the estate tax could save billions more.
As the Adelsons are arguably the world’s foremost supporters of Jewish causes and charities, this raises for a Rabbi who is also a congressional candidate the question of what is a bigger mitzvah: paying taxes or giving charity. Surely even Axelrod, or other critics of the Adelsons, are not suggesting the couple have a problem parting with their money, as they regularly contribute hundreds of millions of dollars to charity. Rather, the argument is that they should be paying higher taxes, and the payment of higher taxes on the part of the super-rich has been a constant campaign theme.
Mind you, even Obama and Axelrod have their limits. They are not advocating confiscatory taxation as is, say, France’s new President Francois Hollande, whose plans to tax those making more than a million euros per annum at a rate of 75% is already leading to an exodus of the rich. No, President Obama wants the Bush tax cuts to expire at the end of the year leading to a federal tax rate of 39% for those in the highest bracket.
But since America came into being as a protest against unfair taxation, what rate is fair, even for the super-rich? For example, in my home state of New Jersey a millionaire will pay, at present, 35% of his income to the Federal government and then nearly 10% percent to the state, and New Jersey was changed by Democrat Jon Corzine to a net income state, meaning you cannot deduct what you pay in Federal Taxes from your state tax bill. That means about half your income goes to taxation, and that’s before real estate tax (in New Jersey it’s arguably the highest in the nation), sales tax, and the myriad other taxes we each pay on a daily basis (take a look at your monthly cell phone bill to see if you can even count how many taxes there are).
Still we are told that America’s taxes ought to be higher. In New Jersey it hasn’t worked. People are leaving the state because they’re tired of being ripped off. So while we lost a Congressional seat, leading to a terribly bitter Democratic primary here in the 9th district, Florida and Texas, which have no state income tax, added a bunch. When I meet people campaigning, they tell me that taxes are the number one issue for them.
Are American citizens really expected to feel guilty about not paying enough tax? When we see such incredible government waste, should we be eager to fork over more money to see it so much of it squandered?
Take President Obama’s trillion dollar stimulus that seemed to have stimulated only greater American resentment at paying taxes. Nearly a trillion dollars was poured down a sinkhole but produced no jobs or greater economic performance. I even remember reading a story after the package passed in February 2008 of a public school that was sent hundreds of thousands of dollars to spend. The school responded they didn’t need the money. They had good facilities and new equipment. No matter. They were told they had to spend the stimulus funds.
I remember being deeply upset. I’m an orthodox Jew. I have a right to educate my children in the Jewish tradition, just as Catholic, Islamic, and Christian parents. I send my kids to a Jewish day school. But not a dollar of my hard-earned tax dollars is allowed to pay a single expense at my children’s Yeshivas and Jewish day schools, even for completely secular subjects. Religious parents throughout the country are having fewer children as they struggle to keep up with insanely high taxes and insanely high tuition. Yet here was a school having our tax dollars being shoved down its throat when it didn’t want or need the money.
The Zionist Organization of America has lost its 501(c)3 tax exemption status, due to failure to file tax returns for the last three years.
In an interview with JTA, ZOA president Morton Klein confirmed the loss, and stated that his organization has hired a tax attorney to help them bring their files up to date and apply for reinstatement of their status.
According to Klein, the error in filing was due to the failure of a ZOA-funded school in Ashkelon to provide correct information in time, as well as a misunderstanding on the part of the ZOA as to the amount of time it had left to file for an extension.
Wealth transfer is a hot topic in financial planning. Thinking about how to pass funds from one generation to the next can be emotionally difficult. Perhaps the older generation doesn’t approve of the way the younger spends the money, or the younger generation isn’t involved in the family business. Furthermore, tax and legal issues can complicate matters.
While estate and inheritance planning can be complex, other wealth can be transferred more easily: the wealth of knowledge. My grandmother successfully passed a financial education to my mother, who transferred it to me, as I am a proud third-generation licensed broker. My maternal grandmother Miriam Rosofsky struggled against social norms to enter the work world. But eventually she had the distinction of being one of the first women to hold a U.S. Securities license. She started as a secretary in a brokerage firm, but then began picking up her own book of clients. My mother Rhoda Goldstein was an associate vice-president in Dean Witter. Dinner-time conversation around my childhood table alternated between medical issues (my father was a surgeon) and economic discussions. I saw how both my parents helped people gain and maintain their physical and financial health. It was therefore only natural for me to begin my financial career partnering with my mother on Wall Street.
After I made aliya, I founded Profile Investment Services, Ltd. with the aim of helping people living in Israel create financial plans and maintain U.S. brokerage accounts. I try to follow in my mother and grandmother’s footsteps in transferring the wealth of financial knowledge to my own children. Even though none have announced their desire to be financial planners (but my wife recently became a licensed U.S. broker), they do check stock prices regularly.
We frequently discuss fiscal responsibility, budgeting, and other economic topics at our dinner table. Some of the kids are reading books on behavioral finance, and others are reading books about loyalty, fidelity, and trust. My mother, keen to pick up on children’s natural curiosity about money and the way the “grown up” world works, recently came out with a book geared for young adults about how the stock and bond markets work, and how an entrepreneur can raise the funds necessary to fulfill his dream. If you’re interested in sharing this information with your children and transferring the wealth of financial knowledge to them, visit my website to get her new book Stocks, Bonds, and Bicycles. Let me know if you recognize any of the characters in the story.