Good morning,
A potpourri today…
TAXES
If you’re anything like I am, last Monday was “tax day,” and you were scrambling to finish up and move on. Related to taxes, I had recent interactions both with the California Franchise Tax Board and the IRS. It’s never fun to open an envelope from either!
With the IRS, I received a pretty direct communication that I was delinquent for a prior tax year, with a recitation of the various things they could do to me if I didn’t pay promptly. Yesterday, I received a follow-up letter from the IRS, basically saying, “Sorry, it was our mistake” and apologizing for any inconvenience. Every once in a while, the government can be a benign force.
As to the FTB, I received notice earlier this year that they were conducting an audit of our taxes from several years ago. Needless to say, I immediately contemplated the cost, aggravation and stress of an audit. But then I read carefully, and the audit was limited to our charitable deductions, red flagged because they were abnormally high for our income level. I suppose this is a badge of honor! This resolved itself with submission of all the letters of acknowledgement that we saved. So make sure to save yours!…
Finally, as a postcript for this year’s taxes, my accountant reminded me when we filed last year’s taxes of the words of Bill Sonnenberg on two fronts: First, while it isn’t fun to pay taxes, it’s a reminder that you actually made money. Second, we are lucky enough to pay for the privilege of living in this country, given all the benefits it provides.
A BALANCED RULING
In the never-ending Trump circus of demeaning and diminishing his enemies and perceived enemies, Mr. Trump continues to malign the judges, prosecutors, and witnesses in his various criminal trials. He no doubt is trying to poison the jury pool in the process. Then he ran into Judge Tanya S. Chutkan, presiding over the federal case in Washington, D.C. She issued a limited gag order two weeks ago that restricted Mr. Trump’s public statements. In a balanced ruling, she prohibits the defendant-in-chief from disparaging witnesses, prosecutors or court staff. But she allows continuing attacks on the Justice Department, President Biden, Mike Pence, and other political adversaries.
And what dd the judge say about verbally abusing her? She said, metaphorically, “Bring it on.” She allowed Mr. Trump to continue maligning her under the terms of the ruling. That said, she has stayed the order until briefs are filed to address Mr. Trump’s claim that his rights as a candidate have been unfairly limited by the order. After all, why shouldn’t Mr. Trump put witnesses and court personnel at personal risk?
THE OBSERVATIONS OF A REPUBLICAN FRIEND ON THE SPEAKERSHIP CIRCUS
I thought this was a thoughtful rant from a friend on the right, who acknowledges the absurdity, to our collective detriment, of the actions by the nuts at the far end of the Republican party:
“Because no one got the magic 217, Republicans are now asking Democrats to back them…after Kevin McCarthy was inexplicably fired by 8 morons in his own party along with all the Democrats. This type of thing can only happen when one party has such a tiny majority that small factions can seize power and hold the rest hostage. This is the first time Republicans have held the House in 13 years yet they couldn't wait to give up power so that a little punk who's being investigated for sex trafficking could get revenge on McCarthy for not clearing him of the charges. Oh he gave other reasons like omnibus bills and not shutting down the government and "breaking promises" but the rest of his caucus saw it for what it was. However, it took only 5 or so to prevent the other 200+ from reaching the magic 217 number needed to overcome the motion to vacate and the punk found 7.
Now the negotiations with the Democrats begin and you better believe they will demand significant concessions from the Republicans... A lot of people don't seem to understand that when you have such a tiny majority in the House, a minority in the Senate and a Democrat in the White House, you have no power and you must negotiate and compromise to get what you want. To have real power you need to win elections and making fools of ourselves is not the way to do that. Just imagine if McCarthy had allowed the government to shut down as the gang of 8 demanded...we'd have both a paralyzed, Speakerless House of Representatives and a paralyzed federal government at a time of extreme international instability. Some people care about their country and some only about themselves. It's important to know the difference, especially for the people of Pensacola FL who will hopefully vote the ringleader out if his own party doesn't kick his butt out before that.”
A PLAN FOR GAZA
I’ve received several responses to my tome yesterday about the possibility of a protectorate as an interim step for Gaza. A couple of folks maintain that there is no history of democracy in the Middle East, so the plan won’t work. I find this argument specious and only helps defer an eventual resolution. Democracy is a relatively new concept in governing a nation’s affairs. Every nation came to the notion of democracy after not having it. Democracy and liberal government have to start at some point—so why not now? In any event, that’s part of the reason why I suggest a 10-year period during which not only infrastructure and society—but democracy itself—will have a chance to be built.
Have a great day,
Glenn
John’s father, head west coast partner at Price Waterhouse had the same sentiments as your Dad and would often say, “I’m happy to pay taxes because it means I’ve made money and I’m grateful to be an American.”