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The Curse of the Withholding Tax 
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Post Re: The Curse of the Withholding Tax
dsimon3387 wrote:
the trick is to not show earned income. own your own business when possible. Also if you own your house? try to keep a high mortgage tally because this deduction with property tax is a great one.

I investigated the mortgage and property tax deduction early on, and I decided it was not the way to go. Your home mortgage, with those huge interest payments, is the biggest ball and chain you will ever drag around. It is the primary tool used to enslave you. I chose a different route -- paying off the mortgage as fast as I could. I typically sent in four extra principal payments every month. I deliberately chose to live below my means so that I could do this. It was one of the best decisions I ever made.

When I bought my current home over a decade ago, I skipped all the mortgage payments. I paid cash. It's a modest home, nothing fancy at all, but it serves its purpose, in more ways than one.

And look ma! No ball and chain!

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Sat Apr 14, 2012 1:47 am
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Post Re: The Curse of the Withholding Tax
dsimon3387 wrote:
the trick is to not show earned income. own your own business when possible. Also if you own your house? try to keep a high mortgage tally because this deduction with property tax is a great one.

I investigated the mortgage and property tax deduction early on, and I decided it was not the way to go. Your home mortgage, with those huge interest payments, is the biggest ball and chain you will ever drag around. It is the primary tool used to enslave you. I chose a different route -- paying off the mortgage as fast as I could. I typically sent in four extra principal payments every month. I deliberately chose to live below my means so that I could do this. It was one of the best decisions I ever made.

When I bought my current home over a decade ago, I skipped all the mortgage payments. I paid cash. It's a modest home, nothing fancy at all, but it serves its purpose, in more ways than one.

And look ma! No ball and chain!


You can pay the mortgage off and leave it in a seperate account. /For example: in an interest only mortgage you take the extra payment for principle, put it in an account that earn a return, and still take the deduction. Any time you can pay the principle off, you get compound interest on the payments that go to you and not the bank. :!:

Think it through its a little hard to imagine but what you do is get the advantqges of both: the paid mortgage and the interest deduction.


Sat Apr 14, 2012 1:59 am
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and I should also say....I have no problem with paying the mortgage off this way. What I did was to take the extra money and buy more real estate. You can also take the money and put it into a tax free vehicle like life insurance which is a tax shelter. The money grows compounding over the years and yes you can always use the option of just paying the mortgage off, except that after about 15 years you will have quite a bit more money because instead of the bank getting the interest and growth....you get to keep it!


Sat Apr 14, 2012 2:02 am
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Hi Chicadoodoo,

I'vebeen out of the system for around thirty years now. And I didn't have to live on next to nothing - of course being single helped me a lot.

The secret is to know what you want out of life and putting your priorities in the right place.

Now? I have an apartment, a small farm and an eight year old car all bought and paid for. Is that enough for me? Not really. The apartment and farm are for the kids, helpset them up a little. I'm off to do it all again very shortly!

I reckon that there will be many opportunities when the depression hits hard. What those opportunities will be I don't know yet. That's what will make it fun. But it needs to be said that this time is the last time I can do this sort of thing as I'm over 50 years old! But I love a challenge.

Best regards.



What if everybody learned to live on as little money as possible? It can be done. I should know, because I'm doing it. In my case, if I earn under $9,500, I pay no federal or state income tax (due to the $5800 standard deduction and the $3700 personal exemption). Since my son still lives with me, there's another personal exemption (for one more year, anyway), which pushes it up to $13,200.

I've been deliberately earning under that threshold for a number of years now. It's the only legal way I can find to oppose the criminals running the government. For me, it is no sacrifice whatsoever. In fact, it feels like being free, and that's an incredible feeling. My time is my own. Many people cannot even fathom such a concept. All they know is obligation. And obligation is slavery.


Sat Apr 14, 2012 2:21 am
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Hi dsimon,

If you pay half your mortgage every two weeks instead of once a month you will economise around eight years of mortgage payments on a 25 year mortgage, because you will be anticipating interest payments.

Just a thought for you.

Best regards.



dsimon3387 wrote:
and I should also say....I have no problem with paying the mortgage off this way. What I did was to take the extra money and buy more real estate. You can also take the money and put it into a tax free vehicle like life insurance which is a tax shelter. The money grows compounding over the years and yes you can always use the option of just paying the mortgage off, except that after about 15 years you will have quite a bit more money because instead of the bank getting the interest and growth....you get to keep it!


Sat Apr 14, 2012 2:23 am
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dsimon3387 wrote:
You can pay the mortgage off and leave it in a seperate account. /For example: in an interest only mortgage you take the extra payment for principle, put it in an account that earn a return, and still take the deduction. Any time you can pay the principle off, you get compound interest on the payments that go to you and not the bank. :!:

OK, I'm intrigued by the idea, but I'm not seeing it. I have no experience with interest-only mortgages. I simply won't go near them. A regular mortgage is bad enough. Mortgage interest rates are nearly always higher than safe (insured) interest bearing accounts. To get a higher rate, you have to use riskier investments, and the risk is real. Any interest earnings are also taxed by both the federal and state governments. Mortgage interest deducted only saves you a small percentage (your federal tax rate) of the deducted amount. The other major portion of the deducted amount is essentially the heavy fee you are paying for the privilege of borrowing, which far outweighs any benefit you could produce on meager interest earnings. Interest rates bounce all over the place anyway, all under the control of manipulative, criminal sociopaths who would love to create conditions allowing them to repossess your home. And they do create those conditions regularly.

So explain it to me again, please.

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Sat Apr 14, 2012 2:24 am
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Grumplebum wrote:
Hi dsimon,

If you pay half your mortgage every two weeks instead of once a month you will economise around eight years of mortgage payments on a 25 year mortgage, because you will be anticipating interest payments.

Just a thought for you.

Best regards.



dsimon3387 wrote:
and I should also say....I have no problem with paying the mortgage off this way. What I did was to take the extra money and buy more real estate. You can also take the money and put it into a tax free vehicle like life insurance which is a tax shelter. The money grows compounding over the years and yes you can always use the option of just paying the mortgage off, except that after about 15 years you will have quite a bit more money because instead of the bank getting the interest and growth....you get to keep it!


I've heard this too........... years back. Goes for credit cards as well.

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Sat Apr 14, 2012 2:27 am
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Grumplebum wrote:
The secret is to know what you want out of life and putting your priorities in the right place.

Roger Ramjet! That's the ticket, all right. You've got it. My hat is off to you.

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Sat Apr 14, 2012 2:27 am
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Grumplebum wrote:
The secret is to know what you want out of life and putting your priorities in the right place.

Roger Ramjet! That's the ticket, all right. You've got it. My hat is off to you.



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Sat Apr 14, 2012 2:31 am
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Hi Oh Yeah!,

Not heard the credit card one, but it does make sense although rarely a credit card would have a $500,000 tab. But in principal, if you begin to parcel your payment it makes sense.

To me credit cards are last resorts and are payed immediately where no interest is paid and I have five of the buggers!

Best regards.


Sat Apr 14, 2012 2:41 am
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