Becoming Fully Taxated

Contents Fully Taxated, Part 1 ................................................................................................................................ 2

Fully Taxated, Part 2 ................................................................................................................................ 8

Fully Taxated, Part 3 .............................................................................................................................. 14

Fully Taxated, Part 4 .............................................................................................................................. 20

Becoming Fully Taxated Incorporation Tips ........................................................................................... 28

Fully Taxated, Part 1

As February draws to a close, First Wife and I, as we do about this time

each year, treated ourselves to the completion of our corporate and

personal taxes. While each Diamond Slave struggled over a four-day

death march to prove his woo to his Demanding Beloved in the worst

economy in our lifetimes, she and I gathered our informational

weapons to fight this latest round against the Ruling Class. About the

only interest I have this time of year in the Diamond Slave trade is to

wonder why, if a liberated lady is to be treated to a heart-shaped box

of candy, a gentleman isn't similarly entitled to a box of sweets fashioned after portions of his

lady's anatomy, analogous to each party's amorous interest in the exchange. Perhaps they

could just turn the boxes upside down. But, I digress.

As you know, I am firmly convinced that what passes today for civilization is headed for the

cliffs. As Monkey Starvers, it is in our best interest to make sure we are headed for the nearest

precipice as rapidly as possible, so that we might more quickly rebuild things for our children

afterward. In our shared vision, it is the rebuilding that is the important thing. The inevitable

collapse is merely a tool we may use to shape that end game: a world, or at least our local slices

of it, freed from the complementary evils of socialism and corporatism.

A Monkey Starver prepares for this collapse by the following:

- Preparing his mind by learning those skills, too numerous to list here, which he will need

afterward.

- Preparing his body by keeping practically fit and healthy and learning physical skills such as

marksmanship, tactics and animal husbandry.

- Preparing his soul by discovering that there is such a thing as just retribution, and learning to

discern his True Enemies. Even the Prince of Peace didn't turn his cheek to these. And they

tortured and killed him for it. So WWJD in our time?

- Preparing his environment by collecting those things which he might most need during the

transition, while knowing that if displaced he can survive without them.

- Facilitating the above goals by thriving in the world as it exists today.

It is this last category within which tax skills lie. Many in the community disdain these skills as

irrelevant post-collapse, and ignore them to their peril. They are absolutely right about the

irrelevance of such concepts as deductions and amortization post-collapse, as accountants and

tax professionals will be of hardly more use than as biofuel feedstock. But, our brothers are

dead wrong about the importance of these skills right now as we prepare. Understand these

issues and thrive, and you will have more with which to survive later. Otherwise, you will be

less-prepared, shot as a bankster's tax resister, or worse, rotting in a bankster's prison cell

somewhere having flouted their demonstrated power to demand your yearly tribute. At the

very least, you will have your possessions seized and your ability to get more destroyed.

To thrive in any system, you must first recognize the reality of that system, and then act

accordingly in order to manipulate its energy to your own purpose. We too often project our

own individual decency and honesty onto the current system, and then delude ourselves into

thinking that the actors within it are merely misguided, so thwarting its noble purpose. This is

yet another dangerous fantasy, right up there with believing the military exists to ensure your

liberty, which could get you killed as the wheels start to fall off and the Ruling Class begins to,

more and more, express its true nature in its desperation to avoid that fatal (for them) cliff.

To this end, let's briefly examine the true nature of the tax code, and why and how it performs

that necessary function of getting the slaves to enslave both themselves and unwilling others.

First, accept the premise that our system was specifically designed to feed a class of certain

very wealthy people. Without this acceptance, you will be continually herded this way and that,

expending your righteous anger in fruitless ways. Accept this premise and the clouds will be

lifted from your understanding, allowing you to perceive your True Enemies and be thus

enabled to one day destroy them corporally and individually. Fail to accept this fact and you

deserve your fate at the bottom of the cliff alongside them. Refuse to accept this fact, and I

can't help you, so crawl back into your cage and ready yourself to lick your master's hand once

again with humble servility.

Now that we are only talking to men ready to see reality and stand on their own feet to one day

exact just retribution, let's expand on this understanding. The tax code is designed to benefit

the Ruling Class, and to reward and punish each of the various classes in our society, according

to the value or risk which each poses to the slave traders. Your goal, as a Monkey Starver, is to

be perceived by the tax code and its enforcers as a harmless noble servant of the Ruling Class,

even as you sharpen your knives.

Let us now consider some of these valuable servant classes:

- The old-money rich. These benefit by the fact that most of their passive income activities, such

as capital gains, interest and dividends, are treated differently than sweat-of-the-brow income.

The Ruling Class occupy the upper levels of this class. Interestingly, the income tax was sold to

the populace a hundred years ago to specifically tax these people while sparing the small fry.

Promises, promises. More on this later, but chances are that if you are one of these guys, you

aren't reading this. A Monkey Starver can still use elements of this category for his own benefit,

though.

- The new-money rich. These benefit, and are rewarded, by similar means as the old-money

rich, but perform the additional service to the Ruling Class of operating businesses which keep

individual minds enslaved to corporate grayness. Right-wing media personalities, such as Rush

Limbaugh, exist to delude you into thinking that your economic fate is inextricably linked to the

fate of this class, and that somehow protecting Bill Gates' interests also protects yours. We are

told that without this class we would not have jobs, when the rules that benefit this class

actually prevent us from providing jobs for ourselves. Again, more later, but Monkey Starvers

already know well this class.

- The pensioners. These perform the valuable service of voting in easily manipulated blocks, and

provide a dilution effect on the electorate which keep the productive minority thinking they

have a chance in our electoral hell. Otherwise, the productive might take to arms if they

realized that voting will never make a difference. Monkey Starvers know better.

- The enforcers. These willingly enslaved, effectively prison trustees, have wed their minds to

the interest of the Ruling Class, and look forward to one day enjoying fat pensions forged into

chains for your children. Let's provide them a different option, shall we?

- The barely sufficient. These show up at their menial jobs, then keep their minds empty and

their mouths shut. In their own minds, they derive value from the corporate prisons out of

proportion to the value they put in, and so think they are "getting over on the Man." In reality,

these act as corporate enforcers who transmit certain mental diseases, compliance and apathy,

to their co-workers, diseases which then infect every aspect of their daily lives. Socialist or

conservative makes very little difference among them; they all behave the same. And they're all

on the lookout for you and your slightest misstep or statement which might identify you as an

enemy of their masters. As another easily manipulated enormous voting block, they perform

another valuable service: they will never vote for anything which will actually help.

- The entitlement classes. These slaves, of all races, on the electoral plantation are paid to

remain compliant, and like their corporate peasant brethren, imagine themselves getting over

at your expense.

Notably missing from this list is the productive class which feeds all the others. If you are still

reading this, then you are probably one of these. The tax code, and legal system, exists to keep

you enslaved to all the rest. But you can learn to use this system to your own advantage. Keep

reading.

From a collapse perspective, the lower rungs of these will starve in large numbers. Pity them

not, each of them could have paid the price to prepare which you have. Some will band

together in gangs which will have to be dealt with, while the evil resident among the upper

levels, currently protected by the lower, will have to be hunted down individually and brought

to justice after the illusion of law and order evaporates. Clearly, we will have a lot of work to do

dealing with vermin.

The tax code rewards the upper levels by allowing them to keep more of what they haven't

earned by the sweat of your brow, while the lower levels are rewarded for their compliance

and their willingness to keep you in your place. The former is attained by rewarding passive

income, while the latter is attained by rebating that which had never been bated. As you

become more adept at navigating through the tax code, you will see this pattern repeated

again and again. Space does not permit me to explain in detail in these pages, but you will soon

see what I mean.

Accepting this fact allows us to see through two illusions, the one favored by the right and the

other favored by the left:

- Your interests and the interests of the rich are not the same, no matter how much you are fed

stories of good-kid-made-good-maybe-one-day-you-too. Behind every success story you hear is

a story of influence and connection. Every single one. Or just an out-and-out lie. If you think

you've made it without influence and connection, you are either self-delusional or haven't yet

hit one of their snares. The tax code and injustice system do not allow you to succeed on your

own merit; it will bleed you dry each step of the way. And at each transition on the way up, you

will encounter wildly different rules which will punish you for your impertinence for trying to

break through. These transition rules don't affect the uppers since they started off already

there. Those upper levels simply don't want competition from you.

- The barely-sufficient and entitlement classes aren't paid in an attempt to correct social

injustice, as they themselves self-righteously imagine, but are instead paid to comply while

keeping you in line along with them. Over the ages, the Ruling Class has learned to keep the

arguably vertebrate comfortable enough to sell their children and grandchildren into bond

slavery, or to patriotically fight their wars of resource conquest for them (hint: Afghanistan is

rich in minerals). Otherwise, it might be possible for a certain swarthy gentleman of unlikely

proportion and generally disagreeable disposition to rouse the rabble into the ultimate

misfortune of the guilty parties. We have seen this pattern repeated in the past, and the Ruling

Class would prefer this not happen on their particular watch. But I digress once again.

The most important weapon of the Ruling Class is government spending. Right or left, bombs

purchased from the wealthy or brisket purchased for the poor, these make no difference

whatsoever. Each fallacious side in a struggle which does not actually exist can whip up

electoral frenzy to do either on a whim. They are all paid by bonds, backed by the government's

ability to force your children to live as a tax slave. Read "Bonds? What Bonds?" for more

information about that, but for now accept the fact that government spending = bond sales =

fat returns for the Ruling Class at your expense. For now.

The upper levels rely on bonds, and other passive income activities, and so these passive

activities, bonds included among them, are treated more favorably by the tax code. The lower

levels just get checks, and some in the middle get a few scraps of bonds in their retirement

portfolios to keep their interests aligned toward our system of bond servitude. If you own even

one bond right now, you've bought-in to slavery, too, no matter what you might say about

liberty. Get rid of them now before your possession is used as evidence against you afterward.

And when that market defaults, as it inevitably must, just after the upper levels exit, all of these

people will clamor to be made whole by taking whatever the rest of us have left. When they do

clamor, you will know who to count among your enemies.

Nowhere in any of this is the notion of productivity. Get it out of your head that productivity is

the path to success, or even survival. After the collapse, this will certainly be true, but in the

world in which we must all live right now, productivity, at least as an employee, is a sentence to

lifetime servitude. Be productive, but for your own benefit and your own motivation, and in the

right ways.

If you are an employee, no matter how productive you are, you will be barely rewarded for

your efforts. Look around you. You might be ten times more productive and useful than the guy

who gabs all day with the cute chick, but are you paid ten times as much? Of course not.

Those who make the big bucks don't work for a living. Instead, they broker the efforts of those

who do work for a living. And they enjoy huge tax benefits for doing so. Why? Because these

are the prison wardens. They are politically reliable, and are more than happy to weed

independent minds out and onto the streets. Drained of resources and employment,

independent minds like yours pose little threat to the Ruling Class. Or learn to be compliant

(even if feigned as a Monkey Starver) to survive. Which is why it is increasingly harder for you to

run your own businesses: without the mark of employment compliance none may buy or sell.

This, then, is the clue you need for taxational success. From the perspective of the tax code, you

must taxate your business life as an evil slave trader, while taxating your personal life as a

hapless slave. In so doing you, quite legally, enjoy the benefits of both. Neither of these trigger

the alarms which are set to find you out. Thinking that you can good-kid-make-good will just get

you bled dry.

In the following sections we will discuss the techniques by which we lead this dual (in reality

triple) life, and give a few examples along the way.

Fully Taxated, Part 2

In the first part of this series, we discussed the reality of the tax code

in that it exists to benefit the Ruling Class. The primary means by

which the tax code provides this benefit is the obvious one of

extracting the wealth necessary to repay public debt to the slave

traders. However, as we discussed, the tax code also spares the

passive income of the Ruling Class' compliant servants, while

rewarding the lower income levels so that they assist in your

enslavement. The only people who actually pay taxes in large

amounts are you, the foolishly productive. If you haven't read that

article, please go back and read it now before proceeding: I don't have space to give the

summary justice.

I now repeat an essential point from the previous part: To thrive in any system, you must first

recognize the reality of that system, and then act accordingly in order to manipulate its energy

to your own purpose. As I have said before, we too often project our own individual decency

and honesty onto the current system, and then delude ourselves into thinking that the actors

within it are merely misguided, so thwarting its noble purpose. To thrive in this system and not

be perpetually frustrated, or worse, you must accept the premise that our system is not

fundamentally noble, but was specifically designed to feed a class of certain very wealthy

people.

With that in mind, let me get something out of the way. Everywhere I go I hear different

versions of the same theme: "UCC this and UCC that". I hear this from people who are clearly

flakes, and from people whose opinion I respect.

If you accept the previous essential point, you must recognize that rules don't exist for tyrants,

they only exist for you. If we could wave a magical UCC wand and avoid taxes, we wouldn't

have a problem. If we do live in a tyrannical system, and I believe that we do, then you can't

just go up to the tyrant and make a mystical incantation and expect him to comply. There is no

noble court or jury out there which will save you, no matter what you hear to the contrary.

Instead, you will face a jury of monkeys who depend on the tax code, and your compliance to it

no matter how illegal you can prove it to be, to feed them at your expense. These jurist

monkeys will be told what to decide by monkeys in suits and robes, with their decisions

enforced by monkeys in uniforms with guns and badges.

No, if you are going to taxate yourself in any way which has a practical chance of success, you

must do it in such a way that you seem to wear a monkey suit in your professional life, but

monkey coveralls in your private life. To understand this point fully, you must read and

understand the previous article.

Now, for our examples, we're going to use three fictional persons to represent different

scenarios: Andy, Bob and Chuck. All three of these guys are married to one woman each, and

each has two kids. Andy makes $30,000 per year as an employee, Bob makes $100,000 per year

as an employee, and Chuck bills his clients $100,000 per year as a contractor. To keep things

simple we are going to ignore investments, interest, dividends, capital gains, tax-free munis,

home mortgage interest, and the big daddy of them all, the Alternative Minimum Tax (AMT).

Consideration of AMT would certainly make the distinction much more dramatic, but the

examples will be fine without it. We are also going to use standard deductions and ignore state

taxes, but again, these would only make the lesson more dramatic.

As with many thought-experiments, I encourage you to get the forms and follow along for

yourself. Prove me wrong in some substantive way, in other words. Details of piddlery don't

count.

To the Ruling Class, Andy is far more valuable than Bob or Chuck. Andy is much more likely to

join large voting blocks, like unions or churches or become a cop or schoolteacher. Should he

choose to join a union, he will be rewarded with higher undeserved pay. Should his miserable

poverty-line life become too much, he will drift toward pulpiturally-inspired exhortations to

obey all the rules, including coming up with more cheek to turn. There he will also be told how

Jesus wants him to send his children to war to die for the banksters' interests by playing Wii

Holy War to kill Jesus' long-lost way-back cousins. After all, those commercials on TV do look

exciting. Be all your conscience can ignore, kiddies.

Or, Andy can become a cop of one kind or another (like a schoolteacher) to push people like

Bob and Chuck (or miniature versions of them) around while enjoying unofficial corruption as

he waits for his officially corrupt pension payoff. Andy is also far more likely to send his kids to

public school so that they can be indoctrinated there, too. He is also effectively trapped by

medical benefits, necessary so that his wife and kids can serve as unwitting lab animals for

pharmaceutical experiments. We can go on and on about how valuable Andy is.

So Andy, hardly ever one to do anything for himself, has someone fill out his 1040 for him, and

comes up with the following result. His adjusted gross income (AGI) is $30,000 in our simple

example, which dwindles to a scant $4000 in taxable income after the standard deduction and

exemptions. At 2010 rates, Andy is on the hook for a whopping $400 in federal reserve income

tax. But, he also qualifies for $400 child tax credit, which wipes that out.

We're not done yet. Add in another $800 for the "making work pay credit" (note: this credit has

since been phased out, but look forward to similar gravy for this tax bracket), $3232 for the

"earned income credit" and $1600 for the "additional child tax credit" as self-defined

"payments" on lines 63 through 65. Now Andy walks away from the tax table with $5632 in his

pocket, on top of whatever tax withholding he had throughout the year. Granted, he also paid

$2295 in social security and medicare tax, but his net gain from being a "taxpayer" is $3337. To

put it another way, Uncle Sugar just gave our hero an 11% raise. All he had to do is keep his

nose clean and do as he is told. And be a low-wage breeder. After all, the banksters have to get

cops and soldiers from somewhere; they sure as hell aren't going to get shot at themselves

while stealing what they want.

OK, so Andy "earned" $30,000, but ended the year with $33,337. And we didn't even add in

low-income assistance such as housing or school lunches, etc. No wonder Andy is ready to wave

a little flag when they hand him one. "Put your boys on this here bus, Andy, we'll do 'em up

right. One of 'em might even be a gen u wine hero, and you'll get yourself some purty ribbin

and an o fishal flag." This is the greatest freaking country in the world, alright. Larry the Cable

Guy says so every week on The History Channel.

No, they don't want Andy's money. He has so little of that anyway. What the banksters really

want from the Andys of the world is his soul and devotion, which they can purchase for a

pittance and the right kind of media influence.

Now, Andy might want to do a little better for himself. Among the Ruling Class this is fine, so

long as he doesn't start getting uppity. Some of the gravy we've talked about coasts upward for

a while, but really starts to dwindle away in the $40,000 range. I leave it as an exercise for the

reader to determine the tipping point. For you homeschoolers out there, this would make a

great software exercise for the kiddies who have taken my programming courses.

So now let's switch to Bob. Bob probably has a college degree, which nowadays is really nothing

more than a slave certificate, as we'll soon see. We'll use the same assumptions as with Andy,

so his taxable share of his original $100,000 is $74,000. This puts him on the hook for $10,869

at the same point Andy was liable for $400. Care to guess which way this is headed?

Remember, we're ignoring the AMT, so what we're about to discover isn't even worst-case for

most people like Bob.

Now, Andy's tax got wiped out first with a $400 child tax credit. Bob's slice of that same credit is

the full amount, or $2000. Lucky guy! That leaves him paying only $8869 when Andy was at $0.

Bob also qualifies for the $800 making work pay credit, reducing his bill to $8069. But, due to

his vast riches and higher earned income, Bob does not qualify for the earned income credit.

And, since he took the full child tax credit, there is no additional child tax credit to add. Now,

let's add in the 7.65% in social security and medicare taxes ($7650) and his total national tax bill

is $15,719, while Andy received $3337. For each Bob in slavery, the banksters who own this

country's "stock" can pay the bonus to four Andys to watch him, and still turn a profit.

If you still think that voting is going to make any difference, you are a complete freaking idiot.

Voting is a shell game to make you keep hoping something will change two years from now, so

you won't get your rifle out today. You wouldn't know who to shoot anyway. Give it time, it will

come to you.

Note that the difference between Bob's tax and Andy's negative tax is about $19,000.

Somewhere along that $70,000 difference in income $19,000 in taxes is raised. In that range, on

average, the marginal tax rate is about 27%, meaning that for every additional $1000 earned,

about $270 is paid in taxes. Now, it isn't linear, which means that the gravy hangs in there for a

while in the range paid to cops and schoolteachers, the collective trustees for the adults and

children alike. So, the marginal tax rate around Bob's income level is higher. I don't want to

spoil the fun of your figuring it out for yourself, so let's just throw out 40% as a number. But

Bob thinks he is only paying about 15.7 percent, when in reality each additional dollar he makes

is 40 cents lighter (add in state taxes and it's even worse).

Go above that level, and things get even worse faster. This continues for a time, until around

$300,000 to $400,000 (doctors and highly-compensated merger attorneys) things get better.

But, those people don't play the income game anymore, as we'll discuss in a future piece.

But what about quality of life? Well, Andy makes a lot less money, for sure, but he has more

free time to spend. After all, in his job, overtime probably means time and a half, and he's still

in the gravy zone. Bob, as a salaried professional, probably works as much as 50% more, at no

additional pay, leaving less free time. Bob probably is also living in a nice house in a suburban

subdivision that is currently underwater mortgage-wise. Accordingly, Bob can't just up and

move, while Andy can move from government-subsidized hutch to government-subsidized

hutch practically at-will. To make that $100,000 in the first place, Bob's profession will typically

require him to reside in a high cost-of-living area, whether he wants to or not. The tax code

makes no adjustment for his situation.

Further, in such snooty digs, Bob's neighbors are also probably more likely to notice if he

punches the old lady in the mouth when she complains after he didn't get her a big enough

diamond ring for Slaventine's Day to "show her he loves her all over again". Bob also probably

has to look forward to paying college tuition so his kids can be slaves, too. On the other hand,

Andy's kids will get some kind of benefits if they have a head left after shooting at Semites (the

kind it is OK to shoot at) for a couple of years.

Bob also pays property taxes and homeowner's association fees, has nicer cars that don't "go"

any better than Andy's beater, has student loans to pay, has to keep his snoot grass cut and

always wonders whether Andy's kids are selling his kids drugs. After all, from whom better to

buy your drugs than from a cop's (or teacher's) kids? Bob's kids could have their futures ruined.

No problem, the banksters' recruiters are more than happy to take in kids of economically-

ravaged families, the more economically-ravaged the merrier, so long as they are willing to pull

the triggers to get those damned recalcitrant Afghanis off those mineral piles. We've got mines

to dig, damn it, and you can't do that with all those armed Muslims running around thinking

that they own the place. Those next-generation smartphones aren't going to sprout their own

rare-earth magnets, are they?

Plus, after deciding to be a cop or schoolteacher, Andy is looking forward to a nice fat pension

at 55 (or sooner). Or, if he joined that union, will probably get a nice bailout ala-GM, while

Bob's 401k gets the tail-end drippings. After all, there are more Andys to vote than Bobs.

But, not everyone in the Andy zone is looking forward to a nice, fat cop (or schoolteacher or

other government choad or union) pension. Many of these people actually work for a living,

foolishly providing original value to the world. If you are say, a welder or a mechanic, and wifey

works too, your combined income is headed right back up into the Bob zone yourself, shedding

Andy gravy all the way. So, for the rest of this series, anytime I mention Bob, this means Al-the-

Welder-Plus-Alicia-the-Wicked-Hot-Hairstylist, too.

So it's a wash, but want to guess which one, ThugAndy or Bob (or Al/Alicia), feels more free?

Delusions are a great thing, sometime.

Now, even though there are enough Bobs (or Al/Alicia combo packs) right now to pay for a

whole jackboot full of ThugAndys, this is clearly an unstable situation. Sooner or later,

something has got to give. Care to guess who is going to be tickled when Bob's 401k gets

nationalized to pay their fat pensions, or inflated away to nothing? It's a damned good thing

that Bob went to all that effort to get edumacated, and forewent that income into his

retirement savings. And bought that nice house. And married that damned whining yacking

biatch who thought she was getting the hell out of the trailer park.

Here's a few words of encouragement for all those Bobs out there. The reason she is difficult to

live with right now is because, like all the rest of us, she recognizes that the future is a scary,

uncertain place. It always has been, but now is especially bad because the mirage we've

enjoyed for our entire life is starting to evaporate. If she has any sense at all (and some do),

she's also starting to regret having gleefully participated in your emasculation for so long. But,

since wheedling you is the only coping strategy she has ever known (and it has worked wonders

for women in the recent past), she, like many people, is just flailing around in desperation.

But Bob, no matter how much she is on your case right now, don't punch her in the mouth; it

messes up her looks and nobody wants that. A rolled-up newspaper to the thighs makes the

point, makes a fun jiggle, and doesn't leave any permanent marks. You might find it kind of

turns her on, too, which is probably the point of all her biatching; she may have been trying to

draw the caveman from hiding within your hollowed-out soul.

Just kidding ladies. After all, you are grown women, not bad puppies. So, a belt is much more

appropriate. But, it has to be one of those heavy country-boy kinds, not that flimsy little thing

you make hubby wear when you haul him by the nose to church. Besides, who subscribes to

newspapers anymore? Whacking you girls on the butt with a Kindle doesn't really do it for

anyone. The, uh, bottom line is that if you want him to be strong for you in this horror we are

all about to experience, then you have to be strong by accepting correction from him when you

deserve it. And find another church; we have all turned far too many cheeks already.

Oh, and that 401k? Bob, it was gone the day you made that deal with the tax devil. Don't

believe me? Try to get it back and see what happens. But you won't even try, will you? And

that's the whole point of that. We'll talk more about 401ks some day, including the fact that

whatever you think you see as gains, is simply an inflationary effect in the paper value of

companies that don't make anything of value anymore. About all you can do now is simply stop

giving them more, and, instead, use that money improving your position, as fighting-hole

Marines put it.

One last thing before moving on. You must remember that passive income is the king of the tax

code. But there is a special kind of passive income, interest, which is the emperor. All

throughout the tax forms and instructions you will see reference to "interest paid to banks."

Interesting, isn't it, that not only this particular expense, but the recipient, is singled out?

Interest paid to non-bank recipients is even called out as "other interest". Poker players call this

a "tell". Most people see this facet of the tax code most clearly when they are itemizing their

home mortgage interest deduction, but it's all over the tax code. As you get deeper into this

yourself, you will see what I'm talking about.

Now, we've been told our entire life that this particular deduction is to reward home-ownership

and to get people to "buy-in to the American Dream". Ask people in Atlanta how that particular

nightmare is working out for them right now (I can tell you from personal experience that it

sucks). Many of them can't even leave to take a job somewhere else without filing for

bankruptcy, but what does that do to their employability? If you don't live in Atlanta or a

similarly bank-ravaged area, don't worry. This particular nightmare is coming soon to a

neighborhood near you, too, unless you live near a pocket of government spending.

Anyway, the point is that interest is treated as a special case. Why must people reaching for the

"American Dream" buy a home? So they can pay a mortgage, of course, and to a bank. Note

that if you rent a place to live, you get penalized. There is no itemized deduction for rent. There

are, however, tax advantages to the passive-income recipient of your rent. Your landlord gets

some gravy (in the form of qualifying for expense deductions and the avoidance of social

security and medicare taxes on that income), but the renter is in the cold. Why? Because

anyone can buy a house and rent it out, but only specially monkey-certified banks can write a

mortgage. Ergo, special incentives to generate demand for the latter.

Care to imagine the ripple-effect in the economy if the mortgage interest deduction were ever

repealed? This will never happen, of course, but working through the scenario in your head will

tell you what your suburban home is really worth. In most cases, you can't even keep a chicken

for fresh eggs there. But, you have a hard time getting a job anywhere that you can keep a

chicken. Think about it.

So, having handled the Andy and Bob scenarios, this leaves Chuck. We'll talk about him in the

final parts of this series as we tie all of this together. We'll also see that Bob, and the Al/Alicia

combo pack, have a tax opportunity that the institutionalized pension-seeking Andy does not.

Fully Taxated, Part 3

In the first part of this series, we discussed the reality of the tax code

in that it exists to benefit the Ruling Class. The primary means by

which the tax code provides this benefit is the obvious one of

extracting the wealth necessary to repay public debt to the slave

traders. However, as we discussed, the tax code also spares the

passive income of the Ruling Class' compliant servants, while

rewarding the lower income levels so that they assist in your

enslavement. The only people who actually pay taxes in large amounts

are you, the foolishly productive. If you haven't read that article,

please go back and read it now before proceeding: I don't have space to give the summary

justice.

In the second part, we started with a brief dismissal of the UCC gambit. We then discussed the

example of Andy and Bob. Andy earns $30,000 per year, but walks away from the tax table with

a total of $33,337. On the other hand, Bob earns $100,000 a year, but walks away from the tax

table with a total of $84,281. Bob makes more, but Andy keeps all of what he makes, and then

some. We also discussed quality of life issues for both, and the likely tradeoffs for each.

This leaves Chuck. As a contractor, Chuck bills about the same (with some exceptions we'll

discuss) that Bob receives as a salaried employee. But, we'll see how this distinction makes a

dramatic difference in Chuck's quality of life.

I have to again give a disclaimer. What I am about to describe to you is legal to the best of my

knowledge and understanding. However, I am not a tax or law professional and you shouldn't

take anything out of this article other than pure entertainment. This disclaimer is necessary so

that you will rush to the waiting arms of a Monkey professional to pay them Monkey Bucks for

a service which will soon be obsolete as it all goes over the edge.

I now again repeat an essential point from the first article in this series: To thrive in any system,

you must first recognize the reality of that system, and then act accordingly in order to

manipulate its energy to your own purpose. As I have said before, we too often project our own

individual decency and honesty onto the current system, and then delude ourselves into

thinking that the actors within it are merely misguided, so thwarting its noble purpose. To

thrive in this system and not be perpetually frustrated, or worse, you must accept the premise

that our system is not fundamentally noble, but was specifically designed to feed a class of

certain very wealthy people.

As we saw previously, between Bob's earnings and Andy's, about $19,000 disappears in federal

reserve taxes. Andy is in the gravy zone, and stays there until about $40,000. Even unto

$50,000, there is still a certain amount of gravy. This is the earnings zone of cops and teachers,

both loyal trustees of the federal reserve / international bankster work camp. Above that level,

taxes really start to chew into the pocket-books of the productive, and stay disturbingly intense

until the $300,000 to $400,000 range. Above that level, that of doctors, lawyers, media

personalities and other Knights of the Realm, the concept of income tax no longer applies as

other strategies emerge. Those strategies are beyond the scope of this article series.

Consistent with that disclaimer, my concern is not with the traditionally wealthy, but with the

bulk of the actively productive. These people have the best chance of surviving the collapse,

and thriving post-collapse. These also have the best chance for reconstructing a world in which

neither socialism nor corporatism reigns supreme over individualism. A merger attorney, no

matter how successful, will probably turn into chicken feed for a Monkey Starver somewhere,

shortly after his former vocation is discovered. A typical doctor, deprived of chemicals and

machines, neither of which he fully understands but is licensed to administer, will be hardly

more valuable post-collapse than a good veterinarian or practical nurse. Enter then Chuck.

Chuck and Bob are practically indistinguishable at first glance. They both do pretty much the

same work, whatever that work may be, and gross pretty much the same amount. However,

upon closer examination, the differences between the two become apparent. The critical

difference is that Bob is an employee, whereas Chuck is a contractor, and bills his time through

his own C-corporation. And this difference makes all the difference in the world.

Recall from the first part of this series that the tax code exists to extract value from those

capable of causing problems to the Ruling Class, yet reward those who serve the purposes of

the Ruling Class. Also recall that brokering the efforts of those who provide value is the path to

success in this world (pre-collapse), while the providing of value itself is almost worthless to the

provisioners. In our decaying civilization, if you provide value you are a slave. If you broker that

value you are a knight. If you are a slave trustee, such as a cop or a schoolteacher, you are given

special favor in exchange for your loyal service.

The essence of the tax code is that simple to understand. Whatever you do to present yourself

as a provider of original value, you will be punished. Whatever you do to present yourself as the

broker of a slave or slaves, or as one of the lower-income trustee classes, you will be rewarded.

The details are almost immaterial, and merely exist to fill in the forms.

To this end, Chuck is simultaneously a broker of his own slave (himself), and a slave at a low

enough level that he seems as if he is a low-income trustee. In this, he is richly rewarded at

both ends. The magic that makes this possible is not a UCC incantation, but an appreciation of

the banksters' work farm in which we live and call the Land of the Free. This magic requires

incorporation, there is no substitute.

When you incorporate, you create a legal fiction of a person with the State. Slaves aren't smart

enough to incorporate, or aren't willing to invest the time. Knights of the Realm are, and do.

This fictional person can act as your slaveholder, while you cannot. Chuck can treat any number

of business expenses as deductions to be paid pre-tax, whereas Bob cannot. Chuck can engage

in any number of enterprises, many of which may fail on paper so long as the sum thrives, while

these same activities are nondeductible hobbies for Bob.

You cannot shortcut this path with an LLC or an S-corporation or a sole proprietorship. Only a C-

corp will do. Many fear forming a C-corp because of the extra paperwork involved. True, there

is more paperwork involved, but the nineteen thousand dollar difference between Bob's and

Andy's taxes says that it is worth it. This extra paperwork isn't really that hard to handle. This

fear of administrative work has been injected into your brain your entire life to make sure you

stay a slave so that someone else can benefit from your efforts. To cushion the blow, we'll talk

about some of these details after discussing the benefits of this approach.

But first, let's talk for a minute about how your financial landscape changes once you

incorporate. First, you hire yourself as an employee. Congratulations, you just gained your first

slave! You might want to then similarly enslave your wife and kids of earning age, too.

Corporate slavery is fun for the whole family as we'll see in a minute. This is exactly what our

hero, Chuck, has done. Bob, or the Al-the-Welder-Plus-Alicia-the-Wicked-Hot-Hairstylist combo-

pack, would do well to heed the ways of the Chuck.

Now, when Chuck puts in an hour of time at BigCo next to Bob, ChuckInc, not Chuck himself,

gets paid for his time. Assume that Bob and Chuck work the same two thousand hours in a year.

Bob's 1040 says he got paid $100,000, while ChuckInc's 1120 (with some exceptions) says the

same thing. The difference is what SlaveChuck gets paid, and that is, again, all the difference.

Hypothetically, if ChuckInc can find $70,000 in business expenses to deduct before paying

SlaveChuck the remainder, SlaveChuck looks to the tax code just like Andy. And then walks

away with the additional $3337 in his pocket, having also not paid the $15,719 that Sucker Bob

is hit with.

The key is that, to the tax code, Chuck looks like Andy, but ChuckInc looks like BigCo.

SlaveChuck wins just as Andy does, and ChuckInc wins just as BigCo does. The only loser is Bob.

Eventually, though, we run out of Bobs, it all goes over the cliff, and we toss all of this crap on

the dung heap of history.

The devil is in the details, of course. How does ChuckInc find $70,000 in business expenses?

Well, there are lots of ways, but even if he only finds $10,000 in business expenses, he still

walks away $4000 better than Bob, because of that marginal tax rate thing we talked about

earlier. The details change from year to year, but the secret is to understand the purpose of the

tax code with respect to the interests of the Ruling Class. Always appear to taxate yourself in

such a way as to seem a harmless noble servant.

How? This all depends on what you do. And that can be practically anything. The key is that

when you incorporate, suddenly the pwesidem of ChuckInc can decide to do, not just his

primary vocation, but practically anything Chuck wants to do, as a prospective business

venture. And then pay for that ambition out of the corporate larder. Within reason, of course,

and within the limits of that tax code. The next time you hear about the tax code being so large,

you should be rubbing your slave-owning hands with glee wondering what kind of goodies

(meaning deductions or tax credits) you might find for yourself in there, at the expense of, well,

you-the-slave and the taxpayer. Kind of changes the mental landscape, doesn't it?

Here are some popular myths which will NOT happen when you incorporate:

Myth #1: Investors will flock to you to throw cash at whatever you imagine. Absurd on the face

of it, this notion is the inevitable spoor of the good-kid-made-good lies, but you will be

surprised how many idiots will imagine that this is happening to you.

Myth #2: Banks will loan you money so that you can blow it and fold up the company. This only

happens to large companies or shells created specifically for creating paper losses which the

lending banks then recover, via bailouts, from the rest of us. No, in your case, you will have to

personally guarantee loans that your company gets, meaning that you would have to repay

anyway.

Myth #3: You stop paying sales tax. This only applies to goods purchased for resale. The rest

you still pay sales taxes on. Because of that resale thing, there is a grain of truth in this one,

though, as we'll see later.

Myth #4: You become the big-shot employer who gets to have lots of people catering to your

every whim. I've tried to weed out people with this and other character flaws before getting to

this point, but some may have made it through. Tip: if you, dear reader, are one of prospective

big-shot types, you probably aren't going to make it after the collapse, for reasons I've written

about elsewhere. No, Chuck has no desire to hire anyone else. He's in business to take control

of his own life and reap the benefit of the tax code, not to become Daddy to monkeys. Mutually

contracting with other Chucks out there, though, is beneficial for everyone.

Myth #5: Related to the above, if you did hire someone, you now get to hire people off-the-

books in cash. Why in the hell would you do that, and miss out on the deduction for their pay?

Hiring someone off-the-books saves them from paying taxes on it, but actually costs you an

equivalent amount of money. Ask yourself from what miraculous font this cash would come in

the first place. Hiring another contractor's company effectively provides the same mythical pay-

in-cash benefits, though, since you get the deduction and the other guy gets pre-tax income to

do exactly what we're describing here.

As mentioned, the exact details of how Chuck (or the Al/Alicia combo-pack) surfs the tax code

depends on his particular vocations and interests. But, we can lay out a few general principles:

Taxated Tip #1: Assuming a 40% marginal tax rate, every dollar your company spends pre-tax

would otherwise require you to earn $1.67 to have the same buying power after taxes as an

employee. Yes, a 40% marginal tax rate means that your company's money becomes 67% more

valuable. Math is a wonderful thing.

Taxated Tip #2: Don't go out and buy stuff just because you have 67% more of your money

now. Monkey starvers try to do more with less. You're not creating money, you're keeping

more of it by keeping more of it out of the hands of monkeys. There's a big difference. Just try

to buy whatever you would buy normally as a company purchase where possible.

Taxated Tip #3: Be absolutely meticulous in your record-keeping. We'll talk about ways to do

this later. Once you get into the paperwork, you will see that there are very few ways to cheat.

The checks and double-checks have been thought out way in advance, so don't even think

about it.

Taxated Tip #4: Never forget that this system exists to benefit the Ruling Class, which includes

banks. If it hits a bank statement, including credit cards, money orders or someone else's

checking account, it happened. I'm endlessly amused about discussions involving privacy of

banking information. Get real. Instead, structure your transactions and expenses so that you

get to innocently point at the tax code later.

Taxated Tip #5: Don't lose your soul in this. This approach is merely a weapon a monkey starver

can use to destroy his enemies. Remember that all this nonsense goes poof on C-Day+1 (or

maybe a little sooner than that).

Within that framework, and as a preview to make some of the details in the next part make

sense, let's follow Chuck around for a while. Because of the nature of the audience, I'm going to

use gun shows as an example. Chuck can do practically anything for a primary vocation, but, like

many of us, has interests outside of that. Let's consider a few possibilities of how Chuck might

leverage his gun show interests into business opportunities (read as "more deductions"):

Chuck likes to hit a gun show once a month or so. Fortunately, ChuckInc thinks setting a table

up at a gun show is a dandy way to market its services. It doesn't really matter what Chuck does

for a living, there is someone there walking around who might be just the right prospect for the

next gig. So, ChuckInc pays the $75 table fee and prints up some flyers, then has a base of

operations from which to wander the show and talk to people. Now, without an FFL (consider

getting one) ChuckInc can't buy or sell guns, but it can buy or sell just about everything else.

Remember that passive income stuff from the first part? Buying and selling things outside your

primary business activity gets special tax consideration.

If that gun show is more than 50 miles away from his house, ChuckInc also pays SlaveChuck a

per-diem rate for meals, entertainment and expenses. If it is an overnight trip, SlaveChuck also

gets a nice per-diem lodging rate, tax-free. Bring the wife and (working-age) kids? Well, as these

hapless souls are employee slaves too, they also get per-diems.

Oh, did I tell you that Chuck was also an author? Whatever his interest area, he can put up a

blog somewhere, write some articles, and post them at various websites. Computer, internet

service, and just about everything that eventually gets mentioned in an article becomes a

business expense. Business is funny like that, you never know what is going to be a hit. Just

make sure that, overall, you show a net profit, or else the IRS will want to classify it as a hobby.

Chuck has his eye on a new smart phone, so he writes a blog article about how it is important

for his survivalist buddies to get smart on smart phones. Maybe he decides to write some

simple little app that does secure data transfer and needs to visit his pal in Florida who knows

how to do this stuff. Smart phone and trip just became a business expense. Chuck and the

family of Chucklet slaves might even want to put in some fishing or beach time while he's there.

After all, once you start running your own business you tend to get too busy for real vacations.

Just remember that in this Internet age business prospects are literally everywhere.

Since ChuckInc already has a gun show table set up, maybe it starts selling some related

products. One great way to prove to the IRS that you are a business is to be a distributor for

related products. Shirts, books, holsters, just about anything you care to name looks great on

your table, and establishes you as a going concern. If you want to get started, I know a couple

of authors who can set you up with inventory right now. Some of them will even do limited

amounts on consignment (meaning you pay post-sale). Yep, I'm shameless, but you're reading

this for a reason. I might be writing it for that same reason.

Chuck has really been thinking hard about preparedness, and needs to write about food

storage. To prepare the article (which might, after all, sell some books or shirts), he gets a few

month's supply of food and subjects it to different storage conditions for a year. You guessed it,

business expense. That new chainsaw also makes great article fodder. How did it hold up after a

year? Inquiring minds want to know. So he brings it to the show and talks about it. Some old

lady might want him to cut some wood for her. You never know.

That beater truck that ChuckInc just bought is really essential for carrying customer material

around. All of those parts that went into it are deductible expenses, and each year, sadly,

depreciation cuts into what would otherwise be company profit. Also, all of that gun show gas,

and the gas used for driving it back and forth to client or prospect sites, is deductible. Just be

careful to follow the rules about employer-provided vehicles. They are strict, but simple and

easy to follow, and are way easier to handle than trying to track mileage for personal vehicle

reimbursements.

Clearly, I could go on and on (and often do) but I think you might be seeing the picture by now.

Making the effort to create and maintain that corporation suddenly opens the door to

practically limitless opportunities to create tax deductions for what Chuck (or Bob or Al/Alicia)

might have done anyway, and shoves SlaveChuck closer to the Andy tax-gravy zone. In the next

part of this series, we'll talk about some practical ways to keep that effort to a minimum, and

discuss some business and tax terms you really need to understand. For entertainment only, of

course.

Fully Taxated, Part 4

In the first part of this series, we discussed the reality of the tax code

in that it exists to benefit the Ruling Class. The primary means by

which the tax code provides this benefit is the obvious one of

extracting the wealth necessary to repay public debt to the slave

traders. However, as we discussed, the tax code also spares the

passive income of the Ruling Class' compliant servants, while

rewarding the lower income levels so that they assist in your

enslavement. The only people who actually pay taxes in large amounts

are you, the foolishly productive. If you haven't read that article,

please go back and read it now before proceeding: I don't have space to give the summary

justice.

In the second part, we started with a brief dismissal of the UCC gambit. We then discussed the

example of Andy and Bob. Andy earns $30,000 per year, but walks away from the tax table with

a total of $33,337. On the other hand, Bob earns $100,000 a year, but walks away from the tax

table with a total of $84,281. Bob makes more, but Andy keeps all of what he makes, and then

some. We also discussed quality of life issues for both, and the likely tradeoffs for each.

In the third part, we introduced Chuck the contractor, whose C-corporation ChuckInc bills about

the same that Bob receives as a salaried employee. We saw how this distinction makes a

dramatic improvement in Chuck's quality of life. The primary cause of this improvement is that,

in the extreme, Chuck gets to keep the taxes which he would otherwise pay as Bob the

employee, as well as gaining the potential for scooping up some of the same Uncle Sugar gravy

to which Andy is entitled. We also noted that the Al-The-Welder-Plus-Alicia-The-Wicked-Hot-

Hairstylist combo pack, whose combined income resembles Bob's, can also participate in the

fun.

I have to again give a disclaimer. What I am about to describe to you is legal to the best of my

knowledge and understanding. However, I am not a tax or law professional and you shouldn't

take anything out of this article other than pure entertainment. I must also repeat an essential

point from the first article in this series: To thrive in any system, you must first recognize the

reality of that system, and then act accordingly in order to manipulate its energy to your own

purpose. To thrive in this system and not be perpetually frustrated, or worse, you must accept

the premise that our system is not fundamentally noble, but was specifically designed to feed a

class of certain very wealthy people.

In this part, we'll discuss some of the details which confound or escape the unwary tax slave.

There is much more to learn, but my goal here is to tease some of the more subtle aspects of

the tax code from hiding.

For those of you delighted by my normal vitriol, this part, like the previous, will seem a little

dry. It is difficult to stir men's souls, for good or ill, with deductions and depreciation, income

and expenses. But, in our pre-collapse state it is necessary to understand these things in order

to thrive, or even stay afloat, even though these concepts will have no context soon enough,

nor should they. Our purpose here then is twofold: to hasten the collapse as well as husband

our current resources more effectively so that we are better prepared when that inevitable day

arrives. Tend this information with as much loving care as you tend your physical provisions,

and you'll find yourself sitting on more beans and bullets when you need them.

So, let's jump right in. Again, counter me with substantive assertions. Quibbles about the

nuances are easily swatted aside in that I must, of necessity, keep things simplified and concise.

First, let's discuss the need for full incorporation a little more. When I say full incorporation,

what I mean is forming a C-corporation, versus the seemingly more simple administration

required of an S-corporation. The distinction between these two is only in the eye of the federal

reserve collection service known as the IRS; the amount of effort required to create a

corporation of any kind is dependent on your state, and these usually make no distinction.

To the IRS, the distinction is that an S-corporation reports its dealings as additional schedules

filed with the individual 1040s of all shareholders, while a C-corporation files completely

separate tax returns. This is an essential point: you will collect the same information in either

case, but the IRS, and potential jurists, will see totally separate sets of data between you and

your company. Filing as a C-corporation will establish you as a noble and worthy trustee of The

Realm, while filing as an S-corporation gives you the image, rightly, of a wannabe trying to "get

away with it." Filing your 1040 as WannabeChuck having $100,000 in gross income, but with

$70,000 in immediately suspect deductions, paints one picture. Filing as poor old broken-down

SlaveChuck, who only got $30,000 after that mean old ChuckInc took $70,000 of his labor,

paints another. Get the picture? Now imagine which picture you want to paint to a dozen slack-

jawed drool-caked public-school-educated jurists.

LLCs, partnerships, sole proprietorships (and other variants of these depending on your

administrative jurisdiction we laughingly call states), suffer the same defect. Others imagine

that individuals are entitled to the same deductions as small corporations. Yet, attempting to

do so is not only a flag for an audit, it is also a flag that you are clinging to the fantasy that our

system is fundamentally noble and just, if a bit temporarily misguided. As an individual subject

of The Realm, you are considered as nothing more than someone's employee, not a business.

As a subject (slave or serf, take your pick) of The Realm, deductions for your maintenance are

the rightful property of your titleholder (employer), not you.

Creating a corporation is easier and cheaper than ever before. In the past, one went to an

attorney, plunked down $500 or so, and they then gave you a book of all your essential papers,

including the S-corporation election they often automatically filed with the IRS without even

asking you. Now, in the Internet age, all one needs to do is visit the corporations section of your

state's department of state website. I offer some tips on this here. I'll add to those tips as

questions roll in or as the landscape changes. The entire process can usually be done online, the

bulk in a single evening. Most states have made it easy, particularly because they want you to

cough up the cash they desperately need right now (but thanks to these articles, more of which

they won't be getting from you).

Now, every two weeks, each month, each quarter and each year you will have to file certain tax

forms to prove that you are a slave-owner rather than a slave trying to squeak by. To

successfully navigate these administrative waters, the first thing you need to understand is the

most important tool of a taxater: the spreadsheet. In fact, the first ever personal computer

spreadsheet, something called VisiCalc, was invented specifically for organizing financial

information, including taxes.

If you've read Starving the Monkeys, you know how important it is to understand math, science

and technology, in addition to the physical skills such as marksmanship. If you are not a

technology buff, but want to taxate yourself, you will at least need to understand how to use

spreadsheets. This does not mean, however, that you need to plunk down big bucks for a

shrink-wrapped Microsoft Office. These days, spreadsheets are free as part of the Google

Documents feature, but I wouldn't use that. Instead, check out OpenOffice, which is a free

open-source business documents package that works on both PCs and Macs.

You have to be absolutely meticulous in your record-keeping. There are too many checks and

balances built into the tax system to even think about cheating. I've also said that if it hits a

bank, including a check from someone else's account, it happened, so don't even think about

pretending that it didn't. The truth of that statement is revealed by understanding what "bonds

backed by the full faith and credit of the United States" means. If you don't understand, read

"Bonds? What Bonds?", and then convince yourself that the largest bond holders, and

consequently sinks for your tax dollars, are (drum roll) institutional investors such as banks.

Why some people continue to think that those who own this country would help you hide, or

not actively reveal, potentially taxable income is beyond me.

More fun is to leave a few Easter Eggs in place in the form of "overlooked" deductions you

might have taken had you noticed at the time. If I ever get audited as a means of shutting me

up, I'm walking away with a check, or else those monkey attorneys and judges will have to

explain why the monkey tax rules don't matter to those monkey juries. I've been audited

before, and each time I got paid. Not much, but enough to make it too risky for their numbers

to try again. They say they don't work on a collections quota, but my experience says otherwise.

Trust me, helping to destroy monkeydom like this is way too damned much fun.

Anywho, to catch the cheats or the simply unwary, all of those forms filed with various entities

are cross-linked in such a way as to require consistency everywhere, and to flag for audit when

they are not consistent. The flip side of all this is that honest math errors are indistinguishable

from attempting to cheat on your taxes (read as "attempting to withhold bankster gravy").

The flip flip side of all this is that it doesn't matter so much what the numbers are, but that

these are everywhere consistent. Read that last sentence out loud three times and consider

deeply the implications therein.

You must learn to use a spreadsheet well. A good choice is OpenOffice, which is a free, open-

source package that includes spreadsheet, word-processor, presentation, database, and

drawing tools.

In my case, on top of the basic office tools, I have world-class business software written by the

only person I trust to do this. I can tell you at a moment's notice who owes me what and for

how long, what I've sold and when, what I've bought and when, where every papered penny is,

and can retrace every step in my financial history since I learned to walk this walk. I have the

financial and taxational equivalent of an airliner's autopilot, and can fly this machine at night in

a blinding economic snowstorm and not miss a single runway. It slices, it dices, it tells me what

to put where on every form. Good luck finding anything amiss, because there isn't anything

amiss. The data says so.

Fortunately, you don't need this level of sophistication, nor do you need off-the-shelf business

software packages which charge you to not do what you really need it to do. Just as a simple

scoped bolt-action hunting rifle, in the right hands and at the right time and place, can drill

through the most sophisticated defenses, in the right hands a simple spreadsheet will do the

trick.

The first step is to mirror each and every bank transaction on your spreadsheet. Maintain a

separate spreadsheet for each bank account your company has, and for each credit card

account your company has. Each line of your spreadsheet contains the date, an optional

reference number (such as a check number), a payor/payee column, an expense column, an

income column, a net balance column and a remarks column. When you reimburse for personal

expenses, such as the personal check you wrote to pay your business license fee before your

company had checks, you will have a separate spreadsheet for these items. And, you will

maintain another set of spreadsheets, consistent with all the others, which contain all the

elements of your payroll and employer taxes.

At the end of each day, or certainly no longer than once a week, make sure that all your

expenses and receipts have been caught up in your spreadsheets. Do not let this get behind.

You do not want to be sitting in a pile of receipts at year's (or month's or quarter's) end.

Instead, you want to spend an afternoon sorting data and laughing while filling out forms.

Eventually you'll understand the flow and know what you are doing, but it will take some brain

pain to start (as all worthwhile things do). I'll post some examples on Starving the Monkeys at

some point to get you started, but in the meantime you can get the incorporation ball rolling.

Your biggest challenge is likely to be payroll. Now, you can hire payroll service monkeys to do

this for you, but that kind of misses the point of being in control of the data. And if they make a

mistake, you are still liable, not them. Each payroll event will be a hassle to start, but you can

limit the pain by paying yourself only once per month, or better, once per quarter.

Each payroll event will involve the following elements. First is your gross pay, or the pre-tax

amount. Try to keep this amount consistent from month to month or quarter to quarter, as you

can then just reuse all the amounts from the last time. Next, you have to subtract the federal

reserve withholding, social security tax, medicare tax and state income tax withholding. The net

of all this is the check you write to yourself. Also, your company has to set aside four additional

amounts: a matching social security tax amount, a matching medicare tax amount and a pair of

state and federal reserve unemployment taxes. The percentages for all these are well-

documented and available online from the respective agencies.

Once a month (or a quarter or every two weeks in periods in which you pay yourself, as

directed), you will then have to divvy up all these withholdings and write checks in the

appropriate amounts to the indicated tax collectors, as well as fill out forms accordingly. And

then update your checking account spreadsheet with this information. It is at this step that

most small businesses get into big trouble; they simply lose track of all the numbers. Yet some

simple note-taking and spreadsheet preparation can save all the headache, so that your forms

simply contain numbers from your spreadsheet, or sums at the bottoms of the rows. Also get a

calendar and mark important tax events on it; these are also well-documented.

The federal reserve collectors have taken to requiring online filing for their cuts, which is

actually a step forward. This system is called EFTPS, for Electronic Federal Tax Payment System.

You'll create a login using your corporate EIN and then use that forever. You'll also create a

login for similar payments to the federal reserve branch known as social security. This latter

login is also what you'll use to easily generate W-2s at year's end. It's getting easier and easier

to own slaves in some ways.

Now let's discuss some basic terms you need to understand. The first of these is depreciation.

When you buy some piece of equipment (or a building or a truck or so on) to use in your

business, it rots on the hoof from year to year. This ongoing rot is called depreciation, and can

be deducted as a business expense. The rate of rot is determined based on the class of the item

in question, and the depreciation tables are well-documented in the tax instructions. There is

also a special kind of all-at-once rot known as a Section 179 expense. When companies talk

about "expensing" a piece of equipment, this is what they mean, rotting its value away all at

once.

The paper rotting starts on the day you buy the thing, and continues until you sell it. If you buy

a truck for $10,000, and it has depreciated by $4,000, you have been able to deduct that $4,000

as an expense from your income. Now, if you sell the truck for $9,000, you have to pay back

some of the deducted rot as a capital gain. The "cost-basis" for the truck is $10,000 - $4,000 =

$6,000. Since you sold it for $9,000, you have a capital gain of $3,000, even though you actually

lost $1,000. This technique, by the way, helps you steer expenses into high income years, and

steer gains into low-income years.

We'll get back to this in a moment. Now recall that passive income is king. The Ruling Classes

don't work for a living, they broker the efforts of those who do work. As a result, the tax code

rewards passive income; for one thing it isn't subject to social security and medicare taxes,

which adds up to over fifteen percent overall once the employer's side is paid. One form of

passive income is interest, another form is rent or leases. Sitting on a big capital loss from your

rental house that will take a lifetime (or more) to chew away at $3,000 a year? Then you'll love

this next part.

When you created your corporation, you also created a customer for your personal leasing

business. One possibility is to buy some thing that your business needs, then lease it to the

company at whatever reasonable rate you decide. You get to deduct the annual depreciation

from your rotting thing right off of your lease income, which, as passive income, is free of social

security and medicare taxes in the first place. Die, pension monkey, die. Then, when you sell

that thing, you have to report the capital gain (as in the truck example above), but that capital

gain is more than offset by that big paper loss you're already sitting on. Die, tax monkey, die.

Same useful thing. Same net money moving from the company into your pocket. But no taxes

whatsoever. All because you structured it right as passive income, and had your corporation to

help. Yet, you still qualify for the Andy gravy to boot. Thank you, Uncle Sugar, see you next year.

Of course, you still took the loss on that house, but it stings a lot less now, doesn't it? Die, bank

monkey, die. So get out of that subdivision before it all goes to hell. And die, HOA micro-tyrant,

die.

I'll post more tips as we go at Starving the Monkeys. There's just too much good stuff to cram

into even a long article series. But there's time for one last important detail. Since BigCo enjoys

its slaves, why would it want to pay ChuckInc instead? In other words, how can you get your

boss to pay your company instead of you? That is really the essential nugget, of course.

The first step is to be world-class hot at what you do. See Starving the Monkeys for the mindset

this requires. It may not be possible to be the best welder in the world, but you can be the best

welder anyone in your world knows. Or you can create the most wicked-hot hair in town, or

whatever. If you aren't the best at what you do, fix that first, or find something else to do at

which you can be the best.

Armed with that status, and knowledge of the suit monkey mind, you are ready to make the

sale. If there is anything that the suit monkey loves more than adoring slaves who cater to his

whim, it is getting someone really good to work cheap. So consider Bob's employer-side costs.

Bob makes $100,000, but it costs BigCo an additional nearly $8000 in employer social security

and medicare contributions (which ChuckInc also has to pay if it paid SlaveChuck $100,000,

which it won't). Add to that a raft of practically useless benefits, including vacation time, etc.,

and the employer contribution can be in the 30% to 40% range. Bob actually costs the company

about $130,000 to $140,000, and firing him can take a lot of work if he goes sour just before

losing all of his gruntle. ChuckInc can split the difference and provide a smiling SlaveChuck for

$120,000. ChuckInc then pays for low-cost high-deductible health insurance with the

remainder, along with the employer's portion of social security and medicare taxes on the

smaller amount which does trickle through. And if SlaveChuck does get sick, fortunately he

works for a company that provides full reimbursement coverage (pre-tax of course) for out-of-

pocket expenses.

Even if your boss isn't a suit monkey, but rather an actual human being, that math is still

appealing. And, he can boot you at a whim, but won't want to because you are world-class hot,

remember? Plus, for a small business, there is another bonus. Remember all that payroll math?

Small businesses love the idea of just writing a check for something. Posed the right way, an

invoice for hours worked is a lot simpler and easier to manage than all the tiddly bits required

by having an employee.

And this is the key reason why you need a C-corporation. As an individual, you can't readily

perform work without being an employee because of something known as a 1099 (pronounced

"ten ninety-nine" if you want to sound in-the-know). If you try to work as an individual

contractor, you are classified as a 1099 contractor, which means that your boss is on the hook

for all of your payroll taxes if you fail to file your share as self-employment income (even if you

later pay them). The risk is just too great; most businesses won't even consider contracting an

individual as a result.

Having your own corporation completely shields your customers from this 1099 risk. Make sure

you use the magic phrase, "This isn't a 1099 situation. I'm an employee of ChuckInc, which is a

corporation. You are not at risk." This may not close the sale, but approaching this situation as

an individual takes it completely off the table because of this one issue alone. So with your own

corporation, you have a negotiating advantage in a totally separate class from all of those

whiners too lazy to incorporate, on top of your world-class skill.

I wish I had more room, but we're way over as it is. Just make sure you understand all the rules,

and follow each of them. Then figure out how, like a judo master, to redirect all that energy in

directions you want it to go.

Don't be afraid to take the plunge. Once you start working this way, you'll begin to see

opportunities for destruction everywhere. Everything you want is a potential business expense,

everyone you want to see is a prospect, every event with like minds is a prospecting

opportunity, and every source of oppressing energy can be harnessed to destroy our enemies.

Along the way you'll encounter many monkeys, fearful of your role in their looming destruction

but unable to articulate it, who start each sentence with "He's just trying to sell ..." Of course

you are. Because you can, and because it benefits you as both a slave and a slave trader. These

monkeys created this system to enslave us; let's grind it, and them, into oblivion together.

Becoming Fully Taxated

Incorporation Tips

If you are interested in true personal liberty, you have to put serious

effort into casting off your employment chains if at all possible. Our

economy has been deliberately engineered to keep most people one

job (meaning one bad review, or thoughtcrime) away from financial

destruction. So, in our system, casting off the employment chain is

difficult by design. I understand that. If you can't cast those chains off

because you are just scraping by, then try to educate yourself and

look for opportunities to improve your situation as best you can when

you can create those opportunities. But if you are sitting in a cubicle

just because you don't want to give up some nice little crumb of enslaving luxury, then you

need to re-evaluate your priorities (and stop bitching about liberty).

The material in this article series is intended to help move you closer to economic

independence. This originally started as some strategies, called becoming "Fully Taxated",

which describe how to use the same legal means that fat cats use to force most of the tax

burden onto the proles.

Part of that strategy is to become incorporated. While writing the Fully Taxated article series, it

became obvious that many people wanting to incorporate don't even know where to start. I

must, as usual, give a disclaimer. What I am about to describe to you is legal to the best of my

knowledge and understanding. However, I am not a tax or law professional and you shouldn't

take anything out of this article other than pure entertainment. I must also repeat an essential

point from the first article in that series: to thrive in any system, you must first recognize the

reality of that system, and then act accordingly in order to manipulate its energy to your own

purpose. To thrive in this system and not be perpetually frustrated, or worse, you must accept

the premise that our system is not fundamentally noble, but was specifically designed to feed a

class of certain very wealthy people. Refuse to accept this fact, and I can't help you.

In my "normal" consulting work, I make more money using all of these resources I talk about

(including two-thirds of "Starving the Monkeys") than I would if I just did the equivalent work as

an employee. But I would be willing to make less, if I had to, to enjoy the freedom of not being

chained to the whims and dictates of an HR department. Hit me up in person sometime and I'll

explain the deeper implications of this, including freedom of action that I enjoy. This freedom of

action includes the freedom to get arrested in support of a cause I value. Can you honestly say

that you could spend a month (or more) in jail, or fighting prosecution a couple of days a week,

and not have your employment slave career crippled by that? I can.

Or, can you just simply be somewhere other than where you are "supposed" to be, for an

extended period, at any time (hint, hint)? I can. Then are you as free as I am? Are you as free,

by your own choice, as you could otherwise be? More importantly, are you, as a wage slave or

even as a cash-only earner (and thus limited in opportunity) as potentially effective in this fight

as someone who can be anywhere at anytime but still projects a legitimate footprint?

If not, then read and learn. Self-sufficiency includes effective use of the system around you as it

exists today.

Now, let's discuss the need for full incorporation a little more. When I say full incorporation,

what I mean is forming a C-corporation, versus the seemingly more simple administration

required of an S-corporation. The distinction between these two is only in the eye of the federal

reserve collection service known as the IRS; the amount of effort required to create a

corporation of any kind is dependent on your state, and these usually make no distinction.

To the IRS, the distinction is that an S-corporation reports its dealings as additional schedules

filed with the individual 1040s of all shareholders, while a C-corporation files completely

separate tax returns. This is an essential point: you will collect the same information in either

case, but the IRS, and potential jurists, will see totally separate sets of data between you and

your company. Filing as a C-corporation will establish you as a noble and worthy trustee of The

Realm, while filing as an S-corporation gives you the image, rightly, of a wannabe trying to "get

away with it." Filing your 1040 as WannabeChuck having $100,000 in gross income, but with

$70,000 in immediately suspect deductions, paints one picture. Filing as poor old broken-down

SlaveChuck, who only got $30,000 after that mean old ChuckInc took $70,000 of his labor,

paints another. Get the picture? Now imagine which picture you want to paint to a dozen

jurists.

LLCs, partnerships, sole proprietorships (and other variants of these depending on your

administrative jurisdiction we laughingly call states), suffer the same defect. Others imagine

that individuals are entitled to the same deductions as small corporations. Yet, attempting to

do so is not only a flag for an audit, it is also a flag that you are clinging to the fantasy that our

system is fundamentally noble and just, if a bit temporarily misguided. As an individual subject

of The Realm, you are considered as nothing more than someone's employee, not a business.

As a subject (slave or serf, take your pick) of The Realm, deductions for your maintenance are

the rightful property of your titleholder (employer), not you.

Creating a corporation is easier and cheaper than ever before. In the past, one went to an

attorney, plunked down $500 or so, and they then gave you a book of all your essential papers,

including the S-corporation election they often automatically filed with the IRS without even

asking you. Now, in the Internet age, all one needs to do is visit the corporations section of your

state's department of state website. The entire process can usually be done online, in a single

evening, and with a slightly bruised credit card to the tune of $100 or so. Most states have

made it easy, particularly because they want you to cough up the cash they desperately need

right now (but thanks to these articles, more of which they won't be getting from you).

The first step will be to file a name reservation, which simply makes sure that you aren't using a

name already taken in that state. Selection of a name is important, and I've made all the

mistakes already, so pay attention. Picking a name that is too general runs the risk that a

similarly-sounding previous company has the reputation for ripping a lot of people off. You

don't really need all those misdirected collection calls. Picking a name that is too specific boxes

in assumptions about your business activities. Picking a company name particularly involving

your own name too closely associates your company with you personally.

Also avoid using the word "Services" or similar words which would imply the classification of a

"personal services company". Recall that earlier in this series we discussed the idea that

providers of original value get taxed more heavily than those who broker that value. You may

be starting off as providing services, but you will eventually diversify into any number of areas.

Also don't use the word "Engineering", or similar terms, which would imply the necessity of

licenses which yo