Self Directed IRAs Investing Retirement Funds in Real Estate

After much awaiting CBDT released the discussion paper on the Direct Taxes Code 2009 in June 2010, draft of which was released in public in August 2009. The revised discussion paper has considered various issues on the original proposals and come out with revisions in couple of proposals including MAT (Minimum Alternate Tax), EEE vs EET taxation regime, taxation of retirement benefits, taxation of income from house property and taxation of capital gains, among others. Here is an article that explainswhat will be the implications on the capital gains from stocks once the DTC passes as an act in the parliament.

The code makes proposal for advance price agreement between tax assessor and tax payers. If the taxpayer enters into this agreement with Board, the price shall be determined as per that agreement. This provision may bring in certainty and consistency in the transfer pricing provision with respect to the transactions covered in the agreement. We have to see how scheme is formulated in this regard and how the scheme is implemented on the ground.

"The 16th Amendment does not extend the power of taxation to new or excepted subjects, but merely removes the occasion for apportioning taxes on income among the states. Neither can the tax be sustained as a tax on the person, measured by income. Such a tax would be by nature a capitation rather than an excise." PECK v. LOWE, 247 U.S. 165(1918).

Donald cashes his paycheck and is unsure how to best spend his money. Two aspects of his personality materialize: 'Thrift' and 'Spendthrift'. Thrift tells Donald he should save to pay his taxes, but spendthrift tells Donald that it is his money and he should spend it how he pleases. In the end, Donald realizes that it is his duty to serve his country and pay taxes.

Yet, despite popular opinion, the 16th Amendment did not give Congress any new taxing powers. In Treasury Decision 2303, the Secretary of the Treasury directly quoted the Supreme Court (Stanton v. Baltic Mining Co. (240 U.S. 103)) in saying that "The provisions of the 16th amendment conferred no new power of taxation," but instead simply prohibited Congress original power to tax incomes "from being taken out of the category of indirect taxation, to which it inherently belonged, and being placed in the category of direct taxation subject to apportionment."

It must, however, be admitted that India's tax effort since independence has been quite appreciable. The tax to GDP ratio (centre and states together) was 6% in 1950-51. In rose to 11% by 1970-71. Compared to many developing countries, India's record of resource mobilization through taxes has been satisfactory.

There is also the question of WHO is made liable by the tax code. In Economy Plumbing and Heating Co. V United States, the Courts have stated that the revenue laws "relate to taxpayers, and not to nontaxpayers." Because Congress does not deal with nontaxpayers, their laws only cover those who ARE taxpayers. Therefore, you will never see any code which says what is not subject to tax, only what is subject to tax. This case shows that there are persons who are NOT taxpayers; how then do we know if we are one of them?

Who is involved in the THM? It is not one person or group. It is more an awakening by more and more American Citizens to the realization that something is not right with our tax system. The leaders of today's THM include Aaron Russo, a Hollywood film director and founder of restoretherepublic.com, which is now managed by Gary Franchi from the Lone Lantern Society. Like so many of us, Mr. Russo came to the realization that something was not right in America, and he started to investigate. This culminated in a number of productions, such as Aaron Russo's Mad as Hell video presentation and the recent America Freedom to Fascism. Aaron Russo has brought more than a message of Tax Honesty, but he has awakened the American public to realize that without personal involvement, by each of us, to hold the government in check, we will continue to lose more and more rights.

Remove the Federal Reserve and return all money functions back to the government. All Federal Reserve banks should be converted to clearing houses for management of member banks. The banks system should be prohibited from practicing fractional reserve banking and the government should return to value based currency and prohibit debt based currency.

For many in the freedom and tax honesty movement dual citizenship or the dual meaning of the term "United States" Citizen causes a bit of confusion. The term "United States" when used in the Constitution means the many states of the Union however when used in federal statutes it means under federal jurisdiction within the federal enclave or territory.