30% of Middle Class Face Increased Taxes

The Tax Policy Center, a liberal-leaning project of the Brooking Institute, is reporting that Biden’s tax hikes will hit the middle class hardest while abetting the superrich in avoiding taxation.  So what’s new. This is always what politicians do; promise one thing and do the polar opposite.

Biden’s tax proposals are some of the most extensive tax increases we will experience.  While his tax increases have been promoted as targeting the superrich as well as corporations, a quick peek behind the political puffery reveals the cold hard facts. This administration intends to increase the federal government coffers at the expense of the middle class while giving a tax break to the superrich and the mega-corporations.

The former administration, stimulated more corporate tax revenue by lowering taxes which resulted in more taxes being collected in 2021 from corporations, about 25% more in fact, than any time since 2017.  The rebounding economy stimulated by these lower corporate tax rates ended up boosting personal income as well, so personal income tax collections soared to an all-time high as well…$2.052 trillion, to be exact.

The progressive ideology of increasing tax rates for corporations never benefits the middle class.  It only forces those taxes which must be paid by corporations onto others.  Numerous studies have confirmed that 50-70% of the tax corporations do pay is borne by the workers employed in those corporations, while the rest is passed onto the stockholders of those corporations. In other words, corporations DON’T PAY TAXES!

R. Nelson Nash, the author of Becoming Your Own Banker, frequently mentioned this fact in his lectures on the Infinite Banking Concept. He understood that the way money flows in our economy, corporations, when structured and run logically, never pay taxes. That is one reason he encouraged everybody to become their own banker.

Bankers are mere middlemen and women who have positioned themselves to profit off every transaction that passes through them without having to use, and therefore risk, their own money. In doing so, banks (which are mega-corporations) benefit from tax deductions that everyday citizens don’t get to take advantage of.  Nash emphatically believed that bankers had conspired together with politicians, to control the flow of money in our society and therefore control society itself. After-all, everyone knows that whoever controls the money, makes the rules.

Our American experiment wasn’t meant for a few to control the masses.  America was the first country in the history of the world, which limited government power by subjecting it to the will of the people. But our representatives compromised themselves by leaping into bed with bankers and other mega-corporations, turning the American dream into a nightmare.

Today our elected representatives call themselves leaders instead of servants of the public.  Unfortunately, many people believe these corrupt politicians and bureaucrats really are our leaders.  But in reality, they are selfish tyrants who seek power and money for themselves at the expense of those who repeatedly re-elect them to hold public office.

To be sure, money isn’t the most important thing in life.  But it rates right up there with oxygen.  Even Jesus spoke more about money than he spoke about faith and prayer combined.  Learning to manage your money wisely and keeping it out of the hands of the bankers, politicians and mega-corporations, is one step towards reclaiming the American dream for yourself and your posterity.

When Jesus spoke to the multitudes on the mountain side, he said, “Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in an steal.” Today, saving money summons political moths and vermin to destroy what you have saved with their inflationary monetary policy.   The dollar in your pocket today was worth 64% more just 21 years ago because of all the moths and vermin who have set monetary policy that has destroyed the value of that dollar. And the thieves who have been elected to represent us in government profit from our hard work by raising taxes instead of wisely creating government policy which encourages commerce and production, the very things which inherently floats all the boats in the harbor equally.

Taking back the God given obligation to become your own banker, i.e., the managing and controlling of your own money instead of allowing those who have compromised themselves, is a good start in salvaging the American dream. Like-minded people, pooling their financial resources together in order to have the leverage to fight against these tyrants, provides a tool which has been lost to the majority of “we the people”.

Mutually held life insurance companies, still retain certain privileges which were common prior to the big orgy the politicians, bankers and mega-corporations prearranged for themselves.  Those who understand how these privileges work are building sustainable wealth in spite of how the tax code is adjusted or the inflationary monetary policy is dictated. 

It all comes down to taking back the personal responsibility of managing one’s own affairs so that the interest paid or lost when using one’s own capital is accounted for.  Bankers have become extremely wealthy, placing themselves smack dab in the middle of this equation. But you can minimize the effects they have on your own life by learning to keep more of what you make and leveraging it to return to you along with the interest you would have lost otherwise.  Oh, and by the way, you will learn to accomplish this while keeping what you used your money to purchase in the first place.  The good news, is you can protect yourself from the 30% increase in taxes which are being planned for the middle class, even as you read this blog.

Dr. Tomas McFie

Dr. Tomas McFie is a retired physician. As the founder of Life Benefits, he currently works in the financial industry exposing the fallacies of typical financial planning and helping clients keep more of the money they make with a formula that creates financial peace of mind.


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Still Believe in Equal Rights? Don’t Trust Progressives to Fight for Them

This week, progressive congresswomen Alexandria Ocasio-Cortex stated that conservatives are using the term “wokeness” as a means to distract progressives from pursuing racial justice.  This is such a farse!  This is the same woman who is demanding that congress pass the Build Back Better Bill, which will allow Wall Street and their cronies to keep paying lower tax rates than the racially divided class of people who AOC and her progressive colleagues say they are trying to protect and elevate economically.

It has to do with something called the “carried-interest rate, which allows individuals working in the financial industry to pay a lower tax rate.  It is a type of performance bonus, in which investment managers are paid based on the profits of their client’s portfolio each year.”  By keeping this rate a 23.8% instead of 37%, this gives the money managers a gigantic tax break compared to what others would have to pay when earning that same amount of money. This carried-interest rate was, by the way, likened by former president Donald Trump as “getting away with murder.”  Yet AOC and her faction of progressives have literally ignored this huge tax loophole which Wall Street and their cronies get to enjoy.  Even Bernie Sanders, the avowed social justice warrior, has been dubiously silent.

Funny how progressives live such a lie.  In the past Bernie has repeatedly voiced his concerns about the carried-interest rate.  Reps Cortex, Omar, Pressley, and Talib even sponsored a bill in 2019 which would have eliminated the carried-interest rate.  But today, when they have an opportunity to stop the carried-interest rate loophole once and for all, they remain silent.

In my latest book, How to Build Sustainable Wealth, I discuss how to avoid the fees which the money managers siphon off your portfolio.  Like a leech, these money managers suck the blood of their hosts while providing no significant benefits.  History has proven, time and time again, that beating the market turns out to be highly unlikely.  In fact, over the last 15 years 92.2% of the managed large cap funds performed worse than the S&P 500 Index fund.  And managed mid-cap and small cap funds performed even worse with a score of 95.4% and 93.2% respectively.  All-in-all the odds of using a managed fund to create better returns than a domestic index is 1 in 20.  This is a less than 5% chance of earning more and a 95% chance of losing more when using a money manager to manage your portfolio.

So, in reality all these progressives don’t sincerely care about the common folk in America.  They not only allow these money managers to continue charging for their less than stellar results of beating the market, and they provide them with a huge tax break on what they do collect from their poor unsuspecting clients!

The only thing which progressives seem to really be protecting is their own special rights. For example, Bernie Sanders holds stock in JP Morgan, Chase, Citigroup, Bank of America, US Bankcorp, Wells Fargo! of which he has been super critical of on the campaign trail as well as on the Senate floor.  On top of that he also holds stock in pharmaceutical companies as well as fracking companies.  What a hypocrite.

AOC, on the other hand, is on track to becoming a multi-millionaire by the time she is 45.  Not bad for a self-declared socialist who claims to be representing the racially oppressed.  It still fascinates anybody who is really paying attention, how someone can rise so rapidly to the top of the socio-economic ladder once they enter congress. And the indebtedness these same congress members believe their constituents should have for them is appalling.

Participating whole life insurance, the product money managers love to hate, is still the best way to build sustainable wealth. When like-minded people, pool their money together for greater leverage, that pool of money can provide guaranteed results while avoiding taxes and unscrupulous fees money managers charge.  Who could possibly be against doing that?  Oh yes, I forget, it must be those who do absolutely nothing about the carried-interest rate while shouting arrogantly how much they are fighting for the lower and middle classes while enriching themselves.

Phooey.  Don’t get caught up in the idea that Congress will do anything which will protect your God-given rights.  They have proven why they really hold office, and it isn’t to provide equity to anybody but themselves.

Dr. Tomas McFie

Dr. Tomas McFie is a retired physician. As the founder of Life Benefits, he currently works in the financial industry exposing the fallacies of typical financial planning and helping clients keep more of the money they make with a formula that creates financial peace of mind.


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“Elections Have Consequences”

These words were spoken by former POTUS Obama who also went on to say, “It’s the political way for winners to tell losers: Tough luck, you lost. Get over it.” Of course, elections have consequences, but you should never give up fighting for what you value and believe in.  This is the beautiful concept of Americanism, where everyone gets to participate in the process, and no one should face violent attacks merely because they have expressed differing beliefs and/or values than the majority.

Another great Americanism is something called Federalism.  Federalism keeps the central government, from dictating how individual states govern their own sovereign territory within the federal system.  This Americanism is unique to the United States and protects the rights of individuals better than in a unitary government where the central government dictates to all.

One example of how Federalism provides you greater freedom and protection is the way Life Insurance is regulated.  Each state regulates what can and can’t be sold within their territory. This provides you, as an individual, with more accessibility to a swifter resolution to any complaint or concern you may have about a claim against a carrier. This is because states can respond so much quicker than the bulky, cumbersome federal government.

One of the ways our Federalist system keeps from becoming a Unitary system of government is something which many have misunderstood and that is The Electoral College.  This group of 538 members who are nominated by the political parties in each state, match in number the total number of Senators and Representatives from each state, and the District of Columbia (Washington DC) is given three.  This group of electoral members, democratically selected by the political parties from each state or district,  are the ones who cast the actual vote in a presidential election on the Monday after the second Wednesday in December following the popular vote which has already taken place on the first Tuesday of November of the same year. 

Even in this however, our US Constitution clearly allows each state to determine how electoral members are selected and how they are required to vote.  Some states mandate that all electoral votes go to the candidate who receives the majority popular vote in that state.  Other states employ what is called a “district system” which provides even greater liberty in the process.  The important point to understand is, the states have the right to choose how they want to select and require their electoral members to vote, not the federal government.  This obviously provides each state with more freedom than a Unitary form of government possibly could.

One more important fact about the Electoral Vote.  A state electoral member cannot vote for a presidential and vice-presidential ticket where both candidates come from the same state. This keeps one state from securing more power over other states in the administrative branch of the Federal system of the government.

Electoral members have been known to break their bond to vote according to their state’s pre-determined guidelines.  Such behavior can much more quickly be held accountable at the local state level than if such unseemly behavior were to take place at the national level.   Yet another reason Federalism is a better system of government than a Unitary form of government.

Federalism protects the freedom and liberty of the people.  It inhibits the federal government from dictatorially intimidating and harassing the states and their citizens.  It also keeps the election of our president and vice president from being selected by a few individuals who could run those elected officials like a puppet on a string. 

Dr. Tomas McFie

Dr. Tomas McFie is a retired physician. As the founder of Life Benefits, he currently works in the financial industry exposing the fallacies of typical financial planning and helping clients keep more of the money they make with a formula that creates financial peace of mind.


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