Land Value Tax

Free access to scriptures religious leaders try to censor

Land value tax is like the maintenance fee you paid to your apartment.

Landlords are like governments. People say that land is not created. Sure.

But the huge value in the land is indeed created. It’s quite natural then to ensure that whoever creates those value benefit from those value. Say by land taxes and stuff.

I think a good way to settle the land of Indian is the following. The Indian and Palestinians may have owned the land. However, that means little.

However, the land value belongs to American that builds the land.

Imagine a deserted land or even sea. What’s the land value there? Say 10 cents a meter square. A society comes and develops those land. They build infrastructures and stuff. There are people and shops near the land. Who creates those values? The society as a whole. So it’s natural that the one benefiting from the value in society. It’s natural that society tax land value.

Now the land cost $1 a meter square.

Bob buys the land. Then Bob builds an apartment on top of it. Now the place worth $3 a meter square. Who should own the house? Bob. Anyone can live in Bob’s apartment and pay rent for it. Of course, Bob can sell the apartment unit too, but you got the point.

What Separate Real Religions from Satirical Ones?

Religion is an ideology and an ideology is a system. Some system works and some don’t. Those which works get adopted. I am not a fan of any religion, obviously, but I respect religion enough to know that it’s a system that used to work.

You can make a platoon march out of fear of flying spaghetti monster. However, all major religions have once become a nation’s ideology. All major religions have been used by some politicians to make a large number of people cooperate and conquer less cohesive people.

Do I like Marriage?

Do I like marriage? In short no. However, that’s over simplified.

A better answer is this. There are aspects of marriage that I really like.

There are aspects that I don’t. I want to be the one choosing and not the government.

Do I like spending my life with a girl I like. Yes. Do I want to inherit my money to my children.

Yes. Very. It’s my whole purpose of life pretty much. Make tons of money, have children, give money to my biological children.

Do I like risking losing half of my wealth or even more if the girl chooses to leave me.

Fuck no.

Do I like having to worry about the religion of my identity card? I myself is an atheist, but my identity card has religion and it may not match the identity card of my girl. Do I want to be bothered by that? No.

Do I want politicians to decide what the rules of marriage is? No.

Do I like going to court to settle our differences? No.

After a while, I noticed that what I want from marriage, I can get from sugar relationship and paternity tests and perhaps some simple contracts for long term transactions.

In general, contracts are there to get us to do things we otherwise do not want to do. Do I need a contract stipulating that I will inherit my wealth to my biological children? I already want to do that whether I am obligated or not.

What I don’t want from marriage? What do I get by involving governments to well govern my marriage.

I read a story of Cinderella. Cinderella has a rich biological father. However, the father, instead of forming sugar relationship with a woman end up marrying the woman instead.

So Cinderella lost control of her own father’s wealth and is pretty much mistreated by the siblings.

In western marriage, this is normal. Marriage is usually between “equal” and Cinderella’s father is “equal” with his wife. Society expects the father to love the wife as much as his own children.

But that’s what societies think. That’s not how we evolve. We’re genetically hardwired to be selfish. We have our interests. Your wife is not your family.

Saying you’re “one” is just scientifically incorrect.I once loved a girl a lot and she just think I am an idiot and fuck everyone else but me.

I should have known. It’s stupid to love other. Why did I? I don’t know. I must be lying to my self.

I lost $3k with her. If I married her, I am fucked. I am glad I don’t.

Now I have a baby with another that I also love. I am happy.

I am happy to know that my money will go to my children and I have no fear of having any catastrophic failure in case divorce happens.

Haig Simons Income

This Haig Simons income/profit may be related to corporate valuation more. We used to think that corporate valuation is simply the present value of all future cash flow. I wonder if we can measure that, and get some actual value, of present value of all future Haig Simons income + current valuation?

For example, say a company spends money in advertising to build brand. His book income may be negative. He spend money on advertising and that’s it. However, we can see that advertising actually generate Haig Simons income. His brand worth more. The increase valuation of his brand is actually “income” that improve his whole corporate valuation.

A wise CEO then spend money on advertising even though it reduces profit. A wise investor then value the company higher knowing taking into account the brand valuation. Another sample is research.

Research cost money but then the company increase the values of it’s intellectual property. A wise CEO then maximize the Haig Simons profit and invest in research if and only if the cost of research exceed the increase of intellectual property valuation.

Of course, research will increase costs and reduce taxable income. Which is even better.

In general the Haig Simons income is also what determines your happiness. In general, you want to max out your Haig Simons income and minimize your taxable income. Your taxable income is your source of grief and your Haig Simons income is your source of happiness.

“Unrealized Gain”

Buy stock A and stock B. Both are equally risky as fuck. Both worth $1 million. Stock A becomes $3 million. Stock B becomes 0. Now you want to cash in your money to buy nasi goreng.

You sell stock B realizing your loss. You sell 1/3rd of your stock A. In the book you have $1 million realized loss and well, correct my math here, $666 of realized gain. Tada…. No realized gain netto. You earn $1 million, you withdraw all and yet no realized gain at all.

Your assets improve by $1 million. You withdraw $1 million. Yet no realized gain. No tax this year. The tax is indefinitely postponed again.

I think you shouldn’t sell all your B stocks. Just sell 2/3 rd of your B stock and 1/3rd of your A stocks. You start of with $2 millions. You earn $1 million, and you actually spend it that year.

No realized gain. No capital gain tax.

In practice, professional stockbroker can always realize their loss at end of year and buy back the stock at the same price. Yet they let their gain “rolls”. I’ve heard a special IRS rule is made to close this loophole. However, you can still avoid the loophole by realizing your loss and then buy another asset that’s equivalent (same industry, correlate, derivative) etc.

Understanding Wealth

If we look at this graph it looks like income tax is very “progressive”. I am not going to argue whether it’s fair or not fair.

However take a look closer. Many things don’t show up in this graph. It only shows that the top 1 percenter pays 30% of income tax.

Notice that they only pay based on their taxable income.

If income is defined naturally as any increase of wealth + consumption, which is what really affects our happiness, then most income is not taxable.

Jeff Bezos earn $20 billion due to Amazon stocks going up just this month. I bet he won’t pay a cent of tax on those “income”.I think a lot of rich dad poor dad should talk a lot about this. Rich people are rich because their assets make money and not because they work for money.

Their assets give them increased wealth (which is income for all useful purposes) and yet they’re not taxed for it.

And often the true key to wealth is understanding this rather than many things.

How to increase your wealth without paying tax for it.

I would boldly say that huge amount of wealth building strategy involves on how to legally avoid paying taxes.

Instead of earning money and earn salary try incorporate and increase the valuation of your corporation for example. The first is taxed often. The latter is not taxed till a very long time.

No photo description available.

Why Learning is More Important Than Success

Often, what matters is not whether we are right or wrong. What matters is how wrong we are.

Basically we need to know how wrong we are and then see how bad our karma is for being wrong.

That depends on how wrong we are, how our acts differ by how wrong we are and how our utility functions change by hour wrong we are.

Some people say that those that do not know that the distance of the stars are far from the moon is wrong. I don’t think he’s too wrong. So what if he doesn’t know that.

Putting money in falling stocks may look less idiotic, but that’s the kind of wrong that leads to bad karma/outcome more.

Karma is assured, as assured as law of large number guarantees that outcome will tend to match, on average, the actual expected value.

If I am wrong or if I am not skillful then the outcome will be bad, at least on average.

Rather than being sad for the bad outcome, I should just be sad for not being correct in the first time and be grateful for what I learn.

Is there data for true progressiveness of income tax?

Income tax is progressive.

In theory.

In practice, the rich have more ways to avoid taxes than the poor.

Rich people usually gain wealth through assets increase. That’s often go untaxed.

If my house, stocks, or foreign ownership of some business increase in valuation by 1000%, I will not pay tax for that till I sell it. Even if I sell it, there are ways to indefinitely postponing income taxes.

If my houses go up by 1000%, and I sell the house, in US, I can just buy another house or real estate with the money. Tada…. Tax is postponed…. again….. indefinitely….

Poor people are also more likely to buy and sell stocks. Rich people . are more likely to be corporate founders or CEO that stick to their . stocks. Of course, no selling, no realized gain.

Yada yada yada yada…..

I wonder if there is data how progressive income tax is if we take that into account.

So count any increase of wealth + consumption as income and then see how much tax a person pay.

Is it really still progressive?

If so by how much?

Any data?

Why Getting Rich Normally is Difficult

Say you’re smart. Then what? Can you graduate faster? Not easily. We have this educational system where people graduate at roughly the same speed. You can get better grades. But what for? How would your grade in high school affect your success in live?

Grades between schools are not even comparable.

Basically, your competence depends a lot of your, well, IQ.

Government education is there to ensure that IQ matter little.

After you graduate or before you pick a degree you can pick occupation that is in high demand and low supply.

Then what?

Government control wage. We have minimum wage for liberal art major. Your government also import lots of programmers.

Finally, you get rich somehow.

Then you want to find a mate so you can reproduce. Again, another game balancing socialism. Governments ensure that only singles can get married and that marriage and child support is artificially expensive for the rich. It’s slow genocide against the best and brightest.

I think if anyone wants to be successful, they got to see the crack between the line. You can’t be successful the normal way.

I for example, see a crack. I do internet marketing. That means American money with Indonesian living costs and Indonesian’s low salary. I then moved to bitcoin trading.