Boosie Hates Paying Taxes

When entertainers like Boosie or many of the clients that TaxAssurances sees every year complain about paying taxes, we understand why. They think the money is wasted. And Republicans & Democrats do a horrible job of explaining where the money does go.

So at TaxAssurances, we hope the following explanation helps.

First off, most of the money goes to seniors, healthcare, the military and interest on the debt ($21 Trillion). That’s about 80 cents of every $1 we spend right there. Welfare (SNAP, WIC) is 2 cents of every $1 we spend.

Second, every November the Treasury Department through the Office of Management and Budget (OMB) releases what is called the, “Budget Results for the Fiscal Year.” That one annual report summarizes not only what the federal government spent our federal tax dollars on, but how much individuals and corporations paid in taxes.

Having said that, here’s a quick summary of how much was spent from October 2016 – September 2017 in those 4 major categories:

* Medicare/Medicaid (Dept. of Health & Human Services) – $1.1 Trillion

* Social Security – $1 Trillion

* Dept. of Defense – $568 Billion

* Dept. of Treasury INTEREST ONLY on our Debt – $457 Billion

So again, right there, of the $3.98 Trillion that the federal government spent last year, roughly 80% of it went to just those four categories.

The other roughly 20% went for everything else including Education, Veterans, Homeland Security, Housing & Urban Development, Transportation, Energy, Agriculture, Environmental Protection, etc.

Here’s a quick link to last year’s full report:

So when Boosie or any other taxpayers wonder where their taxes go, the “Budget Results of the Fiscal Year” report released every year by the Treasury Department tells us.

Yeah, it needs a better name and more publicity.

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What Should I Charge My Client?

Fairly often, TaxAssurances meets with new business owners that aren’t sure what to charge their potential client and even more nervous about actually asking for it. After all, they’re new and they don’t want to overcharge and lose the potential client.

It’s always recommended that they research competitors in the industry for guidance. But more importantly, when they’re starting out, tell them to do what’s necessary to get the business and experience. The relationship can be a huge boost in terms of credibility and confidence. As well as in pay.

The best part about this experience has been when the new business owner has that horrible, “ah ha” moment. That moment when they realize they dramatically undervalued themselves and the client got away with murder.

TaxAssurances has its own horror stories. Ten seconds of advice saved a potential client millions in taxes and they never paid for the advice.

Those are breakthrough moments. It’s at that point the new business owner says, “oh, we’re not doing that again.”

So new business owners, just do what’s necessary to get as close as possible to what you should charge, but look to do the business. Over time, you’ll figure out what to charge and stand firm on it.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

Bank Magic Event Announcement

On  Saturday, June 16, 2018 at 11:15 am Mount Vernon Public Library is hosting TaxAssurances’ Founder Kolonji Murray  to talk about his book, “Bank Magic: Financial Literacy for Young People.”

In inviting him to present the library believes, “This program gives children sound advice about managing finances and they will learn some tools to prepare them for today and the world ahead tomorrow.”

In reflecting on the opportunity Mr. Murray commented that, “this is a great opportunity to return to my home library and give back a piece of what it has given me.”

The event is scheduled for 45 minutes.

 

About Mount Vernon Public Library

The mission of the Mount Vernon Public Library is to provide a safe, accessible facility where people, information, and ideas come together to enrich lives and build community, and where lifelong habits of learning, self-improvement and self-expression are championed. As the Central Library of Westchester, the Mount Vernon Public Library focuses on developing unique and current collections that build on technological advances, and serving the diversity of patrons throughout the county.

The Mount Vernon Public Library is guided by the following principles to achieve excellence: support for intellectual freedom, literacy promotion, respect for and inclusion of the entire community, fostering a healthy democracy, forming strong partnerships, adaptability, innovation, and a professional and skilled staff that serves people of all ages, interests and abilities with fairness and equality.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

An Excerpt from, “Bank Magic: Financial Literacy for Young People”

Here is an excerpt from, “Bank MagicFinancial Literacy for Young People,” written by TaxAssurances’ owner, Kolonji Murray. The full book can be purchased on Amazon for Kindle and in paperback.

“Your piggy bank can become your magic tool for saving money for all the special things you want. Using a piggy bank is a great way to start saving money. You can start by collecting your spare change and adding your coins to your piggy bank every day or every week. Pretty soon, you will have a nice collection of coins that you can put towards a future purchase. Ask your parent, guardian, or a trusted adult to allow you to open your piggy bank every month or so to count how much you have saved.

Joining a Money Club

You can create a larger piggy bank by starting a money club with a few friends or classmates. Creating a money club can go a long way in helping you understand how to earn, save, and invest money. You can plan monthly meetings to talk about your money plans and schedule time to go to a bank together.

Opening Up a Savings Account

Once you’ve filled a piggy bank (or two!), you can now open up a savings account. You can still use both your piggy bank and savings account. You can use your savings account to store money from your piggy bank, allowance, and birthday and holiday money. Once you start building your savings account, you can begin saving for a special purpose like a summer program or money toward your college savings fund.”

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

President Trump’s 2017 Executive Branch Personnel Public Financial Disclosure Report

Every year, the President of the United States and all other executive branch employees have to prepare a financial disclosure form. Here is President Trump’s for 2017.

https://oge.app.box.com/v/Trump2018Annual278

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

Couples & Money: Do Whatever Works for the Relationship

I’ve worked in financial services since 2000. During that time, I’ve had a chance to see how couples handle money together. It’s been insightful. Why?

Because when I first started helping clients manage their money I thought that EVERYTHING should be handled together. Helping them ACTUALLY manage their money changed that idea.

What I came to realize and what should have been obvious from the beginning, is that everyone is different. And that includes how people think and feel about money. Some people don’t care that much about it. Others see it as the ultimate form of security. Again, everyone is different.

What has also emerged from these experiences with couples and money is that there are 3 types of money relationships that couples have. Here they are:

  • Everything together
  • Everything separate and
  • Some joint and some separate

I’ll give a quick summary of each.

The first couples’ relationship type is the type that handles everything together. They have nothing but a joint bank account. They do their taxes together. They have joint investment accounts. The home is in both of their names. They see separate anything as almost “hiding” something from the other and could result in problems in the relationship.

The second couples’ relationship type is the type that handles everything separately. They bank separately, they file taxes separately. One doesn’t know what the other has in credit card debt or student loans or anything else. They just allow each other to handle what they are responsible for.

And finally, there are couples that mesh the two prior ideas. They not only have a joint account for shared bills and responsibilities but they also have separate accounts to handle their responsibilities.

But no matter what type of money couple a couple is, I’ve come to realize that as long as the relationship works for them, that’s all that matters.

So when it comes to handling money, couples just need to see what works for them.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.

An Excerpt from Bank Magic: Financial Literacy for Young People

Here is an excerpt from Bank MagicFinancial Literacy for Young People written by TaxAssurances’ owner, Kolonji Murray. The full book can be purchased on Amazon for Kindle and in paperback.

QUESTION: Why are budgets so important?

ANSWER: Budgets help to ensure that you cover all of your expenses, pay your creditors on time, and save, invest, and make money for the future. You will be surprised at just how fast money can go through your pocket without a plan for how you will spend, save, and invest it. So often, people think of budgets as being restrictive, but budgets actually give you the freedom to track how much you spend and to adjust your habits so that you can make better financial choices in the future.

QUESTION: What happens if I go over my budget?

ANSWER: it’s OK! Fortunately as a young adult, you don’t have to worry about big financial responsibilities, like a mortgage or car payment, for now. If you spent a little more than you expected, find out where you can cut back or adjust your expenses until you receive your next allowance or paycheck. Maybe you can cut out one day at your favorite pizzeria or a drink at Starbucks. Little things add up. You can also download spending apps to help you track your expenses.

For more on TaxAssurances, check out our reviews, photos and links on Yelp.