Tax The Rich

Obama intends to tax the Rich.

Tax is on income.  It is called income tax.  To be more exact, taxing the rich is increasing a tax rate on a level of income.  A high level of income subject to the application of the tax rate.  It is not a tax on how much money a person makes.  That is gross income but how much income is subject to taxes.  That is something less than gross income.  I think that is how it works.  How much is made is gross income.  What is taxed is something else.

Here is the trick:  Increase the tax rate on a high level of taxable income.  That should increase tax receipts.  Unless what is computed to be taxable at these high level of incomes is reduced somehow.  The objective of increasing the tax rate on the rich is accomplished.  However, raising tax revenue as a result is not. 

Raising tax rates on the segment of the rich that cannot or does not have, or know, the means to avoid the increased tax rate by offsetting increases in taxable income will increase tax revenue.  At this level of income, avoiding tax for reasons is intentional construction by design creating structures for evasion of tax by design.  The beauty of the elegance of the design of such structures is that they cannot be seen as evasion, they are only avoidance and cannot be proven to be otherwise.   The burden of proving tax evasion fraud is on the government. 

Read all about it at this link: http://www.irs.gov/irm/part25/irm_25-001-001.html

2. The major difference between civil and criminal fraud is the degree of proof required.
   
   1. In criminal cases, the Government must present sufficient evidence to prove guilt beyond a reasonable doubt.
      
   2. In civil fraud cases, the Government must prove fraud by clear and convincing evidence.
      
      My comments follow:
      
      Laundering money is the best way to make it difficult to prove fraud.
      
      Money is laundered is large unit amounts moved from account to account at a macro level where following money means following its transfer from account to account and determining the nature of the account.  The nature of the account is generally determined by what goes out of it rather than what goes into it.  It goes in dirty  as a function of its source.  It comes out clean as a function of a cleaning process.  Cleansing is is done by applying the attributes of the account to the money in it so that when it emerges from the account it has those "Clean" attributes rather than the dirty attributes of the account it was in before it went to the cleaners.
      
      Digital Dollar serialization enables a "dirty" association of money at a particular point in time to be perpetuated as an attribute of the Digital Dollar at that specific time associated with the owner of that unique serialized Digital Dollar at that time.  That is true because the Digital Dollar carries its own unique history of ownership.  Find a Digital Dollar anywhere in the system that has a dirty history, even if it is possessed by a current clean owner and that dollar connects in its dirty history to the account in which it was held and from what source and previous owner it came into that account.
      
      If the medium of exchange system requires that all unique Digital Dollars in value units of One be randomly chosen from the account of the current owner to change to a new owner account then all individual Digital Dollars quickly become scattered to the wind as they subsequently have ownership changes as the medium of exchange.  They can always be followed backward in a documented chain of custody to not only the point at which they are suspected to be dirty but collectively at that point directly related to a the total amount related to the change of ownership  that they were collectively an individual unit. 
      
      The prior paragraph gives new meaning to the old expression:  "Money Talks"
      
      It is such a wonderful new view of an old idea that it is worthy as the subject of my next blog post.
      
      Money Talks.  Making Money Talk.  Designing the system in which it can speak and say what it knows.