Wisdom from The Action Wisdom In Action

Another Light Bulb Moment--This Time, It's Taxes

As I was writing a letter to Glenn Beck to accompany an article I was sending him, it occurred to me why it was so important to store and grow your own food (besides the obvious): taxes.

I've apparently stumbled upon another method of tax avoidance that's completely legal.

If we all bought only raw materials for our food, clothes, and whatever we could logically and reasonably create for ourselves and our existence, we'd only be paying tax on those items once.

Why is that important?

Let's take flour for example. If we buy a 50-lb. bag of it, not only are we saving money by buying by the pound, and NOT buying flour again in the near future, but we aren't paying additional taxes (or spending additional money) by buying all the things that could be made from that flour--pasta, bread, cakes, pastries, etc.

Lumber is another example: from boards, we pay taxes once. From those boards, we can make a whole myriad of other wooden things AND PAY NO ADDITIONAL MONEY (other than the electricity to run the power tools).

Let's look at fabric: from raw fabric (from any source--sheets, used clothing, or new), a whole myriad of things can be made, and tax paid once on the raw material itself.

The list goes on. Pick a raw material, and it all ends up the same: pay taxes on it ONCE, yet make many tax-free products from it. Gardening comes to mind---pay taxes once on the seed (if you don't save your own or exchange with others), and get a tax-free bountiful harvest for now AND later when you preserve the excess!

Property taxes also come to mind--a raw, unimproved plot of land doesn't raise much in the way of property taxes, but an improved lot with a house on it certainly raises the value. More improvements means more taxes, and the assessor doesn't necessarily walk into your house to evaluate its worth, does he? The INSIDE worth is assessed by the next buyer, and tax is raised accordingly. Yup, those granite counters and SS appliances will come back to bite you in the end if you buy them already installed.

Taxes are yet another way convenience and bling are robbing us blind.

Posted by Cute at 9:22 PM

Labels: financial (non-tax), food preparation and use, food purchases, taxes