Howard's Views

I.R.S. & AIR MILES

INVISIBLE MONEY: The U.S. Government, especially the I.R.S., should have a profound interest in Air Miles, in Awards programs, in points and credits, upgrades and free hotel stays.  It is the hidden money, invisible money, transferable money, or in effect laundered money, that is being harvested every second of every day by the banking/credit card industry, some of it paid out to those doing business in plastic, but much of it contributing to the profit line of the Credit Card Cartel . It is part and parcel of this new system of business, and something of value, at times of great value, that is gained in the course of a business transaction, yet hidden, because it does not show up on I.R.S. filings.  Why not? 

It is money stolen from the profits of large corporations as well as Mom and Pop businesses, deducted each time a transaction is made using a credit or charge card, and it appears later as a credit upon the card-holders monthly sttement. 

Then, at some future time it is used to pay hotel bills or airline flights, for vacations, money, huge amounts of it, moving silently, stealthly through the accounts of the cardholders and the banking industry, but no one pays taxes on it.  Billions flow back and forth, money that moves like multiple jet trails all around the earth, continuously . . . crediting, debiting, crediting, debiting, deducting, huge amounts piling up in some accounts, the black money of the modern age, losses to some and wealth to others.

REPORT IT AS INCOME TO THE IRS: It's as if everyone was involved in a giant conspiracy, even members of Federal and State governments and their employees, to screen these unreported or under-reported benefits that they receive from the I.R.S.  But, the truth is that the I.R.S. does know about it, is well aware of it, yet seems to do little or nothing to bring it to a halt.  If not to bring it to a halt, then to have the credit and charge card companies, the banks, to fill out the proper forms and report it to the government as income.

The Credit Card Cartel has involved so many people in this gigantic conspiracy, including the men and women in powerful places, that the secret is right out in the open, but it is and not talked about; no one wants to kill the goose that laid the golden egg  Yet, an investigation by Congress would uncover the truth about the scheme and then, they would be forced to act against this criminal conspiracy.

As a business owner, each month my bank deducted charges for each credit or charge card that I had accepted.  The customer gained benefits not only in the goods purchased, but also in credits for Awards (or whatever designation they gave it), and part of the charges to me by the bank went to pay for those Awards.  As a business expense, I deducted it from my tax filings, both to the State and Feds.  Therefore, the taxes I paid were less, and when you multiply by all the businesses nationally, you can see that the government has been deprived of billions in taxes.

But, where did the money go?  Where are those Awards?  They are floating somehwere in space, kept track of by computers in the hidden safe-rooms of the multi-national banks.  If unused, the banks have gained billions more due to the laxness of the cardholders, their hold over the merchants and the U.S. Government as well.  Crooks?  You bet.  Big-time crooks. This is non-taxed money!

Congress doesn't want to act on it, because every congressman and his or her aides benefits from these untaxed funds.  Doctors, lawyers, govermors, tax attorneys, bankers, ministers and priests, economists and accountants, all have been enlisted in this giant conspiracy, a conspiracy that no one wants to talk about, because veryone benefits. 

Did I say everyone?  No, the acceptors of those credit cards lose.  It is money being deducted from their bank accounts and credited to the user of the card, a sleight of hand trick that keeps the profits of the Credit Card Cartel moving upwards year by year by year.

$5,000 TRIP FREE  One friend went to Europe First Class and figured that altogether he and his wife had had five thousand dollars worth of benefits simply by using their Visa card on each and every purchase for a little more than a year.  During this year they paid no interest nor penalties, because they made certain that each statement that came in for these purchases with plastic was paid well in advance of the due date.

They had carefully planned ahead, used their cards for every purchase possible during the year, groceries, for goods and services for their business on the wholesale level, each time taking a small "bite" out of the profits of those with whom they did business.  All these "bites" gave them credits that eventually were cashed in for air transportation, hotels, and other forms of benefit to the tune of $5,000.  They were not alone in this type of schemeing, and it is exactly that, accepting a bribe (a future trip to Europe) and using their cards for ALL purchases (as suggested, requested, but not required) by the Credit Card Cartel.  Thus, is appears, they became participants in a criminal conspiracy that defrauded every seller who accepted their plastic.  The seller cannot demand another form of payment; the seller does not have the right to refuse, even when knowing full well what is taking place.

This is only one of millions of transactions using this invisible money, this untaxed money, the money that no one wants to disturb or discuss.  The I.R.S. might wake up and begin to demand that it be accounted for, except that these government employees have also been roped into the Air Miles conspiracy too!

DEFRAUDING THE I.R.S.

Imagine, giving up 4% of my gross profit on every sale to some dodo like that! Are we, as merchants, that stupid? I guess we are, because they've been shafting us royally for the past 10 years with a scheme worthy of a place in any God-father movie and hardly a soul has done anything abou it, except one brave soul by the name of Mitch Goldstone of 30 Minute Photos in Irvine, CA.  Mitch has the guts and business savvy to understand what these banks are doing to him (and others).

DAILY LOG:
Dec. 26, 2002 I have been working on my letter to send to the IRS with my arguement that tickets and all other awards issued by the charge and credit card industry should be taxed as 'ordinary income'. I believe that I have all bases covered and that it will not be long before the IRS changes its' policies, that Citibank, Wells Fargo, American Ex-Cess, etc., all must send out a Form #1099 at the end of the year showing Air Miles at full ticket price, as taxable income. Hellelujah. Kick 'em right in the shins.

Let's hope they rule it is retroactive! Wow.