March 31, 2012 Retirees Living On The Edge Nationally, one of four seniors survive only on Social Security checks. In Florida, one of three do. We suggest the cause is failure to save a sufficient amount prior to retirement and then living within your means in retirement. We believe these are the major causes in addition to outliving your life expectancy. If you feel you need advice or help in preparing for retirement and accumulating a nest egg we may be able to help. South Florida Sun Sentinel 1/24/12 p. 1. More Canaries Stockton, a city of about 290,000 due east of San Francisco is contemplating Chapter 9 bankruptcy protection because it is saddled with multi year labor contracts with escalating costs that cannot be paid with anticipated revenues. Wall Street Journal 2/25-26/12 p. A3. Portugal Urging Citizens To Leave The Prime Minister of Portugal has urged its citizens to leave Portugal and seek better opportunities for employment in former colonies that speak Portuguese, such as Brazil and Angola. This is the conclusion of Western European Socialism that thought only a couple of years ago that it could pay people not to work. This should be a lesson to those in our country who look to Western European Socialism as a model to emulate. Portugal is an example of what happens when you run out of other people’s money. Its unemployment has reached 14% and its economy has shrunk by 3% last year after a bailout by the International Monetary Fund. Asbury Park Press 2/25/12 p. A4. Telecommuting Employee Subjects Delaware Corp To NJ Tax In an extremely bad decision, the New Jersey Tax Court ruled the presence of a single telecommuting employee who lives in New Jersey and worked for a Delaware Corporation that had no other presence in the state, subject to New Jersey Tax, Telebright Corp. v. New Jersey Division of Taxation 3/24/10. According to the court, a foreign corporation that regularly and consistently permits its employee to work each business day at the employee’s New Jersey residence is considered to be doing business in the state and must file corporation business tax returns in New Jersey. The corporation had its principal place of business in Maryland and allowed one employee to telecommute from her New Jersey residence. The court’s reasoning was that a corporation is doing business at the place where its employees are expected to report for work. With a national trend toward telecommuting and not providing office space for all employees, the New Jersey Court is advising out of state corporations that there will be a potential penalty if they hire a New Jersey resident. This is just another dumb decision by the New Jersey judicial system. Tax Management Multistate Tax Report vol. 17 No. 4 p. 202. Top NY Labor Leader Leaves NYC One of America’s most powerful labor leaders, Randi Weingarten, the American Federation of Teacher’s president has joined the exodus from New York City and saved $30,000 in NYC income taxes. She joined Glenn Beck who moved to Dallas and Rush Limbaugh who vacated the city for Florida. In 1998 when Mrs. Weingarten took over as president of the United Federation of Teachers, per pupil spending was $8,944 and in 2009 when she left the UFT, the spending had soared to $19,789, a 121% increase driven largely by increased wages and benefits for increasing number of unionized teachers. Most of it is funded by NYC taxpayers, not the federal and state governments. Not all of the city’s taxpayers are lucky enough to have homes in East Hampton to escape to when there are big tax bills. New York Sun 3/19/12. One Reason Why Melissa Is My Partner Young men do not kill themselves by work. Too many elderly businessmen do. They do not know how to relax mentally. They cannot really play. Many of them worry too much. Often their family life suffers. Past-middle-age fathers, engrossed completely in their own activities, frequently haven’t adequate sympathy with their children’s natural love of fun, recreation, pleasure. My advice to aging business commanders-in-chief is to divert more and more managerial duties to their most capable associates and to devote themselves increasingly to the leisurely enjoyment of life and family made possible by release from the daily grind. B.C. Forbes (1938) Forbes 3/12/12 p. 112. As always, if you have any questions about these or any other matters, do not hesitate to call us. Remember, We’re Here For You!