Search Insurance

Showing posts with label Based. Show all posts
Showing posts with label Based. Show all posts

Friday, August 31, 2012

Organization of Tax Audit Based in Tax Types


Tax audit, as a special tax administration function, has special attention to mentioning everyday actions and procedures in order to help increase effectiveness in everybody's exercise of their duties, guaranteeing, at the same time, taxpayers' rights according to the following characteristics:

- specification, in the sense that there be no reason for doubt or double meanings in the formulation of duties;

- coherence, so that workers can see a certain duty in a logical way and without overlapping;

- usefulness, in the sense of avoiding complex and lengthy procedures;

- effectiveness, so that functional duties will not affect the artificial growth of fiscal burden and administrative barriers;

- Comprehensiveness, in the sense of providing solutions for various situations that might arise in the relations between taxpayers and tax officials and resolving these situations in compliance with the code of professional ethics.

The organizational structure of audit (see organizational chart) meets the requirements for an effective and functional audit, based on the needs, which comply with strategic objectives established in the orientations of the Tax Audit Directorate in the General Tax Directorate. The tax audit is part of the structure of this office. Let's explain how they develop the function of tax audit according to tax types.

Audit Offices for VAT

In observance of national strategic plans and objectives for VAT audit, besides the requirements of Law the vat audit offices entirely focus on the application of requirements specified in Law "On VAT" from taxpayers. Concretely, inspectors in charge of this duty must check, audit, compare and correct taxpayers' declarations for:

- accuracy of changes related to name, address and economic activity, or any changes in information taxpayers provide to the tax authorities at the time of the request for registration;

- Legal accuracy in completing invoices for all incoming payments subject to taxable supplies;

- Visible exposure of prices in the premises where activity is exercised;

- VAT payment rates as compared to taxable sales and the average rate in the respective sector;

- Accuracy of VAT declarations in sales and purchases, compared to monthly declaration and payment forms;

- Requests for deregistration, cases of declared bankruptcy, activity transfer;

- Requests for assessment of sections in Declaration and Payment Form (DFP);

- Requests for audit by General Taxation Directorate (GTD);

- Justifying documents, accuracy of registration and self-declaration in purchase and sales books for taxable and exempt supplies, as well as VAT payment;

- Requests for VAT refund, based on Regulation "On VAT refund";

- Justifying documents, accuracy of registration and self-declaration in purchase and sales books for taxable and exempt supplies, according to Decision of Council of Ministers (DCM).

- Full cost calculation for every type of goods or service (purchase price according to the invoice, transportation costs, customs tax and other general costs) and its comparison with the sale price declared by the company, as well as its compliance with the Law "On tax procedures" and the instruction thereof, investigating the price and comparing prices according to price ascertainment-acts kept by Tax Office (investigation office). In cases of agreements that GTD has with business associations for certain types of goods and for the cost (price) per m² in construction, comparisons are made for every analytical case and tax obligated are calculated accordingly;

- Actions with the cash account (in national money and foreign currency), transactions in cash above a threshold;

Audit Office for Income Tax (AO-IT)

In observance of duties for auditing self-declared indicators of DPF for profit tax and accounting balance sheet by companies,besides the requirements of Law "On tax procedures" and Law "On accounting" as, this audit office entirely focuses on the application of requirements from Law "On income tax" from taxpayers.

As regards audits of balance sheets and financial accounts, inspectors from this office can:

- compare values in balance sheet items to those in the general ledger (for manual diaries and IT ones);

- make arithmetic verification of synthetic accounts in the ledger;

- crosscheck sums in the balance sheet with sums in the ledger;

- compare current result account and other accounts relevant to this result;

- compare declared incomes in the accounting balance of the previous year with the ones declared in DPF and VAT in the center or in subsidiaries as well as with data received from other sectors in the Office and other offices or institutions;

- make overall and analytical checks on legality of expenses made, according to the requirements of Law "On Income tax".

- check inventories and production in process;

- check registration of fixed assets value, for both incoming and outgoing assets;

- Make a "balance of changes" created from comparing the accounting situation in the beginning and at the end of the exercise of activity.

Audit Office for Excise, Withheld Tax and Insurance Contributions (AO-EWT-IC)

This office audits taxpayers exercising their activity in the trade and production of excise goods, with or without fiscal label, according to the specifications of Law "On excise". At the same time, this office audits the observance of requirements in Law "On tax procedures", Law "On income tax", and Law "On VAT", for the taxpayers audited by this office.

In terms of excise audit, inspectors in this office can:

- Check the observance of legal procedures for authorizations issued to persons and approval of land parcels, buildings or other premises, as well revoke or change such authorizations or approvals;

- Regularity of transfers for excise authorizations and/or approval of customs storehouse;

- Accuracy and justifying documentation for payment of excise obligations and observance of relevant legislation in this respect;

- observance of audit procedures for use of raw materials and additional substances, mixtures or other actions with excise goods or relative to them;

- Observance of legal requirements for keeping records by excise authorized persons;

- Check the way domestic or imported excise goods are produced, packaged and stored;

- Observance of legal requirements for the transportation of excise goods;

- Observance of legal requirements in fuel deposits;

- Check of justifying documentation and calculate withheld taxes according to the requirements of the Law "On income tax";

- Observance of requirements for controlling the calculation and payment of employer's contributions.

This audit office administers the audit process bearing in mind the Excise Manual, which is a separate manual for the category of excise goods.

If exist a specific approved version of the Audit Manual for Social and Health Insurance Contributions for auditing such contributions he can be a guide in such cases.







Thursday, August 16, 2012

Future Visions of the Auto Industry and Automotive Advertising Based on What Was and What Is


Auto industry social networks all have different rules and protocols to create their unique identities in the auto industry and the inter-dependent automotive advertising industry. While there are differences in format, content and contributors they share the common goal to educate their community members by sharing best practices and insights with the concept that a rising tide floats all boats. To provide clarity and share my vision of the future of the retail auto industry and automotive advertising it must be framed it in the context of our changing geo-political and economic environment. Once the foundation of today is built on the broad picture of our world economy and politic, then the role of the Internet and related technologies can be applied to the one constant that we can all depend on -- human nature -- to help define tomorrow as I see it.

Any competitive business model must be built to accommodate tomorrow as well as today. Today is obvious. Sales volume, profit margins and inventory are down across all brands. Consumer confidence is falling as unemployment is rising even in the face of the expected temporary increase when the million plus census workers and various government employees -- such as the sixteen thousand IRS agents to police our new health care system -- are artificially added to the equation. Wholesale and retail credit lines are restricted by both natural business cycles and government intervention. Our economy is directly linked to the world economy along both monetary and political lines and the United States as well as our European trading partners are faced with excessive debt and unstable monetary systems. Our monetization of our debt -- basically the fact that we loaned ourselves the money we needed to fund our growing debt by printing more money, since no one else would lend it to us -- has insured the inevitable inflation of our dollar or some similar correction to our monetary system. This anticipated correction is already supported when observing the situation maturing in Greece, Portugal, Spain and other European Countries tied to the Euro and the International Monetary Fund, (IMF). No one has a crystal ball, so the only way to plan for tomorrow is to recap today's critical issues that didn't exist yesterday. It is these changes in -- what was -- vs. -- what is -- that will likely define -- what will be and the actions that auto dealers and automotive advertising agencies must take to remain profitable and competitive in unchartered waters.

The current administration was voted in on a platform of hope and change with the expectation that the promised transformation of America would take place within the confines of our constitution and in consideration of our established belief in a free marketplace. The redistribution of wealth was understood by most to reflect the giving nature of the American people as a moral and sharing society. Unfortunately, the transformation began in ways that could not have been imagined by the majority that voted for it with an agenda that is only now coming to light. The inherited financial burdens on our banking system that justified the need for change were matured across Republican and Democratic party lines -- as evidenced by the contributions of Fannie May and Freddie Mac to our mortgage crisis and the preferred treatment enjoyed by the unions, Goldman Sachs, AIG and other entities on Wall Street supported by the progressive political movement that is represented within both parties.

By way of disclaimer, I recognize that approximately 30% of our population believes in the collective -- We the people -- and the associated movement for the -- workers of the world to unite -- vs. the framers of the constitution that defined it as the individual -- We The People -- and the rights of the individual as a contributing member of the whole. That said, as the President has clearly stated, elections have consequences and I will attempt to limit my comments and future visions to only those actions that have or will have a direct impact on the auto industry and the automotive advertising agencies that are engaged to serve it.

The empowerment of the unions in the formation of Government Motors is already impacting the marketplace even while it is being challenged in the courts. The mandated consolidation of the retail distribution channels for General Motors and Chrysler preserved the interest of the unions over the guaranteed bond holders and independent dealers contrary to established rules of law. This precedence diluted expectations of both investors and corporations to rely on binding contracts and individual rights in favor of the collective we that our evolving society is expected to serve. Recent adjustments to the language in a variety of Federal powers have impacted previously accepted State and individual rights which must also be considered when projecting the future of the auto industry and automotive advertising -- if not our country as a whole.

For example, the change in the definition of eminent domain from taking personal property -- for public use -- to the new definition -- for public good -- has already resulted in private and commercial property being taken at distressed market values and given to other individuals that promised a higher tax base to the governing authority based on their position that the additional tax revenue was for the public good. Similarly, the ownership of water rights in the United States has been changed from the previous Federal ownership of all -- navigable waterways -- to include -- all waterways -- such as ponds, surface streams and basically any water that the government determines can be used for the public good. The potential impact on the farming industry and our food supplies evidence a shift in government control of society that must be considered when projecting the future of any industry -- including our beloved auto industry.

Given the government takeover of the banking industry, General Motors, Chrysler, Health Care and Student Loans that are now part of our history, the point becomes self evident. These single word changes and government takeover of entire industries for the public good dilute individual and corporate rights in favor of the rights of the collective. This is a basic step in the process of redistributing the wealth in accordance with Socialistic and Marxist principles. I am not judging the validity of any of these differing political philosophies since it would risk my ability to remain unbiased in my evaluation of present and pending opportunities in the auto industry. My intent is not to defend our previous constitutional republic over the shift to a Socialistic or Marxist democratic society, but rather to apply them when preparing a business model moving forward for my auto dealer / vendor clients and affiliated automotive advertising agencies.

For example, the recess appointment of Craig Becker as member of the five seat body of the National Labor Relations Board, (NLRB), suggests the intent of the administration to resume its push for the Card Check Regulation that is designed to facilitate unionizing all businesses in the United States. Recess appointments are an accepted practice used by previous administrations to bypass the Congress and the Senate to fill cabinet positions with individuals that are often blocked by partisan agendas. However, Mr. Becker was challenged in a bi-partisan manner based on his role as a senior attorney for the Unions including the CIO and the Service Employees International Union, (S.E.I.U), just before his appointment. The NLRB decides cases involving workers' rights which directly impacts larger issues between Democrats and their labor allies vs. stated Republican party interests and those of the corporate world When coupled with the intent of Card Check regulation to eliminate the right of workers to a private vote to determine if a business can be unionized, the likelihood that retail auto dealerships will be forced to become union shops becomes a real possibility. The regulation also allows the government to intervene in the event that an employer challenges a union take over with a Federal administrator enforcing the union proposals as to wage and other terms and conditions of employment pending a final determination. Based on reduced sales volume, profit margins and increased costs of doing business the inevitability of these privately held dealerships collapsing under the financial weight of union demands is painfully obvious to any auto dealer that understands his cost of sales line items and their impact on his shrinking bottom line.

Similarly, the administration's success in manipulating the processes in the Congress to pass its version of Health Care reform will increase expenses to auto dealers regarding insurance costs for their employees either in the form of forced coverage or penalties which must now be factored into projected operational expenses. These expenses may pale in comparison to other increases in the cost of doing business if the administrations' next stated goal to enforce Cap and Trade regulations are passed. This legislation promises to raise the cost of electricity and other costs of goods in America on many energy related fronts.

For those not familiar with Cap and Trade regulations, think of it as a tax on carbon emissions that would be collected by yet another government controlled body to pay restitution to third world countries who have been breathing our pollution and suffering from its impact on global warming. Of course the same scientists that collected the evidence that global warming exists which supported this legislation have since reversed their position while confessing that they manipulated the data. However, that revelation has not slowed the administrations' desire to move forward. In fact, they have empowered the Environment Protection Agency, (E.P.A.), to intercede and impose carbon taxes by claiming that carbon is a poisonous gas which they are authorized to restrict. Either way, the taxes will be imposed on American industry while other industrialized countries have already reversed their positions on imposing these same fees. This inequity in manufacturing costs will further reduce the ability for American manufacturers to compete in the world economy and will likely force the exit of many carbon producing industries to countries that do not impose these additional costs while taking their jobs with them.

Itemizing -- what is -- vs. -- what was -- has little value other than to cause panic when people realize that there is little that they can do to reverse the changes that they voted in. However, if properly framed in a problem solution format it can provide an opportunity for those that accept -- what is, forget -- what was, and work towards -- what can be. Now comes the good news!

The solution to surviving the promised redistribution of wealth from the perspective of auto dealers and automotive advertising agencies lies in their use of technology to reduce and even eliminate certain fixed and semi-variable expenses. Brick and mortar facilities are often financed with mortgage terms and/or rent factors that were based on now dated real estate values and anticipated sales volume and profit margins to carry the debt service. The commercial real estate bubble of over one trillion dollars coming due over the next eighteen months with no current resource of funds to replace maturing commercial mortgages promise to exasperate already reduced equity positions for auto dealers. The related unsustainable debt service demands a change in the ways that vehicles are sold in the United States; can you say Internet!

Similarly, current staffing needs are often related to processes that are labor intensive. The associated human resource expense and exposure is based on a business model that is antiquated in the face of potential union intervention and government controls; can you say Technology!

Tax consequences resulting from LIFO credits that impacted auto dealerships who could not maintain inventory levels projected in their annual computations due to issues beyond their control are eliminating annual profits. As a direct result of all of these cumulative issues, even captive lenders are balking on maintaining floor plan credit lines or real estate mortgages. Minimum working capital requirements for auto dealers faced with reduced sales, profits and equity to present as collateral for much needed financing has severely limited dealer options to acquire funds to maintain operations.

As already hinted, the solution lies in shifting the focus form brick and mortar facilities to new online virtual showrooms and other Internet based applications that provide more efficient selling processes. Of course real world facilities for sales and service are still part of the projected solution as are the people that will be required to staff them. All processes start and end with people and human nature has and will survive on the Internet. However, the allocation of these resources and the associated expenses must be reduced in the face of the changes already in place as well as those being contemplated to accommodate our new role in a world economy.

Today's car sales person must be educated to use new technologies and Internet based selling systems much like previous generations needed to be trained with the skills of a mechanized society versus an agricultural one. Computers are already an integral part of our culture so the transition shouldn't be as hard as some may perceive. Similarly, large central distribution channels that used to provide efficiencies for manufacturing and retail outlets have been replaced by more cost effective online linked resources across the World Wide Web that reduce fixed and semi-variable expenses in a shared manner that didn't exist before the Internet Super Highway.

Consumers have already been empowered by the Internet to bypass the auto dealer in both the real and the virtual world as the source for the information that they need to purchase a vehicle. Seeking the path of least resistance to satisfy a need is an established element in human nature. An auto dealers ability to accommodate their customers preference to be in charge of their vehicle purchase will be the key to their survival now and in the future. Online customer interaction platforms already allow a dealer to accommodate a two way video communication with real time interaction with the online shopper/buyer sourced from data on the auto dealer's DMS and linked to their CRM. The transparency of this negotiation process allows the dealer to crash through the glass wall of the Internet with the ability to push and pull the same material that they can at their dealership. The result is the opportunity to accommodate an online transaction with the inevitable ability to reduce staff and facility needs in the real world along with the associated expenses and increased profits.

Social networking is another technology based solution that capitalizes on human nature which promises to change the face of the auto industry and the resources available to automotive advertising agencies to help their auto dealers sell more for less in the future. Consumer centric inventory based marketing platforms fueled by social networking communities that provide word of mouth advertising to virally extend the auto dealer's branding and marketing messages represent the next generation of applied social media. C2C marketing messaging to social networking communities from the inside out vs. the now dated attempts to market to online communities with B2C messages from the outside in builds on established protocols in social media. Next generation platforms promise to monetize social media for automotive advertising agencies with integrated Ask-A-Friend / Tell-A-Friend features that allow online shoppers to solicit opinions from friends and family. Customer driven posts on their Face Book page drags the dealership and their vehicle into the conversation with the obvious advantage of the increased exposure and the associated viral coefficient to extend their message and online footprint for potential customers linked to the initial online shopper. Google agrees as evidenced by their weighted consideration of real time social media which quantifies the R.O.I. for the dealer with improved S.E.O. for the sourcing dealer's expanding virtual showroom.

Other technology based solutions that improve online marketing processes converts the pictures on an auto dealer's web site to professional quality videos with human voice placed on the auto dealer's site, all third party marketing sites and even the search engines through a dedicated API with You Tube -- further evidence the ability of auto dealers to expand beyond the limitations of their brick and mortar facilities and in-house support staff. Extended social networking platforms which allow an auto dealer to empower their sales staff to develop their own websites to market to their spheres of influence with management controls to moderate content and monitor use to prevent employee abuse exist today with the promise to be more widely used tomorrow to build the vision of what will be in the face of a challenging economy.

To extend my vision for the auto industry beyond the technologies that exist today requires a similar understanding that expenses and staff need to be consolidated beyond current expectations. Limited resources for consumers to purchase, finance and/or lease their vehicles won't eliminate their need for transportation. Future financial instruments that are a hybrid of a lease and a rental agreement could allow consumers access to a pool of vehicles in a convenient central location where their Drivers License could act as a key and a charge card to apply charges against pre-paid transportation credits deducted by their employers and controlled by the government to track personal activities and location along with socially accepted consumption of our limited resources. I recognize that the big brother flavor of that vision may seem foreign in the context of what was and is, but we are talking about what will be based on the new collective society that our country has moved towards.

As for the role of the OEM and the auto dealer in the future, it would be reasonable to accept that the government's existing control of the auto and banking industry will extend into the energy industry which will set the stage for the government determining which vehicles could be manufactured and/or imported and placed into the transportation pools with the locations determined by public transportation hubs that link to local distribution centers. The government currently owns 51 % of all real estate in the country through their mortgage interests in Fannie May and Freddie Mack and the pending commercial real estate bubble promises to shift a great deal more to public control. In addition. the government has recently changed the funding available to both organizations to be considered unlimited with the full faith and backing of the United States Treasury. That action coupled with the previously stated changes in eminent domain and the fact that millions of acres of resource rich land was recently acquired by the government to build additional -- national monuments -- suggests that land will be made available as needed to accomplish this community transportation system for the public good. Of course government employees will be needed to manage and staff these transportation hubs which would likely represent the auto dealer of the future.

Simply put, my future visions of the auto industry and automotive advertising is built on the past and the present with a recognition of what will be if we continue on the path that we have already chosen. I assume the constant of human nature and the role of technology in our evolution to date with the expectation that neither will change. Of course, there are consequences to elections so I suppose that I should update my projections after November, 2010 and the presidential election in 2012. In any case, the movement from the real to the virtual world has already started and will surely continue so that part of the vision should remain clear.




Philip Zelinger is a former auto dealer principal with an earned reputation as a nationally recognized automotive advertising expert specializing in the technology sector. His philosophy that a rising tide floats all boats motivates him to listen and learn so he can presume to teach. To that end, Philip shares best practices on the respected automotive advertising resource networking portal -- http://AdAgencyOnline.Net -- as well as the blog talk radio station featured on the site -- WAAOL, All Automotive Advertising News All The Time -- http://blogtalkradio.com/adagencyonline.

For a complimentary consultation on your automotive advertising needs, or to share your wisdom and insights with the online automotive advertising community hosted by Ad Agency Online, L.L.C.. visit the portal and contact Philip Zelinger directly. To quote Philip, "Help is only a click away because -- after all, what are friends for!"




Home Based Business Spotlight - L&W Investigations


Of the business opportunities available, L&W Investigations offers what may be the most exciting of all. This franchise business offers franchisees the chance to be a private investigator.

The PI Stereotype

Of course, to really get the proper picture of L&W Investigations, there needs to be some clarity on the business of investigation. Most people are familiar with the Hollywood representation of private investigation: the irreverent, shadowy PI sitting at his desk, taking yet another swig from his hip flask as an alarmingly beautiful woman slips in through the door of his office to beg his assistance in finding her kidnapped father. The characters and the scene are something of an American icon, and maybe it's an accurate representation of the life of some private investigators, but it certainly isn't a depiction that's universally true.

In fact, much of the investigative world of today is nothing like all that. Rather, investigators are professionals who have learned how to collect, interpret, and pass along information pertinent to an assignment, and generally, because investigations are needed in so many fields, they only accept certain varieties of cases dealing in an area of specialty. In the case of L&W Investigations, franchisees concentrate on surveillance and cases of insurance fraud, and they don't even do the vast majority of the investigation themselves. Instead, franchisees serve as business owners and managers over a staff of far more highly trained investigators.

Training

Because the home business franchisee is responsible primarily for business oversight, there is no need to come into the operation with previous investigative experience. Whatever prior business experience the franchisee may have is harnessed by a team of professional trainers and rechanneled toward the desired business objectives.

The heart of the L&W Investigations training program is in the hands of training manager Ed Fidler and trainer Chris Cline. Fidler comes to the organization with years of experience as an investigator for the Boston District Attorney and is a highly respected member of the SIU community. Cline served as a Kentucky state trooper, was promoted to detective as a part of the Warren County Drug Task Force, and has professional experience in a wide array of investigative fields. Together, they are more than capable of training new franchise owners and their employed investigators, making them some of the best in their specific industry.

Business Operation

This business opportunity depends heavily on the success of the central organization. They are the ones responsible for the vast majority of marketing: giving the L&W Investigations name a strong presence at 35 national trade shows, maintaining public relations, running ads in industry-related publications, and maintaining the company website. And, though the intent is to help those who need it, L&W Investigations does receive recognition for being active in such charitable events as the annual "Taste of the NFL" and the Special Olympics.

The involvement of the central establishment in the success of each home based business doesn't end with marketing, though. Once the various avenues of advertising make their impact and draw potential clients, the central staff continues working, taking investigation requests made via phone and internet and passing them on to the franchisee in the protected territory nearest to the client. And throughout the processes of serving clients, franchisees have 24/7 access to help from central staff, as well as ongoing training to keep them abreast of the latest developments, tricks, and tactics in the industry.

For the franchisee, the business is simple and consistent. The work from home franchisee is responsible for managing his investigators and their assignments, enhancing the local marketing strategy, and consistently growing the business. As jobs come in from L&W Investigations headquarters, they are handed to employed investigators, who perform investigations on behalf of insurance companies and legal organizations interested in proving the truth or falsehood of an insurance claim.

Perhaps one of the most interesting parts of the work is the ITrac case management system used by the organization. Designed to streamline every part of the investigation process, from payroll to final reporting, it takes the administrative weight out of the business so that franchisees and their staffs can focus on investigation. The ITrac system helps clients by managing accounts and keeping record of investigation instructions, it helps cases by keeping track of important contacts and sorting all found information from data to videos, and it helps franchisees by keeping track of employee hours and wages and producing assignment sheets. Though it lacks the common sense and intuition necessary for good detective work, it is one of the most important aspects of operating this business successfully.

The Founder

Often, one of the key factors in the determining the success of any business for sale is who started it: where his heart is and what his goals are. In the case of L&W Investigations, the founder, Neal Lyons, is a man whose business and vision can be trusted. As business knowhow and drive go, there is no one better to follow. As an executive with Vans for years, he was responsible for revolutionizing the brand and its presence in the retail market by making a line of combination apparel stores/skate parks across the nation. He's worked for other names like Reebok and Footlocker and has always been a positive presence wherever he's gone.

Whether it's in business or while working with Children's Hospitals or the Special Olympics, Mr. Lyons has always had the intent of making a business or charity all it can be by whatever means possible. And this dedication primarily to people is what makes him and his business a worthy investment. It may not have the glamour of a 1950's film noir crime flick, but L&W Investigations is a business to keep an eye on.




Find more home based businesses including computer and internet franchises and vending machine distributorships at Home Based Business Opportunities.




Frightening Aspects of Barack Obama - A Historical and Constitutional Survey Based Upon Reason


What currently scares me so about Barack Hussain Obama are his generic public proclamations of proposed economic and political change, which, of course, were responsible, along with his teleprompter oratory, for 54 % of the electorate putting him dubiously in the White House (his eligibility is still suspect). Every reasonable citizen wants change that is for the better, but Obama's ready acceptance of, and apparent adoration for, the federal Executive Branch institutions that have created, and are still creating, the awful problems which the United States republic inexorably faces, politically and economically are very frightening. Shortly after being elected, President-Elect Obama made a statement to the media concerning, among other things, the Central Intelligence Agency and other quasi-government organizations, which need to be closely scrutinized in light of accurate historical facts, of which Obama should be cognizant. He said, as reported in a recent "Washington Post" article, that he "admires the past achievements of the CIA and considers it an honorable intelligence organization, that the Federal Reserve is essential to the financial security of the United States, and that the Council on Foreign Relations and the Tri-lateral Commission are indispensable to the American government. Well, concerning the history of the Company (the famous nickname of the CIA), there have been quite a few polices, or laws, created and implemented unilaterally by the Executive Branch, via the CIA, which were quietly and covertly authorized, and not legislated, by the Congresses which convened during the twenty-or-so years immediately following the Second World War. These de facto laws, if you want to call them that, were then and even now unknown to most citizens of the American republic during what was known as the Cold War. Even if you had been regularly sitting in the galleries of the U.S. Senate and the U.S. House of Representatives during open floor deliberations of proposed laws and resolutions, between 1946 and 1966, there were Senate and House bills decided in closed select committees (those comprising a few privileged senators, representatives, and "appointed" executive officers) which were never openly debated, nor voted-on and passed, by the assembled general congresses, but which determined U.S. domestic and foreign policy. In many cases these "laws" and policies were also totally unknown to most of the senators and representatives composing the general Senate and House of Representatives.

One of these clandestine policies which was concocted and operationally planned by the CIA, then secretly authorized by President Dwight D. Eisenhower and, lastly, described generically to only a few senators then constituting the Senate Select Committee on Intelligence as a project authorized by Presidential fiat, was "Operation Ajax," the 1953 covert CIA overthrow of the democratically chosen Iranian government and its very popular Prime Minister, and the subsequent installation of the Shah of Iran as the pro-Western Iranian leader, all for the control of Iranian oil. Why would I describe this unilateral Presidential fiat as de jure law?

Well, take for example a proposition that a particular day to be set-aside as a public holiday throughout the United States, so that government employees might be compensated for their time-off spent on such an occasion. A law creating the holiday must, supposedly, be legislated by Congress in order for it to be an official holiday. All of this government legislative formality, in the formation of a law, is considered essential in the creation of a mere holiday. Yet, a federal government agency, supposedly controlled directly by the Executive Branch, covertly plans, organizes, and implements the overthrow (with the help of British MI6) of a foreign democratically governed nation-state without the consent of the general Congress, and the act, in and of itself, is not considered law? Well, that's not quite all. A quasi-legal presidential executive order, which is disseminated openly, has the same "traditional" authority as that of a statute. And what is, such, a statute if not a law created by one person having legislative, executive, and judicial authority residing jointly in his hands? If you care to recall, the internment of Japanese-Americans during the Second World War, which was executed through Executive Order of Franklin Roosevelt and implemented by the FBI and the domestic offices of the OSS, which later became the CIA, was never questioned as constitutional by the U.S. Supreme Court until after the awful tragic damage, arising from the order, had been done. Then it was, subsequently, declared unconstitutional. The way executive orders got started was that the 1st Congress declined questioning an order, or fiat, from George Washington creating a federal mint for the coinage of U.S. money. That quasi-legal proclamation became some sort of precedent which might have prompted Abraham Lincoln, know as the compassionate dictator during the American Civil War, to suspend the writ of habeas corpus, which was also, later, declared an unconstitutional; but not until the damage to the republic was done.

Another historical example of the CIA's apparent authoritarian power over the U.S. Congress was Ronald Reagon's illicit Iran-Contra effort to sell arms to Iran for money to wage an illicit war in Central America; and the bombing of the Honduran Harbor by, and through, the planning and project implementation of CIA paramilitary operatives, under the direction of CIA Director Wild Bill Casey. During the intense Congressional investigation that shortly thereafter ensued, in the last half of Reagon's last term of office, the Iran-Contra scandal was brought out into the open, especially through the journalistic efforts of writer Bill Moyers with his book, "The Secret Government: The Constitution in Crisis." What seemed incredibly ludicrous during the televised investigation was the fact that Vice-President George H. Bush, Dubya's daddy, the former head of the CIA, claimed total ignorance of the Iran-Contra activities, and so did Ronald Reagon. The only major actual difference between "Operation Ajax," of the 1950s, and the covert CIA activities of the 1980s in Central America, was that "Operation Ajax" remained an illicitly protected government secret for many years, and the Iran-Contra Scandal became public knowledge rather quickly. Yet, both were obviously authorized by Presidential fiat, funded by a select mini-Congress and planned and carried-out by the CIA covert services. The fact the no powerful U.S. senators were formally indicted for duplicity in the Iran-Contra scandal does not mean that they were not directly involved, for political power has its direct benefits.

The most damning historical aspect about the CIA, which most ignorant citizens laughingly consider in retrospect, was that the 58,000+ dead American GIs, from the bloody 12 year ordeal in Vietnam, resulted from an undeclared war inculcated, planned, and administered by that essentially self-governing organization. During that time, from 1963 until 1975, military commanders in Vietnam, Generals Westmoreland and Abrams, took orders from CIA paramilitary spooks (speaking for the National Security Council and representing the White House) in the ongoing planning and deployment of high casualty operations. I-Corps and MAC-V, headquartered in Saigon, were essentially controlled by a few GS-15 paramilitary CIA spooks (directly linked to the National Security Council), not military personnel. These utterly despicable people, who succeeded in getting thousands of GIs killed through their arrogant hubris and ineptness, deceitfully wore the uniforms of Army, Air Force, and Marine Corps field commanders.

Presently, the FBI, the Central Intelligence Agency, National Security Agency, the Defense Intelligence Agency, and the, supposedly, controlling Department of Homeland Security collectively comprise an autonomous shadow government that does essentially what it wants to do, as allowed by the infamous Patriot Act; and, for some esoteric reason, are continually funded with open-ended congressional appropriations, multi-billions of dollars of tax money, of which the senators and representatives haven't any idea how it is actually being spent.

Mr. Obama should realize these facts, and that the CIA, and probably the NSA and DIA, have been permitted by a few powerful politicians to covertly establish, and to buy, corporations with tax money. Today, probably twelve multi-national, supposedly private, corporations (some listed on the stock exchanges) are producing profits, which are routinely used to fund the U.S. intelligence community's illicit covert interventions into the affairs of foreign nation-states, when tax dollars are not available. Would it be possible for Congress, at this late date, to de-authorize the vast far-reaching covert operations and connections of the CIA? Well, the popular movie, "Enemy of the State," which fictionally depicted an unsanctioned movement within the federal government to neutralize congressional opposition to NSA covert surveillance, is, I believe, more of a reality than fantasy. I personally believe that directly after newly elected U.S. senators and representatives raise their hands to swear to protect and defend the U.S. Constitution against all enemies foreign and domestic, they are led into some top-secret room in the Capitol Building and told the real story of how the political game is played, and how their very lives will depend on how they must cooperatively play the game. Perhaps the polemic discourses heard from such, supposedly maverick U.S. Representatives, such as Ron Paul and Dennis Kusinich, are designed to make the people believe that there are other serious schools of thought among our elected representatives. Such wouldn't surprise me.

If President-elect Barack Obama thinks that the CIA and its intelligence affiliates are doing a fine job of running the foreign policy of the republic, he must also think that the Federal Reserve System is the paragon of economic virtue. During his campaign for nomination, I presumed that he had, either, turned a blind eye to the serious existing constitutional problems, or was ignorant of their presence, when he said, more than once, that the economic, social, and political changes which would come through his presidency would be effected through the existing agencies, departments, and institutions of the federal government. Historically, the New Deal (National Recovery Act) of Franklin D. Roosevelt, which was passed as rapidly, and carelessly, by Congress as was the original Patriot Act of 2001, was at the sore expense of constitutional government. Most constitutional scholars, if they are worth their salt, will agree that Roosevelt's alphabet soup of a vastly enlarged federal bureaucracy was declared unconstitutional three times by the U.S. Supreme Court before the pragmatic President packed the court with justices who were politically aligned with his vision of an all-powerful federal government. Further, isn't it just a bit sinister that the quasi-federal Council on Foreign Relations (CFR) and Tri-lateral Commission (TLC) have held their policy meetings in secrecy, behind closed doors, and that certain powerful U.S. senators, representatives, all former U.S. Presidents, select federal bankers, and high-ranking federal agency officers comprise these organizations? The amount of information that has leaked out of their meetings has pointed to the tragic fact that the U.S. domestic and foreign policy that has been, supposedly, created in Congress has been first discussed and approved by the CFR and the TLC.

If Mr. Obama wants to change things for the better, he will, first, need to persuade Congress to repeal the Congressional acts and Constitutional Amendments (and their accompanying laws) which, like the Federal Reserve Act and the 16th Amendment have altered the basic sanctity of U.S. Constitutional government. The Federal Reserve Act has essentially destroyed the sound economic structure, based on a balanced budget, which was planned and deployed by the Framers to last through the ages. Congress was exclusively mandated by the U.S. Constitution, in Article 1, Section 8, to coin money and determine its value for the republic, not for a few privileged private bankers to create a system as a banking cartel. The Founding Fathers further presumed that the future Congresses would realize, and preserve, the great benefits derived from maintaining a viable gold and silver standard on which to base the sovereign value of the American dollar. Moreover, the First National Bank of the United States wasn't, and has never been, necessary (meaning essential) and proper to Congress' power to make laws in the execution of coining money and determining its value.

Moreover, the Federal Income Tax, created through the 16th Amendment, is an un-apportioned tax, which the U.S. Constitution eschewed in its original text. The Framers realized the fateful enigma attached to such a thing as an un-apportioned income tax, and that the power to tax is the ultimate power to destroy, or to create a creature of government worth destroying. If you think about it for a moment, the sovereign states which created the federal government, in 1789, could have easily imposed un-apportioned income taxes upon their citizens, if they hadn't realized the evil of an income tax, having reasonably realized that the people would not endure such a tax over time. This is why I believe that the 16th Amendment was fraudulently ratified by the states. Who in their right mind would have endorsed, and ultimately ratified, an un-apportioned federal tax on personal income? Don't you think that the will of the majority of the American electorate in 1913, regarding the sad effect of a federal income tax, would have immediately disposed from consideration such an amendment? The only real effects which have come from the googles and googles of tax dollars collected by the Internal Revenue Service since around 1915, have been the gargantuan growth and power of the federal government (along with the demise of state sovereignty), the exorbitant salaries paid to elected and appointed federal officers, and the development of a Romanesque military system that serves a sorely rabid foreign policy, which have made the United States the bully of the Northern Hemisphere, hated by billions of people around the globe.

I hope that when Barack Obama laid his hand on the Holy Bible during his inauguration, and swore to uphold, protect, and defend the United States Constitution from all enemies foreign and domestic, he was doing it with a sense of honor and integrity; and that he fully remembered the text of the 10th Amendment, which, to my knowledge, is still a viable part of the Bill of Rights and of the Constitution. It states, "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." This means exactly what it says, that purely state issues, such as public education, are not a concern of the federal government. The only way that public education became a federal matter was through the deceitful remitting of income tax money to the states, which shouldn't have been collected in the first place, in form of federal block grants and revenue sharing. Instead of freely giving the money back to the states, which they rightfully deserve, the feds placed requirements upon the states in order to receive the money. The same has been done with highway funding, speed limits, and other limitations set by federa effort on intra-state commerce, which shouldn't be a concern of Washington DC politics.

In my opinion, the very first legislation passed by the U.S. Congress to determine the status of public education in the States should have been blatantly declared unconstitutional; for that first imposition into an area reserved totally to the States, or the People, was a dangerous precedent. Certainly the federally propagandized window-dressing of a proposed U.S. Constitutional Amendment really intended, for example, to strip the citizens of their inalienable 4th Amendment rights to privacy and protection from illegal search and seizure, might seem initially attractive as presented by media pundits to a scared and intimidated electorate. But after its implementation, such a constitutional amendment would cause the republic's citizens to awaken to the harsh reality of an evolved federal police state.

Very similarly, the 14th Amendment's equal protection clause essentially eviserated the sovereignty of the states, in its explicit overriding of the 10th Amendment right of the States to police themselves. Now, the federal government has reserved unto itself, by U.S. Supreme Court rulings, the power to tell the states what rights they have, and don't have. Very few people seem to remember that the 14th Amendment was ratified in 1868 before the Southern Confederate states were allowed to, again, join in the ratification of proposed amendments. The Amendment was adopted only by virtue of ratification subsequent to earlier rejections by those states. In other words, the Southern secessionist States were made, or forced, to ratify the Amendment. They did it under protest. This is probably why it took so long for the South to outwardly accept racial integration as the proper course of a productive society. This is also why, for over a hundred years after the American Civil War, the horrible conflict was scathingly referred to by most of the white people of the South as the war of Northern aggression. Though many supporters of the 14th Amendment will say that the law insured a "morally" just society, there are as many people who believe and assert that a nation cannot ever properly legislate morality. Consider "Brown v. Board of Education, 1954." Even though the U.S. Supreme Court declared in that case that intentionally segregated public schools were wrong and were to be dismantled, segregation remained a serious problem throughout the land for many decades after the decision. I, as well as quite a few prominent historians, believe that the Southern States would have voluntarily abolished slavery within a few years after 1860, and that racial segregation would have ended much sooner in the South had ravaging a civil war not occurred at the behest of Abraham Lincoln.

It would seem that most American citizens under the age of 45 have a fundamental misunderstanding about the basic cause of the American Civil War. It wasn't fought over slavery, but, instead, the right of the States under the 10th Amendment to police and regulate themselves. If the federal government really wanted to deny the States their 10th Amendment rights, why wasn't a constitutional amendment proposed to repeal the 10th Amendment, as the Prohibition amendment was repealed? If the 14th Amendment has actually denied the States their rights, as guaranteed in the 10th Amendment, why hasn't some federal official proclaimed that the 10th Amendment is no longer a part of the Bill of Rights? Common sense, and an understanding of pragmatism, dictate that that the federal government does not want the People, or the electorate, to believe that the 10th Amendment is not still in effect, even though it has actually been negated by the 14th Amendment. You might say that the 10th Amendment has been unofficially re-worded to say, "The powers not delegated to the United States by the Constitution (will be delegated as seen fit by the federal government), and will be prohibited, and/or reserved, to the States as the federal government deems necessary)."

I, nonetheless, would rather prefer to think of the federal government, and its power, as a creation of the sovereign States, not visa versa. I recall the words of the imminent scholar Judge Thomas J. DiLorenzo, in his well documented book "The Great Centralizer: Abraham Lincoln and the War Between the States," when he said, "(Thomas) Jefferson himself, the principal author of the Declaration of Independence, stated in his First Inaugural Address, "If there be any among us who would wish to dissolve this Union or to change its republican form, let them stand undisturbed as monuments of the safety with which error of opinion may be tolerated where reason is left free to combat it". Jefferson believed strongly in a state's right of secession, although he did not necessarily think that exercising the right would be wise. If a state (or states) wanted to secede, "God bless them both and keep them in the union if it be for their good, but separate them if it be better," he said while president."

Perhaps Mr. Obama is not as much a constitutional scholar as he purports. By him being elected overwhelmingly by 54% of all white, black, Hispanic, and Oriental, Native American, and Middle-Easter citizen voters, the combined American electorate expressed a demanding consensus of desperation that political, social, and economic change must occur in order to positively affect the average citizen's quality of life. And this does not mean a common desire for the expansion of the federal government and its power. If the current attitude of 80 percent of the people of the State of Vermont is of any significant import, their common desire presently to secede from the Union, in order to re-establish the Vermont Republic, is a stirring indication that the federal government is doing very little with all of its money and power for the people of Vermont.

The symptoms of vile ravaging diseases are, in some cases, sadly mistaken for conditions less destructive to life and property, but only at the expense of those experiencing the dire effects of those diseases. Yet, strangely enough, political and economic disease is frequently created and perpetuated by powerful Machiavellian politicians and private financiers who stand to substantially gain from what will, in effect, destroy a basic and necessary quality of life for working and struggling middle-class and lower-middle-class citizens, the backbone of a republic of sovereign states. The American republic is such an example.

The governors of the 50 states should, today, be arduously working to make their states free from the controlling effect of federal purse strings. Instead of pandering to the federal government for tax money (returned to the states as revenue sharing and grants-in-aid) to improve education, roads, and the health and human conditions of the people holding state residency, the state legislatures should be collecting, and using, tax money in order to implement the mandate of the 10th Amendment, as the Framers intended. Had this happened during the 1920's, if, and only if, the Federal Reserve Act and the 16th Amendment had not been passed in 1913, FDR's immense federal bureaucratic agenda would not have been pursued. It wouldn't have been necessary, and the Great Depression of 1929 would, in all probability, not occurred, and the States would be doing everything for themselves today that the federal government is doing for them. How would this be so? If the States were able to get and use, by taxation, all the billions of dollars that are presently flowing into the federal coffers, the standard of living for the poorest state would be dramatically increased. Remember, again, that the States created the federal government. The federal government did not create the States. Of course, it would certainly be a slower-paced lifestyle, where the quality of life for the individual U.S. citizens, in the States, would be much more important than U.S. foreign policy and a behemoth ever-expanding federal bureaucracy. There probably wouldn't be 20 million illegal aliens in the country, and the States would be providing a basic standard of living and working for their people, unknown in federal circles.

Perhaps it's more a poignant dream of returning to the way American government should operate under the prevailing U.S. Constitution than it is a probability. Every day, the federal government expands, in some way, to regulate, more so, the lives of American citizens. The U.S. Code of Federal Regulations is a convoluted bunch of legal rules, much like the U.S. Tax Code, not actually legislated by Congress (but written by un-elected federal regulators), which cover every aspect of all citizens' daily lives. It is comparable to the convoluted rules set forth in the huge compilation of laws legislated by the Federal Republic of Germany. In that system of government, the various districts and provinces of the German nation are creations of the federal government, which is totally different from the federal system of the United States. Such a dream as I have mentioned must, however, be based on a continuing hope that the basic honesty and integrity of the common hard-working folk of the American republic will ultimately converge into a mighty back-lash of resentment against the federal government; for it is the ultimate right of the people, according to the Declaration of Independence, to alter, or abolish, any form of government contrary to the natural and inalienable rights conferred upon all American citizens by the Creator.




Norton R. Nowlin took M.A. and B.A. degrees in the social and behavioral sciences from the University of Texas at Tyler, studied law for one full year at Thomas Jefferson School of Law, in San Diego, California, and earned an ABA-approved advanced paralegal certification from Edmonds Community College, in Lynnwood, Washington. Mr. Nowlin has attended LaJolla, California's National University and Malibu's Pepperdine University to attain undergraduate and graduate credits, and advanced knowledge, in business management and economics. Mr. Nowlin also attained a Texas State Teaching Certification, in social studies, psychology, and special education from the University of Texas at Tyler. A paralegal, published essayist, former regular guest columnist for the "Seattle Times," poet, and free-lance fiction writer, Mr. Nowlin resides in Northern Virginia with his wife, the renown math tutor, Diane C. Nowlin, and their two very intelligent cats.




Friday, May 4, 2012

The Digital Gypsy's Dilemma: The Best Place To Live For An Internet Based Business


If you've got a digital business that really only requires a connection to the net to do business, your concerns boil down to having a cost structure that maximizes your profit while providing you with a high quality of life. Being productive is difficult in an environment where you're miserable. Having a high quality of life isn't a guarantee of success, but it sure makes it easier to be productive.

The problem is that most of the really enjoyable places aren't exactly what we'd call "low-cost" and in order to live in a nice place you're business will have to really produce, or you'll have to hold down a job while you try to build your internet business. At some point this juggling act gets out of hand and your business will demand enough time that you can no longer hold down a job to pay the bills. If your internet business isn't producing enough to pay the bills, your only options are to downsize and cut expenses, burn capital in hopes that your business will produce more later on or give up on the business altogether.

Those can be hard choices. Our vote is to minimize expenses and save as much money as long as possible. The lower your burn rate the longer you last, and thus the better your chances of success.

For many people, this means trying to find a low-cost location that still provides high-quality infrastructure, and that usually means living somewhere that isn't that desirable and doesn't offer a very high quality of life. Sure, there are places in Kansas where they're practically giving away houses, but who wants to live in Kansas? The people who want to live in Kansas are already there, but the state has a declining population because of all the people who are moving out. Same goes for North and South Dakota. Just think "40 degrees below zero" and you'll get an idea why.

Most entrepreneurs agree that they are more productive in a pleasant environment.

Radically Lower Your Costs By Moving Offshore

One of the best solutions to the dilemma is to move abroad to a low-cost location with excellent infrastructure, and in this article we'll discuss the relative advantages of Margarita Island.

Margarita is an island off the coast of Venezuela, and it's the largest of the three islands that make up the Venezuelan State of Nueva Esparta. Margarita is the lowest-cost island in the Caribbean, but it has the added advantage of not being an independent country. If you've been to other Caribbean islands, you already know what we're talking about: Island nations have to be self-supporting, and they usually do this through the mechanism of sky-high customs fees, so everything on the island is very expensive.

Margarita has excellent infrastructure, with DSL available in the major cities of the island. Margarita is also known as a "free port" which doesn't mean that there are no customs duties, but rather that the national sales tax (14.6%) doesn't apply there. It has an airport with direct flights to Frankfort and Toronto (but not to the US- for that you have to transfer at Caracas), so travel isn't that difficult. It isn't like other island locations where "you can't get there from here- you have to go someplace else first."

Cost Of Living On Margarita

Where Margarita Island really shines is the low cost of living. A single person or a couple can live comfortably on less than $1000 a month (if they own their own home or apartment), and that includes having a housekeeper and going out to eat at nice restaurants several times a week. The low cost of living is combined with tropical island living- you only need a single wardrobe, and formal dress is practically unheard of down here.

Housing: Housing costs are reasonable. If you're looking for an apartment in a nice area, plan on spending somewhere between $40k and $70k for a nice 2 bedroom 2 bath (quite often you can find fully furnished apartments for sale). Rental apartments can be had for anywhere from $400.00 to $800.00 a month for really nice places: ocean view, secure building, nicely furnished, nice neighborhood. Housing in less desirable neighborhoods will run anywhere from $200.00 to $300.00 a month, but your Spanish had better be pretty good.

Medical Insurance and Medical Costs: Medical insurance for an individual will cost about $150.00 to $200.00 per month, although if you're young and healthy you can do without and just go to the public clinic if you get sick (they're free). Your Spanish needs to be good enough for basic communication, and if you're hospitalized you must have someone who isn't sick who can help care for you (the public hospitals don't provide linens, blankets or meals). Medical costs for dental work are really cheap (typically 10% to 15% of what you'd get charged in the US), and just about any medical procedure you can imagine is available on Margarita for 15% to 20% of what you'd pay in the US. If you've got a young family, you'll really see your costs drop.


Having a baby by C-section will cost about $2500.00 (all inclusive) for a 2 day stay at a good private hospital.
Having a baby naturally would cost about $1000.00 (all inclusive) for a 2 to 3 day stay at a good private hospital.
Getting braces with a good orthodontist will cost about $900.00 to $1600.00, depending on how much work is required.
Minor liposuction is a hundred dollars or so, major liposuction will go upwards of $300.00 to $600.00.
A major cosmetic overhaul, combining liposuction with a facelift and a breast-job will be less than $3000.00.
Chelation therapy (IV with Sodium EDTA) is about $20.00 per session.
Basic doctor visits cost about $20.00 to see a good private physician.

Vehicle Insurance: Getting insurance for vehicles offers you two choices: Full coverage or liability only. The full coverage costs about 15% of the book value of your vehicle annually. Liability insurance costs about $130.00 annually. It doesn't matter what kind of vehicle, they don't care if you have a drivers license or not, and there is very little paperwork if you're in an accident and they have to pay.

Vehicles: Used vehicles are expensive, new vehicles are cheap (compared to the US), and for lots more information read our article on buying a vehicle on Margarita [http://bulletproofretirement.com/public/220.cfm]. The cost of everything associated with owning a vehicle is cheap. We just had a water pump replaced, and the cost was $74.00: parts were $45.00, labor $29.00. Gasoline is about 12 cents per gallon, so get used to filling your tank with pocket change.

Food: Food costs are highly variable compared to the US, based on what you want to eat and whether you can eat the local products or whether you're brand-loyal to an imported brand. We see our food costs hovering around 1/2 of what we spent in rural Kentucky, but we don't buy a lot of processed food.

Entertainment: This is a highly variable expense. Going out to eat is cheap, with a 4 to 5 star restaurant costing $30.00 to $40.00 for two, including a few drinks per person. Buying a bottle of wine will adjust the price according to your tastes in wine (wine is also cheap). Dinner and coffee for 2 at a nice restaurant will cost less than $20.00, and you can eat a full meal at a lot of places for about $5.00 to $6.00. Movie tickets cost about $2.00 and going to the beach can cost anything from nothing (bring your own umbrella, drinks and food) to $20.00 to $30.00, depending on whether you rent an umbrella and chair and eat at one of the beachfront restaurants. Going to an internet cafe costs about 50 cents per hour, and sitting at the mall people watching doesn't cost anything.

Phone: Plan on spending about $40.00 to $60.00 a month for combined home phone and cellular phone, and if your area can get DSL, you can look up the charges on CanTV's webpage to see what you'd have to pay.

Electric: Depends on your accommodations and usage. We have friends who pay about $15.00 a month, and we've paid about $100.00 a month running the AC 24/7 in a large apartment. Some people bribe a power company guy to "fix" their meter so that it's somewhat slow, and some people just hook up a wire to the power line (an illegal hookup). It's common.

Water: Water is pumped over from the mainland, and it's unbelievably cheap: maybe $2.00 to $5.00 per month. Garbage pickup is included in the water bill. If you have an apartment you'll probably see this expense covered in your condo fees.

Getting Residency

Americans are hung up on the idea of doing things "by the book" but Latin America isn't like that: in most cases there is a solution to your problem that involves paying an official to take a special interest in getting your problem solved. It's possible to live on Margarita as a tourist, going to the airport every three months and paying someone at Immigration about $40.00 to stamp your passport with an exit and entry stamp, extending your stay another 3 months. You're only supposed to be able to do this once, but they don't care. You're spending money on their island and you aren't causing problems, so what's the problem? You want to stay? You have money? No problem.

It's also possible to get a permanent residency visa without too much trouble, and there are lawyers on the Island who can help "expedite" this issue for a fee. You're paying them for their help and what they do to get you taken care of is their business. The permanent residency visa is good for 5 years and you can get a Cedula (national ID card) so you won't have to carry your passport around with you. This makes you legal, and you won't have to worry about your immigration status.

Permanent residency status qualifies you for citizenship after a while (the amount of time depends on when the next election is- it seems SeƱor Chavez has been allowing people to become citizens if they'll vote for him). This is a great deal because Venezuela is issuing Andean Community passports that meet all the security requirements for travel in the modern world, and it's good for visa-free travel to 56 countries, including almost all of Europe. In today's world having a second passport is an extremely wise idea: you don't know what the future holds.

Doing Business

The ideal situation is to sell to the US or Europe (charging US or European prices) while living in a really low-cost place area that provides a high quality of life. Margarita is perfect for a digital entrepreneur who wants to do this. The money you make will go a lot further than you'd believe, and what you don't spend you can either save and invest or put back into your business.

Regulation of digital businesses on Margarita is non-existent. There are no licenses, permits or other issues involved. You can pretty much do what you want- and it isn't a matter of hiding, there's nothing to hide from. Because your status is essentially that of a tourist, you're handled with kid-gloves: the authorities don't want to annoy the goose that lays the golden eggs, so tourists are pretty much left alone to play and spend money.

Taxation is another interesting issue. As a US citizen, if you reside outside the US you've got an $86,000.00 tax exemption (your wife can also make $86,000.00), so you've got tax-free income between $86,000.00 and $172,000.00. Venezuela doesn't tax you on money you make outside the country, so in effect you've got the best of all worlds: an extremely low cost of living, high quality of life and no taxes.

What it comes down to is having a business model that works, and having the time to do business. A business model that wouldn't support you in the US might very well give you a lifestyle on Margarita that you couldn't ever have in the US. If you put the time and effort into your business you might eventually see it grow into a really nice income producer. While it's growing you'll avoid taxes and have a really low cost of living. At such a time as your income is high enough, you can take your business anywhere in the world that has a 'net connection.

We don't know of any place in the US where you can have such a low cost of living and high quality of life as Margarita, and with its excellent infrastructure it's a perfect place for a digital entrepreneur.

Copyright 2006 Bulletproof Retirement

All Rights Reserved




Brian Botta

[http://bulletproofretirement.com]