Our rights do not originate with government, but they are to be "secured" by government.
Formerly: Libertarian Party of Citrus county

Tuesday, December 24, 2013

Gay Marriage – Unintended Consequences

By Tom Rhodes, 12/24/2013

It looks like the ruling elite have destroyed the traditional rationale for marriage and are effectively ending heterogamy from being the only legal form. The sanctioning of homogamy is leading to legalized polygamy. I believe the reason has nothing to do with “marriage” and everything to do with creating a giant tax loophole, and it’s real.

Real, as in real property or real estate or real amounts of money. Say you bought a house and sat on it for a while and got lucky. You paid $50K and it now sells for $250K. The problem is when you sell it Uncle Sam is going to try and take $36K of your profit as “gains.” To most of America that’s a hefty chunk of change. Most of America also sees that the government no longer plays by the rules, so we are no longer obligated to play by the rules. In order to save $36K, you “marry” the purchaser (now referred to as spouse), open a joint “savings” account where the new “spouse” deposits $250K. Soon after you find that you and the new spouse are incompatible and get an uncontested “divorce.” In the terms of the divorce your new “spouse” (now the Ex) gets the house and you get the joint “savings” There you go bada-boom-bada-bing for less than $2K in legal fees house is sold and there are zero taxes paid. A pain in the ass with a bit of paperwork, but for over $30K worth the effort.

Most everyday people won’t do this, but. . . . If instead of a $250K house, consider a megabuck business, the owner “marries”, and soon after “divorces.” In the divorce he "loses" the business to the spouse, but gets to keep the millions in their joint savings. Bada-boom-bada-bing mega-million dollar business transferred and massive taxes avoided. Ending traditional marriage and the rationale for it, is going to open a huge “loophole” in the legal system and dramatically change the meaning of “mergers” and “acquisitions”. If you want to move millions of dollars without the IRS getting their hands on it, “marriage” and “uncontested divorce” will be the solution.

Soon you’ll see parents “marrying” their children then “divorcing” to avoid inheritance taxes. Imagine being a consultant, you “marry” your client, do the work as agreed on in the “pre-nup”, after the work is complete you and your spouse file an “uncontested divorce” and go your separate ways, as part of the “divorce agreement” you get to keep the contents of your “joint savings.” Bada-boom-bada-bing you complete a big buck consulting contract and have ZERO tax liability, report zero income, even get an “earned income” tax credit, SNAP and free health care. Once marriage is viable between any consenting adults and is devoid of it’s traditional purpose the possibilities to avoid the IRS arm of Uncle Sam are endless.

Every new law has unintended consequences, the unintended consequences of divorcing marriage from the creation of a traditional family are plainly obvious. Marriage isn’t about “love.” The legal and other benefits of marriage exist to protect children and provide the what has historically proven to be the best environment to raise our progeny, legally binding a man and woman together and obligating them to provide and protect their children, and granting those children the legal transfer of family wealth without government confiscation. Redefine marriage to include any “loving relationship” and taking away the rationale for marriage, opens up a whole can of worms most people haven't considered. Use the old adage and "follow the money."

The tax abuses of “marriage” as I’ve described will soon be a reality. Once the marriage loophole in taxation is exposed and abused it will have to be closed. Expect the law to change and marriage will no longer offer the tax “loophole” it does now. When grandpa dies, granny is going to lose the house because she won’t be able to afford the capital gains tax. The excuse of granting married people tax free inheritance, and tax free splitting of shared assets is going to be taken away by the ruling elite, who will use abuse of “marriage” and “divorce” law as the excuse to further confiscate our wealth. Use the old adage and "follow the money." The whole “gay marriage” thing is a red herring, a means for the ruling elite to eliminate a method of transferring wealth without their getting their hands on it.

No comments:

Post a Comment