Taxed Into a Tent, Part 2 | Eastern North Carolina Now

    Publishers's note: First part of this series can be found here.

    The economy was not what it used to be. I had done well with insurance. I represented Ministers Life Insurance Company and traveled the eastern end of NC. That company paid for policies sold. It was a time of change as interest rates with policies were 23% in high inflation days. The old Whole Life policies, paying a most conservative 4%, now gave all the risk to policy holders with a Variable Interest Whole Life. An old customer could cash in that $10,000 old policy, use the Cash Value to pre-pay a $25,000 now policy---as long as high interest would pay his premiums, he did not have to pay a cent for almost 3 times the death benefit. It was a "no brainer" sale and I made the President's Club my second year in the business.

    We enjoyed the nice free trip for a week at Disney World and a 3-day cruise to the Bahamas. The next year we went to Boston and stayed at the stately Copley Plaza Hotel in Andover! I was making 3 times what I had made as a Baptist Minister for 16 years. I was still ministering in part time churches along with the Financial Planning for ministers with a good specialty company.

    I refused to write the standard letter many Agents wrote to old clients. It promised: "You can increase you coverage, never pay another premium, using you old money as the equity in that new policy." That was true ONLY IF INTEREST RATES REMAINED HIGH. If they dropped---which they almost certainly would---and older minister might have to come up with the premium again. It would be far more than the old policy. I would not sell a big promise with small print showing on the illustration that at 4% guaranteed interest; you would have to pay for some 20 years to keep that policy. The illustration showed it clearly, but few agents pointed that out. All illustrations from all companies were required to show the "worst case scenario" of Guaranteed Interest. Most Agents were pointing so hard to the "best case scenario" of Current Interest. That actually went from 23% to 16% to 8%---and now all companies are paying on the 4% guarantee in a standard normal economy of today.

    In BOTH poor folks real estate---and life insurance with savings---those who thought they had a gold mine got the shaft when abject inflation stopped and reality struck.

    The realtors got rich---their customers were often foreclosed in a few years and the houses they bought never had furniture, much less repairs to keep them up. That happened with so many people when Congress passed a law saying banks had to loan money to poor people with bad credit. Banks hopped on the band wagon of finance and violated their former conservative management of money. They were making money hand over fist!

    In 1997 the Recession hit and banks went down by the hundreds. Along with them people, like us in the solid middle class, no longer made the money we once did and then we got foreclosed and had to move. All big houses in Nash County were up for sale. Prices dropped so you no longer had much equity. In our case, we walked away from a property with $120,000-200,000 of equity with NOTHING! It was tax-appraised at $265,000 and sold ultimately for $120,000. In a Capitalist Economy NOTHING IS WORTH ONE RED CENT MORE THAN A PERSON WILL PAY YOU FOR IT!

    Fortunately, we had our little cottage at Bayview for retirement living. It was paid for, but was only a "Fisherman's Cottage." That definition means: summer occupancy only, windows for the River breeze to flow through, no heat and no insulation with a now leaking tin roof. The view was great, but the living conditions were minimal. It was tax-appraised for $78,400 / it is now appraised at $226,937 --- ONLY IF a chest of Blackbeard's Treasure were buried in the 50' wide lot by 200' long---touching the water!

    When my shovel hits a solid object in the dirt---it is a damned root. The Tax man does not see it that way. Beaufort County loves the Property Tax I cannot pay. The Legislature of NC required a re-appraisal 5 years ago and requires all NC Counties to re-appraise every 8 years. Across this state old folks like us are in trouble! County Commissioners have the legal power to vote short of 8 years---to lower taxes to coincide with actual sales figures. Those are about 70% of appraised value. At the same time one Commissioner in Beaufort County states with a hard heart that they will raise the rate so the tax is still the same on lower tax values!

    It is another case of ROBBERY WITH A PIN! The Legislature gives them great power to collect the tax. LEGALLY they can garnish your wages and bank account as a first step. Next they can FORECLOSE and sell it on the Courthouse steps to the lowest bidder. You get the residue after the tax is paid. In sum: you lose your retirement home / have less money to do the best you can / most will have to move to a trailer or a child's home to survive cold winters and hot summers! This is a scene being played out all over NC. It is not fair or kind. It is LEGAL!

    For minorities in urban areas it is the basis of riots happening right now in Baltimore. Police abuse---and Realty abuse---PLUS Tax Abuse are at the core. It is more complex than most folks realize. It is a return to the Old World where only the rich own all the houses and lease them to the working class. NOBODY in the Old World who works owns his own house for old age security. In America we USED TO have that luxury for working people, but it is going away.

    When government is unwilling to take the lower income of the working folks, keeps their tax income growing in a Recession; it is hardly "government of the people, for the people, in the land of the free." Under the current tax code 80% of US wealth is now owned by 1% of the favored rich and corporations. It has happened since the Reagan Tax Code slipped in.

    Conservatism is not conserving our Founding Father's Dreams!

    What can we do???

      •  Start electing Politicians who ARE NOT puppets of the rich.

      •  Disclose EXACTLY WHAT IS GOING ON.

      •  Quit sucking down Madison Avenue advertising that Conservatives ONLY ARE RIGHT.

      •  Restore wealth to the electorate as did Teddy Roosevelt (Republican) when he instigated Trust Busting.

      •  Realize that this happened before and will happen again without caring government help.

      •  The turn of the last Century when Robber Barons owned most of US wealth was brought under control by a President AND Congress recognizing our dream of shared wealth.

      •  Realize that the Estate Tax instituted as part of the program was purposely designed to share the abject wealth BACK to the general public and economy.

      •  Start designing rules and regulation which make FAIR COMPETITION part of business in America. That ideal means producing the most for the least cost so all rise together.

    The American Dream is simple and wise. It involves assimilation of any people who seek FREEDOM and OPPORTUNITY. It put into law the ideals of people who got on little wooden ships to brave the ocean and come to a wilderness with opportunity and freedom.

    It bucked the old World ways of a 2-class system with no Middle Class. In the Old World the titled rich and Royalty ruled from the top down. The New World was an experimental concept that all have a say in what goes on along with the opportunity to rise to whatever level you can.

    The Romans and Greeks had tried it and failed. It was called "Representative Government" with elections for people to represent those staying home to work. It involved ALL willing to join the Army to protect against invasion and abuse. Those who represented and fought did so as a service to fellow citizens with good will and caring. It was "service without pay."

    Those societies ultimately failed over abuse and neglect. Slowly but surely the rich got richer and people outside the castle starved or got slaughtered. When the borders of the country were the only barriers and the good things inside were for ALL those inside, there was happiness and joy with a hope for a better future. Even Rome took in people they conquered. The problem there was not granting citizenship to all becoming part of the Empire. It crumbled from WITHIN!

    A story is told of a King who lived in a grand and nice castle.

    As years went by he was guided by corrupt people surrounding him and getting rich off their "advice." Times began to get hard on those outside the Castle. Some conniving advisers decided to solve the problem.

    They replaced all the windows with mirrors. Whenever the King looked out, he only saw the beautiful furnishings and well-dressed courtiers surrounding him. They ate the finest foods and danced to lovely music. Intrigue kept them busy vying for favor, power, and more money. Their focus was only on the inner doings of royalty.

    Meanwhile, the multitudes outside became more ragged and hungry. They were plotting revolt. They would kill all the royals and advisers who were enjoying their grandeur. They called it the French Revolution in France, but it resulted in much bloodshed and horror to all the citizens.

    A wise commoner came up with a better way. Late one night he and his buddies snuck into the Castle. With them they carried clubs---not to bash heads and kill, but to (at the strike of dawn)---break all the mirrored windows and let the King once more see the starving masses outside.

    If you will join me as those mirror-bashers, we could have a revolution without bloodshed! All it requires is a clear vision of the real world the King and his Court forgot . . .

    WILL YOU JOIN ME????