Happy Christmas Eve, 2014.

The world is an interesting place, where people express their thoughts and beliefs for the world to see.  Sometimes with facts and logic, and sometimes with emotion and rhetoric. 

My Christmas wish is that we all take the next 8 days to calm down and come together as people and Americans, whether we are black, white, brown, yellow or any color in between.  Let's really take an introspective look at ourselves over the next few days, and resolve to make things better.

My thoughts for the next year:

1.         I resolve to stop listening to the provocateurs in this world, whether it be the Al Sharpton's or the Rush Limbaugh's.

2.         I resolve to take everything that ANY politician says with a grain of sand, knowing that most of them do not care about the American people or what is best for the country and the world, and instead really care only about getting re-elected to the office they are in or getting up to a higher office.

3.         I resolve to ignore much of the media, whether left, right or supposedly in the center, because they only want to increase their ratings or circulation.  Let's demand that they report facts in the main pages of the paper, and limit their opinions to the Opinion Page.

4.         Having successfully managed to keep resolutions 1 through 3, I resolve to use my own mind to determine what is good for all Americans, including myself.  Not at the expense of anyone, but at the service of everyone.

5.         I resolve to work to lift people up, rather than tear them down.  To lift myself up by making myself a better person, rather than tear other people down to make me appear to be a better person.

6.         Finally, I will search for people that want to serve the people while they are in office, and who will promote changes in the laws of the United States that will reduce or eliminate the power of money in politics and elections.

Merry Christmas

Buying a Short Sale 101: An Interview with Ken Koenen, LLM-Taxation, Attorney at Law

Buying a Short Sale 101: An Interview with Ken Koenen, LLM-Taxation, Attorney at Law

Who Cares More About America

It would appear that you are the one in need of education.

Republican politicians care more about the poor than do Democrats.  Republicans donate more money to charities that help people than Democrats, because they believe that local groups can do a better job of helping the poor than the government does. 

If you want to get a close look at what results when the government says, "We'll take care of you," take a drive to an Indian reservation.  Take a look at Oakland and Chicago, where the residents kill each other.  The Democrats answer for Indians was to allow them to have casinos, which are actually run by Las Vegas and Atlantic City conglomerates, and are a tax on the poor.  Rich people do not go to casinos to get wealthy.

As far as the "uneducated" in this country, whose fault is that?  Education is free, but not mandatory.  How about a law that states that you cannot have a driver's license until you are 18 and have a high school diploma.  When 40% of the kids going to a California State University need to take a bonehead English and/or Math course because they were not taught properly in school, it say something.  Elementary and high schools are like the Ford assembly line ... they come in at the beginning and leave, whether they are operating properly or not. 

Why are teachers not paid for their results rather than for showing up and going through the motions.  Don't get me wrong.  There are many good teachers in the schools who are prevented by the administrators from doing their jobs, which often involves not giving the kids the grades they EARNED and deserve.  Tenure keeps the bad teachers in place and sucks the enthusiasm from the younger teachers who are eager to teach, rather than just go through the motions until retirement.

Let's also look at the history of Democrats.  The 13th Amendment, which abolished slavery, was introduced by Republicans and overwhelmingly approved by Republicans, while the majority of Democrats voted against it.  The Civil Rights Act of 1964 80% of House Republicans voted in favor, compared to only 63% of Democrats.  It was not much different in the Senate, where 82% of Republicans voted for the bill, compared to only 69% of Democrats.  Prior to the passage of the bill, Democrats filibustered for 54 days against it.

After the passage of the Civil Rights Act, it was the Democrats in the south who blocked kids from going into white schools and passed various voting restrictions, such as a poll tax and a literacy test.  The court system overrode those restrictive laws, and the Democrats knew that they were going to face obliteration as a party unless they did something.  In order to start winning the black vote, they began the Welfare State, promising to take care of them.  Slavery is alive and well in America, thanks to the Democrats.  Instead of whips, chains and task masters, they are controlled by welfare, food stamps and promises of corrupt Democrats who can never deliver on their promises.  As far as Democrats are concerned, people need only learn the first four letters of the alphabet, so they can recognize who to vote for because there is a (D) at the end of their names.  There are you sheep.

Yes, there are people who are poor for many reasons that justify the help that they receive from the government.  However, when someone who is perfectly capable of working sits around the house or cruises the streets and collects $50,000 a year in benefits, there is a definite problem with the system. 

And please, don't bring up the "wealth gap."  The wealth gap in countries like China, India and Russia are much greater than here.  At least in America, there is an opportunity to try something to improve one's self.  Even if they dropped out of school, they can still learn and improve themselves.  Last I heard, library cards are free.

Finally, regarding Al "Not-So" Sharpton, he does not tell the truth.  He is an agitator, not a reverend.  He was wrong with the Tawana Brawley matter.  He was wrong with the Duke University Lacrosse team matter.  He may or may not be wrong about the Ferguson case.  The point out is that he follows the ready, fire, aim approach.  He and Jesse Jackson do more the create racial unrest than anyone I can think of, and Obama and Holder help him do it.  Why did Sharpton after he went to Ferguson hop on a plane in St. Louis and go to Salt Lake City to raise hell about Dillon Taylor, another unarmed man who was shot to death by a cop?  Couldn't be because the cop was black and Taylor was white, could it?

I think that his time would be better spent in Obama's state of Illinois, working with the black community on improving themselves rather than killing each other.

There will always be the wealthy and there will always be the poor.  The ration has not really changed over the history of mankind.  Some get their wealth in evil ways, such as Saddam Husain, and some get it through hard work and bringing value, like Bill Gates.  Others are in between.  However, America is the only country that I know of where someone can start with nothing and make a better life for him or herself.  I know that, because I did it.

Minimum Wage Increase Is Really a Tax Increase

The Obama proposal to increase the minimum wage to $10.10 is actually a thinly veiled $9 billion tax increase at the expense of employers and those workers who would qualify for the increase in minimum wages.

If you take a family of four, with both parents having $7.50 per hour (close to minimum wage jobs), their gross income would be $31,200 per year.  However, due to child credits and earned income credits totaling more than $5,600, their actual net family income, after deducting their FICA contributions, would be $34,082.20. 

Now, if they both had pay raises to $10.10 per hour, their net family income would be $40,716.78.  This is due to a reduction in Earned Income Credits and an increase in the amount of their FICA contributions.  Out of a $2.60 increase in pay, the employees would only see $1.59 of that increase.  The remaining $1.01 increase goes to the Federal Government.  The employers would need to match the increased FICA contributions, meaning that the total cost per employee would be $5,821.71.

The Bureau of Labor Statistics (BLS), another wasted Government bureaucracy, indicates that there are 3.6 million minimum wage earners in the United States.  Employers would need to absorb $20.9 billion in costs, of which the employees would received $11.9 billion (56.8%) and the Federal Government would receive the remaining $9.0 billion (43.2%).

Now, let's take a look at the strikes and complaints by the highly skilled fast food workers, who are told that the instructions for doing their job is written on the other side of that hamburger cooking on the grill.  They want an increase to $15.00 per hour.  Using the same $7.50 starting point, they want to double their income without doing anything to increase their skills or increase their contribution to the marketplace.  What would they actually get?

First of all, they would completely lose their Earned Income Credit.  Not only that, but they would actually owe $2,301.00 in Federal Income Tax.  Their FICA contribution would double.  The result is that their net family after tax income would be $55,325.40 per year, a net increase of $10,621.60 per employee.  That will equate to keeping $5.11 out of every $7.50 of increase they received.

The employers, with the additional hourly rate and FICA contributions that they need to make, would be paying out an additional $60.46 billion.  The employees would receive $38.24 billion (63.25%) and the Federal government would receive $22.22 billion (36.75%) of the money paid out by employers.

What an easy way for the democrats to buy votes using the money of the employer.  Their motto must be "From each according to his ability; To each according to his needs."  America is unique in that people do not have a limit on what they can earn.  The reality is that people get paid for bringing value to the market place, not because they simply want to get paid more than they are currently receiving.  If they want more money, they need to become more valuable to the marketplace. 

As Jim Rohn put it years ago, America is a ladder to climb.  You start on the bottom rung and climb up the ladder.  It is not a bed, where you lie there hoping someone will give you more money.  Climbing the ladder is really pretty simple.  Improve your skills a little, have a good attitude, and people will notice.  Soon, someone will be calling you saying, "I see how well you work.  We would like for you to come to our company to work, and we will make it worth your while."

Ask yourself, "How tall will a tree grow?"  The answer is, as tall as it can!  It will send its roots down as deep as they can go; send its branches out as far as they can go, and grow as many leaves as it is capable of growing.  They never stop growing until they die.  Wouldn't that be great if human beings would do that?  Most have the ability to grow; few make the effort.

We have deteriorated to an "entitlement" society rather than an "earn it" society.  It is no wonder we are losing jobs to foreign countries.  Things will not get better until Americans learn that you cannot "arrive" without first taking the trip.

Minimum Wage and Fast Food Workers Wage Increase are Hidden Taxes

Minimum Wage and Fast Food Workers Wage Increase are Hidden Taxes

When Does a $870,000 home cost less than a $800,000 home?

Would you believe that it can cost less to purchase and maintain a home that costs $70,000 more than a less expensive property? It is true. When could this possible occur? When the more expensive home is equipped with full electric solar, owned by the property owner.

I know that it is hard to believe, but the monthly out of pocket expenses for that $870,000 property is less than an identical $800,000 home that does not have solar. Take a look at the following comparison:

Without Solar 1
Cost of Home                 800,000.00
20% Down Payment       160,000.00
Loan Amount                  640,000.00
Monthly Pmts (4.25%)         3148.42
Monthly Property Taxes         800.00
Average Electric Bill               450.00
Final Monthly Payment        4,398.42

Cost of Home                  840,000.00
20% Down Payment        168,000.00
Loan Amount                   672,000.00
Monthly Pmts (4.25%)         3,305.84
Monthly Property Taxes          840.00
Average Electric Bill                450.00
Final Monthly Payment         4,595.84

Cost of Home                  870,000.00
20% Down Payment        174,000.00
Loan Amount                   696,000.00
Monthly Pmts (4.25%)         3,423.90
Monthly Property Taxes          870.00
Average Electric Bill                  55.00
Final Monthly Payment         4,348.90

The charts above shows the monthly payments that will be made by a home purchaser when a house has solar, as compared to two properties that do not have solar. The assumptions are that they are substantially the same house in the same neighbor hood, the buyer is making a 20% down payment and the interest rate is 4.25%.

The monthly payment on the loan for the $800,000 house is about $275 less than the more expensive home, and the property taxes are about $70.00 less, for a total difference of $345 less than the more expensive property. However, the home with solar has electric bills, on average, of at least $395 less per month. The owner of the $870,000 home actually pays a total of $50 less per month.

Since the increase bank loan interest and the property taxes of the more expensive home is about $3,255 higher per year, that owner has a higher tax deduction. Depending on the income of the home owner, that could be $1,000 to $1,500 less is tax payments per year, actually increasing the monthly savings.

Unfortunately, this type of analysis is not given to potential buyers by their real estate agents, often times because they simply do not understand the actual savings. They will sometimes direct their client to a home priced a little lower, not realizing that they are costing their clients thousands of dollars per year.

An example would be two homes in South Livermore, one with solar and one without, but the same floor plans just a couple of blocks apart. The one with solar is on the market for $869,500 while the one without solar is on the market at $829,000. The less expensive home will cost almost $200.00 more monthly than the more expensive home. That number could increase, as electric rates continue to climb. The buyer of the less expensive home will actually lose $2,400 per year plus the additional tax deductions.

If you are in the market for a home and you come across one that has full solar installed, don't just compare the prices between two properties. Take the time to do an analysis of the overall savings that you might have with a solar equipped property. Ask the seller for a year if electric bills in order to see what they are actually paying. Don't confuse price with cost.  You might be putting thousands of dollars into your own pocket simply by paying a little more.

Ken Koenen is a real estate and taxation attorney in Pleasanton. He is also a licensed real estate broker. He can be contacted at 925-924-0100 or by email at ken@lawken.com

Who Are the Real Racial Profilers?

I am amazed how people put forth facts regarding the Zimmerman-Martin tragedy that are pure make believe, or could not possibly be known by anyone today. Much of the rhetoric comes from the likes of Al Sharpton and Jessie Jackson (I will not call them "Reverends" because reverends do not provoke anger like they do), the real "Racial Profilers" in America.

I can just imagine the dialogue that goes on with their research staff as they scour the news articles in the newspapers and the internet. It would go something like this:

Black kills black .... No
Black kills black .... Nope
Black kills Hispanic .... Nah
Black kills black .... No
Black kills white .... Yawn
Black kills Hispanic .... No
Black kills black .... Can someone bring me some coffee?
17 year old black kills 13 month old white child in stroller .... He probably threatened him with is rattle.
Black kills black .... Nope
White man kills black man .... "Oh my God, the outrage! This racial animus against blacks has to stop! Al! Jesse! Come look at this!"

Let's not forget President Obama ("He would look like my son!") and Maxine Waters ("He was hunted down like a dog.") That last remark creates visions of George Zimmerman walking around with his gun drawn, peeking behind every wall and bush, trying to track down a wanton criminal.

I also like the multiple statements about a "child" carrying Skittles and Iced Tea, innocently walking through the community. Perhaps I missed it, but I heard no evidence that Zimmerman had X-Ray vision that would allow him to determine what Mr. Martin was carrying. Furthermore, that "child" was a 17 year old young man who was taller, and possibly stronger than Mr. Zimmerman. That is the same age as the young man who shot a 13 month old in the head while the baby's mother watched. I wonder if the baby threatened him with his rattle, justifying self-defense. That is not my definition of a child.

We would be remiss if we did not compliment Beyonce, JayZ, Madonna, and all of the other celebrities who have condemned the verdict, even though they have no clue about the actual evidence, and have threatened to never perform in the State of Florida until the state does away with the "Stand Your Ground" law. Obviously, they have been playing their music too loud without ear plugs, because their brains must have been severely damaged. Stand Your Ground was never part of the case, and had no bearing on the decision by the jury. I would suggest that we all boycott any venue at which any of these people have performed. They do nothing by harm America, both with the words of their songs and their opinions.

The rhetoric spouted by the media, the black activists and others is completely contrary to the facts that were brought at the trial. Let's take some examples:

1. "Zimmerman was told to stay in his car, but got out anyway to follow Martin." A review of the transcript of the 911 call does not support that. For some reason, people choose to believe this without reading the entire transcript. The dispatcher never told Zimmerman to stay in the car. They asked if he was following Martin and, when he replied that he was, they said, "We don't need you to do that." He replied "OK", and then they talked about where he would meet the police when they arrived.

2. "This young man was just walking through the neighborhood minding his own business." How do those making that statement know what was in Martin's mind? He was, according to the transcript, walking slowly in the rain. I know that when I am caught in the rain, especially without an umbrella, I walk as quickly as I can to get to where I was going so I could get out of the rain.

3. "Martin was armed only with a bag of Skittles and some iced tea." That is true, but how was Zimmerman to know that? Since no one has demonstrated that Zimmerman had X-ray vision, he had no idea as to whether or not Martin was armed in any way.

The reality is that Zimmerman lost sight of Martin, and was headed back to his truck. Martin had more than four minutes to leave the area and go to the house at which his father was staying. I am guessing that I could cover a quarter mile (4.4 football fields) walking in four minutes. Since he was concerned about this "cracker," why didn't he get out of there. There is substantial evidence to support Zimmerman's story.

I was watching two black women debating the Oprah Winfrey issue in Switzerland. One said that Oprah was too sensitive. The other said, "You weren't there and I wasn't there, so we have no right to make that judgment." A month earlier, that same woman was critical of the Zimmerman verdict, even though she was not there, had not heard all of the evidence in the court room, and had no right to make a judgment in that matter, either. Apparently, she only has the right to judge negatively against white people.

If Mr. Sharpton and Mr. Jackson want to make a difference for the black community, they will go to the Chicago's and Oakland's in the country to work on building self respect for the lives of other blacks, the discipline to stay in school, and the desire to succeed through becoming smarter and of more value to society and the market place. They need to convince the black community to stop looking in the rear view mirror of the past, and start looking in a regular mirror to identify the problem. Then, to look to the future to create their own decent life in this land of opportunity, not of handouts.

Of course, if that happens, Sharpton and Jackson might be out of a job, so it is in their personal best interest to keep the unrest and divisiveness alive.