The True Cost of China’s Fakes

​I don't know if the NYT editor read this OpEd before publishing it. First, IMO, it's a stretch to say using AliPay demonstrates distrust? How is that that much different from us using credit cards to make online purchases when we are protected from ​​unscrupulous vendors. And how many taxpayers around the world, not just those in China, would like to see a refund of their income taxes if their government doesn't ​keep its commitments? This article is total rubbish.

​​http://www.nytimes.com/2014/06/10/opinion/yu-hua-the-true-cost-of-chinas-fakes.html

Petition to Free Matt and Grace

​I've just signed this petition and I hope you will too.​
​http://www.change.org/petitions/free-matt-and-grace-innocent-americans-imprisoned-in-qatar​

For more info on this sad case, visit:
http://freemattandgrace.com/

and watch this news report:
http://losangeles.cbslocal.com/video/9205584-san-gabriel-couple-charged-in-qatar-for-allegedly-starving-daughter-to-death/

You can only rollover an IRA once every 12 months

In both Proposed Regulation § 1.408-4(b)(4)(ii) and IRS Publication 590,Individual Retirement Arrangements (IRAs) rollover, the IRS says the limitation is applied on an IRA-by-IRA basis. However, a recent Tax Court opinion, Bobrow v. Commissioner , T.C. Memo. 2014-21, held that the limitation applies on an aggregate basis, meaning that an individual could not make an IRA-to-IRA rollover if he or she had made such a rollover involving any of the individual’s IRAs in the preceding 1-year period. The IRS anticipates that it will follow the interpretation of § 408(d)(3)(B) in Bobrow and, accordingly, intends to withdraw the proposed regulation and revise Publication 590 to the extent needed to follow that interpretation. These actions by the IRS will not affect the ability of an IRA owner to transfer funds from one IRA trustee directly to another, because such a transfer is not a rollover and, therefore, is not subject to the one- rollover-per-year limitation of § 408(d)(3)(B). See Rev. Rul. 78-406, 1978-2 C.B. 157.

An IRA rollover is to withdraw funds from an IRA and redepositing the funds within 60 days.

Announcement 2014-15 won't be effective for the rest of us until 2015:
http://www.irs.gov/pub/irs-drop/a-14-15.pdf

From now on, clients had better be making trustee-to-trustee transfers.

The case in question is at: http://www.ustaxcourt.gov/InOpHistoric/BobrowMemo.Nega.TCM.WPD.pdf

NO to SCA 5!

I've just signed this petition against SCA 5 which will bring back special preference to admissions to the University of California, overturning Proposition 209.  If passed, this will have a negative impact against Chinese, Indian and Korean applicants, among others.

https://www.change.org/petitions/california-state-assembly-vote-no-to-sca-5?recruiter=80242515

To read what SCA 5 will do, click on this site:
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SCA5

Here is a synopsis of SCA 5: The California Constitution prohibits the state from discriminating against, or granting preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting.

(f) For the purposes of this section, “State” shall include, but not necessarily be limited to, the State itself, any city, county, city and county, school district, special district, or any other political subdivision or governmental instrumentality of or within the State. “State” does not include the University of California or the Public School System.

----------

The last sentence exempts UC from non-discrimination. The way I read it, SCA 5 will not only impact student applications, but faculty and staff too.

Unfortunately, all three senators of Chinese descent have voted in favor of it, Carol Liu, Ted Lieu and Leland Yee.  So it will most likely pass.   But I hope you will still sign it, if nothing else, to show the politicians we the people of California are against bringing back racial discrimination and preferences.

A debate with Norman Matloff

I am a member of chat group and we talk just about everything under the sun. Here is an exchange I had recently with UC Davis Professor Norman Matloff, a well known opponent to the H-1B visa, on China's President Xi Jinping visiting an inexpensive Beijing restaurant, queuing up and paying for his own meal. This is how I spent my time outside of tax season. :-) Here's an article covering the event, http://www.theatlantic.com/china/archive/2013/12/xi-jinping-eats-some-dumplings-at-a-restaurant/282719/

GW:

Lots of pictures at this link, lots of food for $3.46.  I hope he finished his meal.
http://news.xinhuanet.com/politics/2013-12/28/c_118748144.htm

To emphasize the government’s commitment to frugality, a casually dressed Xi was photographed yesterday queuing up to order and pay for his own meal at a branch of the Qingfeng Steamed Dumpling restaurant chain in Beijing. He chatted with fellow diners as he tucked in to a plate of green vegetables, steamed dumplings and a soup of stewed pig livers and intestines known as chaogan, according to photographs posted on the Xinhua website. His order cost 21 yuan ($3.46), according to a report on the Beijing News website.

NM:

Gary Locke's influence?

LL:

Not quite. I think Xi picked up from BO who stopped by SF Chinatown Restaurant to buy Dimsum to go for his staff

GW:

I don't think Xi imitates anyone. His wife was seen walking into a concert with the general audience recently.

The first U.S. president in recent history eating at restaurants was probably Bill Clinton.

Gary Locke is far from Xi in terms of stature. Norm might as well said it was Norm Matloff's influence, assuming he does carry his own tray and order his own food. :-)

NM:

I'm not sure you are aware of the incident I was alluding to, Guy.

When Locke first came to China, he was seen carrying his own bags, and paying for coffee with a coupon at the airport Starbucks. This caused quite a stir in China, with the Chinese press referring to him as "the backpack ambassador."

GW:

Norm,
I don't know if you're aware Xi is the president of China while the highest office Locke has held was a state governor and a cabinet secretary.

How much security does Locke get, compared to Obama? You may not think Xi has similar stature as Obama. But they are both head of their respective country; and China, FYI, has four times as many people.

NM:

If Xi is that elitist, refusing to learn from someone "beneath" him, he's not a man of the people after all. I'm suprised you don't reject the idea that he emulated Obama, who heads a country 1/4 the size of China.

GW:

Will an elitist go to lunch that costs only $3.46? God gave us a brain.

I did mention Bill Clinton. If I remember correctly, he would stop by McDonald's during his jog.

One thing you're really good at, though, making many unsubstantiated claims with so few words.

NM:

I didn't make any claims, Guy. I merely suggested a possibility.

Concerning your bringing up your "China is 4 times bigger" claim, we now see it was bogus.

GM:

What a stupid thing to say! As I said, God gives us all a brain.

NM:

That's your only response, Guy? If you think that you didn't contradict yourself on your 4X argument, please explain why.

GM:

I don't think it's worth my time with someone who has no brain. Guess God didn't give everyone a brain after all. Too bad.

NM:

It is indeed too bad, Guy. This was not your best day.

GW:

In that case, do you mind if I publicize our exchange on this subject? I'll do it verbatim.

NM:

Please do. I think that in piecing this together, you'll discover what I've been saying is true, i.e. that you indeed have been inconsistent.

A letter from the Sheriff

I’m receiving a larger number of emails and phone calls about property theft/burglaries this month and last. This time of year is seemingly high theft season:

If you’re home or off at work or on vacation, make sure that everything is locked up securely. This includes backyard gates, all doors to your garage, doors from your rear yard to your house and doggy doors when not in use.

Suspicious people loitering, lingering, wandering around going door to door or up on properties in your neighborhood at night should be reported to dispatch as being suspicious. Describe their behavior to the dispatcher. If they have a vehicle, get a good description of everything and be a good witness. Call immediately, don’t wait. 874-5115. Don’t tell them you’re calling the cops or tip them off. DON”T FOLLOW OR CONFRONT.

If someone knocks or rings your doorbell, talk through the door. Teach your kids to talk through the door, but not to open it.

Leave lights on timers on inside your home. Have timers go off in different parts of your house at different times to mimic that you’re actually home.

If you have a work vehicle or trailer, and it contains tools it is a target if it is parked on your driveway or street.

Work vehicles/trailers containing tools must be parked in an enclosed yard or garage. In the Arden area we are having multiple reports of trailer hasps being cut with saws and metal around the hasps being sawed to enter and steal high dollar items. Lots of $150 to $3,000 bikes being stolen. Also many vehicle break-ins and gas thefts and numerous mail thefts in many areas of the county. Cars and motorcycles and dirt bikes and power tools and hand tools and coins, any and all electronic digital cameras and laptops, phones and presents in the car or wrapped under the tree, designer goods; eye glasses to shoes, cash, guns, jewelry, alcohol are being stolen. LOCK UP VALUABLES. Buy an engraver and put your driver’s license number on expensive tools and bikes.

Check your mailbox regularly if your mail is coming late in the day. Don’t leave mail overnight in your box. Report mail theft to the US Post office or to the Sheriff’s Department. Report ID theft/ fraud to the Sheriff’s Department. NEVER mail outgoing mail from your mailbox. If you see someone taking mail, call emergency line 874-5111.

If you have a vacant house nearby please or know that your neighbor is gone, be alert to unusual lights/activity in the house/garage at night. Call 9-1-1 if you think that a burglar may be there. The early cover of darkness and , cold and rain will keep most people inside as soon as they get home. Its perfect weather for burglars.

When you shop, go store to store or arrive home, take everything, out of your vehicle. Never leave anything including jackets or bags.

Finally, please go and visit the elderly neighbors down the street. See if they have their heat on, if they need to take a trip to the grocery store or might need someone to talk to.

Sherrie Carhart
Crime Prevention Specialist
North Division


Charles Dickens, A Christmas Carol
But I am sure that I have always thought of Christmas time, when it has come round... as a good time; a kind, forgiving, charitable, pleasant time; the only time I know of, in the long calendar of the year, when men and women seem by one consent to open their shut-up hearts freely.

The simplest way to invest may be the best

http://www.marketwatch.com/story/the-simplest-way-to-invest-may-be-the-best-2013-11-22
Jacobs recommended using a total stock market index fund, and a small-cap index fund, with the money split four-to-one between the two.

Change to Cafeteria Plan

IRS Notice 2013 -71 now permits § 125 cafeteria plans to be amended to allow up to $500 of unused amounts remaining at the end of a plan year in a health FSA to be paid or reimbursed to plan participants for qualified medical expenses incurred during the following plan year, provided that the plan does not also incorporate the grace period rule. This carryover of up to $500 does not affect the maximum amount of salary reduction contributions that the participant is permitted to make under §125(i) of the Code ($2,500 adjusted for inflation after 2012). This carryover option provides an alternative to the current 2½ month grace period rule and administrative relief similar to that rule.

Obamacare enrollment

This won't affect most people as they're either covered by an employer health plan or by Medicare. But it may affect some of their children and friends.

https://www.coveredca.com/
This is the California exchange site. The Spanish web portal isn't ready yet and I don't know if they plan to have any other language portal.

The federal web site, www.healthcare.gov, has had many problems on its first day. But there is plenty of time to sign up.

It's questionable whether healthy young folks should sign up purely from a financial point of view. The plan calls for young insureds to subsidize the elderlies. Their premium will therefore be high.

There are four different plans, all with the same coverage. The difference is the amount of monthly premium vs the amount of annual deductibles and co-pays. The Platinum plan has the highest premium but the lowest deductible and co-pay. So if one needs extensive medical care, s/he should sign up for the Platinum plan.

People making up to 400% of poverty level will get federal subsidies on a sliding scale. But if you make just $1 over that threshold, you will lose the entire subsidy. On a family plan, even if one family member is covered by an employer health plan, you will lost the federal subsidy as well. That's why some people have suggested Obamacare may discourage marriages and encourage divorces.
http://www.marketwatch.com/story/will-obamacare-hurt-job-creation-and-marriage-2013-09-27

To get the federal subsidy, one must sign up through the exchanges.

The administration has been touting employers could get up to 35% tax credit for providing their employees with health insurance, but that's a myth in most cases.
http://www.marketwatch.com/story/small-business-tax-credit-thanks-to-obamacare-2013-10-02

Android vs. iPhone

Apple sold 9 million new iPhones over the weekend, many more than expected, despite the Gold and Grey color 5S were sold out early on Friday. But they would not release a breakdown of how many 5S and 5C were sold. I suspect the 5C sales were disappointing. This also shows how many die-hard Apple fans are out there. I watch a local independent TV channel in the morning a lot, an Apple fan. And he's been saying he's dying for a larger screen and he will wait patiently until Apple does. Why? He has all sorts of choices right now. And they are better choices too, according to this USA Today article.

Here's the video report from USA Today, the reporter is a 6 year iPhone user. I first saw his report over the weekend but never could find his follow-up article.
http://www.usatoday.com/videos/tech/columnist/talkingtech/2013/09/18/2832373/

The written article is at http://usat.ly/1eQzsLD