• Checked Off My Bucket List: Argentina

    For the longest time a trip to Argentina has occupied the top spot on my imaginary bucket list, patiently waiting for its time. Talking about my dream to visit Argentina became such a part of my life that after finally getting it done, I might be at a loss of subjects to discuss in a polite conversation. In any case, the trip and the country of Argentina turned out to be everything I imagined it to be and much more, and became the longest, the most expensive and the best trip of my adult life.

    Streets of Buenos Aires
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  • Everything New Is Actually Well-Forgotten Old

    This Russian saying summarizes the article emailed to me by the local (and maybe even regional) knitting goddess PlazaJen.

    The store hired Shepard Fairey, the artist who created the stylized Hope poster of Barack Obama that became one of the most highly visible, though unofficial, images of the presidential campaign, to design its catalog covers and shopping bags. They bear a rather unsubtle allusion to advertisements made in the 1920s for state-run department stores in the Soviet Union.

    Russian posters of 1920’s served as  a primary source of  commercial as well as social advertisement, when a drawing and a short phrase understood by mostly illiterate population conveyed a simple message or directive. There is a reason why contemporary designers keep coming back to these styles – they just look cool and as an added bonus in the West – exotic. Even I used it to create the header for the this site without knowing anything about Alexander Rodchenko who was one of the founders of Constructivism as this style is called.

    I scavenged a few posters for your enjoyment:

    Few commercials that I might have previously linked here also take advantage of this style.

    httpv://www.youtube.com/watch?v=tawPsdFQxdA

    httpvh://www.youtube.com/watch?v=dJ_6_vo8Uak

    httpvh://www.youtube.com/watch?v=5CaMUfxVJVQ

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  • Apple a Day…

    …well, I usually eat 3 or 4. I don’t eat them for health benefits or because they are cheap or for whatever other reason – I just like the apples. I like them fresh, cooked, in a pie, in a cake, baked, in apple sauce, with caramel or honey, sliced, peeled, unpeeled and I like most of the varieties. Every year we try to make a trip to a local apple orchard to pick some fresh fruit. I was a locavore before it became trendy and people started doing it to feel good about themselves.

    We are surrounded by many apple orchards. There is Vaughn’s in Weston, we were going there for years, Schreiman’s in Waverly, it’s not u-pick but is very nice and in a beautiful historic area; and for the last couple of years we are picking apples at Pome on the Range orchard in Williamsburg, KS. Besides apples and pumpkins they also sell fruit wines some Kansas-grown produce, jams, honey and other things that are good for you.

    Today they had their annual fall festival but it looks like they still have plenty of apples to pick for the next weekend or three. If you are in Kansas, especially South Johnson County, you are just 25-30 miles away. Not only you will keep the doctor away, you will be able to brag about eating local and catch envious looks of your not-so-hip friends. While you are at it, mention that you only drink Shatto milk to completely crush them with you locavorness.

    For the next year I am keeping an eye on the Wagon Wheel Orchard which was picked out early this year due to being very young. They seem to have a great variety – something I am always looking for.

    Eat an apple!

    Pome on the Range

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  • On Income Redistribution

    The phrases “income redistribution” and “socialism” are thrown around by clueless people a lot these days. Any tax system that has a welfare component probably qualifies as income redistribution so the fact that it already exists in this country shouldn’t surprise anyone. At the other extreme is the Soviet system where the Government kept 100% of the GDP and then redistributed part of it back to the citizens in the form of wages, pensions, subsidized consumer goods prices, free education and health care, etc. In between, there are many countries that struck a certain balance between the socialist and free market economies. What constitutes a good balance is still open for discussion.

    Unlike many people who carefully counted other people’s money and decided that they have too much, I am a firm believer that in the market economy everyone it worth exactly what they earn and if they earn it, they should be able to keep their income and pay some reasonable amount of taxes to pay for the infrastructure, defense and certain social services.

    Granted, the Soviet Union looked great from the outside, every citizen was taken care of with free social services, 30-day vacations, free or cheap childcare, summer camps for the children, subsidized trips to resorts, cheap food and consumer goods but it was achieved by keeping everyone borderline poor, with many people living in medieval conditions, WWII-era equipped hospitals, ugly, ill-conceived, unusable merchandise that wasn’t always available. Add to that food shortages, long lines everywhere and inability to do anything without prior government approval and you may see why the life behind the Iron Curtain wasn’t so peachy. I think the weakest link in the Soviet system was their attempt to remove normal human greed from the economic equation. The ideal was, of course, that the people will get motivated because they loved their country. After that didn’t work out, various other means were tried out from the New Economic Policy to confiscations and labor camps. People realized that if they can’t achieve anything within the system they were going to do it outside of the system. Soviet Union had probably the biggest shadow economy ever known, as well as the most corrupt population in the world, where everyone from a clerk, to militiamen, to doctors, teachers and government officials accepted and oftentimes demanded bribes. But even if a certain Soviet citizen somehow managed to amass a fortune he would have a hard time spending it without attracting unwanted attention from the government or from fellow concerned citizens who were busy watching out for anyone stupid enough to get ahead. A very famous Soviet-era satirical book “The Little Golden Calf” featured a character who had a suitcase full of money but was forced to live without spending any of it, once a week reuniting with his wealth at the storage.

    On the other hand, Sweden is often cited as a triumph of the socialist system but even they had to adjust when it was realized that stifling entrepreneurship with high taxes led to the loss of employment and shrinkage of the GDP. Many would argue that Swedish system is not sustainable and is a myth, for an even-handed article you may want to read this one from Forbes. I think that a very important component of the Swedish model is their ability to control immigration. This way they concentrate on providing social services to their citizens.

    This country somehow managed to avoid all-out income redistribution by trying to keep the people content with what they earn, convincing them the opportunity awaits if you work hard and not take any shortcuts, and selling a tempting vision of the American Dream. Theoretically many people had the same opportunity as Steve Jobs, Warren Buffet or 2 guys who invented Google, but not everyone has talent, drive or desire to take the risk, all mixed with luck which are all needed to succeed. Short of winning the lottery, the best way to get one’s hands on other people’s money is to vote. There are many rationalizations on why this is fair or how paying taxes is patriotic and the right thing to do, but most of the people who say that made sure that they are not the ones affected, instead, just like the Soviet citizens in the past they will be making sure that the other people don’t get ahead.

    I am pretty sure that anything I say (or ever said) will not change anyone’s mind. Over $600 million invested in Obama’s candidacy will be repaid many-fold with the other people’s money, and to paraphrase the Communist Party’s statement “the eye is on the prize”. Make no mistake, while millions of people shed tears of joy at the rallies, someone is already calculating the profits. To be fair, the same exact process only with a more grotesque set of candidates is going on on the other side of the aisle. People will adapt, I can see a lot more taxpayers making $249,999.99 in the near future; why bother making that extra dollar if you only get to keep fifty cents. Many others will still keep doing what they are doing. Entrepreneurship doesn’t die, it just goes undercover and dedicates itself to undermining the system that’s trying to stifle it. I may sound alarmist, but 80 years ago people in Russia, the biggest grain exporter in the world wouldn’t believe that their children would be standing in bread lines.

    There is still a bright side to all of this. On the Election day it would be decided by a vote, instead of this:

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  • Refund For Kansas Residents Paying Kansas City Missouri Earnings Tax

    Attention: Read Important Update 

    Attention: Read Another Important Update

    Following the Supreme Court ruling in Comptroller v. Wynne Kansas residents are allowed to amend their taxes and claim a refund of the amount of the Kansas City, Missouri Earnings Tax that was previously double-taxed. Just so it’s clear, you are not getting a refund from Kansas City, Missouri, but from the State of Kansas which previously didn’t allow the Earnings Tax to be subtracted from taxable income which resulted in the now illegal double-taxation.

    On August 10, 2015 Kansas Department of revenue issued the following instructions:

    notice15-151

     Generally, the statute of limitations for amending taxes is 3 years, so with some exceptions the eligible years are 2012, 2013 and 2014, with the deadline for amending the 2012 taxes set in April, 2016.

    As of this writing the commercial tax preparation programs have not been updated to reflect this change and they are not likely to be in a rush.

    After consulting with an accountant and checking Kansas Tax forms online I have decided to pay a professional to refile my forms; this is a rare case when I think doing it myself is not worth the hassle. Also keep in mind that it’s likely that the amount of the refund will be taxed on the federal level in the year you will receive it.

    Knowing that Kansas is broke I wouldn’t recommend waiting too long to do this. I am sure everyone who files will get their refund eventually, but it may be a while, especially for the late filers.

    Important Update: 

    I finally had my taxes reviewed by a professional and the additional refund wasn’t nearly as much as I expected. Even though the State of Kansas now allows you to claim local taxes on your return, they still fall under the category of taxes paid to other states and there is a limit to how much credit you can get. The limit is calculated using this worksheet:

    Clipboard01

    If you already claimed maximum credit allowable on line 6, you are out of luck. So my suggestion is before you spend money or time trying to amend your taxes, run your numbers through this worksheet and see if it’s even worth the effort.

    Another Important Update:

    I received a response from the State of Kansas to my amended return where adjustment wasn’t granted. When I called to follow-up, it turned out that they also require a copy of Missouri return and a copy of Kansas City, MO form RD-109NR which actually is not required for taxpayers whose earnings tax is withheld automatically so you probably don’t have it. I downloaded and filled out the form and faxed it over together with my Missouri return. We’ll have to see what happens next.

    *I am not qualified to give tax (or any) advice, so please do your own research or consult with a trained professional.

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