Tax Form 2038: Fill & Download for Free

It's the only way?!?!? No, it isn't.There are at least four ways:Decide not to pay it: This is called "default".Run a budget surplus: This would allow it to shrink somewhat rapidly.Encourage inflation: This would devalue the existing debt.Growth the economy faster than the debt: This would allow the debt to shrink relative to GDP slowly over timeEach has some serious issues, so let's briefly pick at them.1) Default means our credit won't be so good any longer. It's a fast, efficient way to get rid of a lot of debt, but it will cause global economic chaos, washing out most of that efficiency even more quickly. No one serious considers this an option, even though a number of other countries have used it in the past. First, no other country has ever defaulted on anything resembling $17 trillion (or whatever the nominal value of the debt is in February 2014). Second, no nation that holds a stable, reserve currency has ever resorted to this. Third, this isn't like an underwater mortgage where "walking away" because it's financially expedient might make sense for some homeowners. This is simply not happening.2) Budget surplus means Congress takes in, say, $1.10 and spends $1. It has done this very rarely in American history. Typically, when it does there is a hue and cry[1] for tax cuts or new spending and the surplus is short lived. As spending and taxation originate in a House of Representatives that is elected every two years, the idea that we can run a perennial surplus is some kind of "Fallacy of Washington." Were this true, the surpluses of the Clinton years would have been allowed to pursue, the Bush tax cuts would not have been passed, Medicare Part D would have been tabled until the government's balance sheet was clear, and the likelihood is that the national debt would be half its current size or perhaps gone.Surpluses are also some contractionary in that the government is taking money out of the economy but doing nothing with it other than very, very slightly cutting its interest bill. As such, they might prove counterproductive in the long run: taxation without corresponding spending leading to lower economic growth leading to lower tax revenues leading to smaller surpluses... Ugh.3) Encourage inflation means running a reckless Federal Reserve policy irrespective of what is happening with prices. It means the government should seek to arbitrarily remove slack in the labor markets to bid up wages. Hell, it might even restrict new energy drilling to force up oil prices. Does anyone see this as a good idea? I doubt you do. While we might all like full employment, few people want to see the government hiring people to do nothing just to make that happen. All of us like price stability since paychecks tend to rise after prices do, if they do at all. And for the poor and middle class, inflation is especially pernicious since wages are often pegged to a statutory minimum (even if people earn above it). That tends to move slowly. And while there might be environmental reasons to push fossil fuel prices higher, none of them are best achieved by restricting domestic supply.Although there are doomsayers who predict we will have inflation, there is no meaningful group of economists who believes that actually encouraging more than low single-digit inflation is a good idea. (Debates center around whether we should try to push things from their current sub-2% state to somewhat above that for awhile, but somewhat above would look like 3-4%, which we have briefly seen since the end of the 1970s era.) Inflation did horrible things in the 1970s. It would do them again in the 2010s or 2020s. Thankfully, we are almost an order of magnitude less vulnerable to oil shocks.This charts GDP per barrel of oil:We make about 3x as much output per barrel of oil as we did in 1976 and it is steadily improving. But that only tells part of the story. We rely on oil less and less every year :but are producing more of it than we have in years (and that chart is expected to rise enough to surpass the 1970s peak within a few years):We produce our other fuels domestically from a wide array of sources unlikely to see price shocks. Absent that, we'd need an inflation generated by either (a) a huge uptick in growth that removed most (all?) unemployment, which is typically manageable by the Fed or (b) stupid Fed policy in the face of faster economic growth -- should it come -- to tap the brakes with a series of slight rises in short-term rates. In the Volcker-Greenspan-Bernanke era, that kind of stupid policy has fortunately been in short supply (n.b. other kinds of stupid Fed policy are fodder for a different question).Large-scale inflation will not be encouraged, is unlikely to spontaneously form and will not likely be allowed.4) Growth above debt formation is either confusing or deliberately obfuscated by politicians who wish to score political points. Here is the latest CBO projection for the debt-to-GDP ratio:It's neither attractive not truly hideous. It shows us losing ground, slowly, over time as spending continues to outstrip taxes. Here's how they see it:CBO admits, however, it doesn't have a crystal ball."federal debt held by the public in 2038 could range from as low as 65 percent of GDP ... to as high as 156 percent of GDP, compared with the 108 percent of GDP projected under the extended baseline"[2].Why so much uncertainty? Because the economy will not grow so predictably and more or less growth causes wide swings in that forecast.But what of slightly more revenues or slightly less spending?"[B]ringing debt back down to 39 percent of GDP in 2038—as it was at the end of 2008—would require a combination of increases in revenues and cuts in noninterest spending (relative to current law) totaling 2 percent of GDP for the next 25 years."So that's a lot -- about $350 billion in today's money every year -- but it's hardly impossible to imagine. We spent $682 billion on defense in 2013. If we adopt a plan to gradually reduce that to "as much as the next four countries in the world spend combined" that would be a step down to $378 billion -- or more than China and Russia ($256 billion), who spend a lot of it worried about one another. Admitting this would take time, it's worth pointing out that of the $350 billion we need to find, we could apparently find $300 billion of it in defense alone and while that would change the way the world does its defense posturing, it would place the U.S. under no greater threat than it's under today. Arguably, it would massively reduce the threat as much of our activity makes us a lightning rod for terrorists, but let's not bank those TSA, NSA savings just yet.With modest adjustments to cost-of-living increases in Social Security (like implementing the "chained CPI"), the government could save another $13 billion annually. If you wish to get more radical and take the knife more deeply to entitlement programs, there is doubtless some nice fraud to find in disability, some savings to be obtained in Medicare as healthcare inflation seems finally under control, and probably more. Let's say a reasonable goal is $50 billion annually for starters.While we are it, let's go ahead and implement a Buffett Rule -- which will raise as much as $15 billion annually depending on whose estimates you believe as part of a big tax-code overhaul. Let's tax carbon and use every single dollar of that to lower the payroll tax. Taxing labor (something we want more of) less and taxing carbon (something we want less of) more is the kind of shifting that will likely result in more people working and fewer people driving. Driving generates the worst kind of economic activitiy -- people in traffic, doing nothing, getting stressed, getting fatter. Driving is already falling per capita every year for nearly a decade, let's discourage it -- on an increasing basis -- where we can.This disproportionately hits the working class, which is why we are going to use all the proceeds to lower the payroll tax and, if necessary, make some EITC adjustments as well.Overall, we should seek to squeeze just a bit more revenue out of any tax changes we make overall. The CBO says we are headed for 19.5% of GDP as our tax collection figure. When we approach 20%, we tend to be paying down our debt. On a numbers basis, the gap between current law and 20% would be a total of less than $100 billion annually.-----Phew!Now, once we are growing GDP faster than we are adding to the debt, the debt shrinks as a portion of GDP. The math is easy. Debt is $1 trillion, GDP is $1 trillion. Government spending is $200 billion. The deficit is 2% of GDP or $20 billion. The debt is 100% of GDP. GDP growth is 3%.After a year, debt is $1.02 trillion. The economy is $1.03 trillion. Debt to GDP is now below 100%! Repeat this over and over, and the numbers get farther and farther apart.In the scenario we outlined above, the deficit would be shrinking far faster than CBO projected. While it's hard to say exactly what would happen to growth, we might well find the debt-to-GDP ratio well below the bottom end of CBO's range as we spent a lot less, taxed just a bit more, and were far more focused on spending that money domestically rather than internationally.[1] hew and cry[2] The 2013 Long-Term Budget Outlook[3] List of countries by military expenditures

Your best shares need not be the best when you start learning about it and start investing in it. Investing in a stock is a journey.Below is a real story which I have encountered and is still continuingAN ENDLESS JOURNEY WITH THE FLEXIBLE PACKAGING BEHEMOTHI am a fan of “Cadbury Dairy Milk” Chocolates. In mid of December 2013, it was just another night when I went to the only kirana store in Birla Colony (Factory Colony of Grasim Industries), Kharach, a small colony located in District Bharuch of Gujarat in India. As usual, I ordered few pieces of Cadbury Dairy Milk of INR 5 each. On the top of the wrapper of these chocolates, it was colorfully highlighted and mentioned “new packaging”. I was wondering that nothing looked different to me. I opened the chocolate wrapper and found that there was no golden foil over my chocolates which I been opening since I was born and I realized that now I will not get such packaging again. Out of curiosity, I generally read the complete wrappers of the product I buy and eat. There is one more reason to this as I prefer not to eat egg, onion or garlic and hence I read all the ingredients of the product I consume.While going through the wrapper, I came across a line which read, “Packaging Material manufactured by Paper Products Limited”. Since after several years, I found change in packaging of my favorite chocolates, I was amazed to know more about packaging and my curiosity was not stopping. I started reading about this company more and more over internet and came to know that this company is leader of flexible packing materials in India and supplies to all prominent brand like Britannia, Kellogs, Kwality Walls, Maggi, Nescafe, Lipton, Paper Boat, Strepsils, Lifebouy, Vanish, Surf Excel, Pedigree, Kinder Joy etc I could have known by that time. I became fan of this company as I was tearing its products every now and then.Having worked with a group (Aditya Birla Group) which is known to manage leadership position in whichever business they are. I was obsessed with any other company that manages the leadership in business for a longer duration of time. This company was amazing me, the more I was reading about it.So I planned to include this in my model portfolio[1][1][1][1] at a price of INR 67 per share. In addition to the qualitative pointer made in my above story. I would also like to showcase the below financial and technical details about the company as on Dec 2013.Net Income/Sales is 0.05Net Income/Pre Tax Income is 0.70Pre Tax Income/EBIT is 0.95EBIT/Sales is 0.08Sales/Assets is 1.64Assets/Equity is 1.71Return on Equity is 14%Return on Assets is 08%Retention Based Growth Rate is 10%Market Capitalisation is INR 402 croresAdd: Debt is INR 46 croresLess: Non Current Investments is INR 55 croresEnterprise Value is INR 393 croresNet Profit is INR 56 croresAdd: Interest is INR 4 croresLess : Tax Savings on Interest is INR 1 croresLess : Other Income is INR 12 croresFirm Profits is INR 47 croresSales is INR 1086 croresAdd: Other Income is INR 12 croresTotal Income is INR 1097 croresFirm Margin is 04%Enterprise Value to Total Income is 0.36 (below 2 is better) VERY LOWEnterprise Value to Total Income to Firm Margin is 8.31 (below 15 is investments friendly) VERY LOWPrice to Earning is 7.15 (below 18 is investments friendly) VERY LOWPrice to Book Value is 1.04 (below 2 is investments friendly) VERY LOWDebt to Equity is 0.12 (below 2 is investments friendly) VERY LOWFree Cash Flow to Firm is INR 61 croresFree Cash Flow to Equity is INR 56 croresPrice to Earning Growth is 0.29All this important financial ratios were saying that why such a good company trade at a lower price multiples and having such a big impact over most of the individuals in India. I realized that this is the company which I should have invested in and start doing so.Technical Chart for Paper Product since it is listed in India.Now here is the twist. The time when I started investing in my daily used product manufacturer it was trading around INR 67 to INR 70 per share but since having seen and learnt about this company, I was contiously following this company and not stopped knowing more and invest more. The price per share of Paper Products Limited fell upto INR 55 after my purchase and inclusion in my model portfolio.I have seen many of my friends removing stocks which do not perform and stop reading and knowing more about the company.Now calendar year 2014 was wonderful for Paper Products Limited when global flexible packaging solution provider Huhtamaki, proposed to acquire India’s largest flexible packaging solution provider. This changed the company’s future drastically from being a local to a global company. Having faith on the work and research done by me on the ground, I still hold this company in my model portfolio.This all developments reflected in the financial performance of the company which I would like demonstrate in below detailed financial analysis which will help the reader to find and read more and more and more about the stock which they feel to invest in and they also see that the company makes impact in the country which they live, in the product which they eat or use or consume by other means, or see around them. There are many other examples to this same story which I have demonstrated here. Some other products that have impacted lives of many people in this country and the world are as under:Page Industries - Jockey or NothingEicher Motors - Bullet ( The Shaan Ki Sawaari)Force Motors - Tempo Traveller (You must have seen all Ambulances)Borosil Glass - Test TubesVadilal Industries - Tempting value for money Ice Creams…….. many more……….For financial year ending on 31 Dec 2013, HUHTAMAKI PPL LTD has reported1 Sales Growth : 20.53%2 Profit Increased : 24.69%3 Margin Improved : 0.17%4 Borrowings Reduced : -10.91%5 Share Price Decreased : -4.94%For financial year ending on 31 Dec 2014, HUHTAMAKI PPL LTD has reported1 Sales Growth : 12.88%2 Profit Increased : 18.48%3 Margin Improved : 0.26%4 Borrowings Reduced : -9.22%5 Share Price Increased : 54.38%For financial year ending on 31 Dec 2015, HUHTAMAKI PPL LTD has reported1 Sales Growth : 66.27%2 Profit Increased : 15.51%3 Margin Declined : -1.66%4 Borrowings Increased : 1160.47%5 Share Price Increased : 138.38%Below are some of the Financial Ratios for HUHTAMAKI PPL LTD for financial year ending on 31 Dec 2015:Net Income/Sales is 0.04Net Income/Pre Tax Income is 0.67Pre Tax Income/EBIT is 0.73EBIT/Sales is 0.08Sales/Assets is 1.23Assets/Equity is 2.69Return on Equity is 12%Return on Assets is 05%Retention Based Growth Rate is 09%Market Capitalisation is INR 1716 croresAdd: Debt is INR 529 croresLess: Non Current Investments is INR 207 croresEnterprise Value is INR 2038 croresNet Profit is INR 77 croresAdd: Interest is INR 43 croresLess : Tax Savings on Interest is INR 14 croresLess : Other Income is INR 14 croresFirm Profits is INR 91 croresSales is INR 2037 croresAdd: Other Income is INR 14 croresTotal Income is INR 2052 croresFirm Margin is 04%Enterprise Value to Total Income is 0.99 (below 2 is better)Enterprise Value to Total Income to Firm Margin is 22.34 (below 15 is investments friendly)Price to Earning is 22.30 (below 18 is investments friendly)Price to Book Value is 2.79 (below 2 is investments friendly)Debt to Equity is 0.86 (below 2 is investments friendly)Free Cash Flow to Firm is INR 156 croresFree Cash Flow to Equity is INR 113 croresPrice to Earning Growth is 1.44follow me on Research Wings and Tharendra LuniaFootnotes[1] Research Wings[1] Research Wings[1] Research Wings[1] Research Wings

You may or may not technically be spending the same amount on taxes—depending among other things on your income in the year in which the taxes finally get paid—but, assuming that the amount of tax is in fact more-or-less the same, you are coming out ahead due to the concept of “future value” (essentially, inflation). Put another way, suppose a tax deferment “saves” you $ 5000 in taxes for 2018, and you’re going to have to pay the $ 5000 in taxes in 2038, twenty years from now.First, $ 5000 in 2038 will be worth substantially less than $ 5000 today, due to general currency inflation. But even if inflation stays super-low over that period, it is almost certain that it will be worth less than the sum you’d get if you invested the $ 5000 today. So the Government, by giving you a tax deferment, is giving you an interest-free loan.Supposing you invested the $ 5000 in a super-conservative 1.25% CD (and the rate of return on more aggressive investment could be several times that), it will be worth $ 6410 (the “future value” of the $ 5000) after 20 years. After you pay your $ 5000 to the IRS, you are ahead by $ 1410. If the rate of return were 2%, you’d have $ 2429 left over.