Manifesto Sheldon

Hello,

Back in 2002 I bought a new Honda Accord V6 LX. At the time I just graduated college and thought I deserved a new car. I didn’t have much money and was upside down with trading in my old car but I figured my Honda would be with me for 20 years!!!

Well, it didn’t make it much past year 3. After 63,000 miles and less than 4 years, the transmission went out. The shop said I had three options, $2000 for a used one from a junkyard, $3000 to rebuild the old one and $4000 to get a re-manufactured one from Honda with a 5 year warranty (longer than the 3 year/36,000 that came with the car).

I still owed $12,000 on the loan. Add $4000 in more debt and I would be out $16,000. A few thousand more and I could buy a new Accord again!!!

I found out that the 2000 and 2001 V6 transmissions in the Honda Accord were recalled. The dealer said the problem was fixed with the 2002. I disagree.

I let it sit at the shop for over a week. I was in disbelief that my Honda had done this to me, again.

About 2.5 years after my purchase the “brake light switch” went out on my Accord. Again, I was in disbelief. The part only costs like $35 but it was so simple it should have been less than $10. And the install costs would have been over $100 (I did it myself in less than 10 minutes).

Anyway, the Accord again is ranked very high and from my experience I’m not sure why. A friend of mine got a Nissan XTerra the first year it was out and he’s still driving it 100,000 miles later and has never had a major repair.

Sheldon

Hello,

In the November 28, 2005 issue of time there is a “8 Great XBox 360 Games” section. I happen to like the “7 books you gotta read” or “Music this year worth listening too” sections but talking about the eight great XBox 360 is laughable. There were less than 20 games available at the time (okay, I’m not a journalist and I didn’t look up that number but I expect you to) . . . how can 8 be great? Launch titles? No way.

I know you must get this 100 times a day but: How much did Microsoft pay you? Seriously. And I realize that this isn’t something that most people would care about even if you did get paid but it just makes me wonder what can be bought at Time (new product hype) and what can’t be.

I’m not MS hater either. I like Microsoft. They overcharge for stuff but what’s really cool is that there are alternatives that are getting as good or better than what MS has to offer. But I have an XBox and I’ll get an XBox 360 when I have more time to play. But there is no such thing as eight great games for a launch system. You fell into the hype.

Sheldon McGee

Lately it seems like there are Netflix pop-under ads for every website that I go to. What bothers me about all the Netflix ads is that “I’M ALREADY A NETFLIX CUSTOMER!”. If anything, seeing the ads all the time, especially as pop-unders make me want to cancel Netflix and get on with Blockbuster. I tried Blockbuster (and I didn’t cancel Netflix . . . I wanted to give Blockbuster a chance) and it sucked (that was when it first started . . . I wonder how bad it is now?) but at least they’re not shoving it down my throat. But my loyalty means nothing to Netflix.

Anyway, I think something that would be cool would be a way to tell advertisers that you already own what they’re trying to sell and they don’t have to try anymore so they can leave you alone. Of course, they’d use that information for evil and end up trying to sell you something else but still, it seems like I should be rewarded for finally giving in.

For example, Capital One sent me so many offers for credit cards that finally one day I decided to accept the offer simply to stop the junk mail (plus the credit card had the painting “Starry Night” by Van Gogh which is one of the few paintings I recognize (it was one from Academic Decathlon in 93 or 94) . But then guess what? Now they want me to get the MasterCard as well as the Visa. And I even got the MasterCard and now they want me to get a Business Visa. It never ends.

I say one way to fix a few of America’s problems is to stop advertisers. That would help with the obesity problem as well as the consumer debt problem. Sure, it would hurt McDonald’s and credit card companies but who needs them? Tobacco companies are prohibited from advertising on television. The same limits should apply to any product that preys on the health of people (and being in credit card debt *is* bad for your health).

I’ve heard the “Why you need life insurance” spiel enough times that I have come up with an effective defense. This is how it goes:

Life Insurance Salesman: Sheldon, you *need* life insurance?

Sheldon: Why? Did Sarah say something?

LIS: Sarah, oh, no she didn’t say anything but what if you die? Don’t you want Sarah to be taken care of financially.

Sheldon: Sure, but she has a job too. And if I die anytime soon, she’s a pretty girl, she’ll find someone else.

LIS: But for a dollar a day you can have the satisfaction that she’ll be taken care of for a life time. Isn’t that worth just one dollar?

Sheldon: Okay, so for $365 per year I’m may get a $1,000,000 payout in the next 20 years. In 20 years, I would pay in over $7000 and if I don’t die I’m out $7000 plus interest. If I do die, Sarah is a millionaire. Mo money, mo problems. I think I’ll pass.

LIS: But Sheldon, don’t you care about Sarah? Don’t you want her to have a comfortable life? How can you be so crass?

Sheldon: You’re right. From now on when the Powerball is above $300 million, I’ll throw in $20. That’s my obligation. And at least the money goes into an education fund or something for the state instead of contributing to your new Hummer.

I actually has a conversation like that with a LIS. And, the Powerball was over $300 million a few weeks ago and I actually did throw in $20. I lost. And, if I would have purchased life insurance I would be out over $300 this year alone. So far I’d be loosing that bet too.

Sheldon

According to the EULA that you agree to when you listen to music on your computer from certain Sony CDs, you are supposed to delete the music if you file for bankruptcy. It also seems that AutoCAD has the same terms in their EULA.

http://weblog.infoworld.com/foster/2005/11/10.html#a329

I’ll take the quote right from that site just in case it goes down someday:

All your rights under the EULA are automatically terminated if you “file a voluntary petition or are subject to an involuntary petition under applicable bankruptcy laws, are declared insolvent, make an assignment for the benefit of creditors, or are served with a writ of attachment, writ of execution, garnishment or other legal process pertaining to any of your assets or property.”

I can’t believe what Sony is trying to get away with here!!!! More astonishing is that people continue to buy stuff from Sony. We don’t *have* to buy from Sony . . . unless we really want to play the next generation of GTA because, guess what, it’s going to be a PS3 exclusive. But if you get the PS3 you better start saving now because if you happen to overextend yourself and need to file for bankruptcy you may not be able to play your beloved GTA anymore.

Sheldon

I’m no fan of Wal-Mart (or Wal*Mart) but this is just one more reason to shop somewhere else:

http://www.nytimes.com/2005/10/26/business/26walmart.ready.html

Hilights are “proposes numerous ways to hold down spending on health care and other benefits while seeking to minimize damage to the retailer’s reputation” and “the recommendations are hiring more part-time workers and discouraging unhealthy people from working at Wal-Mart”.

I understand that Wal-Mart wants to preserve it’s image as a low cost leader with employees that love the company but that last part isn’t going to last long. Wal-Mart is exploiting the poor and using the government to subsidize things like employee health care. Those low prices take money out of every pocket but their own. The irony is that we’re all poorer because of Wal-Mart and we’re almost forced to shop there because many times they do have lower prices.

I guess the worst part is that there are plenty of other companies that do the same sorts of things we just don’t know about it. And Wal-Mart is under the spotlight only because they are so big. Are there any *big* companies out there that have a company slogan “don’t be evil” like Google?

Maybe Wal-Mart will stop selling junk food in an effort to have healthier people that can in turn work at Wal-Mart. And, what are they going to do about the greeters at the front door . . . those guys must be taking 20 medications a day. Oh, I know, they’re part time so no worries about health insurance.

While I was in Korea I was on a constant quest to find Diet Coke. Occasionally I would find it in a 12 ounce can but most of the time I found it as “Coke Light” in an 8 ounce can (I would usually buy two . . . I sure wish I could have gotten a 6 pack) or even as a fountain drink in a mall. There was something different about the Coke Light . . . it wasn’t Diet Coke but it didn’t seem like Coke either and since I was in another country I just attributed it to the water. I thought the same of the Coke you get in a glass bottle from Mexico . . . it always tasted different but good and I just thought it was the water. Well, turns out, they probably filter the water. Check it out:

http://en.wikipedia.org/wiki/Coca-Cola_Zero

Basically, Coke Lite = Coke Zero and they’ve had Coke Light in other countries for a while now without the Coke Zero brand. With a Diet Coke and a Coke Zero right in front of me I see that the Coke Zero is way sweeter and that’s the difference I was tasting in Korea. And, I’ve also read that the Coke in glass bottles from Mexico tastes different because it’s still made with real sugar instead of high fructose corn syrup (that may be different now since I haven’t had real Coke in a long time and presented with a bottle with Mexico I would just detect is as “really sweet”).

Sheldon

A happy poor person (HPP) is about to file their taxes. Most of the money is probably from the Earned Income Credit. Sure hope they don’t get audited (getting the EIC gives you a higher chance of being audited . . . thanks to Bill Clinton, though, he was just protecting the EIC from being abolished). More on that later.

HPP gets money back every year and this year is no different. H&R Block advertizes how great they are and they do it specifically to the people getting refunds, the people qualifying for the EIC, people making less than $30,000. Jackson Hewitt does the same thing but I see H&R Block all over the place. So, HPP comes in and “Good news . . . you’re getting a refund!!!” How much? $5000, but, there are some fees. $40 to file your taxes. Oh, did you want that money as soon as possible? Don’t want to wait the 14 days to get you money? Okay, we’ll loan you the money. It’s called a Refund Anticipation Loan. How much? About $100, but in your case probably closer to $200. So, about 4 percent for a 2 week loan!!!! You’d be better off borowing the money from Tony Soprano. Okay, so now you’re down only $240 so you’re still getting back over $4000 and that’s a lot of money. Let me guess, you don’t have a checking account to cash this check. No problem!! Go to a check cashing place and get it cashed for another couple of bucks. And guess what? H&R Block has a deal with the check cashing places and makes money off that too.

See, now that’s thinking. Whenever I think about starting a business I think about how to appeal to the high end . . . custom wood work, custom web sites, custom database this or that all to people that have the money to spend on the best of the best. H&R Block went the other way and targets the poor.

A capitalist would say H&R Block is providing a “much needed service”. I say hookers provide a much needed service too but I still think prostitution should be against the law. And don’t get me started about pimps and drug dealers.

Oh yeah, and President Bush wants to put Socal Security money into the hands of people who don’t understand what they’re loosing when they get these short term loans (ever hear of a “pay day loan” . . . another drug dealer). I wonder what company will come along and provide a much needed service for them.

Sheldon

One very important lesson I learned is that every income level has it’s own tax percentage. It’s hard to explain without an example. If your income is less than $29,050 you are taxed at 15%. $29,051 to $70,350 the tax is 25%. So I thought that someone making $30,000 would be screwed because they’d pay such a high tax rate compared to the person making $29,000. But that’s not the way it works. If you make $30,000, here is how to calculate tax:

$7,150
x 10%
——–
$715 — Everyone pays this amount for the first $7150 they earn

$29,050
– 7150
———
$21,900
x .15
———
$3285

$30,000
- 29,050
———-
$950
x .25
———–
$238

Taxes due: $715 + $3285 + $238 = $4238

Tax rate of: 14.1%

So, the only people who really pay the entire percentage of their tax bracket are the extremely poor (who pay the entire 10%) and the very rich (where the richer they are the closer to a straight 35% they pay). Of course, I would argue that the very rich are taxed at about the same percentage as someone making $60,000. A tax is a tax is a tax and Social Security’s 12% only applies to the first $90,000 and is barely a blip to the very rich.

Oh, and did I mention that the capital gains tax is only 15%? That’s where the filthy rich get most of their money.

I got the tax rates from http://en.wikipedia.org/wiki/JGTRRA which talks about is the Jobs and Growth Tax Relief Reconciliation Act of 2003. Here’s another interesting link:

http://en.wikipedia.org/wiki/Income_tax

Sheldon

I’ve been reading a book called “Perfectly Legal”. It’s a great book. The only problem is with how mad I get while I’m reading it.

Check this:

We all pay Social Security tax. It’s supposed to be for our retirement. For some reason, it’s in trouble and the government needs to either cut benefits or raise the tax *again* (same scare happened in 1980). Right now, the tax is over 6% and really over 12% since your employer has to pay half (mmm, I wonder if I would make more money if my employer didn’t have to pay that 6%?). If I’m paying into a fund then why wouldn’t my money be there when I’m ready to retire?

Okay, the government uses the Social Security money for things other than Social Security. Also, if the government doesn’t invest that money it will stay stagnant in time. Say I pay $2000 in SS taxes in 2000. Not invested that $2000 is still $2000 but it’s even less because in 2040 $2000 is only $400 in 2040 dollars. So, somehow because of inflation and poor investments Social Security is in trouble . . . so, we should get to keep it and invest it ourselves. Remind me about the Global Crossing story and see if that “invest in the company . . . you could be rich . . . pensions are for chumps” story reminds you of George’s “invest it yourself” story.

I was off track. So, we all get taxed about 6% (or 12%) for SS. Oh, and, after $85,000 of income, there is no 6% tax. So, someone who makes $90,000 per year (living large) pays a little more than $5000 in SS tax. Guess how much Bill Gates pays in SS tax? Yep, A little more than $5000 (maybe less if his tax people can show his income is less than $85,000 . . . and that probably wouldn’t trigger an audit).

You say that SS is to support us later on and blah blah blah. I say it’s a tax. I don’t get to choose how much I get back or when so I say it’s a tax like every other tax. Except that, really, it’s a tax break for the rich. $5000 to a guy who make a million a year is nothing. Now, 6% of a million *is* something just like 6% of $50,000 is something. The guy making $50,000 may be in the 25% income tax bracket and Bill Gates may be in the 35% tax bracket but keep in mind the little tax break Bill gets for all that money past $85,000.

Okay, some of my numbers are off but you get the point. Check out Wikipedia:

http://en.wikipedia.org/wiki/Income_tax
http://en.wikipedia.org/wiki/JGTRRA

Sheldon