December 13, 2017

Corporate Robbery

For some time I have been concerned about the consolidation of industries and in what may result. An obvious one is competition will decrease with prices rising as perhaps quality deteriorates. This decrease in quality can be partially offset by competition coming from overseas.

The recent reduction in corporate tax rates brings to light a bigger, riskier problem for the country. BLACKMAIL BY CORPORATIONS.

As Industries consolidate we become more dependent on fewer entities for job creation and growth.  With more dependence, comes more power to these entities. Power to control wages, taxes even our politicians. With control over politicians they control our laws. They could become so powerful they could end up controlling their own tax rates.

Some say government will, before this happens, step in to assure corporate tax rates remain high enough so the average citizen will retain their high standard of living. I am not convinced.

The world has changed. All nations have recovered from the devastation of World War II. Modern transportation, computers and the internet effectively has made the world smaller. Buick produces more cars in China than in the United States. Europe is presently the largest consumer market in the world. In a relatively short time Europe will be replaced by Asia as the largest marketplace. There are new innovations on the horizon that will make the world even smaller.

Another result of lowering corporate tax rates is wealthier individuals will use corporations as a tax planning tool. By owning a corporation one can effectively lower his tax rate to 20% and build wealth that much faster. When you need personal income you declare a dividend and transfer funds to your personal account.

As corporations consolidate they gain more power and influence. With nations competing for jobs, corporations will pit one nation against another reducing the nation's wealth at the expense of the consumer. Political power further transfers from nations’ capitals to corporate board rooms.

I foresee a day when a large, multinational company threatens to move jobs overseas if their taxes are not eliminated. This will be possible because of technology including the advances in transportation.

November 27, 2017

Paul Banicki Realtor

paul new pic.jpg
Southeast Michigan
Home Buying

Paul Banicki, Realtor
248-259-4187 |

As demonstrated below, for a certain segment of the population the next six months may be the best time to buy a house. Over the coming year Michigan’s house prices are expected to rise between 4% and 5%. Applying this to a $150,000 house meansyou could potentially miss out on a $7,500 increase in value by delaying your purchase.
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First, housing prices are driven by supply and demand. The larger the demand for housing the greater the pressure put on price. At any point in time there is a limited number of buyers in the marketplace. The housing stock available is also limited. Typically it takes six months to build a house so today’s housing inventory is fixed. This is especially true for a northern state like Michigan because of our severe winters.

Second, many families wishing to buy a home have school aged children and do not want to expose their kids to moving and enrolling in a different school in the middle of a school year. This causes undue anxiety on their children. School is stressful enough without the need to make new friends in a new location.

Third, some families must move and are willing to negotiate more than in the summer months. With fewer buyers they become more flexible on price.

Paul Banicki - 248-259-4187 -

August 14, 2017

Citizens United

Beginning around 1980 salaries started to climb for politicians, expense accounts started to grow and individuals trying to sway our legislatures  began to invite politicians on "junkets" to show our elected officials and sometimes their families  a good time.  Citizens and their surrogates, corporations, started buying influence and by now the art of owning a politician has been perfected

Then now along comes Citizens United where corporations are allowed to contribute, and thus buy, politicians.  

The net result of all this is those presently entering politics do so more for the personal financial gain they seek then for their desire to serve the public and common good. There vote often goes to the highest bidder.

This is going to get worse until us citizens have had enough and overturn Citizens United. It is not going to be easy because it is either the politicians that must change the law or the constitution must be amended and as the late Justice Scalia indicated before his death it will not be easy.

July 8, 2017

Putin Trump and North Korea

Here is perhaps a Hollywood version of what is going on concerning Russian involvement in our election and a coordinated, between Putin and Trump,  tactic to try and get past this issue. Remember, for now this is hypothetical.

Let’s assume for a  moment that indeed Russia did hack, with candidate Trump's approval, and now their joint objective is to cover it up and put the issue behind them. How could they pull this off? One way would be to simultaneously create a diversion by giving the appearance that both the Soviet Union, Putin, and the United States, Trump, would work to gather and avert a possible global disaster.

Enter North Korea with their nuclear ability and their continued development of an ICBM that could reach the United States with potentially a nuclear warhead. Picture everyone in the United States being in a hysterical state over the possibility of a nuclear war between the United States and North Korea.

Enter Vladimir Putin at the request of his friend Donald Trump. Russia, having better relations with North Korea, and having worked with North Korea in creating this crisis,  manages to get North Korea to back down and further to dismantle their nuclear program.

Putin and Trump become heroes in their respective countries, the world is thankful and the investigation into the Putin/Trump investigation is dropped.

I know this sounds bizarre.  But it also sounds very feasible.  Think about it.