Health Insurance Coverage

July 22, 2009

Health Insurance

As an adjustment on the Form 1040 or 1040A and possibly the Form 1040EZ.

Have taxpayers include the health insurance costs and possibly the cost of medical expenditures as an adjustment on the front page of the 1040, etc.

Or as an adjustment to the 1040, etc. for the medical insurance and the costs of medical expenses to continue as an itemized deduction amount but without the 7.5% adjustment. The 10% AMT (Alternative Minimum Tax) amount should stay however due to the reason for the purpose of the AMT.

Have a Form 1098-H for the health insurance costs for verification in the following year.

Also, use the Form 1098-H for nursing home expenses. In this way a senior citizen with $70,000 in nursing home costs would not have to file an income tax return. Increase the filing requirement by the amount of the nursing home cost coverage.

The health insurance coverage adjustment could possibly reduce the Adjusted Gross Income amount and may change the Earned Income Tax Credit amount. Or this could artificially also modify the earned income so wages were reduced. This would increase (usually) the amount of earned income.

The number of covered dependents would be included on the Form 1098-H to verify the number of dependents. This could be compared with the dependents on the tax form so overstating of dependents on the filed tax return would be reduced.

The objective on the above is to reduce the necessity for the Health Coverage Crisis and the actual payment by the individual taxpayer would continue. An alternative before the people which is simple would be achieved.

CAUTION: In the early 1990’s an additional amount of $500 and maybe $100 per dependent was included in the Earned Income Tax Credit. Fraud was found to be rampant the the extra insurance amount paid by the EITC was dropped. Thus the reason for a Form 1098-H so concrete verification could be done. Or an electronic payment to these individual medical insurance coverage providers or employers could be made.


Keith Ljunghammar, EA


CFA and Investment company moving to Seattle

June 19, 2009

CFA Seattle Chapter

Was informed by Seattle Mayor candidate, Elizabeth Campbell, that from the Seattle Times reporter the Current Seattle Mayor Nickells wants to pay Russell Investments from Tacoma to relocate to Seattle. The amount of $250,000 was mentioned. Time frame for this value of money was not indicated.

 I am an Enrolled Agent and also have a dormant CFP (due to not being able yet to get around to paying the yearly dues). I prepare income tax returns in Lynnwood, Washington. I did notice the CPE education framework which you have available and I should be taking advantage of this.


Elizabeth Campbell disagrees with the Mayor in giving $250,000 to Russell Investments. She believes that if they would like to move to Seattle they can.

She believes that reducing the cost of operations of government and not increasing them should be the objective of government.

In Seattle, employing the current domestic citizens and other legal immigrants should be the objective of a government. By making things more civilized for the current legal citizenry and residents she believes we can make an environment more conducive to other companies then deciding to move or to make their home base of operations inside of the City of Seattle. The incentives for one company to come to Seattle do not outways the needs and desires of the current residents and citizens.

Knowing that your membership for the Seattle Chapter is 600 members and your base of operations is in Seattle I would agree with Russell Investments that the Pacific Northwest’s financial infrastructure is indeed centered in Seattle and not centered in Tacoma. I believe that Russell Investments should relocate and would relocate on their own free will to Seattle if the cities infrastructure is better than Tacoma’s.

You, the CFA Society of Seattle, I believe, have worked hard and diligently to create a locate certified financial advisors community and society which rivals other national societies. I have also thus noticed that Tacoma does not have by itself a CFA society.

Please inform us if this is not incorrect.

 Are there any members in your chapter who are from Tacoma as well. What is the number of CFA members that work for Russell Investments. Is Russell Investments dislocated from the other society members and thus the strength in professional correspondence is not as readily available.

 I also noted that one of your former Presidents had $2 Billion in Assets under management and this could directly compete with potential employees and capital acquisitions from investors.

Again, Elizabeth Campbell believes that making a government more streamlined and an infrastructure more conducive to the citizenries needs as a whole is the correct and best way to achieve everyones goals and desires. An artificial catapult for one company could weaken the current accomplishments of the current citizens and residents.

I personally believe that this move from Tacoma to Seattle will only be an even swap of $s for all concerned and would not have any Economic Stimulus impact.  The definite non-gainer of economic activity would be the Port of Seattle.  From Tacoma and from Seattle the airfare travel will be equal.  No stimulus here.  The only advantage might be in Seattle’s use of the RTA train from Sea-Tac to downtown Seattle.  The use of Seattle’s downtown conference and hotel community would have an impact.  Seattle would be a better financial climate for Russell Investments but what would we get for $250,000 in exchange.  They probably would come here anyways.

 Please advise,

 Keith Ljunghammar, EA

 Elizabeth Campbell 4 Mayor, Treasurer

Green Jobs eliminate Jobs

May 23, 2009

The Economic and Fiscal Impacts of The Hawaii Energy Conservation Income Tax Credit

Presents an employment economic status for a 25 year period of time. Installatin and maintenance in comparison. The analysis does not address other forms of employment being displaced which is actually what I was looking for. But if a product has installation employment in the initial year of 194 and maintenance employment at 38 per year. My observation without research would indicate that overall displacement of macro employment would result. I heard but could not verify that for every job created in the “green energy job” market then two jobs from other sources would be displaced. This actually is a standard number of jobs lost for consideration of a new product. If the product also can show a profit by its operation then this is a product to purchase.

So an initial investment and receiving of state and federal tax credits which would displace part of the initial investment and the costs of initial installation would help stimulate an incentive for installing a solar system in ones backyard. 


Table 4: Total Economic and Fiscal Impacts of the ECITC



Benefits less Costs (millions of dollars)


Case 1


Case 2






Year 1



Year 1



Economic Impacts

Total Output













Total Labor Income







Fiscal Impacts

Total Revenues







Total Expenditures

ECITC Expenditure







Direct Fiscal Expend.














 I was trying to also see how much is a minimum costs for a substantial market penetration in an area.  Could not specifically find this information but see below.

According to NYPA, the power generated by 100 MW is the equivalent of powering approximately 15,000 homes.


Yet costs in various areas of the country are different.  Some areas like New York might be 6MB whereas in Washington it might be 4.5MB of applicable monthly solar radiation.  I do not know for instance how much the Seattle area might be in comparison to Spokane or Tri-Cities in Washington State.  These will be wildly different in their comparisons of monthly solar radiation. PDFs
Manual (5.5MB)

Solar Resource Map

But just like all sources of data the data really can only truly be evaluated on a local area basis.  For the project in New York perhaps the thinking is to incorporate a little bit of aesthetics for the perceived intrinsic value which is trying to be achieved.  Then again, the same project could be installed in a cloudy environment and have the same perceived intrinsic value but rather from a purely micro economic standpoint the results could be a money drain.


Credit Cards Unconstitutional

May 12, 2009

Credit cards today think they can arbitrarily without notice raise interest rates.  This they dowith no notice, no warning, and without recourse from the customer.  This is also true if no late payments have been made.

But I say this is unconstitutional.  If the constitution disallows the govenment to retroactively change a lawthen since the laws of contracts and the order are established by Congress then in the same manner individual contracts cannot be changed midstream.

No Bill or Attainder or ex post facto Law shall be passed.  Article 1, Section 9.

Putting into a contract that at a specific time the interest rates will increase or putting into a contract that the interest rate shall be adjusted as to according to a third party index is still a meeting of the mind.  But inputting that one of the parties can increase the interest rate so they can increase their profit bottom line in essence has no meeting of the minds at the time of the contract being signed nor could it be.

More on this possibly later.



May 2, 2009

Everyone sees or says there is a recession.  Quite frankly I do not see even a hint of a recession.  I only see a complete accounting debacle which when corrected the economy will be back on the fast track.  Yes, the fast track. 

When the government switched everything to a mark-to-market type of accounting system this instantaneously depressed the financial accounting books.  This is strickly an accounting maneouver and invariable accounting maneouvers correct themselves.  If they do not correct themselves then the CEO, CFO, or the COO will change assets around so the older lighter valued assets change to a more realistic value. 

If the correction in the valuations due to mark-to-market were instantaneoous then the downward push while the market is correcting will be miniscule.  Yes, that means small.  Consider this in a large capitalize stock and a small capitalized stock.  If you are a chartist like I am not you will understand that the resistance point at a specific level is harder to penetrate in a large capitalized stock then a smaller capitalize stock.  I believe part of the reason is due to product or market penetration and the aspects which many products from a single companywill show.  One thing which gets a market moving is the greater demand which one product gets.  The most recent example would be when the swine flu became apparent to everyone just this last week then a very specific and specialized company who had a product which possible could address the swine flu increased in value by 80% overnight.  This really should be of no surprise to anyone.  But if the same company were in a much larger company which might be on the big board and the product would be one of maybe 6000 product the stock may have increased 1% or 5%. 

The product is houses which depressed the United States economy.  Real Estate agents are getting busier.  Slowly the markets are moving.  The real estate market can act quickly and with a positive fever.  (Sorry but I could not resist.)  Buyers have been pent up and the idea of multiple bids on one house could push the markets higher in a very short period of time.  Quite a few houses which previously were on the market were taken off the market.  When the market starts to heat up then those former houses which are off the market may or may not be put back on the market.  If I am a seller then I want the highest price.  If I am mildly optimistic and not particularly motivated and the market gains by $10,000 in one month for the average home sale then my inclinations is to withhold the house until this would absolutely be necessary. 

If the problem is mark-to-market in real estate then really how does this affect business owners without real estate.  Now is the time to look at development and growth.  What you do not need to be caught in is trying to develop a new market when others also have the funds to develop.  Make your presence known and get that early share.  Real estate has its greatest sales in the month of April and this continues for the summer.  The weather brings out a positive extraction of money.  Go for it. 

As sales increase and from my above example they will grow dramatically then if you have not put in the appropriate groundwork then where can you harvest.  If some other company has already done the sewing and you are just planting you will miss out. 

Get to that convention.  Sign up for more contacts.  Press the issue.  I could fire up a sales crew.  Least costs but the greatest impact.  Remember that as your marketing becomes more indirect the costs per individual decrease.  But as your per individual contacts increase your sales are more current.  Weigh the possibilty of that current sale with how long it take to bring that lead to a sale.  TV or radio advertising may be your first step again.  Marketing mailers need to be sent out to help in regaining old accounts and pushing to get new ones. 

I remember my fathers approach to marketing.  He had a printing company and made a catalog of wedding invitation folders to stationery stores, print shops, department stores, flower shops, wedding gown retailers, etc.  Every time he presented a new catalog there was a 20% increase in sales.  He travelled around the region and talked with all of the shop owners.  Once he had an exclusive in a small town with one shop owner.  Another shop owner also wanted the wedding invitation book.  He reluctantly place a catalog their also.   Astonishingly the other store sales were the same and the new store eventually had about the same sales as the other store.  In essence sales doubled.  Cultivate, cultivate, cultivate.  This is what the theme needs to be for your sales people. 

After our competitor bought my dad’s company out they said they could not penetrate the market he had and then tried and tried hard.  So they just bought him out.  This was easier.   

Push the envelope.  Dig deeper.  Listen longer.  But of course, pray longer as well.

Work it and get the plants in the sod so when the weather turns and the water starts to fall you will see an over abundance of plants to harvest.

DO IT!!!

Seattle Tunnel Ballard Community Forum

March 28, 2009

Seattle Tunnel Ballard Community Forum

This forum left more questions unanswered than were answered.

Tolls for one. How much on the tolls. Will it be feasible to collect tolls or will the operations bog down and choke off the entrance.

No answer as of yet on the quality of the dirt. How far down will the dirt dictate to go to non-shifted dirt. Remember that the phrase “Shop ’till you drop” was originated in Seattle. From Western Avenue every 1st floor was at the street level. At First Avenue the second floor was at street level. At Second Avenue the third floor was at street level. So in order to get from the street level on Second Avenue on had to climb down a ladder to get to the first floor of a building to enter the building. If your packages were too heavy or cumbersome then you could literally drop down the ladder. Of course, at that time it was time to drop. This happened when the fill-in dirt was put in. Subsequently the Second Avenue entrance is the equivalent of the former second floor level. The first floor is two stories down.

Why was the above raised is that also in consideration is the slope of the grade for the truck travel. A literally only 5% grade is extremely hazardous to the semi-truck industry. It was mentioned that this grade could possibly be a four percent grade or even a three percent grade when the question was raised. The tone of the answer was not based upon any studies or half-breed evidence but rather what the questioner probably wanted to hear. This type of answer is not conducive to the perception of confidence being instilled by anyone. But rather I smell an alternative plan or in other words a snow job. Is this really how government is supposed to conduct a community forum.

Another comment is that the construction of the tunnel will generate 2.9 jobs for every tunnel job created. Is this really true. I say the 2.9 jobs are just old smoke and mirrors for this particular project. When one job is created additional delays of travel are created for the rest of us. So if I want to go to another job for my second part time job and presently work downtown this will be impossible to do unless I also have a second job outside of the core downtown Seattle area. At night downtown Seattle virtually is dead. An occasional job at the Quest filed or Safeco field could be worked at but will the job expire if no one is traveling to downtown due to the traffic congestion created by a few Tunnel workers. In certain situations an economic model of the creation of 2.9 additional workers is not applicable.

This project also ignors the will of the voters from two years ago. Overwhelmingly the voters said “NO” to a cut and cover Tunnel along the waterfront. What is the difference here. Should not a vote of all of the alternatives be given to the citizens to exactly find out what the voice of the people are for them, “the community”.

The clearest and least expensive choice still is a retrofit which would only cost around $1B. In this day of economic crisis and of BOEING’s major buyer not being able to get financing for jet purchases should not the belt be tightened. The yearly accumulation of funds for this project could be done and this would truly lessen the burden and the interest costs of construction. Interest expense on bonds is really the cost of construction.

The Port of Seattle is also talking about contributing $300 million of the costs and it is really questionable whether infrastructure renovations not directly associated with the Port is part of the Port’s charter. What we do not need is a law suite contraditory to a Public Agencies Charter. Let’s think this thru and VOTE NO on a Seattle Tunnel. Sign I-99 or download and sign I-99 so this City Hall con-game can stop.

Seattle Tunnel versus Viaduct alternatives

March 18, 2009

Mr. Scott White.

I believe you are on the Transportation Committee when I looked this up previously.

Am the treasurer for the initiative I-99 which seeks to take away the right-of-way for the Seattle Tunnel as proposed by Mayor Nickels.

The cost of a tunnel at this time is extremely expensive and Elizabeth Campbell who is the sponsor of the initiative will be having a 100% effort in gathering signatures for this initiative after her Winter 09 class ends.  I will join the signature gathering efforts after the tax season ends on April 15, 2009.

However, this effort would be null and void if the funding for the Seattle Tunnel is not approved by the State Legislature and yourself and the committee on Transportation.

Have spoken with many people concerning this effort, obviously, and almost virtually everyone is opposed to the Seattle Tunnel idea.  Some comments circle around the State Budget and the need to balance the budget and others also still do love the idea of the beautiful travel route which the current Seattle Waterfront Viaduct passes by.  Others are extremely upset that voting does not count and recollecting the vote which overwhelmingly ditched a tunnel option previously.  The voters do not like to be ignored whatsoever.  As you recall I had said I would approve a teachers pay raise as per the voters even if no other state employee were to get a raise as per the voters electing this a few years ago.

Personally I still would like a retrofit of the Viaduct and then an accumulation of funds for the setting aside of funds for other more appropriate roadway construction in about 20 years or so.  I assume you would still like a Street Version of the Viaduct.  Both are incongruent with the Seattle Tunnel alternative and I would wish you to vote “NO” on any approval of a Seattle Tunnel version.

Thanking you in advance for your deep concern on this important roadway structure for the beautification of the Seattle Waterfront and the drivers of Seattle and the enjoyment of the beautiful vista which drivers are able to enjoy at the present time.  An enjoyable drive while in Seattle will remain if you agree to Vote against funding of a Seattle Tunnel project. 


Keith Ljunghammar, EA