Good afternoon everybody and welcome. I'm Susan Collins, the Joan and Sanford Wildein of the Gerald R. Ford School of Public Policy and I am so pleased to see all of you here with us this afternoon. I would like to give a special welcome to our speaker, House Majority Leader Eric Cantor. We are very pleased to have you here with us this afternoon. This speech was originally planned for last February, but we were snowed out and so we are particularly pleased to have been able to reschedule an opportunity to host the congressman to hear from him and to be able to engage him with some questions. I would also like to recognize some dignitaries in our audience. In particular, we are joined by Regent Andrea Fisher Newman, by Regent Andrew Richner, and by Regent Katherine White. We're very pleased that you could join us. We also have with us a number of elected state and local officials and it's a pleasure for us to have them here with us this afternoon. We have the President of the University, Mary Sue Coleman, and a number of university leaders here with us as well.  Please, I'd like you to note that after his remarks, congressman Cantor will be taking questions. I know a number of you have already given your questions to members of our staff and there will be opportunities for that. The questions will be read by members of the Ford School community, in particular professors John Chamberlain and Phil Potter, as well as three of our graduate students who will introduce themselves to you. They are also following on Twitter and those of you who are watching online, I invite you to send along your questions for the congressman as well. Well, with that, for formal introductions of our speaker, it is my great pleasure to welcome to the podium University of Michigan's President, Mary Sue Cantor. Mary Sue Coleman. No, no, no, this is just because last night I was giving a speech and I had a Freudian slip as well. So, Susan, welcome to the club, but thank you, Susan, for hosting today's program and for your leadership of the Ford School. The Ford School is one of the nation's leading schools of public policy and just a few years shy of its 100th anniversary. As one of this university's most distinguished graduates, President Ford honored us by allowing us to use his name for this distinguished school. I believe that he would have appreciated today's program and all that surrounds it. He served as a member of our faculty after leaving office and, like our speaker today, enjoyed interacting with inquisitive students. He was competitive as both an athlete and a politician and appreciated a spirited battle.  His alma mater, after all, was the birthplace of the college Republicans as well as students for a democratic society. Few campuses can lay claim to such diverse political views. The University of Michigan has long prided itself on its diversity and that spectrum includes the appreciation of and respect for varying viewpoints and political philosophies. President Ford understood this. Listen to his words. Tolerance, breadth of mind and appreciation for the world beyond our neighborhoods. These can be learned on the football field and in the science lab as well as the lecture hall. But only if students are exposed to America in all her variety. As a university, we take seriously our obligation to open the world to our students through coursework, study abroad, museum collections, and campus visitors. Today, we welcome the majority leader of the U.S. House of Representatives, Congressman Eric Cantor. Representative Cantor is in his eleventh year in Congress where he represents the Seventh District of Virginia. The Seventh District includes much of Richmond where the Congressman was born and raised. Prior to his election to Congress, he served nine years in the Virginia House of Delegates. Congressman Cantor became House Majority Leader this past January after serving two years as Minority Whip. He holds degrees from George Washington University, Columbia University, and William & Mary. The Congressman has once more, has one more significant accomplishment to his name, and that is being the parent of a Michigan student. His daughter, Jenna, is a U of M sophomore, and I'm sure that it's a thrill to have her father visiting today. We are pleased to host this visit. Please join me in welcoming Congressman Eric Cantor. Good afternoon. Thank you, President Coleman, for those very kind remarks. Dean Collins, thank you very much for the invitation. I'm thrilled to be here. It truly is always a treat to be here in Ann Arbor, certainly as a parent of a sophomore as a budding wolverine that she is. Also, I'm glad to be here as a strong admirer of this institution, the University of Michigan, that is a world-class center of educational excellence that I have seen over and again throughout my visits here is an institution based upon the spirit of innovation and American know-how. A 38th President, Gerald Ford, for whom the School of Public Policy is named, said, The world is ever conscious of what Americans are doing, for better or for worse, because the United States today remains that most successful realization of humanity's universal hope. It is that hope that has always set us apart and made America such a special place. But today, that hope is challenged. I come to you at a very controversial time in our nation's history. A lot of us are asking what the future holds for you and for our country. And in a much bigger way, we are wondering what kind of country do we want to be? When I think about the kind of country that I want, when I think about the kind of country that I want to leave my children, I think about my grandmother's story and how my family got to America in the first place. My grandmother and her family fled religious persecution to come here to America at the turn of the last century. Like so many of her generation in Eastern Europe, my grandmother faced a future where no matter how hard she worked, no matter how much she studied, no matter how smart she was, there were limits. Just because of who she was, who her parents were and where she was born, there was only so far she could go, only so much she could do. But our country is not like that. America offered opportunity. My grandmother eventually made her home in a working class neighborhood in my hometown of Richmond. As you can imagine, in the early 20th century, the South wasn't often the most accepting place for a young Jewish woman. Widowed by age 30, she raised my father and uncle in a tiny apartment above a grocery store that she and my grandfather had opened. She worked day and night, sacrificing tremendously to secure a better future for her sons. And sure enough, this young woman, who had the courage to journey to a distant land with hope as her only possession, lifted herself up into the ranks of the middle class. Through hard work, her faith, through thrift, she was even able to send her two sons to college. All she wanted was a chance, a fair shot at making a better life for her two sons. And if she were alive today, I know she'd be blown away by the fact that her grandson is not only a member of the United States Congress, but is also the majority leader of the U.S. House. In deciding as a country who we're going to be, we need to be sure that the opportunity my grandmother realized is here for all of us. It really is about that fair shot. No matter who you are or where you're from, all of us should have access to the opportunity to earn the success that we're after. The basis upon which America was founded, and the basis upon which America thrives, is providing people with the equality of opportunity, not equality of outcome. There is a ladder of success in America. However, it is a ladder built not by Washington, but by hard work, responsibility, and the initiative of the people of our country. It is built by people like Henry Ford, who worked hard and took risks to bring us the hallmarked symbol of innovation. The American automobile. My grandmother worked her fingers to the bone so that her sons could have a better life than she did. Her sons, my dad, didn't disappoint her. He respected her sacrifices to send him to college. He took that opportunity and started his own business in real estate with little more than the drive to succeed. Emulating my grandmother's work ethic, he was able to provide a quality of life for my mother, brothers, and me. Why? For the very same reasons that inspired my grandmother. She wanted a better life for all of us. It is this foundation, hard work, faith, family, and opportunity that provides each of us with the prospects of unlimited potential in America. Each generation is able to get a little further ahead, climbing up the ladder of success in our society. How quickly you move up, or sometimes down, should be completely up to you. Much of the conversation today in the current political debate has been focused on fairness in our society. Republicans believe that what is fair is a hand up, not a hand out. We know that we all don't begin life's race from the same starting point. I was fortunate enough to be born into a stable family that provided me with the tools that I need to get ahead. Not everyone is so lucky. Some are born into extremely difficult situations facing severe obstacles. The fact is, many Americans are coping with broken families, dealing with hunger and homelessness, confronted daily by violent crime, or burdened by rampant drug use. I was recently asked, what does your party say to that nine-year-old inner city child scared to death, growing up in a life of poverty? What can you do for that little girl? Well, we know there are no easy answers. But I believe that child needs a hand up to help her climb the ladder of success in our country. She also needs some guarantees in life. She needs to know that the rules are the same for everybody. That although she may have to work harder than many of us, she needs to know that she has a fair shot at making it in this country. She also needs the advantages of a solid family around her and a community that encourages her to learn and work hard. She needs some semblance of stability. The question for us is how can we help provide that? Stability starts in the home, but it can also extend to places of learning. Especially for those children facing the toughest circumstances, we need to ensure access to the best schools available. If that is a public school, great. Some say charter schools help to provide greater stability, and I wholeheartedly agree. In fact, President Obama has also expressed support for charter schools. Earlier this year, the House of Representatives passed the Bipartisan Empowering Parents through Quality Charter Schools Act that encouraged states to support the development and expansion of charter schools while streamlining the federal funding to reduce administrative burdens. In California, parents have banded together to ensure that schools are being held accountable and can transfer their kids to better schools or even start a new one where it's needed. Kids in many cities actually line up for lotteries for open slots at better schools.  We should give that little girl a hand in attending a better school, providing a chance at greater stability, thereby increasing her opportunity for success and happiness. We also need to be concerned about helping parents. Take the single mom living down the road in Detroit. After she puts her kids to bed and rests her head down at the end of each grueling day, she may be wondering if her job will still be there in the morning. She's probably stopped dreaming about moving up the ladder just about now. She's more likely just worrying, hoping, praying she doesn't fall down or off of it. We need to find a way to restore her faith that moving up the ladder even slowly is still possible in this country.  She lives paycheck to paycheck. Maybe she works two or even three jobs and has to worry about how she can take her sick child or parent to the doctor. Maybe she'd like to attend a play that her little girl is performing in school but has to work. What is this working mom to do? How can we provide both her and her children just a little bit more stability? When asked, many working moms say, what they need most is just a little bit more time to be with her kids. We should find ways to encourage employers to provide working parents the flexibility to attend to their children's needs. One option is to allow private sector workers the ability to negotiate with their employers to choose between comp time or overtime pay, a benefit that federal, state and local government workers have had for years. Does this solve all the problems? Of course not.  Maybe one day her children will be like many of you. As students at Michigan, most of you will be much better positioned than most to land a job of your choice after graduation. But for the majority of young people in this country, small businesses will give them their start. These employers are the restaurant owners, the healthcare providers, or the auto parts distributors. Small businessmen and women are the key formula for success and opportunity in America. Each one of them took a risk and did whatever they needed to make it work. They dipped into their savings or borrowed from family to start their dream. They committed countless hours in determination. They committed their lives in pursuit of that dream. They may employ just a few people, but each one of these individuals is able to start building a better life for their families just because one person took a risk. We should make it easier for people to take a risk and to start their dream. This week the House of Representatives will be moving a bill to ease regulations on access to capital so we can give these risk takers a hand up to achieve their dream. In America, happiness is defined as a pursuit and that definition comes from our founders in the Declaration of Independence. Pursuing both happiness and independence derive from the ingenuity and grit of the American people, not the American government. America is a special place different than any other on earth. Here's an illustration. Last year I received a letter, actually from a recent Michigan grad who was taking a year to work in the UK. He was amazed how differently entrepreneurs are regarded in Europe, how opportunities seem limited, how existence seems somewhat dull, and how hope was missing. The friends he met said they couldn't even imagine an entrepreneurial hotbed like Silicon Valley existing in Europe or how they would handle such an amazing chance to advance. He wrote, starting a business, even if you fail in the process, is a badge of honor in the US. But in Europe, entrepreneurship is often frowned upon and consequently, the best and the brightest are afraid to take a risk. Even though they are very smart and educated, when I ask them about their career path, no one ever mentions starting a business. Think about it. In America, starting a business isn't something that's only possible, it's something to be expected. However, today, that is now being questioned. People in this country have become afraid to take a risk. Many have lost their optimism about the future. They're frustrated. And the core of this frustration stems from a belief that the same opportunities afforded to previous generations no longer exist today.  What happened to the hope of surpassing the success of your parents? What happened to the unyielding American exceptionalism and the sense that in America, impossible dreams are possible? There are politicians and others who want to demonize people that have earned success in certain sectors of our society. They claim that these people have now made enough and haven't paid their fair share. But pitting Americans against one another tends to deflate the aspirational spirit of our people and fade the American dream. I believe that the most successful among us are positioned to use their talents to help grow our economy and give everyone a hand up the ladder and the dignity of a job. We should encourage them to extend their creativity and generosity to helping build the community infrastructure that provides a hand up and a fair shot to those less fortunate like that little nine-year-old girl in the inner city. These groups of innovators are the leaders of companies that create lifesaving drugs for our sick parents and children. They take risks, like Henry Ford did, to create companies that employ our families, our neighbors, and our friends. They are also the social entrepreneurs who support the charter schools, the opportunity scholarships, the private job training programs, the community centers, and other elements of community life that provide stability and constructive values to children and their families who are struggling. They are trailblazers like Steve Jobs, a man who started with an idea in his garage and ended up providing iPads and iPhones to millions and changed the world. Job building and community building are what successful people can do. Through his example, you can see that America needs more than just a Jobs Plan. We need a Steve Jobs Plan.  In a Steve Jobs Plan, no American, regardless of their condition, believes that they are unable to rise up. And in a Steve Jobs Plan, we don't believe that those who succeed somehow take away from those still working their way up the ladder. Why? Because those who earn their success not only create good jobs and services that make our lives better, but they give back and help everyone move just a little bit further up the ladder and everybody can win. So instead of talking about a fair share or spending time trying to push those at the top down, elected leaders in Washington should be trying to ensure that everyone has a fair shot and the opportunity to earn success up the ladder. The goal shouldn't be for everyone to meet in the middle of the ladder. We should want all people to be moving up and no one to be pulled down. How do we do that? It cannot simply be about wealth redistribution. You don't just take from the guy at the top to give to the guy at the bottom and expect our problems to be solved. A recent survey of over 500 successful entrepreneurs found that 93% came from middle or lower class backgrounds. Most of them were the first in their families to launch a business. And those at the very top of the very first members of the Forbes 400 list published 29 years ago, less than 10% remained. So people are moving up and down the ladder. They're just not moving up fast enough. That is precisely why we must ensure fairness at every level of the economic ladder. We must ensure that those who abuse the rules are punished. We must ensure that the solution to income disparity is increased income mobility. We must give everyone the chance to move up. Stability plus mobility equals agility. And in an agile economy and an agile society, people are climbing and succeeding. So income mobility is the key. But far too long indicators in our country reflect a sagging rate of mobility. Too many people are not moving up. So our efforts should be geared toward figuring out how to accelerate income mobility. From how we help those who are unemployed. To ways to encourage entrepreneurs and startups. To encouraging the best and brightest to stay here in America. There are many solutions that will help people succeed and grow the economy. As Americans we care about everyone. We should want everyone to be successful. We want everyone to see the path forward.  We've always been a country of risk takers and innovators. We need Washington to remember that. And to believe in innovation. And the kind of innovative excellence and leaders who are here at Michigan. When this happens more people will be moving up the ladder. But Victor Frankl, who wrote Man's Search for Meaning, one of the most influential books of the 20th century, had a vision that I share. On the east coast of America stands the Statue of Liberty. But on the west coast, said Frankl, should stand a statue of responsibility. In my vision, when these two statues join hands, the American people create a bridge that spans the whole country. A bridge of opportunity. And on the pillars of that bridge we must erect our ladders. With those who are successful extending their hands to those who wish to climb. It is students like you, the successful leaders of the future, who can be the designers and builders of our ladders. It is you who can determine the dimension, the durability, and the direction of America's ladders. Each of you will move on from U of M and under the workforce. Many of you will take a risk and are in success. And who knows, some of you might forever change the world like Henry Ford and Steve Jobs did. But as you do, don't forget that we want everyone to be moving upward. As you do, hold out your hands and help pull others up the ladder. Help them move up in your school, in your community, and in your workplace. That's who we are as Americans. We should all be committed to America's rising. Thank you very much. I'm a graduate student of the Ford School and I'm reading a question on the audience. Recently a majority of economists reported that the extreme austerity measures you support would be detrimental to our economic recovery of the year term while realizing that in the midterm we need to address the deficit. How do you respond to these announcements? Well, you know, I think the situation in our country is this. We've got two crises. We've got a deficit crisis that's been in the works and the making for several decades. And we've got a jobs and economic growth crisis. And the goal should be to try and solve each without hurting the other. And so the deficit crisis is caused by annual deficits we're racking up in the federal government that exceed a trillion dollars annually. We cannot continue to sustain that kind of spending because at some point the world investors will stop granting us loans to exist. So some of the issue is how do we go about trimming the fact that has garnered and grown in Washington without damaging the prospects for growth that I just spoke about. And so we've got to strike the balance. We believe very strongly fiscal prudence is needed right now. And you do that by making sure that reform sets in in Washington that we don't just continue to allow things to operate the way we are. And we try and do so without taxing those people that we're looking to to create jobs and get economic growth going again. I'm also a graduate student at the Ford School. And I'm reading you a question from Twitter. You talked about charter schools as a mechanism for providing stability so that people can move up the economic ladder. But is there a chance that charter schools would become a mechanism for segregation widening the achievement gap between those who can move to them and those who cannot? I think where we have seen charter schools succeed most is in areas of socioeconomic challenge. And that's where the need is greatest because as I indicated before people who can afford to move to areas where the public schools are good are going to do so. The problem is we leave behind children who are trapped in failing public schools. So we need some reform to the public school systems for sure in this country. Charter schools have provided to be a great way to affect that kind of reform. And as I indicated evidence across the country seems to be that parents are signing up because they want what's best for their children. And so I don't believe that the data is there. Certainly we always want to guard against a potential outcome such as you suggest. But I think the evidence is pretty strong that charter schools in many areas of the country offers the only hope for children to receive that quality education. Again, I'm a big fan of the public school system. All three of my children attend the public school system all the way through K-312. And now one here at the University of Michigan, one at the University of Virginia. And I've got another still in public school systems in Virginia. So if it can be a public school, great. If not, we ought not look over those kids who desperately need our help. Public policy. Last Thursday, the Bertelsman Foundation in Germany issued a report on social justice in 31 OECD countries. The United States ranked 27th on the list. We ranked 28th in income inequality and the bottom third on key indicators of equal opportunity. The study notes that social justice and economic performances are by no means mutually exclusive. Northern European countries in particular demonstrate that the opposite is true. This study paints a very different picture of the American dream that you have presented. It would appear that the American dream is alive and well, but living in Scandinavia. What role does the pursuit of social justice play in your party's efforts to confront the economic and budget crisis facing our country? Social justice is about fairness. Fairness is making sure that we afford opportunity for everyone to pursue their happiness. And again, I see there's a lot. There's several folks who stood up to say tax rich, that that's somehow fair. And again, I spoke to this just earlier saying that many people today, including some of our elected leaders, think that some on the top of the income scale have made enough. And that all we have to do is redistribute that wealth and we're going to create the American dream for more. I think economic data would indicate that doesn't work. Something else is amiss. And what I would say is amiss is the fact that we don't have enough jobs and opportunity for the middle class in this country. And we need to focus on how we return to where we can allow for wealth to be distributed. But it's not by having government take from one and give to another because that's not going to work. We need to make sure the rules are the same for everybody. We need to make sure that the concentration of power and the ability to allocate capital coming out of Washington is limited. Because we've seen the dangers of allowing Washington to pick winners and losers. The government's role in this country is one to ensure equality of opportunity. That means certainty of rules in their application. That means more opportunity for all, not necessarily equal outcomes. And again I spoke earlier about the fact that all of us don't start in the same place. And the proper role for government is to identify those who are struggling and to allow them a better sense of stability so they can get back on that track to pursuing their happiness through earning their success. That's what this country is about. In 1981 and 1993, Republican administration tripled the debt. And between 01 and 09, Republicans doubled the debt as well. Why should we trust the Republican administration? I don't want to miss the opportunity to at least put the facts out there. And the occurrence of debt over the last three years far exceeds that which was incurred of the periods you mentioned. But let's not go about blaming because there's enough blame to go around on all sides. Again, to be constructive here is the goal. So if we're going to solve problems, we all have to accept the fact that there's too much spending. And yes, too much spending under Republican administrations, too much spending under Democratic administrations, too much spending under Democratic controlled Congress, too much spending under Republican controlled Congress before. But things have changed now. The urgency is upon us. We can no longer afford to incur trillion-dollar deficits off into the future. And that's the math does not lie. We cannot afford to continue this route. Which is again why, as you've seen, the Republican majority in the House has insisted that we begin to turn the corner and to begin to solve problems rather than continue to kick the can. Question from our audience. Looking back on your career in public service, would you please discuss one instance where you had an experience that you can learn the lessons from? Well, I think any of the parents here can agree with me. You learn lessons every day as a parent. But listen, we have instances throughout the legislative process where you have to continue to be able to look towards the future and you need everyone to help solve the problem. In a legislative body, that means in Congress, you've got 435 people that you need to work with. And I think probably the most recent and probably topical lessons that we're learning right now has to do with the debt ceiling debate. And what has come through over the last eight or nine months throughout that debate is there's a real divide in Washington. The two sides really don't see eye to eye as to how to correct the problem on the deficit. And frankly, we don't see eye to eye on how to grow the economy. So it's really taxes and the issue of the deficit caused largely by healthcare entitlement that we can't yet come together on. But what I've learned throughout this process is there is a tremendous amount of progress that can be made sort of in the middle. If we begin to try and set aside differences, agree to disagree. Reasonable people can do that. I think that many of us know that's how you conduct your life. That's how you conduct your business. I love to say my wife of 22 years is here with me. And believe me, we've learned how to raise a family coming as two different individuals to this unit of ours as a household. Agreeing to disagree every day. But yet being able to move forward with the ultimate goal of providing a constructive and stable environment for our children. That's how it's done. And the same can be learned in Washington. And as we face the challenges that we are upon us with the debt ceiling deadlines and the necessity for us to curb spending and to grow the economy, we can deliver on that. State's rights in the Constitution with your support of the Defensive Marriage Act. So I've always been very straightforward about this. I just believe in traditional marriage between a man and a woman. So, you know, I think obviously a very controversial subject, but something that I believe in. And obviously there's a lot of others that perhaps feel differently. Well, I would again say that we all, no matter what we are, who we are, what the background in this country should allow for equal opportunity to earn the success that we're after. That's what this country is about. And I think that's where we all need to stay focused. Again, from the audience. You answered the question. State and in some cases, localities have flexibility in how they administer income support and workforce development programs. What are some examples of programs that you think embody the ideals that you talked about in your speech? Well, one of the issues that we're confronting right now is how to deal with 14 million plus people unemployed. And in fact, there are four million people in this country equal to the size of the population of Kentucky that have been unemployed for over a year. So it's a huge issue. And how do we deal with unemployment benefits in that environment by helping promote access to a job? Because I don't think people really want just an unemployment check. They want a job. And so how do we relate some of the federal benefit program to getting a job? And there are some states out there, Georgia for one, who has a program called Georgia Works. And there is sort of a hybrid situation where an individual can have some type of apprenticeship or a position while also receiving benefits under an unemployment benefits program. Again, this is exactly, I think, the direction that we need to go, the kind of flexibility that was taken advantage of in Georgia that perhaps we can see on a national level. And it's really a place where both sides can agree. When the President addressed Congress a few months ago, he actually mentioned some progress that we can make together on the unemployment benefits program. I'm John Chamberlain, a member of the Ford School faculty. You spoke a few moments ago about working in the middle. And I wonder if you could tell us what the middle looks like to you in terms of coping with the cost of health care, the availability of health care. Where do you see there to be work that both parties can engage in? What does the future look like? Well, I think when you talk about the middle on health care, we all start with the notion that we care about people's health care. And no one wants anyone to be sick. But it happens that we want to try and provide a solution to that. So we do need to be able to afford as a country the social safety net that's there for the people who can't afford it or take care of themselves. And that's a priority. How we get there means we've got to have an affordable delivery system while at the same time allowing for access to most of us who are enjoying the world's best. Health care in the world and the world's best health care. And I will say it today, even though there are plenty of problems with our system.  You will come in fact to Ann Arbor to come be treated. So we know we've got a system that's able to produce quality. It's just expensive and too out of reach for too many people. So the middle is about how we can control costs and how we can get to a place where more people can access the program. Unfortunately, the health care bill that was passed a year and a half, two years ago, went in the opposite direction. And the budget folks in Washington have validated that the Patient Protection Act does not do anything to curb costs. And public option would be the worst because what you would have is even more government-centered care without the ability for patients and their doctors to be the critical decision makers. You don't want, you don't want third parties deciding for you what best the treatment is. You want patients, you don't want insurance companies being the primary decider either, that's for sure. So we can find a middle here, we can all agree that's patients and their doctors. That should be the important piece, building a successful health care. My name is Bill Potter, I'm an assistant professor at the Ford School of Public Policy and I have a foreign policy question. You've been a strong supporter of the state of Israel throughout your career. Can you tell us, do you believe that support for Israel is in the U.S.'s strategic interests? First of all, there's no doubt in my mind that Israel plays a huge role in the strategic security interests of the United States. It is our only democratic ally in a very tough region. And over and again it has demonstrated its will to continue to stand up and fight in the same war that we're fighting in this country. Several months ago we observed the 10 year anniversary of 9-11. I think that reminds most of us that we are at war, that there is an enemy out there that seeks to destroy everything that we're about. We're about freedom, we're about human progress. We're about rights of minorities, rights of women, freedom of expression, the freedom of the press, transparency of the judiciary. These are the things that we're about. These are the things that Israel is about in a region that does not share those values. In a region that has players with dictators and regimes intent on destroying those of us who stand for those values. So from a strategic standpoint, Israel is critical. And from a moral and value standpoint, American Israel start and end at the same place. And as we go forward, we must, through our policies, look to see that Israel's security is maintained. And its ability to secure its population is inextricably linked to the security of the United States and our interests in that region. Under questions from the audience, why are you in support of reducing or getting rid of Pell Grants when they help many middle class college students like myself get to college? Yes, I think the underlying and your direct question allegation, I don't know is accurate, but let me just say this. The underlying issue around which Pell Grants and other programs are built is the increasing cost of higher education in this country. We need to focus on that. We need to focus on whether that's going to be a priority. And certainly I think when we were talking with some of the administration earlier today, the investment in higher education has an infinite return. For parents who want their kids to have the critical thinking ability, we do anything to try and afford the access to that quality education. And as budgets are squeezed, there is nowhere else perhaps for some to turn but to raise tuition. And across the country this is becoming a real problem. And so it's not just Pell Grants, it's much larger than that. How do we deal with the situation as it is and put incentives in place for better management, for more efficient use of facilities? There are any number of issues that this university and others deal with to try and accomplish the goal that I think is behind the question, which is to reduce the overall cost to a student so that he or she can have the benefit of a quality education. Do you think the Occupy Wall Street protesters have any legitimate concerns? If so, what are they? Those involved in the Occupy movement are frustrated just like many, many Americans are frustrated right now. And why shouldn't people be frustrated given the ailing economy? And what I've said before is the IR really should be focused toward the policies that have been coming out of Washington that have really provided the platform for a lot of the activity and results that those were frustrated see. And so with that frustration, and again my message today is let's not pit one against another. Why is it that there is part of the society okay and part of it not okay? That's not who we are in this country. This country is an aspirational country. We are built on the hope that all of us will reach the American dream. And again it goes to the core I think of my message and that is we shouldn't root for anyone to be torn down. We should encourage, implement policies that allow for wealth mobility, not just for wealth redistribution. It doesn't work. We've seen that. We've seen that in Europe. We've seen that elsewhere in the globe. Simple wealth redistribution to accomplish what we're talking about which is to even out the wealth distribution doesn't work. We want increased wealth mobility and that should be our focus. So again, frustration yes. Our ire and hatred towards certain people is not something that is constructive and I don't think is reflective of the majority of American people. Thank you very much.


So you come to a book like Corsi Miracles and he goes okay The world's an illusion But you're dividing the world up into the good illusions and the bad illusions The painful illusions and the pleasurable illusions thereby denying that it's an illusion You know you if illusion means not real or unreality. You can't have good unreality and bad unreality You can't have pleasurable unreality and painful unreality If you follow the ego's trap all you're doing is you're saying no The world of duality is reality. I mean if you follow the ego That's the only conclusion you can come to and then what do you get if you get that then war is real then Pestilence and disease you have to get though you get the whole package If you deny the truth and you accept illusions, then you end up with a package of Illusions that seem real and they do seem very real when you are believing in them. It's like a self-sustaining prophecy.  You're gonna be a miracle worker and it gets a real specific training program There are many other pathways to it too. The course is not special It's not there's nothing special about it.  You start having things happen in your life That is showing you that this is not A world of randomness, this is not just a Place where there's some that are lucky and some that are unlucky Some that get dealt a good hand and some that get dealt a bad hand you start to realize that it's all happening For the awakening that everything that's occurring is purposeful Because of the purpose behind it and the most important thing about the course is is it It takes you past the idea that you're a victim There's a line in the course that says I am responsible for what I see I Choose the feelings that I experience and I decide upon the goal that I would achieve and Everything that happens to me. I ask for and receive as I have asked Now that is a pretty tight picture There is no way that you could follow that teaching and proceed yourself as a victim of the world If if you're totally in charge of your state of mind and you're totally in charge of your feelings and your thoughts and your perceptions, then there is no one and no thing that can ever burden you in fact There's a an early workbook lesson where Jesus says I can be hurt by nothing except my thoughts Except my my thoughts I can be hurt by nothing except my thoughts in other words if you're suffering There is only one cause of that suffering and that's the thoughts that you're thinking the thoughts that you're holding on to Jesus calls them attack box attack Attack attack off attack thoughts Attack thoughts thoughts Attack thoughts to attack song. Yes So that's why we go into these ideas so carefully because you have to expose all the unconscious attack thoughts in your mind and then release them And in fact, he starts out lesson one Nothing I see means anything Lesson number two. I have given everything I see all the meaning that it has for me And he continues on going back and forth between number four is These thoughts do not mean anything So he's going back and forth between the perceptual world That you think you see and The thoughts in your mind that you think you think and he's saying That world is not your real world that we're out there with seemingly out there with all this pain and suffering and Pleasures and all this craziness going on.  Those aren't your real thoughts and He actually goes so far as to say that the world that we see is a hallucination It's kind of like being in the desert someday. You know when you're really hot and tired Yeah, it's just like a hallucination very much like with drug experiences when you feel like you're hallucinating He's saying well your everyday world Is the same this is pretty humbling stuff. I mean it's like oh my god, could I have been duped? that much To believe in a world and he says yep, he said You built this world you learned it You just kept adding layers and layers and layers of illusions on top of each other The opposite of peeling and you you built the onion or for people who like the sports metaphors like the inside of a golf ball You ever seen the inside of a golf ball you got the core and then it's wrapped With all these layers of rubber like rubber bands strong really tight He said you never stopped to pause in your building of this world. You never stopped to pause to say what am I doing this for? You just kept building and building and building illusions upon illusions upon illusions making it more and more complicated and Never stopping once to ask yourself. What am I doing this for? What's the purpose of all these illusions? So now he goes the other way and he says now we're gonna start peeling We're gonna start going through the the illusions. We're going back to the core and that's really what This course of miracles is all about It takes it just takes growing this you don't have to be rich. You don't have to be famous. You don't have to be intelligent You don't have to have special skills and abilities. I certainly look at my life and I was shy and reserved and I Was I was unsure and uncertain and doubtful in so many ways in my life and Now I feel like I'm Confident I'm certain. I'm sure I mean vulnerable. I can go to countries now Where there are gunmen armed gunmen Around me a regular base today. I've waved to him I kind of go by I get the big guns and I kind of smile away that He believed me when you're in purpose and you're serving God I think one time that there's maybe in the Bible with if God is with us who can be against us is Kind of the way that it says in other words if you're tuned in with your purpose Your purpose you are safe. You are safe. You are you are more safe and secure than any amount of weapons Yeah, or anything could ever do that's where you get your invulnerability the same applies to the chicken What do you see there are the bird through? It's one how hysteria and then the the matter. They go with their mask and everything and This is packed everything and kill everything that could be looking like a So this is important to know because what this is doing now Imagine now the spirit in you is going to work with your belief system and It's not like the aesthetic paths. You don't have to go out and and live on the mountain and not have any ice cream and I never have a piece of candy again. And we're not talking about that What we're talking about is that the spirit will actually use your belief system When you start to open to it and you made up with horse racing horses Ice cream It's not to say to you guys because the world is me. All right, Jesus. I'll be a miracle worker What am I gonna give up? No, no, it goes the other way. It's like the spirit uses your preference pattern and you get like these whims For horse, maybe for things that you don't even want Playing and asking God I need my husband and I need something to join on to come together And then you end up with horse races Something that you never in a million years in a million years you could have never foreseen that But it's just the way that the spirit works. It's it's humorous. It's cosmic humor. It's funny You have a ball to anybody who thinks this is a journey of sacrifice. No way I feel like I just got in I'm having more fun now Flowing around in the spirit than ever and it's not, you know Ceremonious churches and I've got to give them mass and an afternoon mass or worse. I'm kind of be having a roving anything I probably did that in the past That's my for Sunday, but but now it's like it's spontaneously flow with the joy


What's up everybody Jason here for Jasmine's case breaks calm We just sold out a filler here to give away 10 spots in a Mac in the basketball Ran on teams break with this 2021. Can you need prison multipack cello one pack break ran on teams number 222 So 223 is on the website. I actually sold out as well. So we'll be doing that a little bit later But this is 222 and Here we go guys. Let's do the break first two and a three five times. Good luck one two three four five Brian Frank done a John Paul five times Why they're losing? Cleveland down to the Indiana Pacers All right, again guys. Thanks. What you got of course just a quick little pack filler Austin Rivers and look at that a James Why's been green? We go guys good luck nice little James Weisman that's gonna go to Golden State and Carl Number top ten or in guys. Good luck now roll it and it is a another two and a three game same thing I just for look at that legit times times of course different, but Same thing. Good luck guys five times one two three four bone five times top ten are in Carl Nick Brian Carl John Carl Brian Brian Michael and Brian. There you go boom Top ten are in guys boom Like I said, the second one did sell out So we'll be doing that a little bit later. That's like one of our last breaks of the night And I'll go through some waters to see who sold that out. I appreciate you guys Jasper's case rakes calm


Hey everyone, Drew with GeoArm, and I am back to talk to you about the Honeywell Home Pro Series, Pro A7 and Pro A7 Plus panels, and how to get the Honeywell Home Pro Series, Pro 6CT encrypted wireless door window contact, and rolled into the panel. Now this is pretty easy to do here. What we're going to do is, before even getting started on this, you need to verify that your firmware is the up-to-date version that allows for on-site programming. If you do not have your firmware updated, you will need to get your firmware updated prior to being able to do this. So give us a call, we'll get you activated, we'll get the firmware updated, and then from there you'll be able to do this. So the first thing we're going to do here is we're going to go ahead and get into our programming menu by pressing the menu button at the bottom here, scrolling down to tools. Enter your installer code, which mine is the factory code of 4112. Once you're in there, you're going to go into programming. It'll say entering programming mode, and then you'll see a brand new menu up here. What we're going to do is we're going to go into peripherals. This is where the zones are going to be programmed. This is the exact location, so just make sure you see peripherals here, and then go ahead and hit the plus sign. Now at this point it does want you to enroll the device. So what I found is you just want to pop the cover on it. You'll see the green light blinking fast there, if you do see that right now. And once that is done, it'll go solid for a moment, and then you'll see it learn in on the panel itself. There it goes. All right, and that is how you learn in that contact. So what we're going to do now is we'll go ahead and we'll get it edited and adjusted to your specs. So you see it is enrolled, six contact, it gives the MAC address. You can go ahead and verify that that MAC address matches by reading the MAC address, which is located right here. Then what we're going to do is we're going to choose what this device's responsibility is. So this is going to be a read switch device here, and you can also change it to external. I'm sorry I didn't even speak on that, but you can change it to an external device if you wanted to wire an external contact to this. You can definitely do that. This one I'm just going to leave as a read switch. We'll go ahead and we'll name the zone. So zone descriptor one, I'll go ahead and I'll put it in front. As you can see it populates there. Then I'll put in for descriptor two, I'll put inside. And then you can just choose that from there, save it. Okay, the device type, I'm going to leave this as a door, but this, like I said, can also be several other things. It could be a window, garage door, any kind of device except for motion, et cetera, et cetera. But door window, I'm going to go ahead and set this as a door. And we can do this as a delay type, which would be entry exit one, or we can do this as an instant type, which would be perimeter. It's up to you. There's also an additional delay if you were trying to vary delay times. But in this case, I'm going to leave it as entry exit one. And this is where you spec it out here. So supervised, we do want it supervised. We do want the alarm to report. So if this does go off, we do want it reporting. And then you can choose what kind of chime it does. So it'll do standard, melody, melody, long, ascend. There's all kinds of different ones. I'm just going to go ahead and choose the standard one. At this point, it has been learned in and all the programming is correct here. So you're just going to go ahead and press either save and add another if you're wanting to add another zone, or you just hit save. In my case, I'm going to hit save because I don't have anything else to program. So it does learn there. You can see strength of it and everything there. We're going to go ahead and hit the back arrow all the way out of programming so that we can test this device. So it does have a tamper on it right now because I do not have the back plate on it. So that'll go ahead and get that cleared out here. Sorry, I've got to change it to four, three, two, one. So now we'll go ahead and we'll check this thing out. It should be responsive to us now. Okay. Then we'll close it and you see that it's ready. Ladies and gentlemen, that is how you program in the Pro 6 CT encrypted wireless door window contact from Honeywell Home into the Pro Series Pro A7 or Pro A7 plus panels. If you guys have any questions or any comments, please leave them below. Other than that, take care and have a great day. Subscribe to our YouTube page and click the show more tab underneath the video where you can view valuable links pertaining to this product, similar how-to videos and our low-cost, no-contract alarm monitoring services.


You you and me, World War 3 started with 9-11, escalated with C-19, yeah. Gang, for those of you that don't remember, Bush Jr. actually officially stated that. Bush Jr., in the early 2000s, stated that 9-11 was the beginning of World War 3. In the mid-2000s, I was writing articles that we were in World War 3, and we were in World War 3 in the mid-2000s as well. They had planned on attacking Iran then, but they failed. The new cons failed. Okay. They, for multiple reasons, because some of their plans were being revealed and they couldn't go along with it, right? So I agree with... Who said that?  World War 3 officially started with 9-11, and it was an attack on American citizens as well with the Patriot Act. That's when things really began, okay?


Income tax 2022-2023. Residential rental property, rental income and expenses if no personal use of dwelling. Part number one, let's do some wealth preservation with some tax preparation. Most of this information comes from publication 527 residential rental property including rental of vacation home tax year 2022. You can find on the IRS website irs.gov, irs.gov. Support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Connect the income tax formula we're focused online one income remember in the first half of the income tax formula is in essence an income statement but just an outline other forms and schedules flowing into these line items. One of those the schedule E having rental income minus rental expenses the net rental income in essence flowing into line one income of our income tax formula. Let's get on to the rental income and expenses if no personal use of dwelling. So this is the most straightforward rental scenario noting that generally we want to keep our business income and expenses separate than our personal expenses because that helps us to do our bookkeeping properly which helps us to populate our tax return properly. However things get a lot more confusing when there's co-mingling which we can't help sometimes such as if we have a personal residence that we are also using partially for rental purposes or if we have say a vacation home that we're using partially for rental as well as personal use. So let's start off with a clean cut case where we have just rental property it's being used just as rental property and those concepts related to the clean cut case will also be applicable to those less clean cut cases where we have personal use of the rental property in some way either renting part of the property and using part of it for personal or having a vacation home type of scenario. Alright so this chapter discusses the various types of rental income and expenses for a residential rental activity with no personal use of the dwelling. Generally each year you will report all income and deduct all out of pocket expenses in full that's the general rule any income that you get from an IRS perspective is typically included in income unless there's an exception for it. The income and expenses the bookkeeping in essence for the rental property is actually more straight forward than other kind of deductions on the form 1040s. The natural kind of deductions we would expect we in essence have an income statement income minus expenses the expenses for the most part being those that were necessary ordinary and necessary in order to generate the income. Therefore the income tax should be based on or applied to not the gross income but the net income. So the deduction to recover the cost of your rental property depreciation is taken over a prescribed number of years and is discussed in chapter two. So depreciation takes on a significant importance when we're talking about rental property because a huge expense is of course the cost of the property. And there's always this tension with depreciation on the income taxes because we as taxpayers typically want to take the depreciation as soon as possible to get the tax benefit as soon as possible. There are exceptions and whatnot. But the IRS will typically want to then need stringent rules in order to allow us depreciation according to these stringent types of rules which becomes quite important when doing tax planning for rental property. So rental income in most cases you must include your gross income all amounts you receive as rent that would be fairly straightforward. Rental income is any payment you receive for the use of or occupation of property that would make sense. That's what rental income is someone used your property the rental property and you're receiving income for that in the form of rent. It isn't limited to amounts you received as normal rental payments when to report when you report rental income on your tax return generally depends on whether you are a cash or an accrual based tax payer. So oftentimes for the rental property many people use like a cash based kind of system because they don't have the same like inventory needs that you might have in some other businesses for it. When we think of a cash versus accrual based system normally for like 1040 reporting reporting deductions on like a schedule a we typically think of a cash based system because we have to have actually given the cash to charity for example. And that's the year in which we would record that kind of deduction. When we think of a business the cash based system is still kind of easier in some ways because you can basically tie the income and expenses to the cash flows. However the cash based system can be manipulated by using prepayments you know adjusting the cash flows or advanced payments and that kind of stuff. So the tax of the IRS code will then come in and put limitations on those kind of manipulations. So the bottom line though is that when you first start your rental property you typically want to make sure to pick the appropriate method of accounting because it can be difficult to change. The method of accounting once you have chosen it because the IRS does not want people to be flip flopping between methods they want consistency otherwise they can manipulate the cutoff dates. So most individual taxpayers use the cash method. Cash method you are a cash basis taxpayer if you report income in your return in the year you actually or constructively receive it regardless of when it was earned. You constructively receive income when it is made available to you for example by being credited to your bank account. So for example if you had rental use of the property your tenant use the property in December of two thousand twenty two twenty one but you got paid in January of two thousand twenty two under a cash based system. You would record the income when you got paid in two thousand twenty two but under an accrual based system you would record the income in this in December. So on a cash based system when you got paid in two thousand twenty two January of two thousand twenty two on an accrual based system you would record it when you earned the income when the rental property was used in December. In our example of two thousand twenty one you can see that you have this timing difference which could manipulate the income and expenses similar scenario on the expenses around the cutoff of the end of the year for example. So a cruel method if you are an accrual taxpayer you generally report income when you earn it rather than when you receive it you generally deduct your expenses when you incur them rather than when you pay them. So if you're on an accrual based system typically if you think about accounting software if you invoice someone for work done that you haven't yet received payment for in the case of rental property. You can like if you were to actually invoice every month for the rent that you're going to receive if you're receiving monthly rent when the invoice goes out in December you would then record an increase in accounts receivable and income at the point in time that you issue the invoice. But sometimes you might not be issuing the invoice so so much in a rental property because it's a standard reoccurring payment once the contract has been made. But if you're tracking accounts receivable then accounts receivable is an accrual account the other side is usually income when accounts receivable goes up. More information you can see publication 538 accounting periods and methods for more information about when you constructively receive income and accrual methods of accounting. So types of income the following are common types of rental income advanced rent advanced rent is any amount you receive before the period that it covers include advanced rent in your rental income in the year you receive it regardless of the period covered for the method. Of accounting so if you're on a cash based system for example and someone pays you advanced rent for the next month or for the next six months or whatever you would still record it as revenue because you're on a cash based system even though they haven't yet used the property. However if you're on an accrual based system then you would get the money but you would have to record it as a liability unearned revenue or something like that an advanced payment because you haven't yet given them the use of the property. So in that case you would you would expect you wouldn't record it in income till they use the property at some point in the future. But this is where the iris comes in and says I want an exception here you got the money we want our part of the money because you can pay us now given the fact that it's in your in your hand. So example on March 18 2022 you signed a 10 year lease to rent your property so 10 years during 2022 you receive 9600 which is you would think the rent for the first year which makes sense and that would be income you would expect. But then you got 9600 of rent for the last year 10 years later on the lease you must include 19200 both of those amounts and your rental income for 2022 because the second payment was for advanced rent even if you're on an accrual basis. However a lot of times they'll they'll structure this in a lease agreement as a security deposit or something like that at which point it's not the last month rent but it's a security deposit in that case because you're assuming to give it back to to the tenant. You probably won't but the idea is that you're going to give it back to them then then it's not the same kind of structure and you might not have to include it in income until you actually kind of claim it in some way shape or form. So counseling a lease if your tenant pays you to cancel a lease the amount you receive is rent include the payment in your rental income in the year you receive it regardless of your method of accounting expenses paid by tenant. So if your tenant pays any of your expenses those payments are rental income. Now oftentimes this is just kind of a logistical type of thing that can get a little bit confusing that we'll talk about more shortly. But you can also think of like a landlord trying to get around of rental income by saying hey tenant I would like you instead of paying me the rent pay it to I don't know my ex wife or something for alimony and child support or something like that. And therefore because I didn't get the money personally I don't have to record it as income which will lower my taxes. Now that of course you cannot do because that would be constructively the same as though you told the tenant you told the tenant to give you the money and then you paid for your personal type of expenses. So you can't really get out of income by saying pay me pay me the the someone else my personal expenses or by by saying that you're going to receive something other than cash cash hour cash hour cash hour. If you receive property or something like that it's still income. But then you have this other kind of format where the tenant might have paid for something that is really the landlords responsibility and then lowered the rental payment by what they paid. And so now you have like kind of a bookkeeping problem to record the proper amount of income and the expense. So because you must include this amount in income you can also deduct the expenses if they are deductible rental expenses. So in other words if the if they if you told the landlord to pay something personal like alimony or child support then you don't get a deduction for that it would just have to be included in income. But if they paid for some repairs or something that are the landlords responsibility you should record it an income and then record the expenses which gets to the net same result but it's more properly recorded. We'll see some examples. So for more information you could see rental expenses later. Let's look at an example. Your tenant pays the water and sewage bill for your rental property and deducts the amount from the normal rent payment. Under the terms of the lease your tenant doesn't have to pay these bills. So now they're paying something now under some leases they might be responsible to pay the water and sewage. But if the lease term says that they are not responsible the landlord is responsible then what you should be doing is recording the income for the full amount. Including the amount that they paid not reducing it and then recording the expenses of the water and sewage you know payments that they made so you're properly recording income and expenses. The net result is the same because you'll have either a lower amount of income and no expense or you'll have a higher amount of income and then the expense income minus the expense the net amount being the same. But it should be properly recorded with the revenue being correct. The next example I think is more clear so include the utility bill paid by the tenant and any amount received as a rent payment in your rental income. You can deduct the utility payment made by your tenant as a rental expense. Let's look at this one I think is a little bit more clear example to while you are out of town the furnace in your rental property stops working. Your tenant pays for the necessary repairs and deducts the repair bill from the rent payment. So let's just assume the rent was 2000 each month and then one month the furnace goes out while the landlord is gone and the tenants like hey look I'll just take care of it myself and then I'll reduce my rent payment by that. You're like OK that makes sense. So now you had 2000 2000 2000 and then all of a sudden they pay you $1500 and like November or something. Well well that's you shouldn't record it as income of $1500 instead of 2000. We should be recording it as revenue of 2000 and then and expense of the 5000 or 500 or whatever if it was for the for the expense so that you have the proper income recorded. And then the expense the net result on net income is the same for that month of 1500 but instead of recording just revenue of 1500 and no expense. We should record the 2000 revenue so it kind of matches everything makes sense and then the expense OK include the repair bill paid by the tenant and any amount received as a rent payment in the in your rental income. You can deduct the repair payment made by your tenant as a rental expense. For example your tenant is a house painter. He offers to paint your rental property instead of paying two months rent. You accept the offer. So include your rental income in the payments the tenant would have paid for two months of rent. You can deduct that same amount as a rental expense for painting your property. So you've got a painter. He's not just doing it on himself on his own. He says hey look I'll paint the property in exchange for two months of rent. So so clearly same kind of scenario if the rent was 2000 each month and then in like October and November there's no rent.  It's just that he's paying you now in the painting of the building. So you want to record it as rental income of 2000 and then an expense of the payment of the building. Otherwise doesn't it doesn't look quite right. Because you still now if they note that if they if they the painter said I'm going to go ahead and paint your house which isn't the rental property in exchange for two months rent. Well in that case you it's not like you didn't get any rent once again for October and November you still got the two months of rent. We could say 2000 and 2000 but you don't get an expense for the rental property because in that case they didn't paint the rental property. They painted your personal home. So that would be an attempt to try to avoid the the income altogether and not have to pay income taxes on it. But you can't do that because they paid you in something other than cash something equivalent you would think would be the general idea if it was an arms length market transaction. All right security deposit don't include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease term. So we talked about the last month's rent where you have to record that an income if you receive it. But if it's a security deposit because it's securing like damage and it's not something that you expect to give back to them or at least in theory then you don't have to include an income even though you received it. But if you keep part or all of the security deposit during any year because your tenant doesn't live up to the terms of the lease include the amount you keep in your income in that year. So if you say OK you did something you broke the wall you cracked the window or whatever and I'm going to keep some of the security deposit or something like that. Now it's income because now you have to you don't have to give it back. But of course you're probably going to use it to pay for whatever the crazy tenant did throwing the keg out the window or whatever whatever happened. But if an amount if an amount called a security deposit is to be used as a final payment of rent it is advanced rent included in your income when you receive it. So if it's categorized as advanced rent then it's rent and you've received it in advance and the IRS wants a portion of it. So other sources of rental income lease with and lease with option to buy. So this is where it gets a little bit confusing on the lease terms because it's kind of like well what is this is this really a sales transaction or is it a leasing transaction. Right. So if the rental agreement gives you your tenant the right to buy or rent property by your rental property the payments you receive under the agreement are generally rental income. If your tenant exercises the right to buy the property the payments you receive for the period after the date of sale are considered part of the selling price. So one reason that becomes messy is because if it's rental income you'd have to record it as rental income that could be subject to passive activity rules and all that kind of stuff. But if it's a sale of the property then it might be a capital gain situation where you might have different income regulations from ordinary income to capital gain income. That's a little bit more unusual situation part interest if you own a part interest and rental property you must report your part of the rental income from the property. So you own the property part of it with someone else. Maybe you have a partnership or something like that in which case you might have a flow through entity entity like a partnership where the K one would flow through to your to your your 1040s rental of property also used as your home. Here's where the messy situations get where there's that co you know the commingling of business and personal will talk more about in future sections here. But if you rent property that you also use as your home and you rent it less than 15 days during the tax year don't include the rent you received in your home. The idea there being I believe that it would be immaterial too small to really matter because it was only rented for 15 days. Also expenses from this activity are not considered our rental expenses. Also by the way the reason one reason the IRS might do that is to say don't include that an income is because if you included an income then it's likely you're going to have expenses you're going to that might be over that amount greater than that amount in which case you're going to try to take losses. The IRS is trying to avoid you from taking losses all the time. So or they're skeptical of losses. So also expenses from this activity are not considered rental expenses for more information see used as a home but rented less than 15 days under reporting income and deductions in chapter five. So rental expenses and most cases the expenses of renting your property such as maintenance insurance taxes and interest can be deducted from your rental income. So similar to to a schedule C situation you've got pretty natural expenses when you're thinking about an income tax system. Those that are in essence ordinary and necessary to generate revenue makes sense to be deductible because the tax should be imposed not on gross income but on net income. All right personal use of rental property. This is where it gets commingled again messing getting messy. If you sometimes use your rental property for personal purposes you must divide your expenses between rental and personal use. Also your rental expense deductions may be limited. So for that we'll dive into it more in chapter five or later on part interest. If you own a part interest and rental property you can deduct expenses you paid according to your percent of ownership. So if you own a part interest then you're going to have to parse out the expenses that would be applicable to you. Example Roger owns a one half undivided interest in a rental house. Last year he paid nine hundred and sixty eight for necessary repairs on the property so Roger can deduct four hundred and eighty four fifty percent as a rental. Expense he is entitled to reimbursement for the remaining half from the co-owner. When to deduct you generally deduct your rental expenses and the year you pay them because we usually think of it on a cash based system. But if you use the accrual method you can see publication five three eight for more information there. Oftentimes rental property will be on a cash based system in part because you don't have some of the issues that that force people onto an accrual system. Which are like like inventory for example you're not tracking like inventory in the same kind of fashion.


getting to learn about him as a human off the field out of our interviews out of our conversations was interesting because I do believe he's just like a hippie musician who just so happened to be the best football thrower in the history of anything I think he could have succeeded in any avenue that he wanted to I think his brain is massive we've all seen that on display on a regular basis and he just so happens to be the most talented NFL quarterback of all time and then coming into the season without Devonte he knew there was going to be some growing pains they knew they were going to have a little bit of struggles there's three and three right now and the way he said it yesterday is like all the teams going into the season and the NFC that were supposed to go to the Super Bowl are all three and three as well so I think you know growth I think I've seen him off the field grow a lot over the last three years just from outside looking in yeah but on the field I think he's just trying to figure it out with the guys that he has this team that he has and I think he and the floor will do so


Peter Linebaugh received a PhD in early modern British history from the University of Warwick in 1974, where he studied under E.P. Thompson, one of the most important and influential historians of the 20th century, and a pioneer of history from below. Linebaugh has built upon this tradition with many hugely important articles and books, among which are the London Hanged, Magna Carta Manifesto, and Stop Thief. Linebaugh is co-author of my favorite book, The Many-Headed Hydra, and his latest volume is the subject of today's interview, The Incomplete, True, Authentic, and Wonderful History of May Day. This is Liberty Chronicles, a project of Libertarianism.org. I'm Anthony Comegna. As we record here today, it's the 4th of May. It's three days after May Day. And it's the, if my math is correct, the 131st anniversary of the Haymarket Square bombing. So during an eight-hour day demonstration, I don't need to go over the details for you, Professor Linebaugh, but an unknown person threw explosives into police lines and perhaps even a false flag operation, as the phrase goes. I wasn't sure to anybody in particular who actually did it. But nonetheless, several people were injured and sort of an ensuing melee, police and civilians. And Haymarket and May Day have been linked ever since then. And before we get into the details really of the book here, is there anything you want to say in commemoration of the Chicago martyrs and the events at Haymarket? Which I'll remind my Libertarians in the audience, by the way, these were anarchists who were pinned with the crime. Yes, thank you for asking. There are two things that I would like to add. The first is, while it's true that the Haymarket demonstration was in the context of the eight-hour a day movement, the specific demonstration was called to object to the police killing of four iron molders at the McCormick works that took place on the 1st of May, just a few days earlier. So that's the addition number one. And the addition number two is that the McCormick works themselves produced a threshing machine, or a reaper, rather, a reaper, that was a machine and it was made of iron. That's why iron workers were on strike on the 1st of May. And what this machine did was to transform world agriculture. So the world market of grains was really made possible by the mechanization of what formerly had been done by hand with either a sickle or a scythe. And this, I think, from our viewpoint in the 21st century, as we consider the earth and the growth of food and the food sovereignty movement, makes a significant detail to Haymarket. And finally, a third thing I'd like to add is just for us to pause for a second and remember why it was called a Haymarket. It is where horses obtained their food. So since transportation was by horses, teamsters who drove wagons and carriages and single riders all depended on a healthy horse, which depended in turn upon hay. This is why there's a hay market in the middle of an industrial city. This is a world before the internal combustion engine and a world before the petroleum economy. Yes, Anthony, those are, I guess, three things I'd like to add about the Chicago martyrs of 1886. Well, let's go back to the very beginning of May Day then. Now, it's not as though it was stamped on the calendar in, say, 5000 BC. So what are the earliest origins of May Day? How did this holiday develop? Yes, it developed in the Neolithic period of history when it became essential to know what time of year, to be able to predict the time of year to plant domesticated grains, especially barley for drink, that would be beer, or wheat for bread. And this ability to predict the time of year depended on knowledge of the sun and to understand the cycle of the seasons. This was far more important than in a Paleolithic time when human life depended principally on hunting and gathering. Therefore, the first great river civilizations, you know, of the Tigris and Euphrates or in China or along the Nile River, these depended on this knowledge and May Day became in different forms a time of festivity, a time of fertility, anticipating the budding of the earth. So my particular knowledge is not anthropological in that sense, going back to Neolithic times, but going back to classical times, say to the Mediterranean and the Roman Empire, already we see that it's celebrated as Floralia. And May itself gets its name from a Greek god or goddess, Maya, who was the mother of Zeus. So even monotheism and pre-monotheistic religions celebrated this day. And it's always been, you know, throughout human history since a day which has been significant. It sounds like those early celebrations of May Day are really rooted in what you call the green side of May Day. And then you say there's a red side of May Day, too. So this is a red and a green holiday. To expand on the green aspects of May Day, and we can maybe pick up on the red afterward, you make a reference several times to what you call the woodland epic of history. Could you tell us exactly what you mean by that concept? Could you place it in a single geographic location? Or is it a widespread phenomenon? What point in time does it come to be significant in the celebration of May Day? Yeah, very good question. It goes back to me to Thoreau and also to Marsh. You know Marsh, the 19th century environmentalist. He explained how once and found the evidence, how once the great Sahara Desert was covered with forest. So that much of the earth for a very long time was wooded. And I think with the development of the agrarian field, that those woods began to diminish. And even now the sound of the chainsaw ringing through the forest in Chiapas is in my ear. Whether it's in the La Condon jungle of Mexico or in Sumatra in Indonesia or of course the Great Forest of the Amazon. The trees are coming down. And for us, for me, thinking of England, which I've largely studied and I grew up in England. This is a highly significant time, 2017, because it's the 800th anniversary of the Charter of the Forest. And this Charter of the Forest was one of the Charters of Liberty of the 13th century, the other one being the Magna Carta. That means the big Charter, but the Charter of the Forest was the little one. And it provided protection for common people to be able to enjoy the riches of forest life, to be able to pick berries, to be able to put a cow into the forest or forest lands for herbage, which means grazing, or panage, which means nuts and bark for pigs. And very significantly, the Charter of the Forest, I think we should remember it for even yet another reason, which is it withdrew the death penalty from killing a deer. So here are deep reasons from the woodland epoch of history, if you'll permit the phrase. Deep reasons for commemorating it on this 800th anniversary. And perhaps we can work toward that, because the Charter of the Forest was rediscovered on the 11th of September, 1217. A date which, of course, we Americans are familiar with. Well, actually the whole world. And that Charter anticipates the struggle of commoners on the one hand, and the privatizers on the other hand. And so it is a treaty, as it were, within the class differences of British society from the Middle Ages to, I would argue, the present. And it's all interesting, especially to me, because these are ideas, herbage and so on, that people conceived of them as their rights, correct? In the same way that we're often like to think about rights today, that it's something nobody can take away from you, and you have it by virtue of simply existing. That nobody can impede your behavior in this regard. So people had every equal right and entitlement to use these common areas as everyone else. Well, I would, I'd want to add to that two cautions. The first, I myself would rather not use the term rights. These were referred to as customs or as powers. In the era of rights, that is, let's say after the French Revolution, or the same time as the American Bill of Rights, perhaps they are translated or transformed. In some ways into rights. But for historically speaking, it's more accurate to refer to custom. And the second caution I would have is to say that wasn't available for everyone, but for the community of users. That is, you couldn't just wander into some forest anywhere and willy nilly take what you wanted. You had to belong to a community which had its own customs of how it used the forest, how much windfall you could take. Very much the way, you know, if you look at the great public parks of the United States, they were formed by by law of Congress. But a great many people who lived in them lost their abilities to to survive from the resources there in. And we need to understand what were their rules of usage, because their rules will be different from those who just wish to say exploit the forest. So let's let's dig a little bit into who these folks using the commons were. First of all, so this is this is in medieval England, an age of feudalism. This does extend, I presume England's woodland epic properly extends past the Norman conquest and into, you know, the era of Magna Carta and so on. So how did the commons exist side by side with feudalism? Where did they operate in tandem? What were the the ruling elites reactions to the uses of the commons? How did they try to constrain them? Were there any problems with the operation of the common? Oh, definitely. I would say there are more problems there than with private privatization. That is commoners are constantly quarreling with one another. You know, just as when you go to the movies or sit on an airplane, your elbow is is gaining is trying to look for for elbow room with a person next to you. And and so and this means this can lead to conversation or it can lead to a kind of silent equilibrium where you both learn to share the arm rest. And so it is with the commons. The people are always talking and always quarreling always negotiating. And this is unlike nowadays where where everything is with commodity production is supposed to run so smoothly, you can go and fill up your car with gasoline and, you know, have no conversation whatsoever. Or, you know, do your grocery shopping without conversation or interaction beyond putting your money down or running your plastic card through a slot. No, commoning was filled with a human interaction. It was a very lively period of history. And my own thinking is that it's not part of feudalism, but it's part of the way poor people or common people lived right into the 19th century. And of course, there is difficult to find out about this for the simple reason is that commoners don't want others to know about it. You know, unlike, again, unlike the ideologies of privatization, which are all about publicity and marketing. Let's let's go to New England, though. Can you tell us the story of Thomas Morton and Marymount? Sure. Sure. Well, Morton came over to Quincy Bay in in Massachusetts in 1626 in a ship called The Gift, captained by Walliston. And in the following year, Thomas Morton, having been so impressed by the tremendous fertility of the earth in North America, where fish and fowl game and fruit was just there for the taking. He celebrated a May Day along with Native Americans, gay people, runaway servants and slaves. Around an 80 foot maypole. They're at Marymount in in Quincy, Massachusetts, as I say. And they drank beer. And as I say, their enemies say they frisked with their native consorts and worse. They're there. I'm quoting Governor Bradford, who came down from Boston, not very far away and killed a number of people. Knocked down the maypole and pretty much put an end to the happiness in North America. If I can quote Nathaniel Hawthorne. Well, I was I was going to ask, do you agree with Hawthorne's interpretation of the situation that this was more or less the moment when what exceptionalism there was in American life died. And the old world fully transplanted onto the new. Certainly the regime of constant work and private property was brought in by the Puritans and by Bradford, for sure. And history, Nathaniel Hawthorne thought could have taken another road. And I don't know whether Hawthorne was right or not. But what I do know is that we human beings can take different roads than just that of iron and gloom and profiteering and the creation of misery by ever larger numbers of. Poor people. So that a few very rich can thrive. There are other ways of life. And whether Thomas Morton. I had found another way I don't know, but certainly he pointed to other ways. And so I think what's instructive about May Day at Mary Mountain 1627 is this notion of of human agency of human liberty of freedom that we. Yes, and that's so that I think is the ideal that I would share with Hawthorne. But how do you know, for example, that there were open homosexuals in Mary Mount or that there were interracial relationships? I didn't say that open homosexuals were active at Mary Mount.  That's my my interpretation of what the sources call a ganymede. And if you look into the history of homosexuality, at one point, a ganymede was a youth, a male youth who served a master drinks and other kinds of pleasure. So it's that term of ganymede that permits me and its associations with homosexuality in the classical world on that permit me to say gay people. I'm really interested in the interactions between those two populations, the sort of white settlers and the Native American population. What were the differences in the ideas those two populations had, especially about property rights and the delineation of who gets what? Oh, well, the main difference was, yeah, here, Anthony, I can't answer the question with specific time and place. I mean, the 19th century and the work of anthropologists there like, like Morgan gives us one answer. The 18th century with the work of the Moravians gives us another answer. Roger Williams in the 17th century gives us yet a third as way of approaching this. Generally, I've looked at it as, and perhaps your audience does too, as a triumph of the commodity and private property over these last 500 years. As far as indigenous people are concerned around the world, private property was not foreign, but it was very carefully restricted to the household or to the margins of the community. Otherwise, it let loose rapacious and avaricious instincts which were destructive to community well-being. So that, I would say, is the way I have tended to approach the relation between Native American history and European imperialism. From the Native viewpoint, the people are not called white people, but are called long knives or town destroyers at the time of George Washington and Thomas Jefferson. The long knives and the town destroyers were not heralded as people who brought in agricultural improvement or clean water. They were instead those who burned the village and destroyed the orchard. And history, romantic or not, but factual history sees the justice in that point of view. So I think it's also important what I've learned from Richard White's work on the middle ground is that in North America, certainly in my region of the country, the Great Lakes, the Indian village was not the population, as you call it, of just Native people, but was a population that we might say was hybrid or consisted of runaway servants and runaway slaves, as well as different tribal groupings who, through complex kinship organizations, had quite a lot of people, people with various origins. That's what I've learned from Richard White's work. He calls it the middle ground. When I grew up, they called it the frontier, a place that was constantly on fire. Now I understand why it's on fire, and that's to prevent the indentured servant or the abused woman from fleeing to the safer hospitality of the middle ground of the Indian village. Well, so let's go back to Mayday then. Can you take us through after the maypole was burned in Marymount and joy was snuffed from New England, at least for a time? What happened with the history of Mayday between Thomas Morton and Haymarket? We find mechanization, enslavement, and further and deeper, swifter enclosures. And those enclosures of the North American continent are anticipated by the great surveys of the 1790s, which turned the North America into a land of squares and rectangles that you see once you fly over it. This was done to remove the green possibilities of some other form of life in North America than that of mayhem et tuum, to use the Latin phrase for mine and vine, or of private property, of competitive individualism. Whereas the community is lost and destroyed, and that's necessary for the capitalist mode of production, to create a new type of cooperation which is done in the factory, a new type of cooperation which is done on this cotton plantation, a new type of cooperation that's done in the mines. And here, it's no longer a community, but it becomes class war. And I think this culminates, of course, with the great American Civil War, which showed that working people, especially agrarian workers, i.e. slaves, could fight for emancipation. And this lesson was not lost on industrial workers or new immigrants from China or from Eastern Europe or the Mediterranean after the Civil War, or for those who've been disabled by the Civil War. So we get a women's movement, a disabled movement, and then the eight hour movement among working people that culminates in the red story at Haymarket in 1886. And today we have Americanism Day, Law Day, USA, or actually, literally today, we have Loyalty Day under our grand new chief executive. Could you make some final comments to listeners about the history of these alternative May days, these statist alternatives to May Day? Yeah, they're fig leaves. You remember Adam and Eve, when they were enclosed from paradise? They suddenly felt shame. And so it is with the 1%. They feel shame. And these terms that you use, Loyalty Day, Law Day, Americanism Day, they're fig leaves, indication of shame and weakness on the part of the ruling class, or 1%. Now, I suppose to leave with one other question. I'm curious to know about your thoughts on how... What would you place some sort of particular political label on yourself? It's very hard to do that. I'm a commoner, definitely. I'm a people's remembrancer and a commoner. I believe that with all things in common, Omnia Sund Kamuna, but I don't think yet this has reached a political form. And I'd say with many others, we're searching for a political form for this. Communism, socialism, anarchism, these are isms of the past. There might be something... Certainly, there's things to learn from each of them and things to avoid from each of them. But I think the future for a green and just planet has not yet reached a political form. But we're struggling. We're searching for that form. And we will go to the streets to attain it. Do you think that libertarians, especially let's say anti-political individualist libertarians, would you consider them a sort of hard and fast class enemy calcified into some sort of hopelessly ideological position in our current state of affairs, too wrapped up in the Constitution or whatever it might be? I don't know libertarians. So I think you're the first I've met and I'm very grateful and impressed by your tone and intelligence of your questions. I certainly don't wish myself to be calcified or to be or seem ideological. I certainly am passionate and have ideals, but this doesn't mean that I'm unable to listen to others or engage with them in human courteous debate and discussion. If force is involved, then of course force will always be met with force unless you are a saint. Lineball's work builds on the examples set by scholars like Thompson demonstrating the idea that class is something which is made and sustained through deliberate action both from above and below. Liberty Chronicles is a project of Libertarianism.org. It is produced by Test Terrible. To learn more about Liberty Chronicles, visit Libertarianism.org. If you've been enjoying the show, we very sincerely ask that you subscribe, rate the show on iTunes, invite your friends and family to listen, and tweet us your questions at libcron, or email Liberty Chronicles podcast at gmail.com.