Federal Reserve Establishes U.S. Coin Task Force to Address Low Coin Inventories

According to the Federal Reserve, business and bank closures associated with the COVID-19 pandemic have significantly disrupted the supply chain and normal circulation patterns for U.S. coins. While there is an adequate overall amount of coins in the economy, the slowed pace of circulation has reduced available inventories in some areas of the country.

The primary issue with coin is a dramatic deceleration of coin circulation through the supply chain. As of April 2020, the U.S. Treasury estimates that the total value of coin in circulation is $47.8 billion, up from $47.4 billion as of April 2019. While there is adequate coin in the economy, the slowed pace of circulation has meant that sufficient quantities of coin are not readily available where needed. With establishments like retail shops, bank branches, transit authorities and laundromats closed, the typical places where coin enters our society have slowed or even stopped the normal circulation of coin. The coin supply chain includes many participants, from the U.S. Mint who produces new coin, to the Federal Reserve who distributes coin on the U.S. Mint’s behalf, to armored carriers, banks, retailers and consumers, all of whom have a role to play in helping to resolve this issue.

The Federal Reserve is working with the U.S. Mint and others in the industry on solutions. As a first step, a temporary cap was imposed on the orders depository institutions place for coins with the Federal Reserve to ensure that the current supply is fairly distributed. In addition, a U.S. Coin Task Force was formed to identify, implement, and promote actions to address disruptions to coin circulation.

Members of the U.S. Coin Task Force include individuals from the American Bankers’ Association, Department of the Treasury, National Armored Carrier Association, Federal Reserve System and other organizations.

The task force will meet for a series of virtual working sessions in July with the goal of sharing a set of recommendations at the beginning of August. The group will focus on identifying actionable steps that supply chain participants can take to address the current coin circulation issue.

As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the rebuilding of coin inventories.

Mystery Blimp in the Skies Above Newbury Park

Dennis Bronk of Newbury Park captured these shots of the “mystery blimp” floating around the skies of Newbury Park on January 27th. We posted the photos on the CVG Facebook Page at THIS LINK for feedback.

Many folks saw this mysterious, white, unmarked blimp and wondered where it was from and what it was doing. Several thought it might have something to do with the previous day’s tragic Kobe Bryant helicopter crash covering the memorial at Mamba Sports Academy. Others saw it in other places - Camarillo, Ventura, Hueneme. Someone suggested it was covering the Justin Turner Golf Tourney at Sherwood Country Club.

Then, Milt Zweig, who I know and trust, gave what I believe to be the most likely answer. He indicated it was a CNATT (Center for Naval Aviation and Technical Training) drone blimp flown out of Point Mugu. I further explored that suggestion and discovered this blimp looks quite a bit like the American Blimp MZ-3. That said, the MZ-3A was sold by the Navy in October 2017.

The mystery blimp looks a lot like this American Blimp MZ-3A picture in November 2013.

The New 2019 Form 1040-SR U.S. Tax Return for Seniors Generally Mirrors 2019 Form 1040

Here we are at the start of a new year, and with that the start of a new tax season. Doing taxes ranks up there between having a root canal and preparing for a colonoscopy in terms of things to look forward to.

But when I heard there was a new tax form for 2019 - Form 1040-SR U.S. Tax Return for Seniors - I thought, ok, that’s good news for some folks. Right?

The new Form 1040-SR is, according to the IRS, “available as an optional alternative to using Form 1040 for taxpayers who are age 65 or older.” (That leaves me out of contention.) The IRS further clarifies for 2019 that “age 65 or older” means you were born before January 2, 1955.

OK, so if Form 1040-SR is an “optional alternative” to the Form 1040, what’s different about it and why would any senior want to use a form that reminds them that they are a senior? There must be some benefit to using the form, right? Maybe you get free Geritol for completing this new form?

Well, here’s what the IRS says in the 2019 Form 1040 and 1040-SR Booklet about Form 1040-SR: “The form generally mirrors Form 1040.”

So why are we using taxpayer funds to create a new form that mirrors an existing form?

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I did a side-by-side comparison to confirm to what degree Form 1040-SR “generally mirrors” Form 1040.

(By the way, the 2019 Form 1040 looks quite a bit different than the so called “postcard” 2018 Form 1040, which in reality was a terribly designed two page form that easily could have fit onto one page, plus six separate schedules. The 2019 Form 1040 looks more like the previous 2017 Form 1040, when we had the pleasure of choosing among Form 1040, Form 1040A and Form 1040EZ the latter two of which went away in 2018.)

It is true. The two forms are nearly identical, with two minor exceptions:

1) Form 1040-SR includes a Standard Deduction Chart at the bottom of the form showing the Standard Deduction amounts. The Form 1040 tells you to go to the instructions to figure this out. Yet the bottom third of Form 1040 page one is blank. There is PLENTY of room to include the Standard Deduction Chart on the face of Form 1040 too.

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The Standard Deduction Chart on 2019 Form 1040-SR simply shows on the face of the form the larger Standard Deduction you can take if you were born before January 2, 1955 or are blind.

(And on a related note, the Standard Deduction in 2019 is $12,200 for single and $24,400 for married filing jointly taxpayers. Single taxpayers receive an additional $1,650 deduction for being 65+ and/or for blindness. Each married taxpayer receive an additional deduction of just $1,300 for 65+ and/or blindness. There’s a bit of a disparity there; perhaps another example of the marriage penalty in our tax system.)

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This is the bottom third of 2019 Form 1040. Completely blank. Wouldn’t ya think they would include that same Standard Deduction Chart on Form 1040-SR here too? Nah, that would make too much sense.

2) Font Size- 2019 Form 1040-SR uses two full pages of space, yet 2019 Form 1040 leaves the bottom third of the form blank on both pages. Is this blank space for doodling or what?

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Page one of 2019 Form 1040-SR fills the whole page and has larger font than 2019 Form 1040.

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Page one of 2019 Form 1040 uses smaller font for us younger folk with 20/20 eyesight in 2020 and leaves a 3rd of the page blank.

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Page two of 2019 Form 1040-SR fills nearly the entire page. Nothing wrong with that.

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Exact same information on page two of 2019 Form 1040 as Form 1040-SR, but scrunched up in smaller font, leaving plenty of doodling space at the bottom of the form. Makes a lot of sense, doesn’t it.

From a practical standpoint, why wouldn’t our legislators hire smart people that could step back and say, hey, maybe we don’t need a new form to confuse people when this new form adds zero value to society. Maybe we can simply increase the font of the existing form size and call it a day?

Don’t blame the IRS. Let’s dive even deeper into this matter to find out who makes these stupid decisions.

Although the IRS designed these forms, it was at the direction of the 115th Congress (2017-2018), signed into law by Donald Trump on February 9, 2018 in H.R. 1892, the “Bipartisan Budget Act of 2018.”

TITLE II--MISCELLANEOUS PROVISIONS

Sec. 41106. Form 1040SR for seniors.

FORM 1040SR FOR SENIORS.

(a) In General.--The Secretary of the Treasury (or the Secretary's delegate) shall make available a form, to be known as “Form 1040SR'', for use by individuals to file the return of tax imposed by chapter 1 of the Internal Revenue Code of 1986. Such form shall be as similar as practicable to Form 1040EZ, except that--

(1) the form shall be available only to individuals who have attained age 65 as of the close of the taxable year,

(2) the form may be used even if income for the taxable year includes--

(A) social security benefits (as defined in section 86(d) of the Internal Revenue Code of 1986),

(B) distributions from qualified retirement plans (as defined in section 4974(c) of such Code), annuities or other such deferred payment arrangements,

(C) interest and dividends, or

(D) capital gains and losses taken into account in determining adjusted net capital gain (as defined in section 1(h)(3) of such Code), and

(3) the form shall be available without regard to the amount of any item of taxable income or the total amount of taxable income for the taxable year.

(b) Effective Date.--The form required by subsection (a) shall be made available for taxable years beginning after the date of the enactment of this Act.

So where did this ineffective new law originate? Who can we blame?

The text of this new law is nearly identical to the “Simple Tax for Seniors Act of 2004” introduced to the 108th Congress by Republican Senator Larry Craig on June 3, 2004, almost exactly four years to the day before he was arrested for indecent behavior in a men’s restroom at the Minneapolis-St. Paul International Airport. The proposed new law didn’t go anywhere, while Craig pled guilty to a charge of disorderly conduct.

The bill made a comeback in 2011, when Republican House Representative John Fleming and Senator Marco Rubio introduced it to the 112th Congress as the “Seniors’ Tax Simplification Act of 2011.” It went nowhere. It was presented again in 2013 and 2015. No changes were made in the bill other than the date.

Then the Honoring Hometown Heroes Act (H.R. 1892) was introduced to the House on April 4, 2017, authorizing governors to fly U.S. flags at half-staff in the event of the death of a first responder who dies while serving in the line of duty. It passed the House on May 18th. It passed Senate on November 28th.

What does this have to do with Form 1040-SR? H.R. 1892 was amended in a massive way in February 2018 and was renamed the Bipartisan Budget Act of 2018. Division A of the law is the Honoring Hometown Heroes Act. Divisions B, C, D and E incorporate other new laws. Division D includes the new Form 1040-SR.

And as mentioned above, the Bipartisan Budget Act was signed into law on February 9, 2018, nearly 14 years after the original vaguely-worded Simple Tax for Seniors Act was introduced.

So now you know the history of Form 1040-SR. If our legislators were competent, the new Form 1040-SR would not exist. Instead, Form 1040 would have slightly larger font size and Standard Deduction details shown on the face of the form to benefit all taxpayers equally.

New U. S. Stamp Prices Take Effect January 27, 2019

The U.S. Postal Service announced last October that the following price changes will take effect on January 27, 2019:

First class letter postage increase from 50 cents to 55 cents.

Additional ounces on letters actually decreases from 21 cents to 15 cents.

The price of sending postcards remains at 35 cents.

Regular flat rate envelope increases from $6.70 to $7.35.

about.usps.com/newsroom/national-releases/2018/pr18_086.htm

100 Year Old Joyce From Newbury Park Fulfills Her Dream of Meeting Alex Trebek

"We're going to be all over social media" says Alex Trebek as he slowly walks 100 year old Joyce Pesner of Newbury Park back to the audience.

The Dream Foundation grants wishes for terminally ill adults, and Joyce's wish was to meet Alex. She has watched Jeopardy! every night before bed since the show has been on the air.

(Fellow Conejo Valley inhabitant and friend L David Irete was the lucky person who shot this video.)

More: www.jeopardy.com/jbuzz/features/dream-foundation-100-year-old-fan

California Minimum Wages Increase Again on January 1, 2018

Pursuant to California Senate Bill No. 3 signed by Governor Jerry Brown in April 2016, on January 1, 2018, the California minimum wage increases from $10.50 to $11 per hour for employers with 26+ employees and from $10 to $10.50 for employers with 25 or less employees (with the exception of California sheepherders...which you can read about more HERE).

The overall target of the legislation is $15 per hour for all employees by January 1, 2023 (companies with 26+ will get there by January 1, 2022; one year earlier than smaller companies).

Future Minimum Wage Increases for Employers with 26+ Employees:

• 1/1/19: $12/hour
• 1/1/20: $13/hour
• 1/1/21: $14/hour
• 1/1/22 until adjusted again: $15/hour

If your employer has 25 or fewer employees, there will be a year lag in the increases highlighted above.

• 1/1/19: $11/hour
• 1/1/20: $12/hour
• 1/1/21: $13/hour
• 1/1/22: $14/hour
• 1/1/23: $15/hour

So, if you are a minimum wage employee at a smaller company, you will be making slightly less than your "larger" company counterparts in California until 1/1/23.

After 2022, the minimum wage will generally be increased by the lesser of 3.5% or the annual inflation rate.

More on California minimum wages at www.dir.ca.gov/dlse/faq_minimumwage.htm.

But WAIT!

If you are a minimum wage employee in the City of Los Angeles, different rules apply:

Employers with 26+ Employees in City of Los Angeles:

• 7/1/17 to 6/30/18: $12/hour
• 7/1/18 to 6/30/19: $13.25/hour
• 7/1/19 to 6/30/20: $14.25/hour
• 7/1/20: $15/hour

Employers with 25 or Fewer Employees in City of Los Angeles (or 26+ Employees with approval to pay a deferred rate):

• 7/1/17 to 6/30/18: $10.50/hour
• 7/1/18 to 6/30/19: $12/hour
• 7/1/19 to 6/30/20: $13.25/hour
• 7/1/20 to 6/30/21: $14.25/hour
• 7/1/21: $15/hour

More on L.A. City minimum wage laws at wagesla.lacity.org.

And of course, there's the irrelevant (at least to the majority of, but not all, states) Federal Fair Minimum Wage Act of 2007, which established the now current Federal minimum wage at $7.25/hour as of July 24, 2009.

View From Grant Park in Ventura and Serra Cross in January 1956

Panoramic view from Grant Park in Ventura in three photos taken in January 1956.

Here's a panoramic view from Grant Park in Ventura taken in January 1956. Shortly after Father Junipero Serra founded Mission San Buenaventura, a large wooden cross was placed on top of the hill overlooking the Mission church.

The original cross, damaged over time by the elements, was replaced in the 1860s. That cross blew down in a storm on November 5, 1875 and was not replaced for 40 years.

The cross at Grant Park / Serra Cross Park in 2015.

A new wooden cross was placed by a local women's service club on September 9, 1912. In 1918, Kenneth and Tonie Grant donated the surrounding hillside to the City of San Buenaventura. Roads to the cross were built around 1920. The circular stone pedestal and concrete pathway the cross now sits atop was built in March 1932. The cross that sits there today, a bit charred from the Thomas Fire, was replaced by the city in 1941.

The Serra Cross Conservancy is seeking donations at www.gofundme.com/serracrosshelp to help restore the cross and surrounding property.

Serra Cross in January 1956, from a private collection.

More on Grant Park / Serra Cross Park