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Post by the Scribe on Apr 7, 2020 20:22:43 GMT
The country did better when tax rates for the wealthy were high - and taxes for the middle class lower. The middle class spends it's money, thereby creating jobs and profits. Common sense. Unlike trickle down which is a fantasy created by a republican economist. It's never worked, and it will never work. Here's the thing about trickle down that's so extraordinary short sighted: If more disposable income was left in the hands of those on the lower tiers of the wealth pyramid, the upper tiers income could easily offset a high tax load. Those with wealth dont actually drive the economy. It fed by the daily expenses of survival by those at the bottom. Look at it this way; A billionaire buys a $100 million dollar yacht. Other than its most likely built in a foreign country, consider this, where do you think that money came from in the first place? It didn't simply appear one day in their bank accounts, now did I? The average amount that Americans spend on food, transportation, and housing is $101 per day. That and a bit of discresionnary income, a few medical bills, and the odd trip to the casino adds up to our $10.7 Trillion dollars per year economy. Throw another couple of thousand per tax payer into the mix and do the math. By my calculations we could decrease the middle class tax burden, offset it with an increased in taxes on the top tier, and everyone wins. We create a few more billionaires, fatten the coffers of those we already have by giving their customers more to spend, and make the working folks life just a little bit easier. It really doesn't take a genius to grasp this.Former Governor Scott Walker Becomes Latest Rich Republican to Mislead the Public on How Taxes WorkGQ Luke Darby,GQ Wed, Jan 16 1:22 PM MST
Republicans are terrified of how popular higher taxes for the rich are.
Ever since Alexandria Ocasio-Cortez made the apparently scandalous suggestion that the U.S. go back to the tax rates it had for decades, her critics have been losing their minds. Specifically, rich Republicans have been acting like they have no idea what taxes are or how they work. Ocasio-Cortez was talking about a 70 percent tax rate on income over $10 million a year, but the GOP is instead claiming that it's a 70 percent tax on all income. It was dumb a week ago when all the oligarchs first started clutching their pearls, and it's just getting dumber.
Take the former governor of Wisconsin, Scott Walker, a darling of the uber-libertarian Koch brothers. If anyone thought he was content to just help Republicans stage a powergrab from the incoming Democratic administration and then retire to give motivation speeches on bootstrap nonsense, they were sadly mistaken. He's also showing up in middle schools to give anti-tax lectures:
Hard to argue with that, right? It's literally the same nonsense that Steve Scalise and other Republicans were peddling, except instead of dumping it into the bottomless abyss of Twitter, Walker forcing it on kids. But because he was dumb enough to post it on Twitter, Ocasio-Cortez had a clap-back for him.
In a lengthy Boston Review essay written after the GOP tax cuts, Felicia Wong argues that there's no evidence that wealth "trickles down" just because rich people are able to hoard more money. "Taxation is at the heart of any serious economic growth policy," Wong writes, "and Democrats who want to win again must be ready to argue in favor of taxes." Unfortunately, many Democrats haven't gotten that note, including former Senate majority leader Harry Reid, who in a recent interview responded to Ocasio-Cortez's comments with the questionable claim that quick "radical" change "just doesn’t work."
But politicians like Walker and Reid who spend time with wealthy donors have good reason to be afraid of propositions to tax the rich: Apparently the idea is insanely popular. A recent poll by The Hill found that even a surprising 45 percent of Republican voters support the idea of raising the highest tax bracket to 70 percent.
www.yahoo.com/lifestyle/former-governor-scott-walker-becomes-202224109.html
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Post by the Scribe on Apr 7, 2020 20:23:07 GMT
This is similar to my story. My understanding is that single homeowners that itemize will actually get screwed the most from this republiconservative tax cut plan for the wealthy. NOT ONLY THAT. In Arizona the idiot republican governor and party have NOT figured out how to tie state tax plans into the federal. The governor vetoed the plan that would allow lower state taxes. For the first time in my life I may owe money to the state and have a small federal refund that I was counting on. No wonder Paul Ryan didn't run for re-election. Single childless people have always gotten screwed in this country. The largest percentage of my taxes, esp. property taxes goes to schools and education costs yet married with children get all the deductions. This new tax law may put a lot of people at each others throats.Trump and the GOP Tax Plan Screwed Middle Class Parents Out of a RefundFatherly Patrick A. Coleman,Fatherly 5 hours ago
I am a father of two in a dual-earner household, sitting smack-dab in the middle of the middle-class. It’s February and I am terrified to do my 2018 taxes. It’s not because taxes are hard. It’s not because I’m seeing middle-class Trump supporters become apoplectic on Twitter as they calculate their tax bill. It’s because for the last three years I’ve been a remote worker itemizing my tax returns and, in 2017, House Republicans and President Trump stripped me of crucial deductions. So I hesitate to file. Because I know it’s going to be bad and I don’t want to find out just how bad.
I have, for the last three years enjoyed a refund. And the money I received from that refund often went back to my community. One year my wife and I bought a couch from a local business. The next we bought a bed from a local business. Other times, of course, we’ve used the refund to pay down debt. Either way, I am not expecting a refund this year. I’m expecting to write a check.
Here are some things I won’t be able to deduct on my tax bill this year: student loan interest, medical expenses, property taxes, and any home office expenses not paid by my company. Also, the threshold for charitable donations has increased so I can forget recouping the donations to Wounded Warriors, Habitat for Humanity, and PBS. Meanwhile -— and this is a true thing not a rhetorical point — if I owned a private plane I could deduct the maintenance of the aircraft.
Republican lawmakers are pointing out that workers have already pocketed the equivalent of their refund due to increases in their paychecks, a byproduct of the corporate tax rate getting lowered. Paul Ryan was particularly chuffed about this fact. Remember when he boasted about the school secretary receiving her $1.50 weekly raise because of the tax law? “She said that will more than cover her Costco membership for a year,” Ryan tweeted.
NancyPelosi/Twitter
But that’s a specious claim. I earned my raise. (Editor’s Note: Yep.) And I don’t have any particular reason to believe things would have gone differently if the corporate tax was higher. And I work at a small company. There’s no way most workers at larger companies will ever know if they benefited from the corporate tax cut. But what they should know is that the government pulled in a lot less revenue, which is why Trump’s big fun parental leave proposal is probably DOA and why the government will continue to do so incredibly little to help parents even as childcare costs skyrocket. But there’s still a Social Security tax cap that ensures the uber-rich save $62,000 on every million dollars in salary they bring home. Cold comfort to me, as I pay a mortgage on my house, which also serves as my office.
And that not even counting the stock buybacks that have enriched shareholders to the tune of a trillion dollars in 2018, a historic amount. Does that wealth trickle down? It might if I was a waiter in a mid-town steak joint willing to hook a bro up for some Benjamins. But I’m not. I’m a writer. I live just outside Cleveland, Ohio. The trickles here froze long ago.
I will admit to being perplexed by Republican relatives who cheered the tax law along in 2017. I tried to warn them that this wasn’t in their best interests. They shrugged. I’m certain many of them will look at their return this year with red-faced frustration, but I doubt any of them will admit they were wrong. The fight distracts from the suffering. A strong sense of identity might be worth it for them. Me? I’d rather have some more money.
And you can rest assured I’m in no mood to say I told you so. I’m as screwed as they are. And perhaps that’s the biggest shocker. By screwing the middle-class, Trump might have managed to bring us together after all.
www.yahoo.com/lifestyle/trump-gop-tax-plan-screwed-225652100.html
COMMENTS:
bluechocolate503 hours ago As a school teacher, I was able to deduct $300 a year for supplies I personally buy for my students. Example: I got a fairly good deal at Barnes & Noble, purchasing 45 copies of 20,000 Leagues Under the Sea for about $230. Now, after Trump's tax break, teachers are not allowed to write off a cent. However, the wealthy are allowed a tax break if they own private jets. Do I need to say more? www.msnbc.com/rachel-maddow-show/republican-tax-plan-extends-tax-break-private-jet-owners First it was "a lucrative break for golf-course owners." Now it's a tax break for "owners of private jets." First it was "a lucrative break for golf-course owners." Now it's a tax break for "owners of private jets." First it was "a lucrative break for golf-course owners." Now it's a tax break for "owners of private jets." www.msnbc.com
ReplyReplies (96)30685 Robert Robert3 hours ago Why is anyone surprised? Early on I asked my tax lady what it looked like for me - a older retired guy on a fixed income. She said not to ever expect a tax refund again and be prepared to pay an extra $500-800 more than last year. It is working out to be about $550 as I lost all my medical deductions. I sent The Donald a letter asking for a $500 loan, but haven't heard back from him.
ReplyReplies (23)13927 Don Vito Corleone Don Vito Corleone4 hours ago Here are some things I won’t be able to deduct on my tax bill this year: student loan interest, medical expenses, property taxes, and any home office expenses not paid by my company. Also, the threshold for charitable donations has increased so I can forget recouping the donations to Wounded Warriors, Habitat for Humanity, and PBS. Meanwhile -— and this is a true thing not a rhetorical point — if I owned a private plane I could deduct the maintenance of the aircraft.
ReplyReplies (219)563199 Corey Corey3 hours ago I've never understood how people could be fooled by the fallacy of trickle-down-economics. Everyone knows that money trickles up to the wealthy. Give a middle-class person extra money and they spend it, either by paying down debt, taking a vacation, or buying something. The corporations that provide those goods and services will have an increase in business and therefore, profit. How many times can people fall for the tired lie that giving money to the rich and corporations helps them?
ReplyReplies (64)37584 Ernest Ernest3 hours ago Did our taxes and got our meager refund for our family. Middle class with a single child with a disability that costs about 10k a year in medical till we hit our out of pocket (every year). Our refund was about 15% less than the last 4 years. Nothing has changed for us tax wise except the small meager raises to our income that unsurprisingly was lost entirely to the government and inflation.
ReplyReplies (3)364 satwai satwai4 hours ago Middle class, living on a taxable pension. House under 1400 square feet, in tract housing built in 1950's. Last year my effective tax rate was 8.53%. This year, under Trump's plan, it was 9.1%. To offset the "doubling" of the standard deduction the change cut the personal exemption, which everyone, including those who itemized, received. Eliminating that is what made my taxes go up.
ReplyReplies (20)22531 ArmyVet ArmyVet4 hours ago Worked my taxes last weekend. We're paying more, despite our income staying roughly the same from 2017 to 2018. Same thing from several folks at work.
ReplyReplies (71)549101 Hoan Hoan5 hours ago When the corporate tax rate went from 35% to 21% permanently, it wouldn't take a genius to figures out where all the money are coming from to fill that gap... Hello! where else? it's the middle class!
ReplyReplies (104)908172 JACKIE JACKIE3 hours ago I am a single parent with 2 children, when I filed my income tax ( for 2018 ) last weekend, the tax services told me that this year we pay more tax than I filed in 2017, because for each person they only subtracted $2500 instead of $3000 compared with the previous years plus we pay more tax than before even I made the same income in 2017. the government limited many things this year which we can not claim. Before Trump, my income tax refund helped me and my children to pay off many things, but this year, only 1/3 of the refund compared with the previous years.
ReplyReplies (30)11534 Speed Speed5 hours ago Anyone else remember Trump promising a 10% middle class just before the mid term elections? Just wondering when that's coming?
ReplyReplies (165)1,156145
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Post by the Scribe on Apr 8, 2020 23:18:35 GMT
Republican presidential nominee Donald Trump walks off his plane at a campaign rally in Colorado Springs, Colo., Sept. 17, 2016. Photo by Mike Segar/Reuters Republican tax plan extends tax break to private jet owners11/17/17 12:47 PM—UPDATED 11/18/17 01:56 PM By Steve Benen
When Congress takes up a massive tax bill, it’s inevitable that lawmakers are going to tuck some pretty controversial measures into the package. The House Republican version, for example, included “a lucrative break for golf-course owners,” even as it raised taxes on some middle-class families.
It’s the kind of policy Donald Trump is likely to appreciate.
Business Insider today highlights a similar piece of the Senate Republicans’ plan.
One of those exemptions in the Senate version of the bill, the Tax Cuts and Jobs Act (TCJA), would give a break to owners of private jets.
Currently, the federal government imposes an excise tax on the use of private planes for every flight an aircraft makes. Under the Republican tax legislation, costs for maintenance and other support activities for the planes would be exempt from the excise tax.
The article added that, according to an analysis from the Joint Committee on Taxation, the price tag on this tax break is quite modest – less than $50 million in tax revenue over 10 years – probably in part because so few Americans can take advantage of the benefit.
For proponents of the Republican tax plan, this may seem like a defense: in a trillion-dollar package, the argument goes, a policy that costs less than $50 million isn’t worth much of a fuss.
But isn’t that backwards? If it’s “only” $50 million over 10 years, why include it at all?
In other words, if Republicans are already under fire for pushing a series of unpopular tax cuts that reward the wealthy and punish the middle class, and they’re already facing pushback for provisions such as the break for golf-course owners, why make it worse with controversial elements like this one for owners of private jets?
Why give critics of the GOP plan – folks like me – one more reason to explain what a regressive mess the Republican legislation is?
Explore: The MaddowBlog, Economy, Republicans, Tax Policy, Tax Reform and TaxesThe Republican tax bill has a provision that would end a headache for private jet owners Bob Bryan Nov. 17, 2017, 9:55 AM Donald Trump. Jeff Swensen/Getty Images The Senate GOP tax bill contains a tax change for owners of private jets. People and companies that own jets would have payments relating to them exempted from an excise tax.
The Republican tax plan contains several changes for specific industries — from craft-beer tax breaks to changes on how people can sell stocks.
One of those industry-specific changes in the Senate version of the bill, the Tax Cuts and Jobs Act, would correct a long-running dispute between owners and operators of private jets and the IRS.
Currently, the federal government imposes an excise tax on every flight an aircraft makes. Under the Republican tax legislation, costs for maintenance and other support activities for privately-operated planes would be exempt from the excise tax. Here's what that exempts, per the Joint Committee on Taxation's description of the provision:
"Applicable services include support activities related to the aircraft itself, such as its storage, maintenance, and fueling, and those related to its operation, such as the hiring and training of pilots and crew, as well as administrative services such as scheduling, flight planning, weather forecasting, obtaining insurance, and establishing and complying with safety standards."
According to a 2016 letter from the JCT, the exemption would lose less than $500,000 in revenue over 10 years.
The change appears to be similar to a bill offered by Democratic Sen. Sherrod Brown of Ohio and cosponsored by GOP Sen. Rob Portman of Ohio. A separate bipartisan bill amending the same part of the tax code was also offered in the House.
According to the lawmakers, the excise tax was designed to be imposed on commercial flights rather than "general aviation" flights, like chartered and private planes, but the IRS has been imposing the tax on private-aircraft management firms. This has been a sore spot for chartered-flight management companies for some time.
The bills, and thus the provision, are designed to clarify the types of flights the excise tax will apply to.
www.businessinsider.com/tax-reform-trump-republican-plan-gives-break-to-private-jet-planes-2017-11
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Post by the Scribe on Apr 8, 2020 23:19:20 GMT
DON'T FREAK UNTIL YOU ACTUALLY DO YOUR TAXES. THEN REMEMBER TO VOTE IN NOVEMBER. Trump Voters LOSE IT Over Taxes
The Young Turks Published on Feb 5, 2019 Trump supporters realized that Trump’s tax plan actually ended up screwing them. Cenk Uygur and Ana Kasparian, hosts of The Young Turks, break it down. More TYT: go.tyt.com/aD5aK9Npvf8
Read more here: www.rawstory.com/2019/02/trus...
"Multiple supporters of President Donald Trump over the past couple of weeks have taken to Twitter to air their grievances about the president’s signature tax cut plan.
Even though the 2017 GOP tax cut is leading to spiking federal deficits thanks to its generous benefits to corporations, many middle-class Americans are winding up having to pay more because the bill eliminated multiple deductions used by middle-class families to lower their annual tax payments.
Among other things, the tax bill capped deductions for taxes paid to state and local governments, while massively increasing the amount of money you must donate to qualify for a charitable giving deduction."
Hosts: Cenk Uygur, Ana Kasparian
Cast: Cenk Uygur, Ana Kasparian
Uh-Oh: Trump Voters Realizing They Didn't Get Tax Cuts
David Pakman Show Published on Feb 7, 2019 --Many Donald Trump voters are furious that they owe taxes or have smaller tax refunds for 2018 in a combination of cognitive dissonance and ignorance about the tax code
Here's how the new tax law could impact tax refunds
Jeffrey Levine of BluePrint Wealth Alliance CEO joins 'The Exchange' to discuss the surprises taxpayers are finding as they file for taxes this year.
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Post by the Scribe on Apr 8, 2020 23:19:54 GMT
The architect of the Reaganomic trickle down tax scam should know what he is talking about. He has since had a "come to Jesus" awakening. Please remember how FOX and all the right wing talking heads pushed this scam on the public. And now they want to do it to healthcare, medicare, social security, wages, labor and the social safety net. The tax debt the middle class may incur after doing their taxes is what could push this country towards economic collapse, into foreclosures, loan defaults, etc. But it's ok, the wealthy got a 2 trillion tax cut paid for by the middle class. Time to pay up kids. The 1% need new yachts, planes and summer homes. Forget sending junior to college.
This isn't a middle-class tax cut, it's a lie: David Stockman
Fox Business Published on Oct 19, 2017 Former Reagan Budget Director David Stockman on the push for tax reform.
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Post by the Scribe on Apr 8, 2020 23:20:18 GMT
Warren Buffett On GOP Tax Cuts & Consequences
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Post by the Scribe on Apr 8, 2020 23:20:46 GMT
Rove: Tax cuts aimed at bottom 60 percent of taxpayers
HILLARY THE PROPHET
Donald Trump, Hillary Clinton Discuss Tax Increases on the Wealthy | ABC News
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Post by the Scribe on Apr 8, 2020 23:21:29 GMT
Good news bad news. What column will you be in? People who itemized and lived in Blue coastal states as homeowners might not like it. The GOP did its best to punish blue staters who owned homes by cutting their deductible amount. That could make or break some people and families.Trump’s ‘tax scam’: Some taxpayers get unwelcome surprise after filing returnsTax season has just begun and some Americans have already filed their taxes for 2018. And while many people generally expect a hefty refund, several have found themselves with a surprise tax bill from the IRS.
“I literally screamed when I saw my refund,” says Elissa Crooks. The 41-year-old from Orlando says that her refund was slashed by roughly $1,400 when she filed her 2018 taxes a few days ago.
She says that she relies on her refund to cover the property taxes on the house she bought four years ago. A Democrat whose voting history has included candidates from both parties, she says that she was “very upset” about her lower refund.
“I waited over the weekend to hit the send button because I thought something had to be missing,” she says. “I went over it with a fine-toothed comb. I didn’t know why it was so different.”
Crooks isn’t alone. On Twitter, the hashtags #TrumpTaxScam and #GOPTaxScam are full of angry tweeters, complaining that their refunds were either greatly reduced, or that they now owe the IRS, thanks to the Tax Cuts and Jobs Act (TCJA) passed in December 2017. Many say they feel betrayed by President Trump, who they voted for in 2016. While some appeared to be fake accounts, or ‘bots,’ there are many who have been negatively impacted by TCJA.
Kelli (who wanted her last name withheld), tweeted to the president: “First time ever owing on taxes! Static income, but take away the itemization and we got hit hard! @realdonaldtrump where’s the middle class benefits? Sadly disappointed here!”
She lives in Rialto, Calif., with her wife and says that she voted for President Trump in 2016. She normally receives a $2,500 refund, but this year, she had to pay $1,900. (The average refund between 2014 and 2018 was around $2,700.)
There’s “definitely an impact” she says, from the tax bill. “Our oldest is graduating; both are adults and are in college (one Bachelors, one Masters degree).”
Kelli says that her family will be “ok” — “until it’s time to do this again next year”, she says.
Income liability While many might have seen a change in their refunds, Mark Mazur, director of the Tax Policy Center, points out that for most people who have seen a negative change didn’t notice that the withholding on their paychecks changed, affecting their income liability. Put simply, some people have been getting bigger paychecks thanks to TCJA, which could affect their refund status. (Whether you get a refund or end up owing money to the Treasury depends partly on how much tax is withheld from your paycheck by your employer.)
“I do taxes all the time and if you were to ask me my tax liability last year, I’d have to look,” says Mazur. “The refund sticks with them [taxpayers]. The tax liability is another line on the form that they don’t pay attention to, despite the best efforts to get them to do otherwise.”
Crooks admits that she saw an increase in her paychecks (roughly $75 a month), but didn’t think much of it. Despite watching the news about TCJA, she says she was unaware that tax cuts would impact her paycheck, not her refund, like she was expecting.
“I never heard that. I didn’t know this would happen. I almost wish I had,” she says.
Mazur isn’t surprised, especially considering tax cuts passed in the two previous administrations.
“In the [George W.] Bush administration, there was a tax cut and they sent people a check,” he says. “And people remembered that they got that check. In the Obama administration, there was a tax credit that was delivered in the form of a reduced withholding — and people didn’t notice it.”
“When they did polling on the Obama tax cut, people didn’t think they got it. Those lessons apply here,” says Mazur. He says that even at the Tax Policy Center, staffers were “surprised” to see that many of them got tax cuts, compared to previous years.
“But unless people do that comparison, they don’t know,” Mazur says. “They focus on the dollars in and dollars out when they file their returns.”
Disappointing numbers Mazur points out that while there are many sounding off on Twitter and elsewhere about surprise bills and disappointing refunds, this problem might not be as widespread as it seems.
“The analysis that we’ve done is that two-thirds will get a tax cut, and a small percent — 8 or 10 — will get a tax increase,” he said. “But that’s in the aggregate. Even 10% of the country is a lot of people getting an increase.”
The IRS released its first filing statistics showing the impact of the government shutdown and the TCJA on the current tax season.
According to the figures, the IRS received 12.4% fewer individual tax returns than last year at this time. Returns processed also sharply declined by 25.8% from the year prior, likely in large part to lingering effects from the 35 day long government shutdown.
Tax refunds also took a hit. Those who filed their returns have seen their refund amounts an average 8.4% lower than last year. The average tax refund so far is $1,865, down from $2,035 in 2018.
Despite these numbers, the Treasury Department tweeted Monday: “News reports on reduction in IRS filings & refunds are misleading,” blaming the statistics on a “small” sample size. (The IRS used information from over 16 million returns filed and 13 million processed to compile its data.)
But that tweet doesn’t jive with the reality for people like Crooks and Kelli. And for some angry voters, TCJA will impact how they vote in 2020.
“I knew the middle class was going to get screwed,” Crooks says. “I had a glimmer of hope that maybe I would be equal to what I was before. But now I see it hurt me. I voted Democrat down the line in November and I’m definitely going to do that in 2020.”
Even after being hit with a tax bill, Kelli continues to support the president.
“I like what he is trying to do,” she said. “I don’t agree with the Democratic solution of socialism.”
Kristin Myers is a reporter at Yahoo Finance. Follow her on Twitter.
www.yahoo.com/finance/news/trumps-tax-scam-some-taxpayers-get-unwelcome-surprise-after-filing-returns-201206749.html
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Post by the Scribe on Apr 8, 2020 23:22:17 GMT
If you find you owe the government money after doing your taxes file them anyway without paying. Not filing your taxes is the first step in getting yourself in a heap of you know what. The IRS will work with you if you have trouble paying. They give extensions. They are not so generous if you continue to ignore filing year after year and penalties can be extensive.
Check out this website for tips on what to do if you find yourself in this predicament after the current GOP tax scam robbed you of your refund in order to give the 1% much needed vacation monies. Neither Trump nor the Republiconservative Party will help you now. You must take charge yourself and remember to vote come election time. WELCOME to Dan Pilla's TaxHelpOnline.comThe most complete site to Understanding Your Taxpayer Rights and Solving Your Tax Problems.
In 1974, the IRS seized my father's business for back tax debts. They padlocked the doors and auctioned the equipment off for a few cents on the dollar. Then in 1977, they turned their attention to our family's home. I came home one day and my mother handed me a letter from the IRS. She said, "What do you make of this?" I read it and said, "It looks like they're going to take the house." She wanted to know what we could do about it. My mom was in tears.
Though I had no answer, I went to a law library near our home in St. Paul. I starting fumbling around in the tax code and literally stumbled onto an area of the law deals with taxpayers' rights and limits the IRS's power. I didn't get six pages into that part of the code and found that the IRS was proceeding illegally to seize our home. So I did what any eighteen-year old would do—I sued the IRS!
I soon found myself in a federal courtroom in Minneapolis in front of a judge and opposed by an IRS attorney from Washington, D.C. After hearing arguments from both the IRS's attorney and me, the judge declared that I was right and slammed his gavel. I won the case! Interestingly, dozens of my father's friends were in the courtroom that day, many of whom had their own tax problems. By the time I got home, they were lined up at the door to talk with me. They asked, "Can you help with my tax problem?" I said, "Hey, I'm undefeated so why not?"
Since that time, I have helped thousands of people solve every kind of tax problem you can imagine, and some you can't. Because of my experience, I have come to believe that there is no such thing as a hopeless tax case. There's always a way to fix the problem if you know what your rights are. Dan Pilla
For over three decades, Daniel J. Pilla has been the nation’s leader in taxpayers’ rights defense and IRS abuse prevention and cure. Widely regarded as one of the country’s premiere experts in IRS procedures, he has helped countless thousands of citizens solve personal and business tax problems they thought might never be solved. Dan has seen every type of tax problem and believes "there is no such thing as a hopeless tax problem."
Explore our site, and see how Dan can help you! Note: Dan deals with tax deliquency problems, not preparation questions. TaxHelpOnline.com is the website of Daniel J. Pilla and Winning Publications, Inc.
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Post by the Scribe on Apr 8, 2020 23:22:54 GMT
Amazon will pay $0 in taxes on $11,200,000,000 in profit for 2018 Kristin Myers 4 hours ago
While some people have received some surprise tax bills when filing their returns, corporations continue to avoid paying tax — thanks to a cocktail of tax credits, loopholes, and exemptions.
According to a report from the Institute on Taxation and Economic Policy (ITEP), Amazon (AMZN) will pay nothing in federal income taxes for the second year in a row.
Thanks to the new Tax Cuts and Jobs Act (TCJA), Amazon’s federal tax responsibility is 21% (down from 35% in previous years). But with the help of tax breaks, according to corporate filings, Amazon won’t be paying a dime to Uncle Sam despite posting more than $11.2 billion in profits in 2018.
How is that possible?
“It’s hard to know exactly what they’re doing,” said Steve Wamhoff, ITEP’s Director of Federal Tax Policy. “In their public documents they don’t lay out their tax strategy. So it’s unclear exactly which breaks [the company is taking advantage of]. They vaguely say tax credits. One could think of many different ways a corporation could do this, like the depreciation breaks which were expanded under TCJA.”
Jeff Bezos, founder and chief executive officer of Amazon.com Inc., listens during a discussion at the Air Force Association's Air, Space and Cyber Conference in National Harbor, Maryland, U.S., on Wednesday, Sept. 19, 2018. (Photo: Andrew Harrer/Bloomberg via Getty Images)
‘It’s hard to tell’ Though Amazon might have taken advantage of new breaks and loopholes available under TCJA, this isn’t the first year that Amazon has avoided paying federal tax. The company reported $5.6 billion in U.S. profits in 2017 and paid $0 last year as well.
"Amazon pays all the taxes we are required to pay in the U.S. and every country where we operate, including paying $2.6 billion in corporate tax and reporting $3.4 billion in tax expense over the last three years," an Amazon spokesperson said in a statement.
According to Wamhoff, the company’s apparently nonexistent tax bill highlights that there have always been issues with corporate tax liability.
“The thing we would need to know is would they have had positive corporate income tax liability were it not for TCJA?” Wamhoff asked. “Maybe. It’s hard to tell.”
(Source: Institute on Taxation and Economic Policy analysis of SEC filings) Revelations about Amazon’s tax liability come despite President Trump’s very public criticisms of Amazon and Bezos for not paying enough tax. The president had promised his new tax law would end special interest breaks and close loopholes, but it’s clear that isn’t the case, says Wamhoff.
“This is another situation where the rhetoric from President Trump is completely divorced from what he does and what his policies do,” explained Wamhoff. “The part about cutting corporate tax rate was true. And they eliminated some corporate tax rates but not all.”
He added: “The corporate tax revenue was a big loser. We aren’t going to see corporations suddenly paying more. We see that in the case of Amazon.”
Declining tax revenue has only widened deficits, as national debt has ballooned up and over $22 trillion.
Amazon briefly touched $1 trillion in market cap on September 4, 2018. (Chart: Yahoo Finance)
Amazon not alone TCJA had been criticized in large part due to the benefits it provided the wealthiest Americans and big corporations. Wamhoff says it’s ironic that the corporate tax rate was slashed to 21% (from its previous 35%) because the effective corporate tax rate under previous tax law was 21%, after accounting for tax breaks and loopholes.
Therefore, Wamhoff says, we’ll likely see the effective tax rate fall even lower.
But if anyone thinks that Amazon is alone, they would be wrong. Last week, Netflix also did not pay American federal or state income taxes according to a separate ITEP report, despite posting record profits. Netflix has disputed those findings, while ITEP claims that the $131 million paid by Netflix is taxes on foreign income.
And historically Wamhoff says, this story is nothing new. Several corporations have avoided paying federal income tax throughout the years, he says.
“These companies have been consistently profitable,” he explained. “And they should really be paying taxes.”
Amazon makes money in a lot of ways. (Graphic: David Foster/Yahoo Finance)
READ MORE:
Source: Institute on Taxation and Economic Policy analysis of SEC filings finance.yahoo.com/news/amazon-hq2-union-battle-225715030.html
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Post by the Scribe on Apr 8, 2020 23:23:30 GMT
Tax refunds are $11.5 billion behind our forecast: UBS Ethan Wolff-Mann 21 hours ago
Spring tax refunds typically give the economy a boost as the money rolls in and people either pay down debt or go out and spend, so economists and analysts pay close attention to the size of these windfalls.
A new research note from UBS finds that net payments to households are now running below its economists’ forecast, a shortfall of $11.5 billion of the $20 billion in extra cash that the economists had expected compared to last year.
As of the latest IRS numbers, 27 million returns have been processed and the average refund is $1,949, down 8.7% compared to last year .
It is still relatively early in the refund season, but UBS noted that should this continue, it would have a “meaningful effect” on its Q1 forecast. The economists, “with hesitance,” maintain their forecast for the additional $20 billion coming to households compared to last year by the end of May.
Once again, UBS repeated its mantra for the 2019 tax season: “Nobody—not us, not other economists, not the US government—knows whether refunds will be larger or smaller than in past years.”
Many economists from banks like UBS and Merrill Lynch expected tax refunds to be especially large, given the changes in the tax code. For example, Merrill Lynch expected refunds to be 26% larger this year.
Unfortunately, changes to the IRS’s withholding tables were not aggressive enough, and refunds are down. Though withholding errors are a big factor that cause a drop in refunds, changes to the state and local tax deductions have caused many unpleasant surprises for families. Still, the overall numbers for taxes paid by families should be lower given the changes in the law, a point that Senator Chuck Grassley (R-Iowa) pointed out recently.
www.yahoo.com/finance/news/tax-refunds-are-115-billion-behind-our-forecast-ubs-223444441.html
Ethan Wolff-Mann is a writer at Yahoo Finance focusing on consumer issues, personal finance, retail, airlines, and more. Follow him on Twitter @ewolffmann.
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Post by the Scribe on Apr 8, 2020 23:23:57 GMT
Bill & Melinda Gates Talk Taxing The Wealthy The Late Show with Stephen Colbert Published on Feb 13, 2019 On the day of the Bill & Melinda Gates Foundation's annual letter, Bill and Melinda Gates give their (admittedly biased) view on the proposed 70% marginal tax rate.
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Post by the Scribe on Apr 8, 2020 23:24:31 GMT
Kiplinger IRS Waives Penalties for Many Taxpayers Surprised by Under-WithholdingKiplinger Rocky Mengle, Tax Editor,Kiplinger 9 hours ago
The underpayment penalty won't apply if you paid at least 80% of your 2018 tax bill through withholding or estimated tax payments. Normally, 90% must be paid for the waiver.
Many Americans are worried about getting smaller refunds this year...but it could be worse. If the income tax withheld from your paychecks last year was way less than it should have been, or your estimated tax payments for 2018 were far too low, you could be hit with an underpayment penalty in addition to owing the IRS money for taxes due. Ouch!
Fortunately, the IRS is providing some additional penalty relief this year. Typically, you avoid the underpayment penalty if, through withholding or estimated payments, you prepay at least:
90% of your tax bill for the tax year, or 100% of what you owed for the previous tax year (110% if your AGI for the previous year was more than $150,000). For the 2018 tax year--and only the 2018 tax year--the 90% threshold is reduced to 80%. (It was originally reduced to 85%, but then lowered again to 80%.) So, you won't be hit with the underpayment penalty this filing season if your 2018 withholding or estimated taxes equaled at least (1) 80% of your 2018 tax, or (2) 100% of your 2017 tax (110% if your 2017 AGI was more than $150,000).
SEE ALSO: Top Tax Software Programs for Your 2018 Tax Return www.kiplinger.com/slideshow/taxes/T056-S003-top-tax-software-programs-for-your-2018-tax-return/index.html?rid=SYN-yahoo&rpageid=20125
This slight change will help many taxpayers who didn't adjust their 2018 withholding or estimated payments to reflect (or properly reflect) sweeping tax law changes made by the Tax Cuts and Jobs Act or the updated 2018 withholding tables. (Revisions to the withholding tables were also designed to bring taxpayers' withholding closer to their actual tax liability.) Not everyone will be able to dodge the penalty because of this one-time adjustment, but even modest penalty relief is better than nothing.
Requesting the Penalty Waiver To claim the 80% waiver, you must complete IRS Form 2210 and file page 1 of the form with your 2018 tax return. The form can be filed with a return filed electronically or on paper. You'll need to complete Part I of the form and the worksheet included in the form instructions to determine whether the waiver applies. If it does, check the waiver box (Part II, Box A) and write "80% Waiver" next to Box A.
If you already filed your 2018 tax return and paid the underpayment penalty, you can request a refund of the penalty by filing Form 843. Include "80% Waiver of estimated tax penalty" on line 7. Form 843 cannot be filed electronically.
Paying the Penalty If you still don't qualify for a waiver, you can either use Form 2210 to figure the penalty amount or have the IRS calculate the penalty and send you a bill. If you want the IRS to figure the penalty for you, complete your 1040 as usual and leave the penalty line (Line 23) on your return blank. If you file your return by April 15, no interest will be charged on the penalty if you pay the penalty by the due date shown on the bill.
Act Now to Avoid the Penalty Next Year Employees who don't want to get hit with the penalty (again?) next year should do a "paycheck checkup" using the IRS's withholding calculator. The tool will let you know if your current income tax withholding is enough. If it isn't, you can submit a new Form W-4 to your employer to increase withholding. It's that simple!
SEE ALSO: 12 States That Won't Tax Your Retirement Income www.kiplinger.com/slideshow/retirement/T047-S001-12-states-that-won-t-tax-your-retirement-income/index.html?rid=SYN-yahoo&rpageid=20125
EDITOR'S PICKS 8 Tax Deductions Eliminated (or Reduced) Under the New Tax Law www.kiplinger.com/slideshow/taxes/T054-S010-8-tax-deductions-affected-by-the-new-tax-law/index.html?rid=SYN-yahoo&rpageid=20125 The One Simple Move Keeping Americans From Getting Bigger Tax Refunds This Year www.kiplinger.com/article/taxes/T056-C000-S001-adjust-your-withholding-to-get-a-bigger-tax-refund.html?rid=SYN-yahoo&rpageid=20125 Best States for Low Taxes: 50 States Ranked for Taxes, 2018 www.kiplinger.com/slideshow/taxes/T055-S001-best-states-for-low-taxes-50-states-ranked-for-tax/index.html?rid=SYN-yahoo&rpageid=20125
Copyright 2019 The Kiplinger Washington Editors
www.yahoo.com/finance/news/irs-waives-penalties-many-taxpayers-192752302.html
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Post by the Scribe on Apr 8, 2020 23:25:00 GMT
How tax breaks help the rich Vox Published on Oct 9, 2017 The US has a problem with income inequality. The current tax code makes it worse.
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Post by the Scribe on Apr 8, 2020 23:25:34 GMT
Why some states didn't adopt all of the federal tax changes Alyssa Pry 10 hours ago www.yahoo.com/finance/news/why-some-states-didnt-adopt-all-of-the-federal-tax-changes-214159296.html
When the Tax Cuts and Jobs Act was passed in 2017, concerns over the impact to taxpayers led some states to decouple, or choose not to follow, certain aspects of the new federal tax law.
“Each state, depending on how their tax laws were structured, either ended up with huge amounts of money projected coming in and their residents could have been adversely affected,” says John Lieberman, a certified public accountant in New York City.
“This is an unusual country in the sense that we have a federal law and we have a federal tax collection agency, and in addition there are over 3,000 taxing entities in the United States,” he says. “In other countries, there's only one tax authority and tax code that people deal with and they don't have state or provincial taxes.”
This means states could choose how to follow and interpret the tax law to their benefit by ignoring the new law or making changes to their own laws, Lieberman says.
“Five states went out and cut their state tax rates, they made certain changes for economic incentives—they did their own tax reform, taking into consideration what would be best for the citizens of their state,” Lieberman says.
California, Texas, Minnesota, North Carolina, South Carolina, and New Hampshire did not conform to the new law but rather changed their own laws to be more favorable to residents. For example, they have not enacted legislation to revise their conformity dates for when they will have to abide by the new federal tax reform, so previous tax laws are still in affect.
New Hampshire increased its business equipment deduction limit from $100,000 to $500,000, which matches last year’s federal limit, as opposed to the current federal limit of $1 million. This causes a lower tax benefit to businesses.
"Small businesses may end up paying more in taxes due to state decoupling,” says Ebong Eka, a certified public accountant with Ericorp Consulting. “The states may miss out on additional tax revenues by following federal law.”
Eka says many states disallow bonus depreciation, which is an additional depreciation deduction on property or equipment, even though the IRS allows it on a tax return. “This boosts the tax revenue for the state and costs the small business more money due to a disallowed deduction," he says.
Lieberman says New York decoupled completely and decided to follow federal tax law from 2017 instead of changing its tax law. This benefits residents because if federal rules were followed, residents would be taxed on a higher taxable income under the newer rules. Decoupling created a “more level playing field,” Lieberman says. In New York, this means taxpayers can still itemize deductions on their state tax returns that they aren’t allowed to claim on federal their tax returns, such as real estate taxes without limit and unreimbursed business expenses.
Lieberman says in using tax software, state codes have been added to incorporate the changes and calculate properly, but often the software is being rewritten as the filing season continues, or more guidance is needed to figure out what Congress actually wanted, causing more headaches for accountants and taxpayers.
“The IRS approves how to figure it out, but remember that the IRS was shut down during a critical time period,” Lieberman says. “This new tax code was written very quickly and there's little and large gaps so we're not sure how to interpret so we’re still waiting for some guidance from the IRS.”
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