Archives For taxes

On top of that, higher-income taxpayers could see their itemized deductions and personal exemptions phased out and pay higher capital gains taxes — 20 percent for some taxpayers. And there are new taxes for them to help pay for health care reform.

There are different income thresholds for each of these new taxes.

An additional 0.9 percent Medicare tax, for example, kicks in on earnings over $250,000 for married couples filing jointly and $200,000 for singles and heads of household. Same for a 3.8 percent tax on investment income.

But the phase-out of personal exemptions and deductions doesn’t begin until $300,000 for married couples filing jointly and $250,000 for singles.

Taxpayers will still be able to deduct their medical expenses, but it will be more difficult for many to qualify. The threshold for deducting medical expenses now stands at 10 percent of adjusted gross income, up from 7.5 percent. There’s an exception, though, for those older than 65. For them, the old rate is grandfathered in until 2017.

SOURCE: Tax code changes will hit high-income Americans hardest | PBS NewsHour.

It is good to hear that at least some things are changing when it comes to asking the wealthy to pony up a little more of their mammoth discretionary income for the good of the country and for the basic welfare of its citizens. While these gains (you probably say loses if you are on the receiving end) are notable they is still a long way to go in this area…

GOP Is Not A Real Party…

October 22, 2013

“The Republican Party is not really a party. It doesn’t stand for anything except re-electing itself,” Stockman, who directed the Office of Management and Budget under President Ronald Reagan, tells Newsmax. “The neocons are only oriented to an aggressive, imperialistic foreign policy of big defense establishment and suppression of our civil liberties. That’s bad.

“The tax cons want to just cut taxes — any time, any day — regardless of the fiscal situation,” Stockman adds. “That has gone to an absurd length. The social cons, social policy people — the right-to-life issue and gay marriage and all of that — that’s irrelevant to governing a democracy in a free society.

SOURCE:  Former Reagan Budget Head Stockman Critical of GOP.

I have long agreed with Will Rogers when he said “I’m not a member of an organized party I am a Democrat”. The Democrats have always be a coalition of many factions.

  • There are those who think government is the solution to all problems.
  • There are those who want to give help to everyone whether they want it or not. 
  • There are those called “blue dogs” who want less government but not be destroying the social safety net. 
  • And finally there are those who want abortion to be easily obtained for those who “want to control their own bodies”. 

This hodgepodge of associations has long been the face of the Democratic party. Except for the last item they all seem to share a basic empathy that we should be there for one another. We should have each other’s back. The safety net that protects those caught in some bad times should be strong so that no one is totally destroyed either by their own actions or the actions of others.

And then there are the Republicans of the last couple of decades. You would think that the words in the quote above were spouted by one of the talking heads over at MSNBC but you would be wrong.  They came from one of the chief aids to then president Ronald Reagan. David Stockman invented “trickle down economics” or at least the current version of it. Trickle down is widely believed to be one of the primary reasons Reagan was elected. Give money to the rich and it will eventually trickle done to the poor. The other economic thought was that in order to raise tax revenue you must lower taxes.  Don’t ask me to explain that one but Mr. Reagan and Mr. Stockman thoroughly believed it. Of course it didn’t happen and Reagan turned out to be the first big deficit spenders of our time.

It is enough to say that Stockman was one of the founders of conservatism as it is practiced  up until recently.  The words in the quote are  pretty blunt that the GOP stands for nothing except getting re-elected. But of course that could also be said for the Democrats in congress as well. As Stockman points out

  • The neocons are only for a big military establishment and suppression of civil liberties.
  • The tax cons are only for cutting taxes even if it means stripping our safety net in the process. That fact does not concern them at all. 
  • The social cons are so fixated on “below the belt” issues that nothing else really matters to them.

The source article goes on to include several other dark sides of the current GOP but I will leave it up to you to see that if you want.  As for me I will stick to the first group with my tenuous political allegiance. At least until the GOP comes back to something resembling any level of compassion.

Pile of MoneyThe U.S. government and Switzerland have reached an agreement that could expose Americans who have used Swiss banks to avoid paying taxes….

The crackdown began in 2009 after a whistleblower notified U.S. authorities that UBS, the largest Swiss bank, was enabling Americans to evade taxes.

UBS settled the case later that year. It turned over account records on 4,500 U.S. customers and paid a $780 million fine

SOURCE:  Swiss, U.S. reach deal on outing tax evaders – CBS News.

I have absolutely no sympathy for those caught trying to hide their wealth in swiss banks in order to avoid paying their fair share of taxes.  It is about time that the Swiss were held accountable for their part in this activity. I certainly celebrate those who through their own initiatives have become wealthy in the country. For the most part they deserve to have the fruits of their labor. But as the bible says for whom much is given much is expected.

Prior to the establishment of personal income taxes in 1913 (yes, just a hundred years ago) almost all the money needed to run our government in doing the people’s business came from inheritance taxes and import taxes. I wonder what this country would look like today if that means of funding had continued? I kind of think we would probably be  better off than what we are now.  Instead of taxing those who have little or no discretionary income why not depend on wealth returning to where it came from after someone dies?

Getting back to the point of the post, it seems that the more money someone has just increases their fixation on getting more and more and paying out less and less. They let money become the idol of their lives. In that regard  the sickness is much worse than the cure. It does my heart good to see that those who try to hide their wealth in order to avoid taxes are getting caught more frequently today thanks to the revised Swiss practices. But I’m sure there are many more than the 4,500 who were turned over. Probably orders of magnitude more…..

Apple CEO

A Senate panel late Monday accused Apple (AAPL) of using what it called a “complex web of offshore entities” to dodge billions of dollars in U.S. income taxes.

via Lawmakers say Apple dodged billions in taxes – CBS News.

If we could just manage to get a Centrist party in control of those folks in Washington one of the first things I would want them to attack is our bloated tax code. The 10,000 plus pages of rules are at the core of the above article. Of course businesses want to minimize their tax load in order to increase their profits.  That is, after all, what the free enterprise system is all about. Profits are the sole driver.

One of my major themes in my life lately has been around the word “Simplify”. Our world is just getting too complicated when it doesn’t have to be. Let’s throw out those 10,000 pages and replace them with just a handful. Let’s take away the means for corporations to move massive amounts of their income into tax exempt entities.

Let’s just make income well, income. If it comes in it is income and you pay a certain percentage of it as taxes to support our government and its business. For the individual that means you pay the same rate for income for profits from your investments as you do from the sweat of your brow. That means if you inherit income you pay your taxes on that amount in order to pass part of your windfall on for the common good.  You didn’t earn it so it is taxable income to you. For corporations money coming in is income; doesn’t matter if it was from a foreign sale or one in the U.S.

Lets Get a Centrist party in power and direct them to simplify our tax code. After they accomplish that then I would want them to give us “real” universal healthcare; not that pretend extremely watered down version called Obamacare. But first things first I guess and that is getting centrists into power in our government. Click on the logo below to see more about that.

Centrist Party

Power To The People….

February 6, 2013

Banner - Will Rogers

Our financial ills will never be settled till you fix it so every man will pay an income tax on what he earns, be it a farm, grocery store or municipal or government bonds   — Will Rogers  March 21,1933

Will’s words above were spoken during the heights of the depression but even then the rich were finding loopholes to avoid paying taxes.  I have never understood how “unearned income” is treated any differently than the income the average guy has to sweat in order to earn. But for some reason, and I’m sure the politicians had their hand in it, “unearned income” is taxed at a lower rate called capital gains than when it is earned by the sweat of your brow.

vote 55To take advantage of this loophole most wealthy people do not actually have much income that is “earned”. That is they get their income from the wealth they already have. For instance more than 80% of Mr. Romney’s income was considered capital gains; that is how he and so many other rich guys can get away with paying less percentage of taxes than most of us. Continue Reading…

Banner -Off The Top

DeliveryI must admit that I am a loyal customer of Amazon. I pay an extra $79 a year to have two-day free delivery of almost everything I buy and I buy quite a bit from them. I get many things the next day. It amazes me just how quickly they can get my order to me!

Another company that amazes me is Google. If I have a question on just about anything I can get many different views on the subject usually within a minute or two.  I can remember in high school and even college spending hours in the library scouring through twenty-four book encyclopedias and many other books to find a minute amount of info I can now get in seconds.

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The Slippery Slope…..

December 18, 2012

Banner -Off The Top


SlipperyI am totally sick of the “slippery slope” that my conservative friends so often cling to!!

If I hear another person give me a slippery slope story I just might punch them. The idea of the slippery slope consumes so much of their lives. It is the center point for their current stands against gun regulation. It is the center point for their current stands of excluding anyone from their religious circles who don’t totally align with them.  It is the center point of their current stands on taxes.

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Taxes, Its All Relative…..

December 7, 2012

Banner -In The News

Source: Most Americans Face Lower Tax Burden Than in the 80s – NYTimes.com.

taxes 1But in fact, most Americans in 2010 paid far less in total taxes — federal, state and local — than they would have paid 30 years ago. According to an analysis by The New York Times, the combination of all income taxes, sales taxes and property taxes took a smaller share of their income than it took from households with the same inflation-adjusted income in 1980.

Households earning more than $200,000 benefited from the largest percentage declines in total taxation as a share of income. Middle-income households benefited, too. 


Everything is relative. I learned that in college in a physics class way back in the 1960′s.  Another lesson I learned is that everything is a shade of grey; nothing is totally black or white. So when I hear people complain about how all their hard Continue Reading…

Banner -In The Newssource:  A Very Different Lame-Duck: Lessons From 2010 – ABC News.

canstockphoto11084666The fiscal cliff is what we’re focused on,” Cantor spokeswoman Megan Whittemore said. “That’s what we need to get a resolution for.”

“Fiscal cliff” this “fiscal cliff” that; I am really getting tired of all the rhetoric. It is almost as if some evil empire dropped the “fiscal cliff” viciously into our laps. This reminds me of all the gloom and doom associated with Y2K. Does anyone remember that one.  That happened in 1999 when some wise guru decided that the world was going to end when the calendar turned to January 1, 2000. The reasoning was that computers would get the date confused with 1900 as we only use the last two digit in most of our year designations.  Of course when the date actually happened it was as mundane as the year before.  No the “fiscal cliff” wasn’t dropped down on us by some evil empire, it was a result of a big majority vote by those same folks in our congress that are so upset about it now.

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Source: Churches and Taxes – ProCon.org.

US churches received an official federal income tax exemption in 1894, and they have been unofficially tax-exempt since the country’s founding. All 50 US states and the District of Columbia exempt churches from paying property tax. Donations to churches are tax-deductible. The debate continues over whether or not these tax benefits should be retained.

Proponents argue that a tax exemption keeps the government out of church finances and thus upholds the separation of church and state. They say that churches deserve a tax break because they provide crucial social services, and that church tax exemptions have been in place for over 200 years without turning America into a theocracy.

Opponents argue that giving churches special tax exemptions violates the separation of church and state, and that tax exemptions are a privilege, not a right guaranteed by the US Constitution. They say that in tough economic times the government cannot afford what amounts to a subsidy worth billions of dollars every year.

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