The Tax Preparation Blog

Archive for July, 2009

Question: American Corporations pay the HIGHEST TAXES in the world…liberals, how is that “Corporate Welfare”?

http://www.americanthinker.com/printpage/?url=http://www.americanthinker.com/2009/03/us_companies_pay_the_highest_t.html
It may come as a surprise that US companies pay the highest taxes in the world. Yes, you read that right. American businesses, large and small and across all industries pay from 35% to 41.6% of their income in combined state and federal taxes. The 41.6% maximum rate is scheduled to rise to 46.2% in 2010 when President Obama’s promised tax increases are implemented. Compare that to socialist France where companies pay only 34.4% in taxes, to China where the rate is 25%, or Russia which levies a mere 24%. Corporations in Ireland, Europe’s fastest growing economy for the
last 18 years, pay just 12.5% in taxes.

Answer: It isn’t ” Corporate Welfare ” . I recalled reading previously that Ireland does have one of the lowest corporate tax rates in the world and America has one of the highest.
Additionally; other Countries such as China, Mexico and India offer a cheaper source of labor too. All of the above is one of the primary reasons why so many American businesses have outsourced all or some of their business to other Countries or even moved their entire Corporations to other Countries,

Obama’s plan to increase corporate taxes in America will only magnify this problem.
What Obama fails to comprehend is that when these Corporations move all or part of their business to other Countries……..They take American Jobs with them.

Conversely when American Corporate Tax rates are lower American Corporations are healthier, produce more, expand more and………..require more American workers to fill these needs.
Obama just doesn’t get it.

Feldstein Calls Lack of 2010 Stimulus ‘Serious Cloud’ on Growth

Jan. 4 (Bloomberg) — Harvard University economics professor Martin Feldstein said U.S. economic growth may falter this year because of a waning stimulus from federal spending and tax incentives for purchases of homes and autos.

Payroll Software withholding tax for 2010

Question: Headlines for 2036?

George Z. Bush says he will run for President in 2036.

Postal Service raises price of first class stamp to $17.89 and reduces mail delivery to Wednesday only.

Results of 35 year study: diet and exercise are the key to weight loss.

Massachusetts executes last remaining conservative.

Supreme Court rules punishment of criminals violates their civil rights.

Upcoming NFL draft likely to focus on use of mutants.

Average height of NBA players now nine feet, seven inches.

Microsoft announces it has perfected its newest version of Windows so it crashes BEFORE installation is completed.

New federal law requires that all nail clippers, screwdrivers, fly swatters, and rolled up newspapers must be registered by January 2036.

Congress authorizes direct deposit of illegal political contributions to campaign accounts.

Capital Hill intern indicted for refusing to have sex with Congressman.

IRS sets lowest tax rate at 75%.

Answer: And:
Chelsea Clinton will finish her eight year term as President.

Brangelina adopt their two hundred and first child, a Transnistrian pansexual beautiful toddler, completing their goal of adopting a child from every country.

Charles Manson is released from prison for good behavior at 111 years old.

Hannah Montanna found dead in hotel room by an overdose of IMO (Instant Multiple Orgasm) after being called a washed-up-has-been who was caught lip synching all her songs after she was on the Howard Stern Show.

Oprah Winfrey and Gayle King-Winfrey share a 30 year wedding anniversary with pals Tom Cruise and Stedman Cruise by throwing a 700 billion dollar bash at the atmospheric- sealed Cruise couple’s domehouse. Tragically, Tom Cruise dies from head injuries sustained from a fall while jumping up and down on a couch in excitement.

Ok, I can’t think up any more~ it’s 5am!

Top stories of 2009

The last year of the first decade of the 21st century had a little bit of everything for Santa Barbara. The area was hit with another devastating wildfire; the city of Santa Barbara’s political landscape continued to morph and a high-profile murder trial captured headlines for weeks.

States Fund Budgets With Contents Of Safety Deposit Boxes

Question: California will run out of money in about two weeks, they will give out IOUs instead of checks…?

They plan on giving IOUs to citizens instead of tax refund checks.

Therefore, If I owe taxes is it legal for me to send them an IOU for the amount due?
“The crisis has left the state with little more than a month’s worth of cash in the treasury.”

http://news.xinhuanet.com/english/2009-01/08/content_10620907.htm

Answer: I don’t know about that, but I’m waiting for someone to sue the IRS for the interest, late fees & penalties that they charge the people who owe them money, because when the IRS owes someone money due to their own error, they DO NOT pay interest, late fees, or penalties. (I know, I’m not holding my breath.)

As for the IOUs, lol, uh… yeah. I’m guessing we can go ahead & use those IOUs to T.P. Arnold’s “house.”

Florida Senate Debate: Transcript Part II

Part two of the Florida Senate debate transcript: CRAIG PATRICK: Mr. Meek, I want you to speak to a quote about Ronald Reagan. Quote “Democrats had gotten complacent. Fat and happy. Thought that you could come up with a government…

California gives IOUs

Question: What tax rules apply to a US Citizen working in India for 6 months while being on US payroll?

My employer is sending me to India for 6 months. I will be traveling multiple countries during that time but will alway be returning to India (company-provided guesthouse). I will be given a daily per diem while away from US and all travel expenses will be paid for by the company.

At the end of 6 months, I will return to my home in California. During my stint in Asia, I will continue to maintain my home in CA and bear all related expenses.

Are there any issues that need to be considered from a taxation perspective from both US and Indian law? Is there a certain period beyond which my company cannot continue to pay me in US dollars into my US account and I must pay taxes in India?

If my company temporarily decides that it might be better to transfer me over as an Indian employee and pay me my US-equivalent salary in Rupees, does this make matters better or worse?

As a side-note, I am a PIO (Person of Indian Origin) card holder and so do not need a visa to enter India…

Answer: You are US citizen. If you work in India for a US company and get paid by the US company in USA, then nothing will change and you will file as usual. You won’t be paying any taxes in India and need not report anything in India.

If you get paid in India by a company registered in India, on your pay in India you will pay taxes in India. You will also have to add this income on line 1 of your Form 1040. Then you will fill Form 1116 to claim Foreign Tax credit on line 47 of Form 1040.

If your stay in India is for a longer duration than you can claim Foreign Earned Income exclusion up to around $85,000.
For more information read IRS publication 54: Tax Guide for U.S. Citizens and Resident Aliens Abroad.

Decade in review: A wild ride in personal finance

The decade that began with the view that the sky was the limit is ending with both investors and consumers feeling grounded.

Life on the Downside of the Laffer Curve

Question: How much are casino dealers taxed in Southern California?

I just got back from the texas holdem poker tables and one of the dealer was saying he gets taxed somewhere around $28 an hour even if he’s not dealing!!! Is this true?
How much can a dealer make an hour than if he’s taxed that much?

Answer: Yes it is true and if he didnt he would make the same amount as an owl.

Government/Regulations: Related News

12/30/2009 – Wisconsin Making CDL Changes to Meet Federal Regulations Wisconsin is making several changes to its commercial driver license program, after the Federal Motor Carrier Safety Administration found a number of discrepancies between Wisconsin statutes and federal regulations….

California’s Feb. 2009 Budget Crisis Deal: Reactions Before & After