The Tax Preparation Blog

Posts Tagged ‘history’

Question: Didn’t high top-tier tax rates end the depression, win WWII, and build the post-war middle-class boom?

Extremely high government spending on manufacturing of armaments, starting in 1942, ended The Great Depression, in 1943. In 1944 and ‘45, top-tier tax rates (the highest in U.S. history) above 90% helped end the war and build the post-war middle-class boom. Top-tier tax rates remained above 50% until 1981 when tax rates were lowered from the 70% level by Reagan. They’ve remained below 50% (and often below 40%) to this day.

Did this mid-century tax policy not help create the America many still remember that existed until the ’70s? High real family incomes? Little or no family debt with higher savings? No financial market panics from 1937 to 1987? The “rich” weren’t even “hurting”, then! Were they?

Answer: Correlation does not prove causality but anyone who wants to convince me that high taxes on the rich will stop economic growth will have to explain why it did not during the post WWII period.

White House Not Budging on Tax Hikes for Wealthy

Obama administration continues to push for Congress to let the Bush tax cuts expire for the wealthiest Americans, teeing up a lame-duck standoff in Washington once lawmakers return from the campaign trail. Control of Congress Unknown on Nov. 3? Tea Party 2010 Wrap-Up Tour Kicks Off White House: Chamber OK to Help Dems OPINION: For WH, It’s All Propaganda Full Coverage: America’s Election HQ

History of income tax vlog-BTW, did you pay your taxes? I did!

Question: Highest Taxes in US History Under Ronald Reagan?

From 1982-1986, Ronald Reagan presided over a top bracket income tax rate of 50%, the highest in US history. Today, the top bracket tax rate is 35%. Why do Republicans always fault Democrats as being socialists for wanting to raise top bracket income tax rates no more than 5.5-6% (to cover healthcare costs for example)? Why was it not socialism when the GOP saint Reagan was in office?

Answer: Reagan did not have a Republican controlled congress. You know that right? He did get them to lower taxes and it helped the economy grow.

Deans Knight Income Corporation Releases Interim Financial Statements and Management Report of Fund Performance for …

VANCOUVER, BRITISH COLUMBIA–(Marketwire – Aug. 12, 2010) – Deans Knight Income Corporation (the “Company”) (TSX:DNC) is pleased to release its interim Financial Statements and Management Report of Fund Performance for the period ended June 30, 2010. T

Political Facts & Information : History of the US Income Tax

DAY 6: John Marra’s Hawaiian Holiday

Read daily updates from John Marra’s journal from his trip to Hawaii with a group of WSAZ viewers. Don’t forget to check out his pictures, too!

Budget 2010 predictions: Will CGT rise to the level of income tax?

Recent statistics showed that foreclosure filings reached one million in May with indications that the number could swell to 2.4 million by the end of 2009. Unfortunately, much like filing bankruptcy, the ramifications of a foreclosure filing will follow these families around for a long time. The first issue following a foreclosure, however, is an immediate one; finding a new place to live. Many families, in the battle to remain in their home, will use up most or all of their funds prior to foreclosure. That leaves them empty handed once the foreclosure is done. Combined with a credit score that reflects the foreclosure, the lack of funds can make a prospective landlord queasy about approving an applicant in this situation. Solutions include:

* Writing a letter of explanation to accompany the lease application. Putting a story behind the current situation, along with a detailed solution can go a long way.

* Offering a larger deposit than required. It may have to be borrowed or saved during the last stages of the foreclosure but the offer of a larger deposit will serve to lessen the risk perceived by the landlord.

* If there is a solid income history, leasing a property at a small fraction of the total income will ease the concerns of a landlord.

The second issue is the inevitable hit on the homeowner’s credit score. Credit scoring is now integrated so that a foreclosure will not be an isolated event. Once a foreclosure hits a report, credit card interest rates will skyrocket and credit limits will be slashed. Carrying a high balance on credit cards can be prohibitively expensive at interest rates above 27%. It will also be difficult and expensive to get approved for any other type of loans. Solutions include:

* Debt settlement – Defaulting on consumer debt and then doing nothing doesn’t make it go away. Additionally, staying current on your cards with rates at 30% is going to take precious money away from lease deposits, etc. If your credit score is going to take a pounding anyway, entering a debt settlement will cut your payments in half and pay the debt off within 48 months.

* Be proactive regarding your credit score. Be sure to note your scores when balances are paid off. Your credit score can be re-built over time as you get out of debt.

Like bankruptcies, prospective employers are now focusing more attention on foreclosure filings in terms of judging the character and financial responsibility of the applicant. Credit checks are now a regular part of the screening process, especially when there are a number of applicants. A foreclosure can tip the scales if everything else is equal between two applicants. A possible solution is to have a letter of explanation detailing the events that led to the foreclosure. Total honesty is going to be the best approach here and, who knows, if the person hiring you is going through his own set of financial challenges you may just find some common ground which to you getting a break.

The IRS considers the amount of money owed on the mortgage that is not recovered from the sale of the property as income for the homeowner. In any case where debt is forgiven, the amount not paid back will be taxed as income. Solutions here include a congressional pass that exempts the owners of foreclosed property from a tax hit if it was their primary residence and the property wasn’t refinanced with a cash out loan. The tax bill can also be avoided by proving insolvency. If your debts are greater than your assets you’ll be allowed a pass on money owed for forgiven debt.

In the end, the mental toll of being forced from your home and community could be the greatest cost. The best solution is to focus on learning from mistakes, putting the past in the past, and moving forward. Lastly, like filing bankruptcy, the stigma of filing foreclosure doesn’t carry the baggage that it once did. As widespread as foreclosures are and with delinquencies occurring in 12% of homes across the country, they are quickly becoming seen as another part of life, not some sort of massive failure.

How’s year going to go? 5 categories offer clues

This is only the 10th day of 2010, yet it seems clear that this will be a year of transition, turning from one of the worst years in economic history to, what? A V-shaped recovery? A long, hard slog sideways? A short period of growth followed by another downturn?

Got facts? Who Rules America!!

Although the global economy is slowly revitalizing the overall real estate market isn’t in a very good situation but there are a few locations in the world that are an exception. These exceptions aren’t affected much by the current economic crisis as the desirability of these locations is at a very high level. Depending on every individual’s personal situation and contributing circumstances, there is always an advantage to buying a property in this little piece of heaven. This is surely a good time to buy a property in Hawaii for at least these four main reasons:

* The interest rates are still low thus making mortgages affordable;

* Most importantly , the property values are down so this is a great time for a good deal;

* There are unique properties available unlikely to become available again anytime soon;

* Think about it, it is a home in Hawaii, what could you want more?

This moment or any other moment is a great time to buy real estate in Hawaii as the location is purely exquisite, the weather is great, the lifestyle is let’s just say “casual” and most importantly, “thanks” to the crisis, the Hawaii real estate prices are significantly lower in comparison to the period prior to the global economical difficulties. Some of you may ask why the prices are down during this difficult period. The answer is quite simple: most people are afraid of making such an important investment in Hawaii real estate now so not many people are looking for purchasing a new home. For this reason, many Hawaii real estate agents offer a lot of homes for sale that aren’t purchased by anyone. So, what can they do to sell these homes? Simple, the sellers have to lower the price in order to make the offer more desirable. That is why in some areas, the sales have already gone up thanks to these prices cuts.

A realtor by the name of Mike Gallagher made a very comprehensive study that reviews the progress of the Hawaii real estate price market between June 2008 and June 2009. The result of the study was that in Kapolei, the sales increased by approximately 14%. The main reason for this increase is because a very large number of first time home buyers have been choosing the Kapolei area for their first home. This 14% increase is a direct result of the implication of the City and County of Honolulu as well as the Federal Government. The City & County started a campaign in which they promoted Kapolei as the “second largest city” of Hawaii. The Federal Government made an 8.000 U.S. dollar tax stimulus for first time home buyers. With all these benefits, the likelihood of even more bigger sales in the upcoming future is quite high.

All things considered, the Hawaii real estate market is going through some major changes but regular people that are looking for a property in this location can purchase a home at a very good price now, a price that doesn’t come very often. Real estate experts strongly advise future home buyers to look thoroughly for the right home and of course, at the right price, this is the time to purchase, despite the current economical situation.

Tax deadlines for your 2010 calendar

Circle these dates on your 2010 calendar if any of the following upcoming tax deadlines apply to you or your…

Rep. Jim McDermott Speech – HEALTHCARE MARCH in Seattle on May 30, 2009