The Tax Preparation Blog

Posts Tagged ‘politics’

Question: Should We Have a Flat Rate Corporate Income Tax?

Yes or No?

Explain, best answer wins 10 points…

Answer: The current tax code is a joke. More than nine thousand pages long, it is impossible to completely understand. The current tax code has many loop holes, which businesses have been able to exploit. Businesses have used the loop holes to avoid paying taxes and several corporations have actually been able to get tax rebates! This is one reason we have seen a drop in revenues from corporate income taxes. To close the loop holes we should adopt a, one page, flat rate corporate income tax rate. This will mean that all corporations will have to pay the same amount of taxes. At the same time, this one page option will close all loop holes. It is fair and more importantly, it closes loop holes. As I stated before, a lower corporate income tax rate would benefit us all. So I have come to the conclusion that the tax rate for the flat rate income tax should be 20%.
Not only is the Flat Rate income tax fair and more effective at increasing revenues, it is also cheaper for businesses. Businesses will no longer have to pay lawyers to read the huge tax code; they will no longer have to pay for numerous paper work either. Instead, they will have a simple one page tax code. As you can see, a flat rate corporate income tax will modernize our tax code to make it more efficient. It will increase revenues and lower costs for businesses on tax day…
Sources:
http://www.reuters.com/article/newsOne/idUSN1249465620080812 Businesses exploiting loop holes
http://reclaimdemocracy.org/corporate_welfare/real_tax_rates_plummet.php Tax Rebates

A Firing Line Debate: Resolved: That the Flat Tax Is Better than the Income Tax $10.00 Taped on June 6, 1995. Among the many tax-reform proposals floating about, one of the most interesting was the flat tax (which, contrary to the formulation of the above Resolution, is indeed an income tax, as opposed to a consumption tax). The version being propounded by Texas Congressman Dick Armey (and developed with the help of the National Center for Policy Analysis) would exempt from taxatio…

The FairTax Book $2.45 Book Description Publication Date: August 2, 2005 | ISBN-10: 0060875410 | ISBN-13: 978-0060875411 Wouldn’t you love to abolish the IRS . . . Keep all the money in your paycheck . . . Pay taxes on what you spend, not what you earn . . . And eliminate all the fraud, hassle, and waste of our current system? Then the FairTax is for you. In the face of the outlandish American tax burden, talk-radio fir…

The Flat Tax: Updated Revised Edition (HOOVER INST PRESS PUBLICATION) $4.95 This new and updated edition of The Flat Tax sets forth the flat-tax plan developed by Robert Hall and Alvin Rabushka, senior fellows at the Hoover Institution, who believe it is the most fair, efficient, simple, and workable plan on the table. The proposal taxes all income, once and only once, at a uniform low rate of 19 percent. It permits a tax-free allowance of $25,500 for family of four, ther…

---

Changes Possible for SC Personal Income Tax

The Tax and Realignment Commission approved the personal state income tax Friday to reduce tax breaks for some South Carolinians.

Raymond Gradus on a flat rate on income tax

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.

Photo Jigsaw Puzzle of War Pay Poster from Mary Evans Photo Puzzle, WAR PAY POSTER. Information poster encouraging soldiers to save some of their pay during WWI in the form of savings certificates, earning a high rate of interest and free of income tax. Chosen by Mary Evans. 10×14 Photo Puzzle with 252 pieces. Packed in black cardboard box of dimensions 5 5/8 x 7 5/8 x 1 1/5. Puzzle image 5×7 affixed to box top. Puzzle pieces printed on RA4 paper at …

QuickBooks Premier Professional Services 2011 – [Old Version] $369.99 Track time and expenses by employee, project, client, or service. Decide who to bill by seeing all clients with unbilled time and expenses on a single screen. No need to create an invoice from scratch–just open the Invoice for Time & Expenses screen and select the client and job combination. With the Intuit Quickbooks Premier Professional Services 2011 Software, you can do this and a lot more! Ge…

QuickBooks Premier Manufacturing & Wholesale 2011 – [Old Version] $349.99 Financial software tailored for your inventory and customer management needs: manage inventory and costs–including buying and selling the same item in different units; track customer orders and see which orders have shipped and which haven’t; manage pending builds and assemblies; adjust price levels by item; and run customized reports to see sales and profitability by item. Keep trac…

---

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: Regarding US citizen retireing to a free world country.?

If a US citizen who is now retired & drawing SSSA & a military retirement decides to retire to a free world country ie; Philippines, my question is this. Are those annuities still subject to Federal Income Tax as well as CA state taxes?

Answer: Thats a good question.

I would suggest that you consult a tax attorney near you or try and speak with someone in the IRS to be sure.

It’s best to be absolutely sure so that the American government won’t try and stick you with tax evasion charges.

Good luck and have a great retirement.

Tom Hayden: The Peace Corps at Fifty

The Peace Corps remains a shining example of what US foreign policy might be. It is far more important than the military model in addressing the overwhelming crises that will give birth to violence in our future.

(Video 1) Military Part 1

Question: What is the highest rate of income tax in the USA? Meaning what do top earners pay?

Answer: I rarely have even one drink, but…Tax calculation would make me into a bonefide alcoholic. It takes the brain and turns it into a pretzel so you then run into walls. Since there have been several other circumstances in recent years which have had that affect already, I don’t read it, study it, or care if I know it.

However, I have pulled up a few websites for you to review. They discuss the subject from several angles. Good luck. I hope you find your answer.
PS: The last link has a helpful reference chart.

QuickBooks Premier Professional Services 2012 $249.99 New to QuickBooks? Find out why QuickBooks is the #1 best selling small business accounting software¹. Organize your finances all in one place with accounting software tailored to your business Easy time-tracking and invoicing Flexible billing options let you set different billing rates by employee, client and service² Profitability by project analysis Set up in minutes, easy to learn and use…

QuickBooks Premier Professional Services 2011 – [Old Version] $369.99 Track time and expenses by employee, project, client, or service. Decide who to bill by seeing all clients with unbilled time and expenses on a single screen. No need to create an invoice from scratch–just open the Invoice for Time & Expenses screen and select the client and job combination. With the Intuit Quickbooks Premier Professional Services 2011 Software, you can do this and a lot more! Ge…

QuickBooks Premier Manufacturing & Wholesale 2011 – [Old Version] $349.99 Track inventory and set optimal inventory levels. Run a report showing items that need reordering. Create Bill of Materials as well. Create Bill of Materials to track material costs, overhead costs, and labor. During manufacturing, mark assembly items as pending to see work in progress. With the Intuit Quickbooks Premier Manufacturing And Wholesale 2011 Software, you can do all this and more!…

---

Letting the Bush tax cuts expire won’t hurt

One of the great misconceptions in this country is that what happens in Washington determines what happens in financial markets. It’s so simple, convenient, and satisfying to attribute market movements to the President, the Federal Reserve, Congress, the tax code, or some combination of them.

Maine Lowers Income Income Tax Rate from 8.5 to 6.5 Percent

Question: If you are in the military and go to a “tax-free” zone and then contribute to a Roth IRA?

would it then be completely tax-free (no taxes in, no taxes out and no taxes on the dividends)?
When you serve in the Middlt East you do not pay taxes on your income…I already know that. I am asking if it is within IRS Guidelines to contribute tax-exempt salary earnings.

Answer: I don’t know what you mean by tax free zone but if you want to contribute to roth IRA you need earn at least as much as you are putting in. Meaning if you earned 3k in USA, you can only put 3k into your Roth IRA. If you earn 10k though, you can only put 4k (i think that’s the limit unless you are over 50 and you can contribute a bit more)

Aleks

Tex Avery’s Droopy – The Complete Theatrical Collection $12.94 Frederick “Tex” Avery directed some of the funniest cartoons ever made, but he relied primarily on situations and moving graphics, rather than on the personalities of familiar characters. Droopy, the phlegmatic basset hound, was one of the few characters Avery used regularly: His low-key presence was the perfect counter to the extreme takes, fast cuts, frenetic action, and general mayhem going o…

The Price of Motherhood: Why the Most Important Job in the World is Still the Least Valued $1.88 Many mothers have long suspected that they’re getting the short end of the deal–and finally, a highly respected economics journalist proves they’re not just griping. Despite all the lip service given to the importance of motherhood, American mothers are not only not paid for all the work they do, but also penalized for it. “The gift of care can be both selfless and exploited,” writes Ann Crittend…

The Republic according to John Marshall Harlan (Studies in Legal History) $6.98 Supreme Court Justice John Marshall Harlan (1833-1911) is best known for condemning racial segregation in his dissent from Plessy v. Ferguson in 1896, when he declared, “Our Constitution is color-blind.” But in other judicial decisions—as well as in some areas of his life—Harlan’s actions directly contradicted the essence of his famous statement. Similarly, Harlan was called the people’s…

---

Wednesday’s Last Word on Tuesday

Deer Lake deferred “It seems that a lot of folks in James City would be happy to cut off their nose to spite their face. An age-restricted development wants to add a couple hundred new homes for senior citizens, provide its own roads, police, community center, etc., and bring more residents with steady income, no crime, no schoolchildren, and ample volunteer time. I expect 100 or more …

Ron Paul: No Chance of Military Victory in Afghanistan