TAX POLITIX
The Politics of Taxes
Entitlements and Economic Bias
The Washington Post recently published a ridiculous article about deficit spending and entitlements from a group of former chairs of the White House Council of Economic Advisers. Unsurprisingly, these economists scoff at the idea that entitlements are a cause for alarm, and predictably attack the Jobs and Tax bill that passed last year by President Trump. Of course, it’s to be expected, as the author-contributors were hand-picked from either only the Clinton or Obama administrations. Let’s...
High Tax States Seeing an Exodus
Now that home-buying season is upon us, is it any wonder that high income tax states and property tax states are again seeing an exodus from the excessive burden? With the Jobs and Tax Cut Act -- which rightly capped deductions of state and local taxes -- some taxpayers are feeling a “disproportionate” share of cost as taxation is properly realigned. It’s no wonder that high tax states such as New York and California are being traded for places like Florida and Nevada. When lawmakers...
More Civil Asset Forfeiture Nonsense
George Will shined the light on yet another disturbing case of civil asset forfeiture a practice that denies citizens the right to due process. In this particular instance, a border agent on US soil unlawfully demanded the password a citizen’s phone; when he refused, they searched his truck and then seized possession of it after finding five .380-caliber bullets (and no weapon) in the truck’s center console. Their rationale? He was transporting “munitions of war.” Civil asset forfeiture allows...
The DeVos Budget Debacle
It seems like spending reductions, smaller government, and eliminating waste are no longer Republican ideals. When Education Secretary Betsy DeVos presented a budget that did just that, Congress turned a deaf ear. What’s more, they made it difficult for her to even make some systemic changes to the Department of Education that (like most departments) desperately needs. As part of the massive spending bill that was passed last week, Congress “awarded the department a $2.6 billion boost when...
Trump’s Tariff Hypocrisy
Part of Obama’s terrible legacy was his frequent abusive use of Executive Order, even maintaining a “We Can’t Wait” page on the White House website. From changing student loan rules to immigration reform, Obama was rightly chided for making major policy changes without going through Congress. It is therefore egregious that President Trump should decided to enact a 25% tariff on imported steel and a 10% tariff on imported aluminum products under section 232 of the Trade Expansion Act of 1962...
Should a Strengthening Economy Be Bad For the Stock Market?
Did you even notice that whenever the economy issues good results (a strong jobs report, etc.), the stock market goes DOWN? Logic would seemingly have it be the opposite. If the economy was strong, one would assume the stock market would respond positively. But often that’s not really the case. For years, I couldn’t understand it — how stupid could the market be? Why would the market do poorly? Wall Street professionals claim to understand it. They point out that the stock market and economy...
Hedge Fund “Loophole”?
The IRS recently announced plans to “close a loophole,” suggesting that hedge-fund managers have been suddenly trying avoid paying higher taxes on carried-interest profits. This issue, however, is really a non-starter, and should not be getting the coverage that it is. The IRS wrote a rule that exempts carried interest from a longer holding period when it’s paid to a corporation rather than an individual. But it didn’t specify that it applied solely to regular corporations, whose income is...
IRS Still Giving Good Money After Bad (Employees)
A few years ago, it was revealed that thousand of IRS employees who were in non-compliance with the IRS -- or had actually committed tax fraud -- had received bonuses from the agency. The IRS had promised to place safeguards or closer scrutiny to ensure that such employees who had not done due diligence with their taxes would not receive bonuses in the future. However, a new Treasury Inspector General for Tax Administration (TIGTA) report reveals that only about a third have been caught by...
Government Surplus in January, Still Running Overall Deficit
From CNSNews.com, the monthly deficit/surplus roundup: The federal government this January ran a surplus while collecting record total tax revenues for that month of the year, according to the Monthly Treasury Statement released today. January was the first month under the new tax law that President Donald Trump signed in December. During January, the Treasury collected approximately $361,038,000,000 in total tax revenues and spent a total of approximately $311,802,000,000 to run a surplus of...
Tax Bill Boomerang Effect
Americans for Tax Reform is keeping a running list of companies who have chosen to make "tax reform bonuses, raises, or 401(k) hikes" as a result of the tax law passed in December by Congress. The list is sorted both by state and alphabetically; you can read a description of the positive financial choices each company has made as a result of the tax savings incurred by the tax overhaul. It's worthwhile to see how companies across America are giving back. You can read the entire list here.
TAX
Tips
Albert Einstein on the Income Tax
He's a pretty smart guy....
What Information Is On the Obamacare Tax Form 1095a?
Since there seems to be increased interest, and confusion, regarding tax filing and Obamacare this year, it is worth it add some more information to help navigate the process. The IRS Tax Form 1095a is officially known as the "Health Insurance...