TAX POLITIX
The Politics of Taxes
More Outrage About Sessions and Civil Asset Forfeiture
Daniel Mitchell from CATO put together a round-up over of articles over the last few days from various sources chiming in their opinion of Session's expansion of asset forfeiture. It was published on International Liberty. The list is below; you should also read the article its entirety. Writing for USA Today, Professor Glenn Reynolds correctly castigates the Attorney General for his actions. David French of National Review is similarly disgusted. Erick Erickson adds his condemnation in...
Jeff Sessions Expands Asset Forfeiture
Attorney General Jeff Sessions announced yesterday that civil asset forfeiture would continue to be a viable practice among law enforcement. In fact, Sessions went so far as to roll-back asset forfeiture restrictions that were put in place during the Obama Administration after a series of high-profile cases and reports revealed egregious misuses of the law which resulted in billions in seizures over several years for state and federal agencies. Sessions announced, “We will continue to...
AEI and the NIIT
I have to admit that I was a bit surprised to read an article by AEI (“This health care tax could spark a GOP civil war,” July 13, 2017) which treated the Net Investment Income Tax (NIIT) as a pesky tax that was wreaking havoc on health care reform, because <gasp>, some Republicans wanted to eliminate it. But nobody has been talking about the series of tax changes that occurred when Obama and his Democrat cronies passed the Obamacare increases in the first place. These raised the Bush...
Another Asset Forfeiture Fiasco: Dressmaker Edition
I have continuously written about the deplorable practice of asset forfeiture via the IRS. Many of the cases involve circumstances where the business is accused of “structuring” cash deposits to stay under $10,000 — which the IRS considers to be “suspicious,” not unlike drug money laundering. In such instances, the IRS can swoop in and seize the business bank accounts of the “offenders” while simultaneously NOT charge them with any crime. This latest case regarding a business called Mii’s...
Federal Agencies and Citizen Crimes
Something that Congress needs to seriously consider is eliminating the authorization of federal agencies to designate violations of their rules as actual crimes. Unbeknownst to the vast majority of Americans, federal agencies - consisting of no elected representatives at all - have the right to create criminal statutes. There are numerous, egregious instances that have come about where people were convicted of crimes made by agencies that no one knew -or even should have known - was a crime in...
Let’s Talk About Social Security
Entitlement reform is necessary for the fiscal health of this country, but it is something that no one wants to talk about, much less tackle. How can we begin? How can we open up the conversation and the possibility to reform and improve our social security system? One step in the right direction would be to treat Social Security as a true retirement plan, and not as a wealth transfer system that it currently is. This could begin with reclassifying the payroll tax. The majority (6.2% out of...
Happy Independence Day
When, in the course of human events, it becomes necessary for one people to dissolve the political bonds which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the laws of nature and of nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation. We hold these truths to be self-evident, that all men are created equal, that they are...
Only 4 of 23 Obamacare Co-ops Remain After Another One Collapses
The 19th co-op since the creation of Obamacare has announced it will cease offering services at the end of 2017. Known as the "Minuteman Health of Massachusetts and New Hampshire," this co-op will look to reorganize as a new venture to be called the "Minuteman Insurance Company." According to the Washington Free Beacon, "The company cited issues with Obamacare's risk-adjustment program, which is the program that shifts money away from those with healthier customers to those with sicker...
Carried Interest Does Not Need To Be Fixed
There continues to be a notion that carried interest is something that needs to be fixed because of a seemingly unfair low-tax capital gains income rate. It is true the rate is low. But so what? It’s not as though the income isn’t from capital gains. If the law was changed so that the operators were taxed at ordinary income only, it wouldn’t get rid of those gains — it would simply mean that the investors get the benefit of the capital gains lost by the operators. This fixes nothing....
Illinois Finances In Disarray
It's kind of funny that the AP is reporting a story that has not been "news" for years to tax professionals. The state of Illinois is running out of taxpayer money, as its obligations exceed its revenue intake. This is what happens when a state has been mismanaged for decades by incompetent Democrats: From CHICAGO (AP): The Illinois official responsible for paying the state's bills is warning that new court orders mean her office must pay out more each month than Illinois receives in...
TAX
Tips
Tax Changes to the 2013 IRS 1040, Part IV: Itemized Deduction Phase Out Rules
What is a phase out rule? When a taxpayer nears an income limit to qualify for a tax credit, there is a gradual reduction of that tax credit. This is known as a phase out. Higher income earners need to be aware that phase outs will come into play...
Changes on the IRS 1040 for Tax Year 2013, Part III: The Medicare Surcharge
Do you make above $250,000 (married joint filer) or $200,000 (individual filer)? For 2013 filers, you get to pay an additional tax starting this year. Prior to tax year 2013, the Medicare Payroll tax was 2.9%. Self-employed taxpaxers pay the entire...
To Owe or Not To Owe (Taxes)
Most people like receiving a tax refund – it's kind of like a windfall for many people, especially those for whom saving is a difficult discipline. However, getting a big tax refund from the IRS may not necessarily be the best thing for you in...
Changes on the IRS 1040 for Tax Year 2013, Part II
New Changes to the Itemized Medical Deduction For years, taxpayers have been able to claim an itemized deduction on their taxes for medical expenses. That deduction still exists, but the threshold has been increased starting this years, as part of...