TAX POLITIX
The Politics of Taxes
Yellen Raises A Quarter
In an interesting move this week and true to the Fed plan to raise rates three times this year, Fed Chair Janet Yellen raised interest rates .25%. It's worth it to note that at the same time, the Feds downgraded the forecast for inflation: The central bank now believes inflation will fall well short of its 2 percent target this year. The post-meeting statement said inflation "has declined recently" even as household spending has "picked up in recent months," the latter an upgrade from the May...
Record Federal Tax Revenue For Month of May
I always look forward to CNSNews each month when they do a roundup of the prior month's spending and revenue. Their numbers come directly from the Monthly Treasury Statement released by mid-month for the previous month. Because they've been doing it for so long, they are able to often do comparison for previous months and years, which provide nice little tidbits of info. The big takeaway from this month is, despite record revenue, the Trump administration still ran a deficit due to excessive...
Iowa Obamacare Market Facing Collapse
We've written about the collapse of many Obamacare markets as well as the removal of several insurers from the Obamacare system across multiple states and exchanges. Earlier this year Aetna Inc. and Wellmark Inc. announced that they would not participate in Iowa for 2018 due to unsustainable costs; only the insurer Medica would be available in the state. In response, Bloomberg reports that "Iowa is asking the Trump administration to let it reallocate millions of dollars and create a stopgap...
IRS Bulletin: Taxpayers Abroad Must File by June 15; Extensions; FBAR
Issue Number: IR-2017-105 Inside This Issue Taxpayers Abroad Must File by June 15; Extensions Available; New Filing Deadline Now Applies to Foreign Account Reports WASHINGTON — The Internal Revenue Service today reminded taxpayers living and working abroad that they must file their 2016 federal income tax return by Thursday, June 15. The special June 15 deadline is available to both U.S. citizens and resident aliens abroad, including those with dual citizenship. For those who can’t meet the...
“Disparate Impact” and Minimum Wage
The idea of “disparate impact” holds that a defendant can be held liable for racism and discrimination for a race-neutral policy that statistically disadvantages a specific minority group even if that negative “impact” was neither foreseen nor intended. This tactic was increasingly used in recent years during the Obama Administration, most often by Loretta Lynch, Obama’s Attorney General, and Thomas Perez, his Secretary of Labor. It follows then that minimum wage laws are racist and...
Puerto Rico Votes For Statehood in Non-Binding Referendum
23% of Puerto Ricans voted today for a statehood referendum, and 97% of them cast a vote in favor of it. 1.5% percent voted for independence from the United States, according to Decision Desk HQ, while 1.3% voted to keep the current status of a territory of the United States. The catalyst for this vote for statehood -- the first one since 2012 -- was the declaration of a form of bankruptcy in early May. Many did not vote because the vote actually did nothing. Congress would still have to...
Single Payer California: High Price Tag, No Plan
From the LATimes: A proposal to adopt a single-payer healthcare system for California took an initial step forward Thursday when the state Senate approved a bare-bones bill that lacks a method for paying the $400-billion cost of the plan. The proposal was made by legislators led by Sen. Ricardo Lara (D-Bell Gardens) at the same time President Trump and Republican members of Congress are working to repeal and replace the federal Affordable Care Act. The bill, which now goes to the state...
How Trump Needs to Repeal and Replace
President Donald Trump told the American public that he wants to keep Obamacare, at least to the extent of the provisions that protect individuals with pre-existing conditions and allow 26 years olds to stay on their parent’s plan. This is, in fact, a ridiculous comment. Most people (myself included) believe that a competent Health Plan would contain these provisions. And they will. But they will be part of a new plan which will be entirely rewritten. No part of Obamacare should be retained....
Tax Return Shenanigans Not a New Thing
The National Review reprinted an article from their archives, first written on May 30, 1994. It recounts the media treatment of George Bush, Sr.'s tax returns from 1991. Not surprisingly, the analysis omitted certain facts from the return to make the Bushes appear to pay less income taxes for a high income earner, in order to satisfy a particular agenda. It's worth it to read the old article in its entirety to appreciate how such media manipulation has been going on for at least a generation....
Privatizing Social Security
The Wall Street Journal recently published a discussion on the pros and cons of privatizing Social Security (“Should Social Security Be Privatized?”, March 27). Gus Sauter did a decent job outlining the positive aspects of this pathway showing that privatization is better for both retirees and taxpayers. On the other hand, Nancy Altman claimed that privatization would weaken people’s economic security, but filled her argument with erroneous information. Nancy claims that Social Security is...
TAX
Tips
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...
Changes on the IRS 1040 for Tax Year 2013, Part I
Most items on this year's 1040 are the same for last year. However, a few changes should be noted -- mainly related to adjustments for inflation. The new Standard Deduction amounts are as follows: Single: $6,100 Married Filing Separate: $6,100...