Posted by taxguru on January 26, 2015
Obama’s Blues for the Middle Class: Let’s Tax Withdrawals From 529 College Savings Accounts
Obama’s Tax Hikes on “The Rich” Would Slam the Middle Class
This is another example of how our rulers in DC have no qualms about willy-nilly changing the tax laws and breaking promises of tax breaks. Some of you long term readers may recall how I was one of the few tax pros advising against people converting traditional IRAs to Roths and paying actual taxes now for promised future tax free withdrawals. I warned, just as with similar broken promises with Social Security benefits, our insane rulers in DC have a history of breaking these kinds of promises. I still believe that they will come up with some kind of “means testing” where anyone earning over a certain amount will be ineligible for tax free Roth withdrawals. That’s what they did with Social Security benefits.
Hopefully, the GOP Congress will prevent this kind of change to 529 plans for education; but this shows that it is in the realm of possibility.
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Posted by taxguru on January 11, 2015
I refuse to refer to this law as the name our insane rulers in DC gave it, ACA. Over the decades, the bozos in DC have named several laws opposite to their actual details, such as pretty much any “Tax Simplification” act. This one takes the prize for most oxymoronic title, as anyone who has been paying attention can attest. The least likely result of this ridiculous legislation will be anything more affordable. Quite the opposite is a certainty.
New IRS Explanations
21 pages of Obamacare tax instructions, IRS demands ‘shared responsibility payment’ – The 21 pages are in IRS’s Publication 5187, which can be downloaded here or from IRS’s special page on ObamaCare Tax Provisions.
The New Penalty For Not Having Proper Insurance
Another rude Obamacare surprise awaits
ObamaCare fines rising in 2015, IRS prepares to collect
I Warned You About Your Tax Refund – Rush Limbaugh once again explains a most likely temporary loophole in the penalty; it can only be taken from refunds and not forced to be paid of there is no refund.
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Posted by taxguru on January 2, 2015
Another great parody from National Report.
California Implements Nations First ‘Fat Tax’
This is the kind of thing our nanny-state rulers will most certainly be proposing in the near future. It covers two main priorities of the Left; more money for the government and more control over everyone’s personal lives.
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Posted by taxguru on December 23, 2014
As many people had predicted, our imperial rulers in DC have finally passed an extension of many of the deductions that had expired as of December 31, 2013. This extension is retroactive to January 1, 2014 and expires on December 31, 2014.
To show what a bunch of morons we have ruling us from their thrones in DC, they could have very easily helped us avoid this kind of uncertainty next year by making those deductions permanent or at least adding another year to their effective time, such as expiring on December 31, 2015. But they had to continue their reign of incompetence and force us to go through another year wondering whether or not these things will be deductible.
Here are links to some good summaries of the items included in the tax extender bill.
The TaxBook (5 page PDF)
The one item that I am most interested in is the Section 179 first year expensing election for newly acquired business equipment. After four years with a maximum sec. 179 deduction of $500,000 per tax return, it dropped down to just $25,000 as of January 1, 2014. Now, with this newly passed extenders bill, it goes back up to $500,000 for all of 2014 and then drops down to $25,000 as of January 1, 2015.
While this is a great thing for businesses that want to take this deduction, it illustrates how difficult it is to run a business and make plans for any time in the future. Most well run businesses do make multi-year plans for their capital expenditures, such as the purchase of new equipment. The amount of the allowable Section 179 deduction is a key factor in that kind of decision making. Not knowing from year to year if the maximum deduction will be $25,000 or $500,000 is a very large item of uncertainty that makes any realistic planning extremely difficult.
It’s been obvious that certain factions in our governing elite in DC love making businesses deal with this kind of uncertainty because it would be so easy to remove or at least reduce that. They could make the $500,000 a permanent part of the law or at least keep it the same for five or ten years at a time. They want to keep it an annual guessing game because it gives them more power over businesses and extorts more campaign contributions (formerly known as bribes) from their owners.
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Posted by taxguru on July 22, 2014
Gene Simmons Defends the 1 Percent, Claims Half of Americans Pay No Taxes: ‘Try Being Nice to Rich People’ – I wish more successful people would speak up and be proud of their achievements and fight back against those who want to confiscate their hard earned wealth and redistribute it in exchange for votes. With a greater and greater percentage of our society on the government teat (aka stealing other people’s money), it’s become politically incorrect to publicly state that you want to keep what you have earned.
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Posted by taxguru on June 10, 2014
In an obvious attempt to counter the negative publicity IRS has received for using its massive destructive powers to harass political opposition to the HBO Regime, they have announced their own Bill of Rights to make us all feel safe and secure from any IRS abuses.
IRS Press Release
The Official Taxpayer Bill of Rights webpage.
As with the real Bill of Rights, there are ten items in the IRS’s.
The Right to Be Informed
The Right to Quality Service
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Finality
The Right to Privacy
The Right to Confidentiality
The Right to Retain Representation
The Right to a Fair and Just Tax System
What is so ironic is the attempt by IRS to promote its own Bill of Rights at the same time as the 1791 Bill of Rights is being dismantled by the DemonRats with no defense from the wimps in the GOP.
While a list of feel-good bromides and platitudes may appear to offer protection for us taxpayers, who will enforce it and punish those in the IRS who violate it? Lois Lerner and her gang of organized criminals within the IRS and the BHO Regime have had no repercussions for their actions.
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Posted by taxguru on May 14, 2014
The Left, in their Bizarro world, always insist that our budget deficits are the result of too few revenues. However, those of us who live on Planet Earth can easily see that the true cause is simply too much spending.
How much tax revenue would it take to catch up to the government spending? It can’t be done. In fact, tax rates could be raised to 100% and there would still be deficits because our out of control rulers have no problem spending money faster than it can be raked in by IRS.
Just look at this news article, where it is announced that Federal Tax Revenues Set Record Through April, yet they still had a deficit of $306.411 billion. Until the amount of actual spending is reduced, not just the rate of growth, larger and larger deficits will be with us until the inevitable collapse of the government, which has been the ultimate goal of the BHO Regime from the beginning.
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Posted by taxguru on May 10, 2014
Sherry came across this sickening story from George Will of how IRS goons routinely run roughshod over people in its pursuit of money. This kind of completely unconstitutional behavior and inappropriately aggressive tactics are not isolated incidents, but business as usual for an out of control money seizing agency. There is no such thing as “innocent until proven guilty” when dealing with IRS. It’s the complete opposite.
The heavy hand of the IRS seizes innocent Americans’ assets
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Posted by taxguru on April 8, 2014
It’s a bit far fetched to expect the DC wimps in the GOP to actually bring criminal charges against anyone in the BHO Regime. However, Lois Lerner is white, so she doesn’t have the same kind of immunity from criticism that BHO himself has.
House Republicans want Lois Lerner charged
Boehner: Lawmakers to weigh criminal case against Lerner for ‘misleading the Congress’
House Committee: Possible Crimes by IRS Official
Handling of former IRS employee Lois Lerner makes lawyers cringe
Krauthammer on IRS scandal: ‘The administration wants to stonewall’ – It’s easy to do when the media are assisting in the coverup.
Boehner on IRS Scandal: ‘I Want to Know Who Is Going to Jail‘ – The answer is “Nobody” if Eric Holder has anything to do with it.
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Posted by taxguru on April 3, 2014
This recent poll about who people trust the most with their personal info ignores a few very key issues.
SHOCK POLL: Americans Trust IRS, NSA More than Facebook
It’s easy to say the people polled are idiots for trusting the IRS and NSA more than FaceBook with their personal data. That would be too much of a knee-jerk reaction; because there actually are plenty of people in the private sector who are scammers and should never be trusted. Ponzi master Bernie Madoff and stock swindler Jordan Belfort from the recent movie The Wolf of Wall Street, come to mind. I have never trusted MySpace or FaceBook because I have always suspected ulterior motives for their use of private user data; so I choose not to use most social media sites and services.
That is the big difference here. With social media sites and services, users voluntarily establish a relationship and voluntarily provide their personal data. With government agencies, such as IRS and NSA, our relationships with them are anything but voluntary. We are forced to provide more and more of our personal info to them every day. Some of it we know they are taking, while other data is taken by surreptitious methods (aka Spying).
The other difference is what the different entities are able to do to people. Scammers like Madoff and Belfort were able to steal money from gullible greedy investors who should have had enough common sense to stay away; but instead voluntarily gave the crooks their money. FaceBook and other social media sites can sell users data to other companies to solicit them for voluntary purchases. None of these “voluntary” entities has the power to seize its users’ assets or to throw them into prison.
That’s what the governmental agencies can and will do if they want to.
So, the question shouldn’t be who is more trustworthy with our personal data, but who can do the most devastating damage to us with it?
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