Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

Archive for January 16th, 2003

Posted by taxguru on January 16, 2003

WAGs

I must have seen at least a dozen articles in today’s papers from the PRC such as this one on how Governor Gray-Out Doofus has been exaggerating the size of the projected budget deficit in order to better justify the laundry list of new taxes he wants to implement. As I’ve been explaining for decades, all such projections are nothing more than wild ass guesses. Nobody has the right to claim a perfect crystal ball on this kind of financial projection. Anyone claiming more accuracy than the governor is just as guilty of blowing smoke up our rear ends.

On a similar note, does anyone else have a problem with this report of record spending by state governments, while most of them are expecting budget deficits?

KMK

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Posted by taxguru on January 16, 2003

SEC adopts broader definition of `expert’

There goes our (CPAs) monopoly to be the only ones qualified to be on corporate audit committees.

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Posted by taxguru on January 16, 2003

Taxes Influence Behavior

Imagine that. Smokers in New York aren’t just obediently paying the huge taxes on their drug of choice, but are buying them from out of state and tax free Indian vendors. As the PRC looks to add over a dollar per pack in new taxes, how soon do you think it will be before editorials like this pop up in Left Coast papers?

KMK

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Posted by taxguru on January 16, 2003

Who Funds the Left?

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Posted by taxguru on January 16, 2003


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Posted by taxguru on January 16, 2003

Loose Lips

I have long advised people who are able to claim generous tax breaks to be happy about that fact and keep it to themselves. Brag about something too much and sooner or later those who don’t qualify for it will scream loud enough to force our rulers to scale back on the breaks. Envy, jealousy and outright hatred for anyone getting any more tax breaks than you are pervasive in this country.

This is the very reason for the 1984 luxury car rules. Before 1984, business cars of any cost could be fully depreciated over three years. Because so many big-mouths bragged about this, the backlash from those who couldn’t deduct their vehicle costs was too much for our rulers to ignore. They limited the amount of a vehicle’s cost that could be depreciated over five years. After adjustments for inflation, that limit currently stands at $17,410. Any vehicle costing more than that is by definition a luxury vehicle.

To distinguish between normal passenger and utility vehicles, our rulers established a break point of 6,000 pounds gross vehicle weight. Any vehicle weighing more than that is not subject to the luxury car rules and can be fully depreciated over five years. In addition, it qualifies for the immediate expensing election under Section 179 of the Internal Revenue Code, currently $24,000 per year. While I have been discussing this tax break since it as first enacted in 1984, the rest of the public didn’t become aware of it until very recently as part of the open attack on SUVs and their owners by such loud mouth Socialist hypocrites as Arianna Huffington. It doesn’t surprise me one bit to see editorials such as this one from the Atlanta Urinal-Constipation calling for our rulers to eliminate this lucrative tax break for evil SUVs. How long will it be before we have a repeat of 1984?

KMK

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Posted by taxguru on January 16, 2003

More DemonRat Tax Policy


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Posted by taxguru on January 16, 2003

Put Government on a Diet

Another bull’s-eye by Stephen Moore. I couldn’t have said it better myself.

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Posted by taxguru on January 16, 2003

Job Security

As I’ve always said, and even illustrated, there is no more secure profession in this country than taxes. As this article points out, Bush’s proposed tax law changes will make the tax code even more complex, providing much more work for us.

KMK

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Posted by taxguru on January 16, 2003

Wrong Ailment, Wrong Cure

The DemonRats are once again missing the point.

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