How the NY Slimes has been lying about the Bush tax cut.

Optimism about chances of the tax cut making it through.

It looks like the Wall Street Journal is having some problems getting the story straight on the Bush team’s fight for the tax cut. 

How to Shield Your Wallet From Your Parents’ Woes – This is an interesting article on how to structure things for the best financial and tax advantages.  It mentions a strategy that I have been using with clients for the past 25+ years; having the kids buy their parents’ home and rent it back to them.  Even now, with the replacement of the once in a lifetime exclusion for sellers over 55 with the $250,000 per person tax free gain for anyone, this technique still makes a lot of sense.  It allows the kids to have a high cost basis on the home, claim deductions for depreciation and any other expenses paid for the home.  It also allows a deduction for travel costs to go check on the property.  There are also a lot of estate planning opportunities with the financing of the sale and annual gifting to reduce the balance of the carryback note.

GOP senators should support tax cuts 

And their voters should definitely hold them accountable if they turn their backs on this opportunity to reduce the tax burden and increase tax fairness. If they have any brains, the GOP Senators will remember how Bush 41 was punished in 1992 for backing down on his “no new taxes” pledge. GOP voters do seem to have longer memories than their counterparts in the JackAss Party and are more willing to punish their elected rulers for straying from the party line.

Strange Bedfellows

It’s nothing out of character for the DemonRats and their Fellow Marxist Travelers to oppose capitalism and fairness in the tax code in their class warfare to oppose the elimination of the double taxation of corporate income.  What is a little odd is the selfish opposition to the change in dividend taxation by supposed capitalist financiers, such as the tax free muni and housing tax credit industries, who don’t want the competition for investor money that they fear from tax free income from capital stocks. While, there can be genuine philosophical debates over the effects of the removal of the double taxation on the capital markets, these protectionist attitudes show that fans of high and unfair taxes can be found in unlikely places.

KMK

Loopholes

Most people assume that tax loopholes are only used by evil people and companies to avoid paying taxes.  In actuality, loopholes are also used by our rulers to avoid the limitations placed on them by the voters in regard to raising taxes.  This really isn’t a new tactic, but out on the Left Coast, the rulers of the PRC have a laundry list of new fees that they are anxious to raise in order to avoid having to comply with the two-thirds vote required to officially raise “taxes.”  Splitting hairs with terminology allows the rulers to simply rename levies as “fees” and be free to increase them as much as they want.

KMK

President still seeks full package of tax cuts

Bush planning to press Ohio RINO senator on tax cut

Unions to Campaign Against Tax Cuts

– This is feeling like the pre-trial publicity for a murder case, with each side claiming a willingness to fight to the end and achieve complete victory.

White House Eases Stand on Dividend Tax
Cut Could Be Phased In Gradually to Win Passage

This is not a good sign; but we will have to be grateful for anything we can get in the way of increased tax fairness.  Whether Bush will be able to get a bigger tax break later seems doubtful.  If he can’t use his current high popularity to get the full enchilada right now, what chance does he have of getting it later, when everyone has completely forgotten about Iraq?  

To Save Tax Cut, Bush Banks on Political Capital – He had better use that capital soon.  In a few weeks, most of the country will have forgotten all about the Iraq war.  In USA politics, it’s a constant matter of “what have you done for me lately” with the fleeting attention span most of the media and populace have.

Not all of our elected rulers are willing to let their personal tax returns be checked out by the media and the public.