Tax Guru – Ker$tetter Letter

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Archive for the ‘TaxReform’ Category

Trump Tax Change Proposals

Posted by taxguru on December 9, 2016

The TaxCoach folks have produced a very concise seven page pdf pamphlet with some of the possible changes the Trump Team may try to get passed after they assume power.  You can download it from:

Donald Trump Tax Change Proposals

As with most of the concepts promoted by TaxCoach, they are forward thinking ideas for people, especially small business owners, to use to reduce the amount of their wealth that is confiscated (stolen) by our rulers in government.  Many of the Trump proposals do have opportunities for modifying tax reduction techniques. 

While most of the suggested strategies are at the discretion of the taxpayers. the last one probably isn’t an optional choice for most folks, but would be a win-win if the Trump Team can eliminate the insidious Marxist grave-robbing Estate Tax.

Avoid the estate tax by deferring death to 2017 or later

TaxCoach Software: Finally! Plain-English Tax Planning That Builds Your Business!

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Tax Changes Under the Trump Administration?

Posted by taxguru on November 9, 2016

Now that Hitlery is out of the equation, we don’t have to waste time and energy worrying about the trillions of dollars in new taxes she was promising-threatening.  We can now focus on the what changes we might be seeing over the next few years under President Trump, along with the GOP controlled Congress. 

A good start at analyzing the changes we can expect is the following news release from TaxCoach, one of the most useful resources for any tax pros who are interested in keeping up on the most state of the art tax savings techniques for their clients.

Trump Won…Now What?

On January 20, Donald Trump will take the oath of office as the 45th President of the United States. He’ll have the full support of a Republican House and Senate, meaning an end to the gridlock of the past six years. What effect will his inauguration have on your taxes?

Trump has proposed a conventionally Republican suite of changes: lower rates, new deductions for families, and incentives to repatriate foreign earnings. At the same time, he has proposed to limit certain breaks and cap overall itemized deduction.

However, these are just the latest of several proposals Trump floated during the campaign. Trump appears to be less focused on policy details than on broad themes, so we shouldn’t be surprised if he lets Congressional Republicans take the lead on tax planning policy.

 

Individual Taxes

• Cut brackets to three: 12-25-33%

• Boost standard deduction to $15,000 ($30,000 for joint filers)

• New deduction for individual health insurance premiums

• New deduction for child care costs and “dependent care savings accounts”

• Limit itemized deductions other than mortgage interest and charitable gifts

• Cap itemized deductions at $100,000 ($200,000 for joint filers)

• Tax “carried interest” as ordinary income

• Repeal Alternative Minimum Tax

• Repeal “Obamacare” taxes

Estate Taxes

• Repeal Gift & Estate Tax

• Repeal stepped-up basis on gains over $10 million

Corporate Taxes

• Eliminate deferral of tax on foreign business income

• Impose 10% repatriation tax on accumulated profits of foreign subsidiaries

Repeal most business tax incentives (except R&D).

TaxCoach Software: Are you giving your clients what they really want?

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Trump’s Tax Issues That Would Affect Us

Posted by taxguru on September 19, 2016

It’s a normal part of political campaigns to focus attention on issues that really have no bearing on the big picture of who would be the better president.  The Hitlery campaign has been trying to make a big deal out of Trump’s refusal to reveal his personal income tax returns to the public.  While his excuse for not revealing them, an IRS audit, is bogus, I actually admire his stand as one more non-traditional campaign tactic that has thrown the DemonRats and their enemedia propagandists completely off balance. 

However, even if Trump were to cave in to the pressure to open his tax returns up for media scrutiny, what difference will those have on any of us in the real world?  Zip, zero, nada.  His opponents just want to find something on the returns that they can use to shame or embarrass Trump.  

What would actually affect our personal and business lives in the future are the changes that could be made to the tax system under a new presidential administration.  Tax Foundation has just published a very interesting in depth analysis of Trump’s plans to modify the Federal income tax system.

Details and Analysis of the Donald Trump Tax Reform Plan, September 2016

Again, since most politicians will say absolutely anything in order to win votes, there is no guarantee that campaign promises will become reality.  However, it does give us a taste of what a candidate’s economic platform may look like. 

Hitlery’s economic beliefs have always been well known, so there really isn’t any need for much new analysis.  We can just refer to her guiding philosophy.

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Comparing Tax Reform Campaign Promises

Posted by taxguru on August 17, 2016

As is their practice every four years, the masterminds at TaxCoach have prepared a side by side chart comparing the tax related campaign promises by the two main presidential candidates.   

Campaign2016TaxProposals

This is for entertainment purposes only.  I’m not expecting too many people to base their election preferences on this because, as we all know, campaign promises rarely turn into reality.

BSTrailer(8-2-16)

 

In the sense of fairness, I need to remind everyone that there will be more than two choices on the November presidential ballot, which is great for those who can’t stomach voting for either Trump or Hitlery.  Gary Johnson of the Libertarian Party will be on the ballot in all 50 states and may even be in the big debates if his name is included in more preference polls.  His tax policy can be found here on his campaign website.

Today’s federal tax code does all the wrong things. It penalizes productivity, savings and investment, while rewarding inefficiency and designating winners and losers according to political whim.

For far too long, tax laws have been used not just as a means to collect needed revenues, but as a way for special interests to penalize their competitors while subsidizing themselves. The result is a tax code that is more than 70,000 pages long, enforced by a government agency with almost 100,000 employees. As a result, our tax code has created a nightmare for the average American, while providing shelter for those with the means to manipulate it.

Governor Johnson advocates for the elimination of special interest tax loopholes, to get rid of the double-taxation on small businesses, and ultimately, the replacement of all income and payroll taxes with a single consumption tax that determines your tax burden by how much you spend, not how much you earn. Such a tax would be structured to insure that no one’s tax burden for the purchase of basic family necessities would be increased. To the contrary, costs of necessities would likely decrease with the elimination of taxes already included in the price of virtually everything we buy.

Many leading economists have long advocated such a shift in the way we are taxed, and Gary Johnson believes the time has come to replace our current tax code, which penalizes the savings, productivity and investment we so desperately need.

Stop special interest loopholes. Reward responsibility. And simplify our tax code.

 

It’s been a while since I have mentioned the benefits for tax pros of subscribing to the TaxCoach service.  It has actually become more useful every year, as they continually add new features.  The weekly call-ins among the TaxCoach members are extremely informative.  Any tax pro wanting a great reference source for tax saving ideas, as well as methods of expanding their practice should check out TaxCoach.  My two main tax reference sources for the past few years have been TaxCoach and TheTaxBook as I let my subscriptions to the many other ones lapse.

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All talk and no action…

Posted by taxguru on April 26, 2015

Overhauling tax code trendy on presidential stump, but real issue is will House GOP finally pass major reform?

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Unfortunately, the chances of any positive tax reform that will help our economy grow are slim because it would require opposing King Barack Hussein O and his Fellow Travelers in Congress, something the GOP in DC refuse to do.  As they have shown over the past six and a half years, the GOP would rather bend over and let bHo have his way with them rather than do anything he doesn’t like and be called racists by the mainstream media propagandists..

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Why the tax profession will never run out of business…

Posted by taxguru on April 15, 2015

With every year bringing new free tax services and DIY software, I have to reassure other tax pros that none of those can ever replace the knowledge and expertise of us, especially when our rulers are continuing to make everything more complicated.

It’s Tax-plicated: Complexity Rising with Obamacare Burden

I hate to keep repeating myself, but this is just like the poster I created decades ago, illustrating how “Tax Simplification” laws work in the real world after having been created by the insane morons in DC.

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Discussing our screwed up tax system

Posted by taxguru on April 9, 2015

PJ Media has posted this 24 minute panel discussion on the abhorrent state of our tax system, with the very accurate title of Death By Taxes: The US Income Tax Is Government Theft.

It’s the perfect thing to watch as the infamous Tax Day approaches in this country.

 

As always, the media are flooded with last minute tax tips. Here’s the best tip if your tax returns aren’t already finished.  Work with a professional tax practitioner and file an extension (Form 4868) that will give you six more months to properly prepare and file your tax returns.  Trying to rush things together at the last minute is a recipe for disaster, often with mistakes that can’t be undone later on.

TaxCoach Software: Are you giving your clients what they really want?


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The Question With No Answer

Posted by taxguru on October 5, 2014

Interesting debate between Andrew Klavan and Bill Whittle on the question that nobody can agree on.

 

What is a Reasonable Tax?

 

 

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Here we go again – Tax Reform

Posted by taxguru on March 2, 2014

Excuse me for not getting too excited about the latest tax reform proposal that does seem to be receiving a lot of attention.  While it has some good points, the real world will cause it to end up pretty much like the dozens of other reforms over the past decades.  It’s pretty far fetched to expect much positive change in the tax code from a Senate that is controlled by DemonRats and a signature from a communist acting pResident.

This comic that Sherry found is similar to my infamous poster of how tax legislation works.   

 

 photo LawBecomesShit_zps4fc1d3e6.jpg

 

Dave Camp: How to Fix Our Appalling Tax Code –  WSJ 

 

Why it’s nearly impossible to pass tax reform – JWR (Dana Milbank)

 

House Republicans unveil tax reform plan — does it stand a chance?  –  FoxNews 

 

Why tax reform is needed, and why it is doomed – JWR (David Shribman)

 

Camp tax plan gives Boehner, and Washington, the blahs – Wash. Post

 

Reining In the IRS – National Review

 

Camp Unveils Tax Reform Package to Mixed Reaction – CCH

 

Hurray for GOP Tax Plan – JWR (Froma Harrop)

 

 photo ReformingDeathEasier140228_zps7679e157.gif

 

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Posted by taxguru on February 7, 2012

Tax reform in this election year: It’s not likely –  As always, this means there will be no shortage of work for the professional tax advisor community.  The higher taxes are, the more people need the assistance of tax pros to help them hold onto their money.

 

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