How dare people expect to get their own money back from Social Security. Everyone should realize that there is no actual savings account and all funds paid in have been embezzled by our rulers in DC.

From Blog Comix

Spidell has a handy summary of the new small business tax breaks in the latest DemonRat stimulus bill. 

I’m sure of great interest will be the doubling of the Section 179 maximum to $500,000 per year for 2010 and 2011, as well as the ability to use it on more kinds of assets.

I will post more details as they become available.

Updates:

CCH has a 7 page pdf newsletter covering this new law.

QuickFinder has a 4 page pdf summary of the new law.    

 

          

Taxing us on inflationary gains –  An issue I have been harping on for decades.

I’ve frequently commented on how the income tax withholding system shields people from their true tax costs and keeps them mellow about it. If everyone had to write actual checks for their income taxes, there would be much more of an uproar.

This story from the UK would be a huge step in the wrong direction if implemented here in the USA.

UK Proposes All Paychecks Go to the State First

While at first blush it may seem ridiculous to worry about this happening here, consider who are in charge of things in DC; a bunch of Marxists who consider everything to be the property of the imperial government.  I’m sure they’re studying this very technique right now and could start its implementation in the near future, if the November elections don’t go well for the Constitution and the DemonRats are allowed to remain in power.. 

Once again, CCH is the first I am aware of to release the inflation adjusted Federal tax information for the following year.

Of course, with all of the discussion about extending or not extending the Bush tax cuts for some or all taxpayers, these schedules may have to be completely revised before we prepare any actual 2010 tax returns.

In anticipation of one of the most common questions I receive, the annual exemption from Gift Tax will remain at $13,000 per donor per donee for 2011.  The amount can only be increased in even $1,000 increments and inflation hasn’t been high enough to warrant that as of yet.

CCH has a good free summary of the tax changes that are in store for almost everyone in 2011 if nothing is done to extend the Bush tax cuts.  With all of the debate over actually doing something to allow the lower tax rates to continue for a few more years, this summary may be obsolete in a few months; but it’s a good reference to have in the meantime.