Saturday, June 25, 2011


* Horn-tootin’ - TWTP made the list of “50 Best Business Accounting Blogs” at ACCOUNTING DEGREE ONLINE.

* Trish McIntire gives us “A Very Short Course In Depreciation” at OUR TAXING TIMES.

Reading her introduction to the subject it is easy to understand why a small business person needs to have a competent tax professional.

* Speaking of Trish McIntire, she has started a new blog – MOM AND POP’S (a Micro Business Blog).

What I didn't find as I tried to talk myself out of doing this blog was a lot of focus on the very small businesses. The trendy term is "micro" business. But most of us think of them as Mom & Pops, the small local shops and services in our neighborhoods. I found blogs on marketing and venture capital, several that were run by companies with something to sell to small businesses and a lot of general theory. But nothing providing tips and info to the micro business owners. That is my goal with this blog. To be a resource.”

When you get a moment check out Trish’s “Welcome”.

Good luck, Trish, with the new blog!

* I tend to agree with Joe Kristan of the ROTH AND COMPANY TAX UPDATE BLOG when he paraphrases Edwin Starr – “Estate Tax. What Is It Good For? Absolutely Nothing!”.

Joe quotes a TAX POLICY BLOG post -

Estate taxes are generally levied for two reasons: To break up concentrations of dynastic wealth and to raise significant tax revenues. The seminal 1987 NBER paper by B. Douglas Bernheim, Does the Estate Tax Raise Revenue?, suggests that the estate tax accomplishes neither of these goals.”

However, I also agree with Joe on this important point -

To the extent the estate tax does any good, it's does so through the basis-step up at death -- solving the need to dig through ancient or lost records to determine tax basis.”

I do not, under any circumstances, want to lose the step-up of basis for inherited property.

*It’s been a crazy year so-far weather-wise. NATP’s TaxPro Weekly email newsletter reported –

More disaster victims in Oklahoma, Illinois, Massachusetts and Vermont qualify for tax relief. Victims of recent severe storms and flooding in numerous states have more time to make tax payments and file returns if they are living or operating a business in counties that have been designated as federal disaster areas. Some additional time-sensitive acts are also postponed. A full listing of the most recent announcements is provided on the
IRS website.”

* Duh! According to the Tax Foundation’s TAX POLICY BLOG “Illinois Legislators Hint that Tax Increases Are Driving Away Jobs”.

When will states realize that adding tax on tax to resident individuals and businesses is not the answer. With highly taxed, and highly politically corrupt, states like Illinois and New Jersey the answer to balancing the budget is to cut wasteful pork and political entitlements.

* The TAX POLICY BLOG also passes along the word that “Senators Propose Extending Payroll Tax Reduction”.

While I think that the payroll tax holiday concept is more better than mailing out rebate checks, it appears that neither method works. I tend to agree with the Foundation when it says-

Generally, these frequent ‘temporary’ changes to the tax code also increase uncertainty and threaten to create economic distortions within the economy.”

I definitely agree with the post’s bottom line (though I would substitute “the idiots in Congress” for “officials”) -

If officials really want to encourage economic growth through tax policy changes, they should pursue comprehensive tax reform. Broadening the tax base and lowering rates would reduce administrative and compliance costs, discourage tax avoidance, and eliminate unjustifiable distortions.”


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