* SMARTMONEY.COM’s Bill Bischoff, aka The
Tax Guy, lists “The 5 Best Tax Changes We Won't See”.
Bill starts out by identifying the obvious
problem - “Our
4,000-page (and growing) Internal Revenue Code is a horrible mess that needs to
be cleaned up”. And then goes on to
offer “five changes I believe would be huge
steps in the right direction -- and the reasons why I doubt we will see them
anytime soon”.
He is spot on, and I agree 100%, with
numbers 2 through 5. I am not against
eliminating the taxation of Social Security (I do not believe there is double
taxation of SS benefits, as Bill asserts) – but I would have benefits taxed the
same as any other pension to which employees contribute after-tax dollars.
Regarding eliminating refundable credits
Bill hits the nail on the head when he says –
“If
Congress wants to create welfare programs without any monitoring, that is a
political decision that the populace can take into account when they vote. But
Congress should not be allowed to sneak welfare payments through the tax
system. That's deceptive and non-transparent.”
And he correctly identifies the various
“phase-out” rules for certain deductions and credits as - “disguised tax rate increases that Congress never has to admit to”.
He correctly goes on (highlight is mine) –
“If
higher tax rates are deemed necessary, the politicians should raise them in a
straightforward and transparent way. Of course, many probably fear that such
transparency would hurt their re-election chances. They might be right about
that, but it's no excuse. Deception and
lack of transparency make for horrible tax policy and, unfortunately,
elected representatives won't change their behavior until voters make them.”
*
Bruce, the Missouri TAXGUY and host of the weekly “McTax Hangout” show, has a
guest post by Jonathan of mydefaultedloans.com on “The Helping Hand of the Student Loan Assistance”.
While
you are there be sure to check out Bruce’s “store”.
* And Bruce himself discusses “Hiring the Right Accountants for Your Business”.
*
Kay Bell explains that the “IRS' Third Offshore Amnesty Brings Total Recovered Funds to More Than $5 Billion”.
“The tax agency says that its latest offshore
voluntary disclosure program, or OVDP which is the term the IRS prefers instead
of tax amnesty, has pushed the amount collected in all its efforts to more than
$5 billion.”
Hey,
if they did so well with this tax amnesty – how about a general federal tax
amnesty program like those successfully offered by many state over the years?
*
The WASHINGTON TIMES reports that “Tax Cheats Got $1.4 Billion in Stimulus Loans”
“Tax
cheats were given $1.4 billion in government-backed mortgage loans under
President Obama’s economic stimulus, and the government doled out at least an
additional $27 million in tax credits to delinquents who took the first-time-homebuyer
tax break, according to a government audit released Tuesday.
Under
government rules, delinquent taxpayers are supposed to be ineligible for the
mortgage insurance program unless they have reached a repayment agreement with
the Internal Revenue Service. But the Federal Housing Administration didn’t
have the right controls to weed out bad applications, said the Government
Accountability Office, Congress‘ chief investigative arm.”
* Trish McIntire reminds us that there is
no such thing as a “Magic Refund Pencil” at OUR TAXING TIMES.
Taxpayers please pay attention -
“When
you sign your tax return, you are agreeing with what is on the return. You are
the responsible party should there be problems. Take the time to review and
question that return before you sign. If you see a deduction that you didn’t
give the preparer or you don’t understand, ask questions. Ask why deductions
weren’t used.”
* Peter Reilly was the first to tell me
that the “Individual Mandate In Obamacare Is Constitutional” at his FORBES.COM
“Passive Activities” blog.
“According
to Scotusblog the individual mandate has been upheld. It survives as a tax. The entire bill is upheld with some
limitations on the federal government’s power to terminate state Medicaid funds.”
And according to a tweet by Dana Andrews
(the EA and not the actor) –
“Well,
my job and many others just got reaffirmed to be even more complicated. Thanks
to the Supreme Court and Obamacare.”
It didn't get more complicated - it just didn't get less complicated.
Joe Kristan’s latest Tax Roundup at THE ROTH AND COMPANY TAX UPDATE BLOG,
appropriately titled the “Supreme Court Frenzy Edition” provides links to
detailed coverage of the decision.
If you are a glutton for punishment you can
click here to read the text of the decision.
To be honest I have nothing much to say on
the subject. It is not a new tax law –
just the upholding of a previously enacted one.
Just another example of the idiots in Congress further complicating the
mucking fess that is the US Tax Code to deal with non-tax social issues.
* Have you taken advantage of my "Special Summer Savings for Tax Pros" yet?
TTFN
1 comment:
Thanks for giving me credit for telling you first (Unlike CNN I got it right). I'm thinking I might brag about it a little although it involves confessing that I was goofing off at the day job just a little bit.
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