Friday, April 26, 2013

WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENNIN’


I have decided to change my BUZZ schedule from Wednesday and Saturday to Tuesday and Friday.

* The CCH daily headline e-newsletter reported that “Senate Finance Committee Chairman Baucus to Retire in 2014”.

The word is this means that actual tax reform could be enacted this year, as Baucus is a vocal supporter and, according to the item “he is prepared to move tax reform before he retires”.

However the critical issue is what is considered “tax reform”.  Unfortunately the Democrats’ concept of “tax reform” is not real reform, just raising taxes on the rich and increasing the ranks of the now-famous “47%”.

* David Wessel of THE WALL STREET JOURNAL provides a basic introduction to a subject I have talked about often in my discussions of tax reform - “Tax Breaks as Spending”.

* Robert W Wood tells us “Harvard Law School Offers 'Tax Planning for Marijuana Dealers'---No Joke” at FORBES.COM.

* Also at FORBES.COM TaxGirl Kelly Phillips Erb gives us the news that “H&R Block Offers Apology, Cash To Make Up For Filing Snafu” –

The tax preparation giant is offering $25 to its customers affected by the delay in processing individual tax returns claiming education credits. The $25 will be loaded onto Emerald Cards, the company’s signature debit card, which is also used for taxpayer refunds.”

This is a first.  Usually (quite often, actually) a judge has told Henry and Richard to provide refunds and payments to its clients due to some kind of overcharge or aggressive or deceptive sales tactic.  This is the first time, I believe, that H+R has voluntary offered refunds.  Of course they do it via one of their products, the Emerald Card.  I have often said that one of the reasons Henry and Richard charge so much is because they need the money to pay off their many legal judgements. 

* Professor James Maule correctly explains that “Putting It in Writing Makes Good Tax Sense” at MAULED.COM.  

* In case you are interested – Top Individual Income Tax Rates: How Does the U.S. Compare?” from the TAX POLICY CENTER.

* Great minds do think alike.  Christopher Bergin of TAX ANALYSTS tells it like it is in "Dilemma- The Earned Income Tax Credit".  
 
Like it or not, the EITC is welfare administered through the tax system.”

And -  

But things like the EITC have no business in a system that is supposed to collect revenue to support the country. Welfare and taxes, to me, is like oil and water.”  
 
Repeat after me - having the Earned Income Credit in the Tax Code is bad tax policy and bad fiscal policy. 

TTFN

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