THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 45+-year veteran tax professional Robert D Flach.
Tuesday, May 9, 2017
WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’
* Have you seen my latest THE LIBERTY TIMES
installment?I discuss tax reform.I provide more details on my tax reform
proposals and suggestions here.
I must remind you that this is NOT a final law – and I expect many
changes to be made to the bill in the Senate.So nothing mentioned in this
article is currently, or may actually become, tax law.
The bill does away with the bad of the
Affordable Care Act - the individual mandate and the employer mandate, retroactively
effective beginning in 2016, the 3.8 percent net investment income tax, the 0.9
percent additional Medicare tax, effective 2023, the higher floor for medical
expense deductions, and the various nickel and dime fees and charges.The current Premium Tax Credit system is
replaced with refundable tax credits, which may have an advance payment
component, effective in 2020.
In her opening paragraph she suggests “the Trump administration released its
highly-anticipated tax reform plan”.What tax reform plan?What the
idiot “released” was the equivalent of notes on a cocktail napkin.
I am sure the Republican Party will soon be
presenting a detailed tax reform plan – certainly more thought out and
substantive than what the idiot in the White House “released” – and I expect it
will affect retirement planning.But I would
wait until the release of the real plan before spending any time in thought.
Only interested in his own ego, Trump wants
to shut down the government to get the nonsense he wants.
The post has one good item of note
regarding the IRS budget -
* . . . the fiscal
year 2017 budget deal keeps the agency's funding at $11.2 billion. That's the
same as last year's level.”
The idiots in Congress had been
consistently reducing the IRS budget while continuing to erroneously give it
additional work related to delivering government benefits via the Tax
Code.At least they have proven, thankfully,
that they are not as stupid as the idiot in the White House (nobody is – except
perhaps for some of his apologists/explainers), and the IRS budget has not been
Now we only need to rewrite the Tax Code,
stop the IRS from being forced to use outside collection agencies, and get some
competent management at the IRS.
my experience, many people form S-corps way, way too soon, and then get mad
because the tax savings end up not being worth the hassles and headaches.”
A benefit of an S-Corp is the ability of
the shareholder avoid the double taxation of “regular” corporation dividends
when taking cash, other than salary and expense reimbursements, out of the
corporation.And there is also a benefit
for new corporations with initial losses – allowing the shareholder to deduct
the losses on his or her personal return.But, as with any other tax option, careful thought must go into the
decision to elect Sub-S status.
THE FINAL WORD
Idiot Trump is truly mentally ill and must
be removed from office before he does real, irreparable damage to the country
and the world.