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

* Have you seen the latest “issue” of THE LAKE REGION SOMETHING yet?  Curious about the blog’s title – check out Volume 1 Number 1. 

* Kay Bell provides some “Learning about 529 education savings plan changes” at DON’T MESS WITH TAXES.

*  Donald T Rump is considering bypassing Congress, which is responsible for setting federal tax policy, and doing what I discussed in a previous BUZZ installment to give himself a huuuuge tax break, as Kelly Phillips Erb tells us in “New Tax Break? Trump Administration Considers Indexing Capital Gains For Inflation” at FORBES.COM.

Kay Bell also discusses this in “Treasury now exploring indexing capital gains” at DON’T MESS WITH TAXES.

Not only would this change provide huuuuge benefits for Trump and those like him, but it would also huuuuugely increase the federal deficit.

Long-term capital gains are already taxed at a special lower rate.  Would this indexing be in addition to the benefit of the reduced tax rates?   If we follow the logic of indexing capital gains to remove inflation then will we also adjust taxable interest income to reflect inflation?

As I said in the previous BUZZ installment, while I support beneficial tax treatment of long-term capital gains I do NOT support indexing capital gains.   Leonard Berman of The Tax Policy Center’s TAX VOX blog agrees with me and explains why in “Indexing Capital Gains via Regulations is Still a Bad Idea”.

* Jeff Stimpson asks the question “Is this a good time to get into tax prep?” at ACCOUNTING TODAY, and gets answers from tax pros.

If you are thinking of joining the tax preparation industry check out my book “So You Want To Be A Tax Preparer”.

* It looks like a Kay Bell trifecta this installment.  Kay warns that “Millions could face withholding-related tax bills next year” thanks to under-withholding.

I am not surprised.  Actually, I expected this.  As I said in the newsletter I just sent out to my 1040 clients –

“The withholding tables have been revised to reflect the reduced tax rates.  You should have noticed an increase in your paycheck or pension check beginning in February.  However, I fear that the changes to the withholding tables have been too ‘liberal’, and, while you may not owe money when filing your 2018 return, your refund may be a lot less than in past years.  So, you may want to increase your withholding, or at least be aware of the possibility that your refund will be less than hoped for.”

What should you do?  Perform a “withholding check-up” using the special "IRS Withholding Calculator” tool.

THE FINAL WORD

Donald T Rump lives for the roar of the crowd at his ridiculous rallies.

Trump does not care about running the country or dealing with the problems or issues facing America.

Trump loves the acceptance and acknowledgement of the crowd of ignorant deplorables who cheer his every delusional lie at these rallies. And he obviously loves the sound of his own voice.

When speaking at these rallies, or anywhere, Trump must always have a team of local firefighters nearby – to deal with his flaming pants.

TTFN