Tuesday, August 2, 2022

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

 

* Kay Bell reportsInflation prompts 16 states to issue stimulus checks” at DON’T MESS WITH TAXES -

 

They are sending their residents checks, some as much as $1,500, to help them cope with the current higher cost of living.

The states are California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, New Jersey, New Mexico, Oregon, South Carolina, and Virginia.”

New Jersey residents with at least one qualifying dependent have started to receive rebate checks worth up to $500. The rebates are being sent by paper check.  For more information on the NJ Middle Class Tax Rebate program click here.

Unfortunately, I no longer live in New Jersey (not really unfortunately) and do not have any dependents (also not really unfortunately).  Here in Pennsylvania Governor Wolfe had wanted to send residents with income under a certain threshold $2,000 each out of excess federal recovery money, but this did not happen.

* Professor Annette Nellen discusses a bill introduced by Republican Senator Grassley, the Middle-Class Savings and Investment Act, in “New Inflation Adjustments Proposed for Some Tax Rules” at TWENTIETH CENTURY TAXATION.

The bill would add annual inflation adjustments to the current dollar amounts for the Child Tax Credit, Other Dependent Credit, Child and Dependent Care Credit, American Opportunity Credit, Lifetime Learning Credit, the student loan deduction and the deduction for charitable mileage.

 

I do believe ALL allowable deductions and credit should be indexed for inflation.  The Child Tax Credit and Other Dependent Credit should most definitely be indexed.

 

The 14-cent per mile charitable mileage deduction, unchanged for decades, should also most definitely be indexed.  It should be made equal to the deduction for medical and moving mileage.

 

I agree with Professor Nellen when she says the American Opportunity Credit for college tuition needs –

 

“ . . . perhaps even removal from the tax law since there are non-tax laws to help low-income individuals attend college . . . Why not use those funds to provide larger Pell grants?

 

In general, I personally oppose using the Tax Code to deliver government welfare and other benefits.

 

The bill would extend the $10,000 SALT deduction limit through 2026 to help cover the costs of inflation adjustment.  I oppose the $10,000 SALT cap altogether.

 

* It’s here!  Check out the August “issue” of BOBSERVATIONS – and share it with your friends, family, co-workers, and colleagues.

 

* According to a summary of the proposed “Inflation Reduction Act of 2022” the Act (highlight is mine) - “ . . . also provides $15,000,000 of funds for the IRS to prepare and deliver a report to Congress on the cost of developing and running a free direct efile tax return system.”  
 
This is good news.  I wholeheartedly support the IRS developing and running a free direct efile tax return system, which does not involve third party commercial preparers, and have done so for years.  But I don’t want just a report – I want implementation.

* We began this installment with Kay Bell - so let's end with her.  Kay suggests "4 tax moves to make this August".   

THE LAST WORD


Correct me if I am wrong, but isn’t the main belief of true Conservative politics a limited/minimal involvement by the government in the personal and business lives of citizens?

 

Today’s Republican Party, controlled by the repressive and racist Religious Right, wants the government to dictate how citizens must live their lives based on extreme Christian fundamentalist distorted and erroneous interpretations of the teachings of Christ and the Scriptures.

 

The policies and agenda of today’s Republican Party is directly contrary to true Conservative policy.  Republicans are NOT Conservatives!

 

TTFN
















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