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TAXES

Jun 10 08:02

People Leaving Blue States Advise Those Who Remain, ‘Start Making Better Decisions on Who You Vote For’

Florida was the No. 1 relocation destination for Americans in 2020, according to Move.org. New York and California took first and second place in the contest for which states had the most people choosing to leave.

Justin Pearson is a 27-year-old truck loader for a Target distribution center. A resident of Hemet, California, for 22 years, Pearson moved to the town of Riverside for another three years until the dramatic change in policies and rising cost of living made it impossible for him to live on his own. There also was no way he could afford to buy his own home, he said. In order to survive at all, he fled to Lake City, Florida.

While the national average in property taxes is 1.07 percent, Floridians pay only 0.83 percent, and Californians pay even less—0.73 percent. But Pearson said the cost of everything else in California erased the benefit of lower property taxes. Additionally, Florida is one of only nine states in the country that has no state income or wage taxes.

Jun 09 10:29

IRS Is Investigating Release of Tax Information of Wealthy Americans

Federal authorities are investigating the release of wealthy Americans’ tax information, Internal Revenue Service Commissioner Charles Rettig said Tuesday.

ProPublica, a nonprofit news organization, published details about the reported income and tax payments of some of the richest Americans, including Amazon.com Inc. Chief Executive Officer Jeff Bezos and Berkshire Hathaway Inc. CEO Warren Buffett.

Taxpayer information is confidential, and there are potential criminal penalties for IRS employees or others who release such information. Mr. Rettig told lawmakers that there were internal and external investigations beginning, with potential prosecutions to follow.

Jun 09 09:44

Former US Treasury official sentenced to six months in prison for leaking documents

Former senior Treasury official Natalie Mayflower Sours Edwards on Thursday was sentenced to six months in prison for giving thousands of confidential reports related to special prosecutor Robert Mueller’s Russian collusion investigation to multiple news outlets around the world.

Edwards, who worked for the Treasury Department's Financial Crimes Enforcement Network (FinCEN), was charged in 2018 with leaking confidential financial reports to media outlets like BuzzFeed News. Edwards's actions were discovered when agents from the Treasury Inspector General’s office detected "a pattern" of unauthorized media disclosures beginning in October 2017.

U.S. District Court Judge Gregory Woods granted prosecutors' request that Edwards be given the minimum sentence of six months, Politico reports. Edwards's attorney, Stephanie Carvlin, had asked for a "time served" sentence, Politico notes, appearing to refer to the day Edwards spent in custody following her arrest in 2018.

Jun 09 09:19

US tax agency requests ‘clear dictate’ from Congress to collect cryptocurrency transfers data

America’s federal tax agency – the Internal Revenue Service – has set its sights on cryptocurrencies and requested that Congress grant it authority to collect data on transfers to supposedly fight tax evasion.

“I think we need congressional authority,” the IRS head, Charles Rettig, said on Tuesday in testimony to the Senate Finance Committee. He argued that his service gets “challenged frequently” in the field of cryptocurrency operations and having a “clear dictate from Congress” allowing it to collect the relevant information “is critical.”

Most cryptocurrencies are “designed to stay off the radar screen, so we will be challenged right now,” Rettig said, adding that cryptocurrency market capitalization has since grown to over $2 trillion as it includes more than 8,600 exchanges worldwide.

Jun 08 11:55

Amazon Will Be Covered If International Tax Deal Ever Becomes Law

Amazon shares tumbled to their lowest levels of the session on Monday amid reports that Amazon would be included in a G-7 deal cemented over the weekend to retool the minimum corporate tax in some of the world's wealthiest nations (though a US-led movement to force the proposal down the throats of reluctant Ireland, Singapore and other low-tax nations remains very much in doubt).

As we learned over the weekend via a communique from G-7 ministers, a pillar of the deal envisaged that the tax would apply on "profit exceeding a 10% margin for the largest and most profitable multinational enterprises." Thanks to Amazon's low-margin e-commerce business, the firm doesn't technically meet that cutoff, as the Guardian pointed out in a story published earlier today that quoted a bevy of experts who warned that Amazon might be excluded from the new tax regime if some special arrangement weren't included.

Jun 07 17:38

One Huge Problem with the White House’s Plan for Global Taxation

By Brad Polumbo

The Biden administration secured progress toward a major political victory this weekend, with the “G-7” group of seven wealthy countries agreeing in principle to a 15% minimum corporate tax rate. But average taxpayers will suffer if the White House’s global tax scheme ultimately comes to fruition—and here’s why...

Jun 07 08:36

Taxpayers Fleeing California Take $8.8 Billion In Gross Income To Other States

California, with its relatively large tax burden compared to other states, has seen a taxpayer exodus in recent years and, along with it, billions in taxable gross income.

State-to-state migration data recently released by the Internal Revenue Service (IRS) shows that California lost an estimated net 70,534 households—or 165,355 taxpayers and their dependents—in the years 2017-2018, with those fleeing taking around $8.8 billion in net adjusted gross income with them.

Commuters navigate early morning traffic as they drive towards downtown in Los Angeles, CA, U.S., on July 22, 2019. (Mike Blake/Reuters File Photo)
Interstate migration flows are influenced by a number of factors, including retirement, job opportunities, and housing costs. Brandon Ristoff, a policy analyst with the California Policy Center, told Center Square that the flight of billions of dollars from California is driven by the state’s “bad policies on the economy, education and more.”

Jun 05 18:34

6th State Announces Vaccine Lottery. Will Yours Be Next?

By B.N. Frank

Kentucky has joined 5 other states holding controversial COVID “Vaccine Lotteries." They even have special prizes for the 12-17 year olds. Governor Andy Beshear called it a "great opportunity." ...

Jun 04 10:01

Biden Signals Flexibility on Taxes for Infrastructure

President Biden signaled he could accept a narrower infrastructure package that didn’t include raising the corporate tax rate, telling a top Senate Republican that he wants $1 trillion in new spending and floating alternative ways to pay for the measure, according to people briefed on the matter.

The new proposal, which includes a minimum corporate tax of 15% for the nation’s largest companies and the repurposing of some Covid-19 aid funding, marks a late shift from the White House, as Mr. Biden and Senate Republicans kick off what is expected to be a final flurry of talks on the size of the infrastructure plan and how to fund it.

Jun 04 10:00

Biden now willing to drop corporate tax hike to get infrastructure deal done

President Biden does not have a Monday deadline for an infrastructure deal with Republicans, the White House said Thursday amid a report that he is willing to drop his corporate tax hike in exchange for getting an infrastructure deal done.

Press secretary Jen Psaki said Biden intends to continue negotiations next week with Republicans led by Sen. Shelley Capito (R-W.Va.) and said the White House is open to a wide range of potential ways to pay for a bill as Republicans balk at tax hikes.

“We’re going to keep our options open to see what paths we can move forward on,” Psaki said at her daily press briefing.

Biden’s spokeswoman fielded questions at the White House as the president joined first lady Jill Biden for a bike ride near his vacation home in Rehoboth Beach, Del., where he’s spending two nights to celebrate his wife’s 70th birthday.

Jun 04 05:37

Biden Said To Mull Dropping Corporate Tax Hike To Fund Jobs Plan

In an effort to win Republican support for President Joe Biden's infrastructure and jobs plan, the White House on Thursday signaled it was willing to negotiate over his pledge to increase the corporate tax rate.

The Washington Post reported Biden offered to drop his proposal to return the top corporate tax rate to 28 percent -- where it had been before a Republican-backed tax cut in 2017 -- from its current 21 percent level, something the opposition party strenuously opposes.

Citing sources familiar with the discussions, the newspaper said the offer was made in a private White House meeting on Wednesday with Republican Senator Shelley Moore Capito, as the president looks for opposition support for his spending plans.

Jun 03 13:03

LEAVE THE TAX MAN BEHIND WITH WENDY SMITH DAVID ADELMAN & CHARLIE WARD

Jun 02 05:06

$2 trillion in taxes, $6 trillion in spending, $22 trillion in borrowing — what could go wrong?

A few years ago some nutty professors came up with a crackpot idea called "modern monetary theory," or MMT. It was the idea that as long as interest rates stay low, the U.S. government can spend and borrow trillions upon trillions of dollars at almost no cost and we will all be richer. This is a little like saying you can jump out of an airplane without a parachute and as long as you never hit the ground, you will be fine.

This looney idea was mostly ridiculed as a flat-earth-society idea - and yet now we have a president, Joe Biden, who actually is practicing MMT. His latest budget calls for $6 trillion in spending, soon to rise to $8 trillion, paid for with a $2 trillion tax hike on the rich and $7.6 trillion in additional debt. This is more debt than accumulated by the previous four presidents - combined.

May 31 06:35

GOP Is Coming Up With A Strategy To Fight Biden's HUGE 2022 Budget

Republicans are preparing to combat President Joe Biden’s huge $6 trillion federal budget proposal, featuring a proposed $1.8 trillion deficit.

They claim Biden’s bill will leave the country hurt by higher taxes, debt, and inflation rather than “building back better," as the president himself explains his economic agenda.

May 31 06:32

Biden's budget plan swells U.S. debt before tax hikes kick in

U.S. President Joe Biden's $6 trillion budget plan foresees a big near-term increase in U.S. debt to fund his plans to reduce inequality, combat climate change, rebuild U.S. infrastructure and invest in new technologies, but counts on higher tax revenues to reduce deficits in the longer term.

The budget proposal released on Friday builds on a partial "skinny budget" the White House announced last month that sought spending increases for addressing climate change, fighting cancer and boosting underperforming schools. read more

Following are some takeaways from Biden's first comprehensive spending blueprint for fiscal year 2022 - a proposal that faces strong opposition from Republican lawmakers and will be subject to months of negotiation:

May 30 06:26

Prosecutors Seek To Seize $15 Million Fly Fishing Lodge In "Biggest U.S. Tax Evasion Case Ever"

Billionaire Robert Brockman was indicted last year on the "biggest U.S. tax-evasion case ever against an individual". Now, prosecutors are looking to seize his assets, including a $15 million fishing lodge in Colorado and $77.9 million in a Swiss bank account, according to Bloomberg.

The 80 year old Brockman is being accused of failing to report $2 billion in income and using a foreign company to buy secondary debt in his own software firm at a deep discount. The government says that assets tied to the debt fraud can be forfeited, which includes the fishing lodge on the Frying Pan River. It's the government's first attempt at taking his property since he was indicted last October.

The 143 acres were used by Brockman as he "spent parts of his summers fly fishing for rainbow and brown trout". He built the property to avoid the 30 minute drive from Aspen to the Frying Pan River.

May 28 07:46

Biden's Budget Assumes a Massive Retroactive Capital Gains Tax

Biden seeks to hike the top rate on capital gains to 43.4% from 23.8% for households with income over $1 million.

He also wants to make the increase retroactive and force capital gains realization at death as well.

Webmaster's Commentary: 

Doesn't that violate the ex post facto provision of the Constitution?

May 27 12:08

R.I.P. Bill Benson

During the early morning hours of May 5, 2021, the honorable man William J. Benson left our good company forever.

Born March 30, 1927 in Harvey, Illinois, he'd just turned 94. A stalwart defender of American liberty, he never wavered in his commitment to hold government accountable for its misbehaviors. Over the years he assisted many in successful defenses against a cruel, illegitimate and tyrannical tax system; those who adhered to his careful guidance were exonerated of wrongdoing.

He leaves us a legacy difficult to fulfill. He was almost larger than life. His discoveries have shaped how we see the history of our nation.

Rest in peace, Bill. You've earned it.

May 24 07:18

All those electric vehicles pose a problem for building roads

Last week, Washington Gov. Jay Inslee—the guy who, while running for president two years ago, proposed a nationwide ban on sales of gas-powered cars by 2030—vetoed a statewide ban on gas-powered car sales by 2030.

The reason for the puzzling move, Inslee said in a statement, was a provision tucked into the legislation. The language said the 2030 target would take effect only if lawmakers created a program to charge drivers based on how far they drive each year.

The bill had been hailed as path breaking for electric vehicles and US climate policy, more aggressive than deadlines from states like California, Massachusetts, and New York, which have set their sights on 2035. Washington plans to follow California's rules and phase out the sale of gas-powered cars by 2035.

May 21 10:07

US Treasury Requires Any Crypto Transfer Over $10K Be Reported as Tax Evasion Countermeasure

The US government has long considered how cryptocurrencies should be taxed, and has, as yet, not thoroughly determined how to go forward. Meanwhile, with digital currency prices skyrocketing over the past few years, not only investors, but big companies as well have gotten a taste for crypto assets.

The Internal Revenue Service (IRS) will demand that companies report and and all cryptocurrency transfers of over $10,000, the body said in a statement on Thursday.

"Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion", the release reads.
The action is part of US President Joe Biden’s recently announced $1.8 trillion American Families Plan that includes $80 billion in spending for the IRS to enhance its enforcement of high earners while carrying out overall modernization by “hiring new specialized enforcement staff, [and] modernizing antiquated information technology.”

May 20 03:27

VP Kamala Harris 'broke her own campaign ethics pledge by keeping assets hidden in a tax-protected trust', her 2020 tax disclosure reveals

Kamala Harris and Joe Biden said they would close loophole that allows trust beneficiaries not to disclose holdings
In meantime, administration officials were asked to publish all assets
The pledge accused President Trump of using the loophole to avoid disclosing his financial holdings
But Harris's financial disclosure states: 'Trust assets are not reportable'
2020 tax return shows Harris and her husband earned almost $1.9 million

Webmaster's Commentary: 

I LOVE THE STENCH OF HYPOCRISY IN THE MORNING!!!!

May 19 18:37

Let’s Level the Playing Field between the Dollar and Competing Currencies

By Michael Milano

To be a reliable and useful medium of exchange, money must be durable, portable, divisible, and recognizable, but also scarce. The privileged power of the state to manipulate the scarcity of money has had disastrous consequences for national currency systems throughout history. While money, like everything else, is subject to the subjective valuations of consumers—as noted by Mises—money’s exchange value is “the most important kind of value, because it governs the social and not merely the individual aspect of economic life.” Legal tender laws and other regulations imposed on currencies cause value discrepancies to arise...

May 16 13:29

“Infrastructure” Is Now Anything the Government Wants To Do

By Robert Zumwalt

A common rhetorical tactic is to change the definition of a key word in a debate to fit a preferred conclusion. This tactic is now being used by President Biden and other lawmakers in support of an anticipated $2 trillion infrastructure bill they are expected to propose by arguing that the definition of “infrastructure” should be expanded to include anything remotely connected to the economy.

The forthcoming bill is expected to propose approximately $400 billion for childcare and other care programs under the heading of “infrastructure,” the argument being that spending taxpayer money on these programs would free up more mothers and others who currently devote their time to providing care to take jobs outside the home. Because it would enable more mothers to work outside the home, the argument goes, “infrastructure” should include childcare...

May 15 11:54

Biden Wants a Global Minimum Tax to Offset His Proposed Huge Corporate Tax Increase

By Andrew Moran

In the classic 1939 film, The Roaring Twenties, a desperate James Cagney tells Priscilla Lane, “You want the Brooklyn Bridge, all you gotta do is ask for it. If I can’t buy it, I’ll steal it.” Like a desperate lovesick puppy trying to force the object of his affection to fall in love with him, President Joe Biden has promised the American people the Brooklyn Bridge, relying on an elixir of higher taxes to carry out his plans. ..

Recently, Treasury Secretary Janet Yellen unveiled a new proposal to implement a global minimum tax on corporations to prevent these vast businesses from shopping around for the lowest rate. This would be in addition to raising the corporate tax rate to 28%...

May 14 07:51

Larken Rose - The Tiny Dot

Webmaster's Commentary: 

Posted at reader request!

May 13 10:05

Top Republican seeks clarity on estimate of $1 trillion in unpaid taxes

Sen. Mike Crapo (Idaho), the top Republican on the Senate Finance Committee, is asking IRS Commissioner Charles Rettig for clarity about his remarks that the "tax gap" between the amount of taxes owed and the amount paid could be about $1 trillion annually.

Crapo is seeking more information about the $1 trillion figure as President Biden is proposing to boost IRS funding in order to help pay for his economic recovery proposals, and as lawmakers also consider ways to reduce the amount of uncollected taxes.

The senator said that he is interested in working on a bipartisan basis on IRS funding and enforcement issues, but thinks it's important that enforcement efforts aren't overly invasive for taxpayers.

May 13 10:03

Ohio Governor Lifts COVID Mandates; Uses Federal Funds for Million Dollar Lottery-Style Drawings for Vax Recipients

By B.N. Frank

Nice to offer taxpayer funds for a lottery scheme to bribe people for the vax, which only the vaxed have a chance at winning. Seems legal...

May 12 19:24

$60 Billion U.S. Tax Dollars Swindled by Biofuel Scam Artists is “most significant series of frauds on the environment ever prosecuted.”

By B.N. Frank

Journalist Donald Carr is right – “the saga of biofuels fraud is a cautionary tale that reads like a spy thriller.” No doubt it could and probably will be turned into a big-budget Hollywood movie with an all-star cast that will be raved about for years.

What is particularly haunting about Carr’s recently published article about the $60 billion dollar scam is a quote from Southern Illinois University biofuels historian Jeffrey Manuel. Manuel said he believes carbon markets “will certainly be vulnerable to fraud like the RFS has been.”...

May 12 07:37

Lower Chamber of Russian Parliament Votes to Revoke Tax Agreement With Netherlands

At a plenary session on Tuesday, the lower chamber of the Russian parliament voted for revoking a Russian-Dutch agreement on the avoidance of double taxation and prevention of tax evasion.

The Russian government submitted a bill to denounce the agreement to the lower chamber last month.

"If the Russian side submits a notification on agreement denunciation before 30 June 2021, it will be terminated on 1 January 2022", the explanatory note read.

At the same time, the Russian Finance Ministry said it would propose amending taxation deals with Hong Kong, Singapore, and Switzerland.

May 12 07:16

Hedge Funds Descend On Puerto Rico As Biden Tax Threat Looms

With President Biden and the Democrats on the warpath to separate the richest Americans from their income, hedge funds managers are starting to expand into Puerto Rico - leaving open the possibility of relocating to the island to obtain huge tax breaks, according to Bloomberg.

Both ExodusPoint Capital Management and Millennium Management have opened local subsidiaries on the island, according to local records. ExodusPoint, headed by Michael Gelband, created a money-management in Puerto Rico on behalf of co-founder Hyung Soon Yee, who moved there last year.

Millennium, run by Izzy Englander, set up shop on the island just weeks after Biden won the 2020 US election.

And with Biden's proposed tax increases on the wealthy and corporations looming, those who venture to Puerto Rico may be able to avoid both state and federal taxes according to the report.

May 11 05:40

Taxation without representation

May 10 14:48

The Coming IRS Reign Of Terror

The one certainty is that the new powers Biden bestows on the IRS will be horrendously abused, and that most members of Congress won’t give a damn. Instead, they will pile on to further oppress American citizens and political activists. In 1967, a federal appeals court decision proclaimed, “The court will not place its stamp of approval upon a witch-hunt, a crusade to rid society of unorthodox thinkers and actors by using the federal income tax laws” to silence them. -- Unfortunately, such lofty sentiments are far more likely to be found in musty judicial compilations than in today’s Washington.

May 08 06:49

U.S. court authorizes IRS to seek identities of taxpayers who have used cryptocurrency

A federal court in the United States has authorized the Internal Revenue Service (IRS) to serve a "John Doe Summons" on the crypto exchange Kraken, seeking identities of U.S. taxpayers who have used cryptocurrency, the Department of Justice said on Wednesday.

The IRS is seeking information about taxpayers who conducted at least $20,000 worth of transactions in cryptocurrency from 2016 to 2020, the DOJ said in a statement.

"Those who transact with cryptocurrency must meet their tax obligations like any other taxpayer", acting Assistant Attorney General David Hubbert of the Justice Department's Tax Division said in the statement.

May 07 05:41

Thomas Reviews Are Individuals More Willing To Lie To A Computer Or A Human About Their Taxes?

Imagine your accountant asks you if you earned any income that wasn’t reported on a 1099 or W-2 this year, and you know that you have an extra $5000 of such income. Do you tell her? Probably. For starters, you might be worried that she is going to be suspicious if you lie to her. Something in your voice might give it away, or perhaps your income this year is lower than last year and she wants to know why. Further, you might have developed a rapport with your accountant, and lying to her might cause psychological discomfort.

May 05 06:47

How tax prep companies conspired to make filing your taxes so damn hard

In 1985, President Ronald Reagan called for a simple tax filing system under which most people would not have to fill out a tax return. Instead, they’d just receive a form from the IRS showing their refund or tax liability. In 2010, a White House advisory board proposed the same idea, noting that Americans spend billions of hours and hundreds of billions of dollars annually preparing their taxes. In 2019, Sen. Elizabeth Warren (D-Mass.) also proposed a free, easy filing system that would allow the bulk of taxpayers to avoid the unpleasantness of filling out returns that are dozens of pages long, with complicated sheets of instructions. She’s recently been promoting that bill again, ahead of Tax Day 2021.

With such a long history of support from across the political spectrum, why hasn’t America followed the lead of dozens of other countries in adopting a simple, government-run system for paying taxes?

May 04 09:42

The Walmart Tax Every American Taxpayer Pays

Every year, hardworking men and women all across the country face the harsh reality of paying their taxes. While the average American family has less than $1,000 in savings and nearly half have no retirement savings, in 2015, the average household paid $13,000 in income taxes. For so many Americans, this time of year is met with anxiety, fear, and anger as too many people struggle to pay their day-to-day bills, let alone their taxes.

But what should fuel hard-working, tax-paying Americans’ anger, is the fact that so many of their tax dollars are being used year after year to support one of the nation’s largest welfare recipients – Walmart. A company with annual profits that averaged $15.5 billion over the last five years.

Simply put, every American taxpayer is paying a tax they never heard of: The Walmart Tax.

May 04 07:16

Biden’s new plan lets the IRS snoop on your bank accounts…

Biden’s plan wants to give an extraordinary amount of new power to the IRS.

Take a look at this fact sheet from the Treasury Department, explaining a new provision that would require banks and financial institutions to start telling the tax agency what people have in their bank account, when money is moved around, and the like. This proposal, according to the fact sheet, “leverages the information that financial institutions already know about account holders, simply requiring that they add to their regular, annual reports information about aggregate account outflows and inflows. Providing the IRS this information will help improve audit selection so it can better target its enforcement activity on the most suspect evaders, avoiding unnecessary (and costly) audits of ordinary taxpayers.”

May 04 04:38

Biden’s Modest Tax Plan

Business lobbyists and conservative think tanks are not big fans of President Biden’s proposed tax increases on the wealthy.

The Tax Foundation has said that Biden wants to raise the capital gains tax to “highs not seen since the 1920s.” Suzanne Clark of the U.S. Chamber of Commerce called the same plan “outrageous.” Jay Timmons of the National Association of Manufacturers called the proposed increase in the corporate tax rate “archaic.” And Brendan Bechtel, the chief executive of the construction company that bears his family name, said that “it doesn’t feel fair.”

All of this rhetoric has obscured a basic fact about Biden’s tax plan: It would not actually raise tax rates on the rich to high levels, historically speaking.

May 03 09:18

For Taxpayers ONLY!

Apr 29 14:13

Unconstitutional Debt and Future Generations

...But here we are paying debts that are more than 100 years old and borrowing money as if there were no consequences. How much longer can a society last with a central government that does not pay its bills? Why have a Constitution that limits the government if no person or entity enforces the limitations? Why have taxes in the first place if borrowing and deferring debt will do?

Apr 29 07:18

Some Democrats Not Sold on Biden’s Proposed Capital-Gains Tax Boost

President Biden’s push to sharply raise taxes on capital gains for high-income households to help pay for his antipoverty program faces skepticism from some fellow Democrats, who say they are concerned higher rates could slow economic growth.

As part of a $1.8 trillion package released Wednesday, Mr. Biden is proposing a series of tax increases on wealthy Americans. He wants to raise the top income-tax rate to 39.6% from 37%, while also raising the capital-gains rate to 43.4% from 23.8% for households making more than $1 million. The plan would also change how capital gains are taxed at death and provide more funding to the Internal Revenue Service to collect more taxes owed.

Apr 28 10:13

The White House can raise taxes on the wealthy without touching the tax code at all

President Joe Biden wants to raise taxes on the wealthy to pay for some of his policy proposals. Part of the way he can go about that doesn’t entail touching the tax system at all — instead, he’d just have to put the IRS to work chasing down rich people to make sure they’re paying taxes they already owe.

Apr 28 06:33

Many lower- and middle-earning households may pay nothing in income taxes this year

A large swath of American households may pay nothing in income taxes for 2021, a new congressional report suggests.

Taxpayers with income of less than $75,000 are projected to have, on average, no tax liability after deductions and credits when they file their 2021 returns next spring. They will also will get money back from the IRS, according to recent estimates from the nonpartisan Joint Committee on Taxation.

For taxpayers earning $75,000 to $100,000, the average income tax rate paid this year is expected to be just 1.8%.

Apr 28 06:21

Some middle-class families will have a tax rate of zero this year — or less

The American Rescue Plan signed into law by President Joe Biden delivered $1.9 trillion of aid to shore up families, businesses, and cities and local governments amid the ongoing pandemic. But it will also have another impact by lowering the average individual tax rate to almost zero — and even less — for families earning below $75,000 a year.

So estimates the nonpartisan Joint Committee on Taxation (JCT), which recently published its forecast for average individual tax rates in 2021. Because of an expansion of tax credits such as the Child Tax Credit and federal stimulus payments, low-income families will effectively get an influx of money back from the IRS.

Middle-class taxpayers earning $50,000 to $75,000 will have an effective average tax rate of -1.9%, while those earning between $50,000 to $75,000 will face a tax rate of 1.8%, the JCT found.

Apr 27 05:38

White House defends Biden's raid on the richest 0.3%: Top economic advisor says almost doubling capital gains to 39.6% for those earning over $1M will only impact 500,000 Americans

White House officials on Monday defended Joe Biden's tax hike on the wealthy to pay for his $1.8 trillion 'human infrastructure' plan but couldn't address some specifics what the president has planned.

Biden will announce this week his proposal to nearly double taxes on capital gains to 39.6% for people earning more than $1 million. It would be the highest tax rate on investment gains since the 1920s.

'This change will only apply to three tenths of a percent of taxpayers, which is not the top 1 percent, it's not even the top one half of 1 percent. We're talking about three tenths of a percent, that's about 500,000 households in the country,' he said at the daily White House press briefing. 'So, for the other 997 out of 1000 households in the country, or the other 150 million households in the country, this is not a change that will be relevant.'

Apr 26 07:41

Top Economists Just Warned Latest Biden Tax Hike Would Have One Huge Consequence for Small Businesses

By Brad Polumbo

President Biden has already proposed trillions in new spending alongside massive tax hikes. But the White House is reportedly considering another large tax increase.

“The White House is considering raising the capital gains tax rate to 39.6 percent on people earning $1 million and over,” Fox Business reports. For context, the capital gains tax is “a tax on the growth in value of investments incurred when individuals and corporations sell those investments,” according to Investopedia.

The current top capital gains rate is 20 percent, so this hike would amount to roughly a doubling of the tax. And in 13 states, such as New York and California, with their own levies on capital gains, Biden’s proposal would result in some residents facing rates of more than 50 percent...

Apr 25 13:01

IRS is holding millions of tax returns, delaying refunds

The IRS is holding 29 million tax returns for manual processing, delaying tax refunds for many Americans, according to the National Taxpayer Advocate, an independent arm of the tax agency that looks out for consumers' interest. The delays are prompting some taxpayers to fret over social media about weeks of waiting in limbo for their money.

Typically, the IRS sends most refunds within three weeks of taxpayers filing their return. But this year is complicated by a several issues, including a backlog of 2019 paper tax returns that the IRS was unable to process after shuttering its offices during the coronavirus pandemic.

Apr 23 08:43

Those Tax Hikes I Warned About...

Apr 23 05:34

Biden plans to raise taxes on highest earners to 39.6% and capital gains to 43.4%: Stocks plummet as President launches ANOTHER raid on rich

President Joe Biden is calling to hike the top income tax rate back to where it was before the Trump tax cuts and nearly double capital gains rates for top earners to fund his phase two of his 'human infrastructure' plan.'

The moves to raise revenue would be used to pay for education, labor programs, universal pre-K, and continuation of an expanded child tax credit – all proposals Biden plans to spell out in an address to Congress next week.

The president would push the top income tax rate up to 39.6 per cent – where it was before Trump's 2017 tax cuts. Capital gains – where Biden has already called for changes to end a major 'loophole,' would jack up rates from their current 20 per cent for those earning more than $1 million.

Apr 23 05:29

Goldman Says "No Surprise" In Biden Cap Gains Proposal, Sees Congress Settling On 28% Tax Rate

Today the market freaked out when Bloomberg reported that the Biden Administration will propose to tax capital gains at the top ordinary income tax rate (39.6%, or 43.4% when the existing 3.8% tax on net investment income tax is added).

Well, according to Goldman, this is nothing more than the latest pipe dream trial balloon from progressives, one which won't actually take place and instead has been floated to set the negotiation "ask", with Goldman expecting that "Congress will settle on a more modest increase, potentially around 28%." As such there are no actual "surprises" in the proposal which has been floated in this exact format previously, and while it remains unclear when the tax rate increase would be effective, the bank's economists "think it is unlikely to apply to gains realized before May, and an increase effective Jan. 1, 2022 is more likely."

Apr 22 15:51

"Bitcoin Fixes This": Silicon Valley Icon Slams "Job-Crushing" Biden Tax Plan, "Oppressive Government"

With stocks tumbling following the report that Joe Biden is considering a proposal that would double the capital gains tax, as investors dump in hopes of locking in existing cap gains rates - an exercise in futility if Biden and the socialists in Congress decide to make such a tax change retroactive to all of 2021 - Bloomberg quickly polled several Wall Street traders who focused on the policy’s implications for investing, and concluded that while it was too soon to panic, prospects of a higher levy on stock profits could spark near-term selling as investors look to skirt a higher rate.

Here are some hot takes, courtesy of Bloomberg:

Chris O’Keefe, managing director at Logan Capital Management

Apr 22 06:54

Trend Of US Citizenship Renunciation To Rise "Dramatically"

The threat of higher US taxes, combined with other factors, could produce a sharp rise in the number of Americans seeking to give up their citizenship, an advisor working in the space says.

The number of US citizens looking to renounce nationality will increase “dramatically” because they’re looking to break free as taxes rise, an advisor handling such individuals has told this publication.

The US taxes its citizens on a worldwide basis - the only major country to do so - and expats must file annual returns to the Internal Revenue Service. With the Biden administration expected to push up income, capital and estate taxes in the coming year or so, high net worth Americans are in the firing line. And for expats, they can only escape the net if they give up their citizenship.

David Lesperance, a Canadian-born advisor working with HNW individuals seeking to mitigate heavy taxes, said this is a busy time, and not just because of the situation HNW Americans find themselves in.

Apr 21 04:48

Rich Democrats Revolt Over SALT As Biden Tax Hikes Face Pressure From Both Sides

Rich Democrats - typically 'coastal elites' - have publicly supported President Biden's tax hikes as long as the money is well spent, and, as long as Biden removes a Trump-era 10% cap on a special deduction for rich taxpayers known as SALT (State and Local Tax), which forced wealthy Americans to pay an additional $88.7 billion in 2021 alone.

The revolt puts Biden in a tough spot - after he promised to redistribute wealth from the rich, while promising that households making under $400,000 per year (ostensibly $200,000 for individuals) wouldn't see an increase. By removing Trump's SALT cap, Biden would be doing the exact opposite of making the rich pay 'their fair share.'

Apr 19 07:31

Apollo Joins Exodus To Florida As New York Tax Hike Drives Out Wealthy

The authors of a Bloomberg report claiming the trend of financial services firms moving from New York to Florida was rapidly starting to reverse couldn't have been more wrong. Barely two weeks after the New York State legislature passed a state budget that saddled the wealthiest New Yorkers with an effective tax rate north of 50%, the highest in the nation...

...more financial firms and their wealthiest employees are bidding the Big Apple adieu. Earlier this week, Bloomberg reported that Guggenheim's Scott Minerd was preparing to move to Miami as the firm moves to dedicate more resources to South Florida.

Apr 18 10:48

PUNISH HIM! : Pandemic good Samaritan faces hefty tax bill for his efforts

A Connecticut middle school teacher who raised $41,000 to help hundreds of his struggling neighbors during the COVID-19 pandemic got an unwelcome surprise for his charitable efforts: a form stating he could owe $16,031 in income taxes.

Apr 18 09:05

Watch out for this 2021 tax season phishing scam

As tax filing season peaks, a new scam has arrived.

The scam imitates popular online services TypeForm and Microsoft OneDrive with the aim of stealing sensitive personal information.

Email tax scams traditionally spike during the peak of tax season, banking on the fact that many individuals filing taxes are stressed out and may not give proper scrutiny to documents that appear to be from trusted companies.

"Unfortunately, cybercriminals know how stressful tax season is and pull out all the stops by launching email scams that crank the stress volume up to 11," said Abhishek Iyer, who wrote about the scheme for Armorblox, an email security company.

Apr 16 11:16

Congressman Despises Guns, Loves Gun Tax Dollars

The demographics of voters who lawfully own firearms have changed dramatically and taking their rights away and adding a fee to exercise a right, isn’t selling. Rep. Raskin isn’t talking about holding criminals accountable or hitting them with prison time. He’s tossing around the idea to tax a right because if he can’t ban it outright, he’s certainly not going to miss the opportunity to make money off of it.

Apr 13 08:09

Global Taxes – Global Stagnation

Apr 12 04:53

Study: Tax Hikes to Cause 1 Million Job Losses by 2023

New tax increases proposed by President Joe Biden would kill one million jobs and harm the economy, a new study released by the nation’s largest manufacturing association states.

For manufacturers, the tax reform of 2017 was like “rocket fuel” and if the new administration rolls back those reforms, “manufacturing workers will lose out on jobs, growth, and raises,” according to Jay Timmons, president and CEO of the National Association of Manufacturers (NAM).

“After decades of advocating for a tax system that provided competitive rates and modern international tax provisions, manufacturers in America kept our promises following the enactment of the 2017 tax reforms: we raised wages and benefits, we hired more American workers, and we invested in our communities,” Timmons said in a press release.

“If we undo those reforms, all of that will be put at significant risk.”

Apr 08 05:20

Biden caves on steep tax increase for businesses after bipartisan backlash

President Biden said Wednesday he’s willing to scale back a proposed corporate tax increase in his massive infrastructure plan amid resistance from a key Senate Democrat and a new study that said the plan would sap wages and economic growth in the long run.

Mr. Biden challenged opponents of the $2.25 trillion plan to put up or shut up on outlining their own ideas, while the Treasury Department projected the broader plan translates to roughly $2.5 trillion in tax hikes over 15 years.

“I’m wide open, but we got to pay for this,” Mr. Biden told reporters when asked about a corporate tax rate lower than the 28% that is in his plan. “I’ve come forward with the best, most rational way — in my view, the fairest way — to pay for it. But there are many other ways as well, and I’m open.”

Apr 07 08:05

YELLEN: GLOBAL TAX! Agreement By June…

Apr 07 07:14

US wanting other countries to raise corporate tax so it can profit is a bizarre super-capitalist demand

In typical ‘world-leading nation’ fashion, the US is now requesting that other countries raise corporate tax to a ‘global standard’ minimum. While good to combat tax havens, it’s only being done with America’s profits in mind.

On Monday, US Secretary of the Treasury Janet Yellen made a speech calling for a minimum global standard on corporate tax – effectively a demand that all countries of the world “cooperate” with the United States in order to raise their levies on businesses to a level which suits Washington. She stated that the goal of such a tax was to protect American interests by preventing companies from “shifting their earnings offshore” in the wake of planned raises designed to pay for Biden’s infrastructure plan. Yellen said the US sought to make a “level playing field” and berated a “30 year race to the bottom” on taxes.

Apr 07 07:12

The IMF And World Bank, Who Pay No Taxes, Are About To Talk About Tax Hikes And Inequality

The IMF and World Bank spring meetings are about to kick off, where those who pay no income tax get to talk about tax evasion, tax hikes, inequality, and Building Back Better. US Treasury Secretary Yellen will use the platform to push for a global standardization - upwards - of corporate tax rates. National Security Advisor Sullivan has also tweeted in support:

“The US is committed to end the race to the bottom on corporate tax rates and prevent corporations from shifting jobs overseas. A core piece of our national security strategy is national competitiveness: creating jobs & raising wages at home, not incentivizing tax havens.”

That as Democratic Senator Manchin says he doesn’t support the tax increase from 21% to 28% proposed by his own party, with 25% being the limit; and Republicans attack POTUS and FLOTUS for having used a corporate vehicle to reduce their tax on $13m of 2017-19 income from book royalties and speaking fees.

Apr 07 06:10

Biden Talks Tough On Tax Loopholes, But He & His Family Exploited Them For Decades

While recently touting his infrastructure project, President Biden griped "the wealthiest 1% of Americans saw their net worth increase by $4 trillion," he then ripped loopholes and deductions corporations utilized to avoid taxes.

However, a raging letter from the leader of a House conservative caucus about Biden’s own tax loopholes could foretell what Republicans will cover in their oversight agenda should they flip the House of Representatives in 2022.

Apr 05 06:25

US NATIONAL DEBT PASSES $28 TRILLION, +$4.7 TRILLION IN 13 MONTHS. GENERAL TREASURY ACCOUNT DOWN BY $480 BILLION IN 2 MONTHS, $620 BILLION TO GO

What does it mean for the markets that the government now spends the proceeds from debt sales last spring that the Fed had monetized back then?

Apr 02 05:49

Tucker: Biden raises your taxes while he dodges his own

Apr 02 03:25

Buttigieg: ‘We’re Not Asking for High Taxes’ — We’re Asking Corporations and Wealthy ‘Pay Their Fair Share’

In a Thursday interview on MSNBC’s “Stephanie Ruhle Reports,” Secretary of Transportation Pete Buttigieg discussed President Joe Biden’s $2 trillion infrastructure plan.

Host Stephanie Ruhle asked Buttigieg if he is “prepared” for Republicans to run against the tax hike being necessary to pay for the massive plan.

Buttigieg advised that the Biden administration is “not asking for high taxes” but rather corporations and the wealthy “pay their fair share.” He argued the tax hike is “wildly popular among the American people.”

Webmaster's Commentary: 

We are all taxed way too much, people and corporations alike.

Apr 01 10:35

Tax Hikes are Coming

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