One of the biggest problems with Texas Governor Rick Perry’s optional flat tax may be the choice it gives taxpayers. Perry says you can either pay his new tax or pay under today’s system, whichever results in a lower bill. That sounds great, but it is a policy disaster. This is the tax code we’re talking about, not some TV game show. [TaxVox]
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(UPDATE) Bernie Sanders Is Getting His Filibuster On
NPR reports that the Vermont Senator has been going for over 90 minutes to delay the vote on the tax deal President Obama made with Republicans and judging by the live feed from CSPAN2, he’s not showing any sign of stopping. NPR quotes Berns:
“You can call what I am doing today whatever you want, you it call it a filibuster, you can call it a very long speech. I’m not here to set any great records or to make a spectacle. I am simply here today to take as long as I can to explain to the American people the fact that we have got to do a lot better than this agreement provides.”
Here’s a snip from feed the (a pie chart!):
And a bar chart!
He’s doing you proud Green Mountain Staters!
UPDATE: Entering hour six! It’s like he’s got an IV of pure Green Mountain joe!
Top 10 Tax Changes to Know Now
In March 2010, the President approved two huge pieces of tax legislation: the Hiring Incentives to Restore Employment Act and the Patient Protection and Affordable Care Act. Numerous tax provisions from these two bills take effect over the next several years. Will you be able to identify the tax changes that may impact your clients’ tax returns? Here’s a quick list of the things you will want to be familiar with.
1. Tax timeline in the health care reform act—when each provision takes effect. These are major tax changes spread over the next 8 years!
2. The additional Medicare Tax on unearned income and wages found in the new Health Bill (the hottest tax topic of the year)
3. How the Gillet case affects the tax return of a same-sex couple. Is filing “Married Filing Joint” permitted?
4. The 5 tests for qualifying a child as a dependent and who can claim the child after a divorce.
5. The new rules for basis reporting starting in 2011 (Form 1099-B).
6. Cancellation of debt (and exceptions to COD Income (Section 108).
7. The myriad adjustments to gross income such as health savings accounts and prepaid tuition accounts.
8. Changes to itemized deductions including the new charitable contribution rules, the home mortgage rules and medical expenses.
9. Features and effective dates for the American Opportunity Tax Credit (Hope Credit) and the Lifetime Learning Credit.
10. The over 60 provisions that expire at the end of 2010; Ordinary income tax rates, capital gains rates, EIC, child tax credit, dependent care credit, limit on itemized deductions and exemptions, etc. will all revert to 2001 law.
Need help pulling all the information together? Get the details on these and other issues related to individual income taxes in Part 1 of CPE Link’s Federal Tax Update webcasts scheduled November-January. Course includes 120 page downloadable manual containing hyperlinks to applicable code sections.
Here’s Audio of Jon Lovitz Bitching About Taxes, President Obama (NSFW)
It's obviously a slow day when a number of media outlets are concerned with what […]