Rick Perry to U.S. Taxpayer: COME ON DOWN

Posted on by Caleb Newquist

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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Tip for Pro Athletes: Getting Fined May Have Tax Advantages

[caption id="attachment_8735" align="alignright" width="260" caption="Chad, sans sombrero"][/caption]

Misbehaving athletes (or fun hating NFL, NBA, MLB administrators) should take note, getting fined can apparently do wonders for your itemized deductions.

That’s according to a report from Darren Rovell at CNBC, anyway. He cites sports accountant Robert Raiola of Van Duyne, Behrens & Co. who says that fines are “classified as ordinary business expenses,” so once the amount of those expenses exceed 2% of the taxpayers adjusted gross income, the expenses are deductible.


Of course, what isn’t mentioned is that it’s likely that a professional athlete’s itemized deductions would probably be limited since it’s safe to assume that their itemized deductions are greater than $166,800. So in other words, it might work out well for Chad Ochocinco to get fined on a weekly basis for wearing sombreros, bribing officials, and/or any other tomfoolery that the NFL finds fineable but without all the information it’s difficult to determine if this is actually a worth tax-planning strategy. Athletes – please consult your tax advisor that is probably already robbing you blind.

Need A Tax Deduction? Get Fined For Something [CNBC via Tax Policy Blog]

Amsterdam’s Hookers Are Pretty Much Okay with Finally Having to Pay Taxes

Which doesn’t come as much of a surprise since the Dutch aren’t the rabid purtian, anti-tax type that exist in some countries.

“It’s a good thing that they’re doing this,” said Samantha, a statuesque blond Dutchwoman in a white leather dress who offers her services from behind one of the hundreds of red-curtained windows in the heart of the city’s ancient center. “It’s a job like any other and we should pay taxes,” she said.

Plus! Since these audits will be as boring as expected, there may be an opportunity to drum up a little business:

Prostitutes were told they would be audited in typically bureaucratic fashion, with a notice addressed “to landlords and window prostitutes in Amsterdam” published last week in the city’s main newspaper. “Agents of the Tax Service will walk through various elements of your business administration with you, such as prices, staffing, agendas and calendars,” the notice said. “The facts will be used at a later date in reviewing your returns.”

Or as a short, stocky, bald man once said, “I want details and I want them right now!”