Republicans Introduce Bill to Prevent Euro Bailout

Republicans in Congress are trying to prevent a Euro bailout, and recently introduced a bill to make it a law not to help the European Union. The legislation presses European countries with financial struggles – such as Greece – to get fix their own financial problems instead of looking to American taxpayers for help.

"This legislation would require that countries, like Greece, cut spending and put their own fiscal house in order," says U.S. Congressman Mike Pence, backed up by other members of the House GOP, "instead of looking to the United States for a bailout. We face record unemployment and a debt crisis of our own, and American taxpayers should not be forced to bear the risk for nations that have avoided making tough choices."

The full release is below the fold, with the detail that the bill "does not permanently prohibit the IMF from lending" to the troubled counties. Nevertheless, Ezra Klein is not a fan of this proposal.

U.S. Congressman Mike Pence, Chairman of the House Republican Conference, joined Conference Vice-Chair Cathy McMorris Rodgers, Ranking Member of the House Appropriations Committee Rep. Jerry Lewis, Rep. Jeb Hensarling, and Rep. Kay Granger in introducing legislation today to stop U.S. tax dollars from being used by the International Monetary Fund (IMF) for bailouts for European countries. Rep. Pence released the following statement today as the European Bailout Protection Act was introduced:

“The American people are fed up with taxpayer-funded bailouts and deserve to know we are bailing out Greece and possibly other European countries. If the Obama Administration has its way, the U.S. will contribute to a nearly trillion dollar bailout of European countries with economic crises that are a direct result of wasteful government spending.

Continue reading at Washington Post.com…

CDC: States Not Putting Cigarette Tax Funds Into Efforts To Curb Smoking

Although, the federal government and over a dozen states have increased taxes on cigarettes, according to the CDC none of that money is going to smoking prevention programs. The CDC made this startling announcement yesterday according to this Reuters report.

Increases in cigarette taxes ranged from 10 cents per pack in North Carolina to $1 in Connecticut, Florida and Rhode Island. The average 2009 increase was 52 cents per pack.

As a result of the tax increases in the 14 states and Washington, D.C., the average state cigarette tax rose from $1.18 per pack in 2008 to $1.34 per pack in 2009, according to CDC.

In a CDC report released Thursday, the agency wrote that "cigarette excise tax increases can be even more effective in reducing tobacco-related death and disease" when used in conjunction with other tobacco-control measures. CDC added, "A 10% increase in the price of cigarettes can reduce consumption by nearly 4% among adults and can have an even greater effect among youths and other price-sensitive groups."

American Heart Association CEO Nancy Brown said that state lawmakers can help improve both public health and state finances by dedicating money from cigarette taxes to tobacco prevention programs, which she noted in some cases can reduce smoking among youth by up to 40%.

College Saving: How To Avoid Losses, Save On Taxes

It is back to school time for kids and college students alike. As such dozens of news outlets are running stories on saving for college. Yesterday, I came across this interesting article from Philly.com explaining how to save for college while avoiding losses. Check out the text of their article below, or for more information your can read this article on the RDTC Tax Help Blog titled Top 10 Tax Planning Tips for Families with Children.

As parents of young children see teenagers head off to college for the fall semester, they may be fretting about how they'll be able to meet the rising cost of tuition when their time comes.

That includes looking at 529 plans that offer special tax benefits on college savings and are named after the Internal Revenue Service code that regulates them. Accounts can be set up through a state agency or pre-paid university and college programs.

Let's look at the tax advantages, the home-state factor and the best way to protect the account from market losses.

Q: What are the tax advantages of a 529 plan?

A: Earnings in 529 plans are not subject to federal tax, and in most cases you do not pay state taxes as long as you use the money for eligible college expenses. That typically means tuition, room and board, and mandatory fees. Books and computers also qualify when they are required.

Money taken out of the account for reasons other than college expenses will be subject to income tax and a 10 percent federal tax penalty.

The Securities and Exchange Commission offers an introduction to 529 plans with some basic information on taxes and other issues on its Web site at: http://www.sec.gov/investor/pubs/intro529.htm.

Continue reading at Philly.com…

College Saving: How To Avoid Losses, Save On Taxes

It is back to school time for kids and college students alike. As such dozens of news outlets are running stories on saving for college. Yesterday, I came across this interesting article from Philly.com explaining how to save for college while avoiding losses. Check out the text of their article below, or for more information your can read this article on the RDTC Tax Help Blog titled Top 10 Tax Planning Tips for Families with Children.

As parents of young children see teenagers head off to college for the fall semester, they may be fretting about how they'll be able to meet the rising cost of tuition when their time comes.

That includes looking at 529 plans that offer special tax benefits on college savings and are named after the Internal Revenue Service code that regulates them. Accounts can be set up through a state agency or pre-paid university and college programs.

Let's look at the tax advantages, the home-state factor and the best way to protect the account from market losses.

Q: What are the tax advantages of a 529 plan?

A: Earnings in 529 plans are not subject to federal tax, and in most cases you do not pay state taxes as long as you use the money for eligible college expenses. That typically means tuition, room and board, and mandatory fees. Books and computers also qualify when they are required.

Money taken out of the account for reasons other than college expenses will be subject to income tax and a 10 percent federal tax penalty.

The Securities and Exchange Commission offers an introduction to 529 plans with some basic information on taxes and other issues on its Web site at: http://www.sec.gov/investor/pubs/intro529.htm.

Continue reading at Philly.com…