As I mentioned yesterday, last night I made an appearance on CNBC’s On The Money. During the interview I spoke with Carmen Wong and gave advice on keeping the IRS out of your investment portfolios, and saving on your taxes. You can watch a video of the entire interview by checking out the link below on CNBC.com.
Thursday, February 12, 2009
How To Keep The IRS Out Of Your Investment Portfolio
Stimulus Includes GM Tax Break
General Motors Corp. would receive a tax break in the $790 billion stimulus bill after the automaker argued its government-led restructuring would unintentionally lead to at least $7 billion in tax liabilities.
General Motors, which received a $13.4 billion lifeline from the Bush administration last year, would have been required to pay additional income taxes from its government loans, potentially undermining its turnaround plan.
GM received $9.4 billion in federal loans and is expected to receive another $4 billion, while Chrysler LLC has received $4 billion in loans and hopes to get another $3 billion. The companies must submit plans next week showing how they will restructure their companies and become profitable.
President Barack Obama, in an interview Wednesday with about a dozen selected reporters from news organizations, said he was committed to helping the U.S. auto industry and more help could be available if the plans are realistic.
If not, Obama said, "Then we're going to have to ask them to go back to the drawing board."
How You Can Still Get Last Year's Tax Rebate
The Chicago Sun Times posted a article discussing last years tax rebate, and how those who did not yet receive it can still do so. A snippet of the article can be found below, but the full text can be read here.
If you lost your job last year, you could probably use some extra cash. Here’s a source of money you may have overlooked: last year’s tax rebate.
In 2008, the IRS sent more than 119 million taxpayers rebate checks of $600 per person, or $1,200 for couples. Parents received an additional $300 for each dependent child younger than 17. The checks were part of an economic stimulus package enacted in February 2008. But many taxpayers didn’t receive a check, or received a reduced amount.
One reason was the income cutoff: The rebates were phased out for single taxpayers with 2007 adjusted gross income of more than $75,000, and married couples with AGI of more than $150,000. Congress based the rebates on 2007 tax returns to get the money in taxpayers’ hands more quickly, says John W. Roth, senior federal tax analyst for tax publisher CCH.
Congress Cuts Big Business Tax Break in Stimulus Bill
From Bloomberg.com:
House and Senate negotiators all but eliminated the biggest tax cut for businesses in the compromise agreement on an economic stimulus bill, Senator Max Baucus of Montana said.
The provision, a top priority of business groups including the National Association of Manufacturers and the U.S. Chamber of Commerce, would let companies convert losses into tax refunds.
Baucus said today that the provision, under which companies could have claimed an estimated $67.5 billion in tax refunds this year and next, was sacrificed to help keep the final package under $800 billion.
“It was a casualty of the overall limit,” said Baucus, a Democrat and chairman of the Senate Finance Committee. Congressional negotiators announced today an accord on a plan totaling $789 billion.
The provision, which would have let companies of any size amend up to five years of tax returns to deduct net operating losses they realize now, had been Companies under current law can carry losses back only two years.
Wednesday, February 11, 2009
IRS Amnesty Would Stimulate Economy, Give Struggling Taxpayers a Fresh Start
One writer from the Cincinnati News recently posted an article urging Congress to offer amnesty to taxpayers that have not filed because of unpaid taxes. The author suggests that by doing so, the IRS would stimulate the economy. A portion of the article can be found below, but the full text can be read here:
Congress is looking for ways to raise money as well as stimulate the economy. Many hard-working Americans, despite good intentions, have fallen behind on their taxes - it could be divorce, medical problems, or the challenges of a business during hard times. These life situations often lead to an unfortunate dropping out of the tax system. If the taxes cannot be paid, the returns are often not filed.
I urge Congress and the Secretary of the Treasury to offer amnesty to the 6.1 million IRS non-filers if they come forward and pay the taxes they owe.
The non-filing is usually accompanied by a feeling of helplessness. Once behind, interest and penalties escalate to the point that a taxpayer can never catch up.
The failure to act is magnified by the fact that interest and penalties double the original tax liability every five years. Someone paying $100 monthly on a $20,000 IRS debt will find that the amount owed actually increases, not decreases, because of the interest and penalties.
American Bar Association offers Woman Lawyers “Blueprint” for Success
From the American Bar Association:
Lawyers, whether law firm practitioners or in-house counsel, are working hard to improve the status of women in the profession. Law students had been an untapped, competitive pressure point to improve the retention and promotion of women in the profession. But, in 2006, that changed when Flex-Time Lawyers LLC co-sponsored a forum with the New York City Bar Committee on Women in the Profession that focused on educating women law students on how to select women-friendly employers and the key ingredients for success. Attendees left the forum with “The Cheat Sheet,” a guide to selecting, creating, and ensuring a women-friendly employer (view “The Cheat Sheet online at www.abanet.org/yld/
When we introduced The Cheat Sheet, we had a number of goals in mind: First, educate women law students on how to avoid the traditional stumbling blocks of their female predecessors before those same patterns repeat themselves. Second, capitalize on the power in numbers as a means to shape how law firms and other legal employers refocus their women-friendly efforts and programs. Third, create a venue for information-sharing by inviting all of the interested parties to the forum and having them in the same room to brainstorm and play a role. Fourth, create an open dialogue and external motivation among legal employers and law schools to compete on these issues to attract, retain, and promote the most talented women students and practitioners. Fifth, initiate a reverberating effect across the country.
How to Do Your Taxes If You've Been Laid Off
Entrepreneur.com provided some useful tips recently to individuals who have recently been laid off, and how to go about doing their taxes. Check out a snippet of the post below, or you can read the full article by clicking here.
Around 2.6 million people lost their jobs in 2008.
Close to 600,000 more jobs disappeared in January 2009.
Horrible.
But there is a little good news. Believe it or not, Uncle Sam offers some tax breaks to folks in this unfortunate position.
So whether you lost your job in 2008 or 2009, listen up. You deserve these perks.
First, your income.
If you were a salaried employee, you’ll have your normal W-2 income and withholdings to report on your 2008 tax return.
If you received any severance pay, you should see that too on your W-2, also subject to federal income tax withholding.
Now let’s talk about your unemployment benefits. Remember, that’s taxable income too. So if you starting receiving benefits in 2008, hopefully you elected to have federal tax withheld. Now unfortunately, the government will only withhold up to 10%, so if you’re in a higher tax bracket, you will be underwithheld. But it’s certainly better than nothing.
If you are still on unemployment in 2009 and haven’t had any federal tax withheld yet -- stop what you’re doing! Go file Form W-4V -- Voluntary Withholding Request right now and request to have 10% withheld for federal taxes.
Again, this may not cover your whole federal tax bill -- and it doesn’t even touch your state tax bill -- but it’s better than nothing.
You should still be conservative and set a little bit of that unemployment check aside each week. Put that money in a little savings account and hold it till tax time so you’re not totally floored with a big tax bill.
Gov. Paterson Waffles on Tax Hikes for Wealthy
From NY Daily News:
Gov. Paterson suggested Tuesday he may veto any plan to hike taxes on the wealthy.
"Everybody is trying to find a way that they can keep spending," Paterson complained. "If people think that they are going to create a false economy here by raising taxes ... I am just not going to support this."
Asked specifically if he would veto an income tax hike, Paterson said, "I think I would if there was the type of tax increase that was just designed to re-create spending."
But, in typical Paterson style, he hedged shortly afterward.
"I didn't say that I would veto an income tax hike for all time," the governor said.
Paterson said he wants the Legislature to enact $11 billion in cuts "and not use the [federal] stimulus money as a substitute for spending cuts."
The federal money should be used to protect against future deficits, he said.
Meanwhile, Sen. Eric Schneiderman (D-Manhattan) introduced a bill that would increase the 6.85% income tax to 8.25% for people making more than $250,000. Those making more than $500,000 would pay 8.97%, and those earning over $1 million would pay 10.3%.
The changes would raise more than $6 billion in additional revenue for the state, Schneiderman said.
Senate Minority Leader Dean Skelos rejected tax hikes, saying Democrats "do not know how to stop taxing."
Roni Deutch appearance tonight, on CNBC’s On the Money
I will be appearing on CNBC’s On the Money with Carmen Wong Ulrich tonight, at 7:00 pm PST. Be sure to check your local listings to be sure you know what time the program airs. However, if you miss it then be sure to check back in a few days. I am hoping to post an embedded video of my appearance later this week.
Unemployed? You Could Qualify For Tax Breaks
From USA Today:
If you're unemployed, your tax bill will probably decline. That's small consolation — sort of like suggesting that going bald isn't so bad because you'll save money on shampoo. Given a choice, most people would rather have a full head of hair and a job.
Still, if you were laid off last year, you could be eligible for a host of tax deductions and credits that could put money in your pocket when you need it most. Tax breaks that could become available when your income is down:
•Deduction for medical expenses. Co-payments, deductibles and other unreimbursed medical expenses are deductible only if they exceed 7.5% of your adjusted gross income.
The income cut-off prevents most people with jobs and employer-provided health insurance from deducting medical expenses. But if your income has declined and you're paying more for health care, the threshold could become easier to cross.
Under a federal law known as COBRA (Consolidated Omnibus Budget Reconciliation Act), you can continue your former employer's coverage for at least 18 months. To maintain coverage, though, you must pay the entire premium, plus an administrative fee. These expenses qualify for the medical expense deduction, says Leslie Laffie, tax analyst for Thomson Reuters.
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Many employees who can't afford COBRA opt instead to buy an individual insurance policy. Premiums for these policies are also deductible, Laffie says. And if you're required to pay a specific amount out-of-pocket before your insurance kicks in, those payments also count toward the medical expense deduction.
Miscellaneous itemized deductions. Expenses that fall into this category include tax preparation costs, safe deposit box fees and — significantly, for unemployed people — job search expenses. To claim this deduction, your combined miscellaneous expenses must exceed 2% of your AGI, so this is another break that becomes more accessible when your income has declined.
Your can deduct job-hunting costs even if your search was unsuccessful, Laffie says. However, you must seek a job in the same business or trade where you were previously employed to deduct those costs.
Plan to Raise Taxes on the Rich Is Gaining Momentum
The New York Times posted a recent article on a plan to raise taxes on wealthy New Yorkers, and its growing popularity. A section of the article can be found below, but the full post can be found here.
A plan to raise income taxes on wealthy New Yorkers is gaining momentum in the State Legislature as lawmakers continue to grapple with the state’s gaping budget deficit.
A group of Senate Democrats plans to introduce a bill on Tuesday that would impose an income tax of 10.3 percent on the highest-earning New Yorkers, a rise of 3.45 percentage points, and increase taxes on all households that earn more than $250,000 a year.
The plan, which supporters estimated could bring in up to $6 billion annually to the depleted state treasury, is one of several options Albany lawmakers are considering as an alternative to the reductions in social services and smaller, more focused tax increases that Gov. David A. Paterson has proposed.
State legislators and the governor are finding themselves under increasing pressure — from the state’s powerful labor unions and liberal groups in particular — to raise taxes on the wealthy.
Although an income tax increase on the state’s highest-earning residents passed the State Assembly last year, its fate in the Senate is less certain. Republicans, who controlled the chamber until January, blocked it last year.
With the Democrats now in control, the bill seems to stand a better chance of passing. But not all 32 Democratic members have signed on, including Malcolm A. Smith, the majority leader, who said on Monday that he was not convinced a tax increase was the right solution for New York’s budget crisis.
“Let’s talk about what the problem is,” Mr. Smith said to reporters as he was leaving a conference of the New York Bankers Association in downtown Albany on Monday afternoon. “The problem is foreclosures. The problem is a $15 billion deficit. The problem is trying to figure out how do we create jobs in this economy. So in that regard, I’m not sure if taxes is the way you do that.”
Congress Loads Up on Tax Cuts
From Kiplinger.com:
To get consumers spending, Congress will OK even more tax cuts. The $275 billion in breaks approved by the House in January as part of its economic stimulus package wasn't enough for senators, so they've added a few new easings to entice folks to buy houses, cars and so forth. When the dust settles, most of those add-ons will make it into the final bill that's supposed to land on President Obama's desk before end of February.
Among the Senate's goodies: a juicier credit for buying a primary home. Under the Senate proposal, the current credit of $7,500 for first-time home buyers would be expanded to 10% of the purchase price, but no more than $15,000, and would not be limited to first-time home buyers. In addition to that, unlike the current credit, the new one would not be phased out for higher-income taxpayers. The new credit also would not have to be repaid to IRS over a 15-year period, as long as the purchaser didn't turn around and sell the house within two years.
If you want to get a souped-up homebuyer's credit, don't jump the gun. The current credit, along with the repayment obligation and phase-out for upper-incomers, continues to apply until the stimulus bill is signed into law. Once it's in effect, taxpayers would have 12 months to buy a home before the credit expires. Another reason to wait: Because of the provision's $35-billion price tag, it's very possible that the break will be scaled down when the two chambers meet to hammer out a final version of the bill. Conferees could add any of several limitations: phasing out the break for high-incomers, limiting it to first-time homebuyers or reducing the maximum credit amount to $10,000.
Are you in the market to buy a car instead? You're in luck, too. The Senate is proposing to boost sagging auto sales by allowing interest paid on loans to buy autos or light trucks to be deductible for 2009, even if the purchaser doesn't itemize deductions. This would apply to vehicles bought after Nov. 12, 2008, and before Jan. 1, 2010, although the House may insist on moving the start date to 2009. The benefit would begin to phase out for married couples with adjusted gross incomes over $250,000 and single filers with AGIs over $125,000. The Senate also proposes to give car buyers an above-the-line deduction for any state sales tax or excise taxes that were paid on the vehicles. The income phase-out is the same for this break.
Monday, February 09, 2009
Valentines Day & Taxes: 7 Tax Tips for Married Couples
It is almost Valentines Day, and love is in full bloom. Unfortunately, so is tax season, which is one of the busiest time of the year for millions of married couples. Between the ever-evolving tax code, dozens of new credits and deduction, it can hard for married couples to know where they stand. In the spirit of Valentines Day, I decided to put together the following list of my favorite tax tips for married couples.
1. The Marriage Penalty
The marriage penalty is a word that is commonly thrown around during tax season, but most people do not have a clue what this penalty is. The so-called penalty is levied on couples that make enough money to put them above the 15% tax bucket. It causes personal exemptions to phase out, reductions in itemized deduction limits, and a phase out of child tax credits for those with an adjusted gross income of $110,000 or more. However, there are several ways couples can still make the best of their marriage financially, and find other ways to save in their taxes.
2. Filing Status
Since you have the choice to file jointly or separately, you should always see which one costs less. However, figuring out which filing status benefits you most can be very difficult and confusing to figure out. If you are seriously considering changing your filing status, then I highly recommend you speak with a tax professional who can evaluate the pros and cons of every option.
3. Newlyweds
The first and foremost tax rule for newlyweds is to make sure that you are married, in the correct year. In order to qualify as “married” for tax purposes, you and your spouse must be married by December 31st of that year. If you changed your last name during marriage, you will also need to get an updated social security card with the new name for tax season.
4. Medical Expenses
If you or your spouse accumulated a lot of medical bills in the tax year, then filing separately may benefit you greatly. Taking the burden on in a joint return could result in less deduction choices, as well as probable overall return loss. But as with all changes to filing status, you want to make sure to thoroughly investigate your options before making a decision.
5. Tax Debt
Unpaid tax debts can be tricky once you become married, because it could expose your spouse to liability for some of your mistakes. Especially if you file a joint return. If your spouse was expecting a significant tax refund, he or she will be in for a rude awakening if the refund is held to pay-off your old debt. Luckily, the IRS has relief for this situation—Injured Spouse. However, if you have a large amount of unpaid taxes that you will not be paying off any time soon, then you should definitely consider filing separately. You should also consider informing your spouse of the underlying debt to avoid any unnecessary surprises.
After getting married you want to make sure to remember to adjust your withholdings at work, so that you do not overpay the government. Overpaying by a little bit is okay, but you want to make sure that your withholdings are as accurate as possible. No need to pay Uncle Sam any more money than necessary.
7. Consider Hiring a Pro
Unless you or your spouse works in the tax industry, I highly recommend hiring a professional to help you with your taxes. Even if you have been married and filing together for years, tax codes are always updating and changing. At least check with a specialist before sending your forms in make sure you have taken advantage of any and all credits and deductions.
What to Do If You Owe the IRS
From CNBC.com:
If you owe the IRS, you need to take action or they will levy your bank account, garnish your wages or seize your property. Here are three tips that will help you if you are in debt to the taxman, courtesy of tax attorney Roni Deutch:
1. Offer in Compromise: If you cannot afford to full pay the IRS but can afford to settle your debt for less money than what’s owed, you should file an offer in compromise with the IRS. The OIC program is wonderful and if you qualify, your tax debt is eliminated for far less money than what you owe. The IRS will evaluate your income, expenses and asset value before settling your tax matter for less money.
2. Installment Agreement: If you do not qualify for an Offer in Compromise then you should enter into an affordable monthly payment plan with the IRS until your liability is paid in full. Many people make monthly payments to the IRS but they will never full pay the debt. By making monthly payments, you are making a good faith effort to contribute something toward your debt and you will not be garnished or have money taken from your bank account.
Tax Court Takes Swipe at Daschle-Geithner-Killefer-Solis
The Tax Professor blog recently posted an entry discussing the tax courts taking an evident swipe at the recent surge in publicized famous tax evaders. You can find a segment of the article below, but the full post can be found here:
The Tax Court yesterday held that the IRS did not abuse its discretion in refusing to accept her proposed offers in compromise, upheld the IRS's tax lien and levy against her, and upheld the IRS's refusal to abate tax penalties. Taylor v. Commissioner, T.C. Memo. 2009-27 (Feb. 5, 2009). In its conclusion, the Tax Court appeared to take a swipe at Tom Daschle, Tim Geithner, Nancy Killefer, and Hilda Solis:
FAQ: Senate Stimulus Bill’s Home Buyer Tax Credit
From the Wall Street Journal:
Readers are posing many different questions about the proposed $15,000 homebuyer tax credit that is in the Senate version of the economic stimulus bill. It’s important to remember that the proposed credit is far from a done deal. The bill still has a couple of big hurdles, including tomorrow’s scheduled vote in the Senate. (Read the Senate version.)
If it passes, it will have to be reconciled with the House version of the stimulus bill, which modifies an existing $7,500 homebuyer credit, repealing a provision that requires buyers to pay it back.
There are some big differences between those two versions. The Senate version is nonrefundable, meaning you can only receive the credit if you owe federal income taxes. The existing credit is refundable, meaning you get a check from the government even if you don’t owe income tax. Moreover, the current credit applies to first-time home buyers, defined as anyone who has not bought a house in three years. The Senate version is open to existing homeowners.
Here are some more Frequently Asked Questions. Please note that the answers may change as the Senate bill changes:
If I bought a home and used the $7,500 homebuyer tax credit, can I retroactively receive $15,000 credit if it becomes law? No.
Are there any income restrictions on the tax credit? The Senate version currently has no income limits. The current $7,500 tax credit phases out on buyers with incomes exceeding $75,000 for individuals and $150,000 for married couples.
When will the new tax credit go into effect? The Senate version would take effect when the bill is signed by the president into law, and it would last for one year.
Can I take the tax credit this year? Yes. The Senate proposal would allow buyers — even those who purchase in 2009 — to claim the credit on their 2008 taxes.
The proposed tax credit is nonrefundable. What does that mean? You can only receive the credit to the extent that you owe federal income taxes. The Senate proposal would give home buyers two years to claim the credit, so buyers could claim a $7,500 credit in 2009 and a $7,500 credit in 2010. A family of four that makes less than $82,000, for example, could have a tax liability of less than $7,500 and they would not receive the full value of the credit.
Are there any repayment requirements on the tax credit? No. The Senate proposal does not require the credit to be paid back. The House proposal eliminates a 15-year repayment provision on the existing $7,500 tax credit.
If I am eligible for the current $7,500 credit, am I also eligible for the $15,000 credit? While the $15,000 credit has fewer restrictions than the existing credit, there is one big difference: because the credit is nonrefundable, if you have a low federal income tax liability, you could end up receiving more money with the current credit than the larger, proposed credit.
Are there any increased down payment requirements on the proposed tax credit? No. A separate measure has been introduced in the House that would expand the tax credit to $15,000 but would require a 5% down payment on mortgages. The Federal Housing Administration currently requires a minimum 3.5% down payment.
Can I use the tax credit to buy a second home? No.
Labor Secretary Nominee Has Tax Problems Too
Web CPA recently discussed another of Obama’s cabinet nominee’s who is having tax problems, Hilda Solis. A snippet of the post can be read below, but the full text can be read here.
In the latest sign of tax trouble in the Obama cabinet, Labor Secretary-designate Hilda Solis’ husband had tax liens filed against him.
Confirmation hearings for Rep. Solis, D-Calif., were delayed after news of the tax problems surfaced. The White House admitted to the latest tax snafu after USA Today discovered 15 tax liens dating back to 1993 from the State of California and Los Angeles County totaling $7,630, some of which have since been paid. The tax liens had been filed against Solis’s husband, Sam H. Sayyad, and his business, Sam’s Foreign and Domestic Auto Center. Sayyad paid $6,400 this week to settle the outstanding tax liens, but still plans to appeal them.
Solis is the fourth nominee to the Obama administration to face tax questions in recent weeks. Earlier this week, former Senate Majority Leader Tom Daschle withdrew his nomination for secretary of Health and Human Services after he was forced to pay $140,000 in taxes and interest, mainly for the use of a car and driver provided by a private equity firm between 2005 and 2007.
Treasury Secretary Timothy Geithner also needed to pay over $42,000 in taxes, interest and penalties for self-employment taxes that he owed from work he did between 2001 and 2004 for the International Monetary Fund.
Friday, February 06, 2009
The Pros and Cons of President Obama’s New Stimulus Proposal
Although President Obama’s new stimulus bill has been on the table for a while now, it “new” bill nonetheless. Constant revisions and bi-partisan oppositions are making the bill an ever-changing and ever-controversial subject on Capitol Hill. Even politicians are having trouble keeping up on the status of the bill, and we as busy Americans have to rely on the media to provide information on the bill. To help some of my readers who are having trouble making a choice on how they feel about the bill, I have put together the following list of pros and cons.
Pro: Job Creation
The main goal of Obama’s stimulus proposal is to create jobs, however not everyone aggress that the package will do so. The Obama team compares the plan to Franklin D. Roosevelt’s “New Deal,” in that it will directly create millions of jobs by funding constructions projects such as repairing bridges, roads, water systems, levees, schools, and electric grids, etc. The idea is that by giving construction workers back the jobs they had lost due to canceled projects and stringent state budgets that they will leave their current positions creating other job openings for Americans to fill. However, decades later people are still debating whether FDR’s new deal was effective or not.
Con: Use of Scare Tactics
Unfortunately, in order to get the legislation passed as quickly as possible the Democratic leadership has resorted to using a wide variety of scare tactics. I’m sure everyone has heard about Nancy Pelosi’s gaffe the other day where she said that 500 million Americans lose their jobs every month and that this legislation needed to be passed as soon as possible. Keep in mind that there are only 300 million Americans currently living in the country.
The point is that with the amount of money being put into the stimulus proposal it should not be rushed using scare tactics. Look what happened with the federal bailout of the banking industries. Congress rushed legislation and to this day there are still billions of dollars in funds that are unaccounted for. Additionally, news just came out the other day showing that the federal government wasted billions of dollars by purchasing the assets at highly inflated prices.
Pro: Obama Open to Compromise
While there are plenty of disagreements on certain aspects of the proposal, on January 27th, Obama stated that he was "open to compromise". While this may not seem like a pro to some, it is definitely a good thing that the President publicly announced that he was open to compromise. Unfortunately, he was quite hesitant to actually make changes to the legislation.
Con: Lack of Support
Although Obama was able to get his proposal to pass the House of Representatives, without a single Republican vote, many are worried about the fate of the bill in the Senate, where the Democrats do not have a filibuster proof majority. Additionally, according to a recent Rasmussen Reports survey, about half of Americans think that the package will make the economy worse instead of better.
Pro: Mortgage Relief
One of the largest problems Republican leaders had with Obama’s original stimulus package was that it did not do enough to provide relief to the house and mortgage industry, which was a leading cause of the recession. Fortunately, Obama’s team listened to the suggestions, and have added multiple different measures to help struggling homeowners including a $15,000 credit for anyone who purchases a house in 2009.
Con: Strong Conservative Opposition
The Republican leadership has been fighting hard against the bill since before it was officially drafted. They argue that spending upwards of a trillion dollars is a dangerous move in our country’s current economic state, and have been working to reduce the total cost of the legislation.
Pro: Energy Efficiency
As part of Obama’s proposal, $54 billion is being dedicated to clean power and energy efficiency. Although it may seem like wasteful spending to some, this is the first step in many steps Obama promised during his campaign to reduce our reliance on oil. The plan will include $32 billion for renewable energy, smart grid technology, and transmission lines, $16 billion to make essential eco-friendly retrofits and repair public housing, and $6 billion to efficiently weatherize modest-income homes. Weather or not you agree with Obama’s plan to reduce our dependence on oil, it is definitely good that he is following up on a campaign promise.
Con: The Looming Trillion
The goal for the stimulus package is to stay "under the trillion dollar mark". However, as the package price tag creeps up in to the $900 billion area, financial experts are beginning to worry. New changes and discrepancies arise every day, as new sections are being reviewed every hour. However, it seems like although changes are being made, the total cost is increasing, not decreasing.
Pro: Computer Centers at Community Colleges
Although there has been some controversy about the $200 million for public computer centers at community colleges in the bill, there is good reason to support it. Providing more computer access to community colleges will provide students with the unlimited resources that the Internet has to offer. Obama has said that we need create more scholars and promote growing minds if we want to get this country back on track.
Con: Buy America
Unfortunately, when Obama launched his campaign to get the legislation passed, he angered international groups including the European Union with his “Buy America” package. The idea behind it would be to encourage people to purchase and use American made products, however this is bad news for international trade and intensified international fears of a trade war. Fortunately, Obama was quick to remove this section from the legislation once it garnered international criticism.
Thursday, February 05, 2009
Save Big Bucks on your Taxes
For those of you who do not already know, I am releasing my first book on the 15th of the month, The Tax Lady’s Guide to Beating the IRS and Saving Big Bucks on your Taxes. To coincide with the release, we have launched a new website TaxLadyBook.com, where you can find tons of information about the book and upcoming media appearances. You can also download a free digital copy of the first chapter. So be sure to check out the link below, and check out my book when it hits stores later this month!
On The Money, with Carmen Wong Uhlrich
Yesterday, to my surprise, I was added as a last minute guest to CNBC’s On the Money, with Carmen Wong Uhlrich. Via satellite, I answered specific viewer’s tax questions. See the clip by clicking here: http://www.cnbc.com/id/15840232?video=1022085138 .
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