The Social Security system has been on the minds of many people these days. It has been speculated, for many years now, that Social Security won’t last. With an estimated 77 million Baby Boomers on their way to retirement, something simply has to be done to ensure that those that have contributed to social security receive their share in full.
Social Security is a mandated supplemental retirement system in the Unites States that was established in 1934 as a part of Roosevelt’s New Deal. The intent of the program is to ensure a threshold sustenance level to senior citizens who previously faired way below poverty during the Great Depression. (http://www.wisegeek.com/what-is-social-security.htm).
See six tips from WalletPop.com that can help get you more from Social Security when you retire.
Wednesday, May 19, 2010
From: “Federal budget: $59 billion here, $300 billion there ...”
Congress is currently mulling over a large collection of bills that has a lot of people concerned over how much these measures are actually going to cost. A major topic of concern is extending the 2001 and 2003 tax cuts, which could cost anywhere from several hundred billion dollars to more than $2 trillion.
According to an article on CNNMoney.com, “Some of the measures have already been factored into 10-year deficit projections,” and that yes, many measures are expected to be paid for with revenue-generating provisions, but the total cost of everything under consideration would not be fully offset. Without offsets, we would increase the deficit. “That's in large part because several measures are exempt from the new "pay-as-you-go" law.”
Both parties have favored making the cuts permanent, but that would dramatically worsen the nation’s fiscal problems. Some believe extending them only for a year or two may be the smartest move.
Here is a breakdown of some of the bills that might make the cut and what they cost:
Extension of tax breaks: Dozens of tax breaks for businesses and individuals have lapsed. The cost of extending them for this year is $31 billion. Such "tax extenders" include the research and development credit for businesses and the choice for individuals to deduct either their state and local income tax or their state and local sales tax.
Estate tax: Defying all expectations, Congress let the estate tax lapse at the end of 2009. But it's coming back in 2011. The question is: at what level. Unless Congress acts, starting next year no more than $1 million of a person's estate would be exempt from the estate tax -- which is well below the $3.5 million exemption in place last year. And the top estate tax rate would revert to 55%, up from 45% in effect last year. President Obama has proposed permanently extending the estate tax at 2009 levels, which the Tax Policy Center estimates would cost $234 billion over 10 years. In the Senate, however, a proposal to exempt $5 million and set the top rate at 35% has garnered some bipartisan support. Depending on how various parameters are set, the proposal could cost north of $300 billion.
Safety-net provisions for the unemployed: Some lawmakers are pushing to retain a program that extends the number of weeks an unemployed person may collect federal unemployment benefits. When combined with state benefits, under the program, that means a person can qualify for up to 99 weeks of benefits. But the program expires in June. The measure under consideration would extend it to the end of the year.
Read the full article here.
According to an article on CNNMoney.com, “Some of the measures have already been factored into 10-year deficit projections,” and that yes, many measures are expected to be paid for with revenue-generating provisions, but the total cost of everything under consideration would not be fully offset. Without offsets, we would increase the deficit. “That's in large part because several measures are exempt from the new "pay-as-you-go" law.”
Both parties have favored making the cuts permanent, but that would dramatically worsen the nation’s fiscal problems. Some believe extending them only for a year or two may be the smartest move.
Here is a breakdown of some of the bills that might make the cut and what they cost:
Extension of tax breaks: Dozens of tax breaks for businesses and individuals have lapsed. The cost of extending them for this year is $31 billion. Such "tax extenders" include the research and development credit for businesses and the choice for individuals to deduct either their state and local income tax or their state and local sales tax.
Estate tax: Defying all expectations, Congress let the estate tax lapse at the end of 2009. But it's coming back in 2011. The question is: at what level. Unless Congress acts, starting next year no more than $1 million of a person's estate would be exempt from the estate tax -- which is well below the $3.5 million exemption in place last year. And the top estate tax rate would revert to 55%, up from 45% in effect last year. President Obama has proposed permanently extending the estate tax at 2009 levels, which the Tax Policy Center estimates would cost $234 billion over 10 years. In the Senate, however, a proposal to exempt $5 million and set the top rate at 35% has garnered some bipartisan support. Depending on how various parameters are set, the proposal could cost north of $300 billion.
Safety-net provisions for the unemployed: Some lawmakers are pushing to retain a program that extends the number of weeks an unemployed person may collect federal unemployment benefits. When combined with state benefits, under the program, that means a person can qualify for up to 99 weeks of benefits. But the program expires in June. The measure under consideration would extend it to the end of the year.
Read the full article here.
House Holds Hearing Today on Tax and Internet Gambling
As I mentioned yesterday, the concept of taxing internet gambling, and online transactions has been getting attention in Congress. It should come as no surprise that the House Ways & Means Committee announced a hearing on “Tax Proposals Related to Legislation to Legalize Internet Gambling.”
According to the announcement (via TaxProf), the Committee will discuss the current tax laws and reporting requirements applicable to wagering in the United States. The Committee will consider tax and other proposals in the Committee’s jurisdiction related to legislation pending in the Congress to license and regulate Internet gambling activities.
Additionally, the Joint Committee on Taxation has released Overview of Federal Tax Laws and Reporting Requirements Relating to Gambling in the United States:
The United States gambling industry generated more than $92 billion in revenue in 2007. This includes commercial casinos operating in 12 States, casinos operating on Indian tribal lands in 28 States, State lotteries operating in 42 States, and racetrack casinos operating in 12 States.
Part I provides a general overview of legal gambling operations in the United States, State taxation of gambling, and Internet gambling. The legal gambling market includes revenues from commercial casinos, Indian tribal casinos, State lotteries, pari-mutuel wagering, and other types of gambling which are discussed in this part.
Extending the Sin Tax to the Tanning Bed
From Miller-McCune.com:
The case against indoor tanning is a strong one: according to the American Academy of Dermatology, indoor tanning before the age of 35 is linked to a 75 percent increase in the risk of developing melanoma, the deadliest form of skin cancer. But the cancer risk hasn’t been bad for business — on an average day, more than 1 million people visit indoor tanning salons, and research conducted in 2008 found an average of 42 tanning salons per city in the United States.
Tanning aside, there are more than 1 million new cases of skin cancer diagnosed every year, and an estimated $300 million is spent annually treating melanoma.
If indoor tanning poses such a substantial health risk, why do people — especially teens — keep doing it?
A recently published report by Catherine E. Mosher of Memorial Sloan-Kettering Cancer Center in New York and Sharon Danoff-Burg of the University of Albany, State University of New York, offers one explanation for the rampant use of tanning beds by people who should know better: For some, indoor tanning could be addictive.
The researchers gave 421 study participants two questionnaires traditionally used to test for alcohol and substance abuse that had been modified to measure tanning addiction. They also assessed participants’ anxiety, depression and substance use.
Statement of IRS Commissioner Doug Shulman on the Filing Deadline for Small Charities
According to the IRS’s newest press release, many small tax-exempt organizations have not filed the required information tax exempt return on time. As such, Commissioner Doug Shulman has put out the following statement regarding the issue.
The IRS has conducted an unprecedented outreach effort in the tax-exempt sector on the 2006 law’s new filing requirements, but many of these smaller organizations are just now learning of the May 17 deadline. I want to reassure these small organizations that the IRS will do what it can to help them avoid losing their tax-exempt status.
The IRS will be providing additional guidance in the near future on how it will help these organizations maintain their important tax-exempt status — even if they missed the May 17 deadline. The guidance will offer relief to these small organizations and provide them with the opportunity to keep their critical tax-exempt status intact.
So I urge these organizations to go ahead and file — even though the May 17 deadline has passed.
Senate Deal off on Estate Tax
We are currently without an estate tax and as 2010 continues, Congress is making little progress on fixing the tax law that created this situation. 2011 is just around the corner and if Congress does not pass new legislation soon, the estate tax will resurface at a much higher tax rate. Yesterday, Senate leaders stated that the estate tax proposal they had been considering fell apart. I guess it is back to the drawing board for Congress with regard to the estate tax.
As blogger Vicki Needham explains, the Senate Minority Whip Jon Kyl (R-Ariz.) said the accord, which was all but forged a week ago, began to dissolve Monday night and broke down Tuesday.
After talks with Senate Finance Chairman Max Baucus (D-Mont.) and Senate Minority Leader Mitch McConnell (R-Ky.), scrapped a plan to move forward with the tax that expired at the end of 2009.
The reasoning, Kyl said, is that Senate Democrats aren't allowing any legislation to reach the floor that doesn't have support from the majority of its members.
"We no longer have an agreement because the Democratic side has decided that unless a matter has a guaranteed majority of Democratic votes going in, they're not going to allow it on the floor, at least not voluntarily," he said. "So we have to find a way to get a reasonable permanent estate tax reform to the floor where members can vote on it."
Tuesday, May 18, 2010
Top U.S. official pledges to reform ties to Big Oil
Almost one month from the day the U.S. oil rig, Deepwater Horizon, exploded and sank in the Gulf of Mexico, Secretary of the Interior Ken Salazar says he’s ready to address the problem head on, finding who is to blame for the massive oil spill and reform the way the government does business with the oil industry. Salazar seems to feel that the oil company BP should be held accountable, but others argue it is the Department of Interior agency MMS who might have “dramatically underestimated the potential risks” of drilling in the Gulf of Mexico. In fact, in an article on CNNMoney.com, Senator Ron Wyden of Oregon stated that MMS (Minerals Management Service) who is responsible for managing natural resources in the waters of the Gulf of Mexico have been in denial about safety problems for years and are the ones who may be responsible.
The horrible truth is that this massive oil explosion on April 20, 2010 killed 11 workers and continues to leak oil undersea at a rate of 210,000 gallons per day. No matter who is at fault, Secretary of the Interior Ken Salazar is still proposing legislation that would give the Department of Interior an additional $29 million to what he says, “inspect offshore oil and gas platforms, create new safety regulations, and to study the spill’s impact”. The secretary has also stated that his department, along with the Department of Homeland Security, plan to offer “robust” recommendations in a 30-day safety review as mandated by the White House.
Until then, the good news is that the government has ceased issuing any permits for new drilling projects in the Gulf until a full explanation for what caused the spill in the first place can be brought to light.
Read the full article here.
The horrible truth is that this massive oil explosion on April 20, 2010 killed 11 workers and continues to leak oil undersea at a rate of 210,000 gallons per day. No matter who is at fault, Secretary of the Interior Ken Salazar is still proposing legislation that would give the Department of Interior an additional $29 million to what he says, “inspect offshore oil and gas platforms, create new safety regulations, and to study the spill’s impact”. The secretary has also stated that his department, along with the Department of Homeland Security, plan to offer “robust” recommendations in a 30-day safety review as mandated by the White House.
Until then, the good news is that the government has ceased issuing any permits for new drilling projects in the Gulf until a full explanation for what caused the spill in the first place can be brought to light.
Read the full article here.
Form to Claim Payroll Tax Exemption for Hiring New Workers Now Available
Unemployment rates were 9.9 percent nationally last month according to the Bureau of Labor Statistics. In the fight against unemployment in our country, President Obama signed the payroll tax exemption and new hire retention credit created by the Hiring Incentives to Restore Employment (HIRE) Act on March 18. The Act states that employers who hire unemployed workers this year (After February 3, 2010 and before Jan 1, 2011) may qualify for a 6.2 percent payroll tax incentive which will exempt them from the employer’s share of Social Security tax on wages.
The Internal Revenue Service announced today that they have issued the newly revised payroll tax form that most employers can use to claim the exemption of newly hired workers during 2010.
Additionally, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, employers may claim a “new hire credit” of up to $1,000 per worker.
To claim the Payroll Tax Exemption, employers would need to file IRS Form 941, Employers Quarterly Federal Tax Return. This means the HIRE act is not allowing employers to claim the payroll tax exemption for wages paid in the first quarter, only for wages paid in the second quarter. You can find the full instructions for claiming the exemption as well as claiming wages paid from March 19 - March 31 of this year on the IRS website.
The Internal Revenue Service announced today that they have issued the newly revised payroll tax form that most employers can use to claim the exemption of newly hired workers during 2010.
Additionally, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, employers may claim a “new hire credit” of up to $1,000 per worker.
To claim the Payroll Tax Exemption, employers would need to file IRS Form 941, Employers Quarterly Federal Tax Return. This means the HIRE act is not allowing employers to claim the payroll tax exemption for wages paid in the first quarter, only for wages paid in the second quarter. You can find the full instructions for claiming the exemption as well as claiming wages paid from March 19 - March 31 of this year on the IRS website.
Small Firms May Claim Health Tax Credit For Dental, Vision
According to the Treasury Department, small businesses in the U.S will be able to take advantage of a new federal tax credit for dental and vision health benefits. To qualify the business must have less than 25 employees, have average wages less than $50,000 and must pay for at least 50% of employees’ premiums.
According to the Wall Street Journal, the credit will offset employer health-care premiums paid on and after Jan. 1, 2010, under health-care legislation signed in March by President Barack Obama.
Firms may claim state health tax credits and other subsidies without having their federal health-care tax credit reduced, said Treasury Assistant Secretary for Tax Policy Michael Mundaca in a conference call with reporters.
Some small-business advocates criticized the tax credit Monday as too limited in scope. Bill Rys, tax counsel for the National Federation of Independent Business, said more than two-thirds of small firms will be excluded because they are too large or don't currently offer health insurance.
Eligibility for the credit is limited to firms with fewer than 25 full-time workers, or the equivalent, and average wages of less than $50,000. To qualify, firms must pay at least 50% of worker health-insurance premiums.
Online Gambling Tax May Be Jackpot for Congress, Lawmaker Says
A tax on online transactions has already been instituted in several state and local governments, but Congressman Jim McDermott is suggesting the Federal government begin taxing one specific type of online transaction – gambling over the Internet. McDermott said making this bold move could raise as much as $42 billion over a 10 year period. Check out a portion of the BusinessWeek.com story below.
“It’s a human activity that people are going to do and it’s a good place to pick up some dough,” said McDermott, a Washington Democrat, in an interview. “I’ve gotten a thousand ideas pumped at me about what we should do with the money.”
The House Ways and Means Committee tomorrow will consider his proposal, which depends on passage of a separate bill to legalize some Internet gambling and roll back a law designed to block wagering beginning June 1. That bill would let U.S. residents gamble online with companies licensed by the Treasury Department.
Short-Run Tax Hikes Being Used to Fill Gaps
From USAToday.com:
Many states and cities coping with hard times are asking residents to open their wallets for the latest fashion in taxation — the temporary tax.
Governments are raising taxes for a specific period of time and promising the hikes will go away when good times return.
Some big temporary taxes:
- Arizona voters decide today whether to approve a three-year sales-tax hike. Republican Gov. Jan Brewer pushed to raise the sales tax from 5.6% to 6.6%, dedicating two-thirds of the new money for schools.
- Kansas hikes its sales tax July 1 from 5.3% to 6.3% for three years. The tax is designed to prevent cuts in education and social programs.
- Mobile, Ala., boosts its sales tax by 1 cent for 16 months starting June 1. The combined state and local rate will be 10%. Goal: avoid laying off police and firefighters.
- A half-dozen other states are eyeing temporary taxes. So are many cities and counties, including King County, Wash., which includes Seattle.
Washington Pushes for Free Credit Scores
As part of the huge Wall Street reform bill, yesterday the Senate passed an amendment that would give Americans having trouble securing credit or a job free credit scores. These scores are used as a rating system for all kinds of important financial decisions such as qualifying for a home mortgage or a small business loan. As this CNN Money article explains, the measure would expand an existing law that gave consumers the right to one free credit report every year from each of the top three consumer reporting agencies -- Equifax, Experian, and TransUnion.
The credit score, however, has not been made available for free. It is a numerical representation of the information in a consumer's credit report, which covers a consumer's entire credit history -- all debts, payment habits, and jobs held. The credit score is widely used as a shortcut by lenders, so monitoring it is crucial.
But options for getting a credit score have been limited to many "for-fee" sites. Some have lured consumers in by offering a "free" score in return for signing up to a credit monitoring service that could cost $14.95 a month or more, if consumers don't opt out before the end of the trial period.
The amendment "dramatically increases the number of people getting this critical piece of information," said Jennifer Talhelm, a spokeswoman for Sen. Mark Udall, D-Colo., who is sponsoring the effort.
Monday, May 17, 2010
Top College Savings Plan
With the cost of going to college increasing more and more each year, parents and grandparents need to start saving now. Many students and families are faced with the tough decision of how to pay for higher education—it is a tragedy when families have to make the decision not to attend college due to the inability to afford tuition cost. I have always been an advocate for making it possible for young people to attend college—I have personally sent five young adults to college! The best way to ensure your loved one gets a college education is to save for the expense. A 529 savings plan is recommended as a great investment for your future college plans.
These savings plans do not get taxed federally and many states also give a state income-tax credit for having one. Check whether your state offers a tax break and take advantage of it. To escape federal taxes on the distribution, you must use the 529 savings to pay for qualified educational expenses such as tuition, books, fees, room and board. Don’t worry, the 529 accounts are flexible. If your child doesn’t want to go to college, you can transfer funds to another family member without losing the tax benefits. If you do need to withdraw the money and use it elsewhere please know you will pay taxes on the distribution and a 10% penalty on the earnings. Buy a 529 savings account directly from your state and you will avoid paying commissions or adviser fees. According to Klipinger.com more than 60% of investors put their 529 money on autopilot by choosing age based portfolios.
These savings plans do not get taxed federally and many states also give a state income-tax credit for having one. Check whether your state offers a tax break and take advantage of it. To escape federal taxes on the distribution, you must use the 529 savings to pay for qualified educational expenses such as tuition, books, fees, room and board. Don’t worry, the 529 accounts are flexible. If your child doesn’t want to go to college, you can transfer funds to another family member without losing the tax benefits. If you do need to withdraw the money and use it elsewhere please know you will pay taxes on the distribution and a 10% penalty on the earnings. Buy a 529 savings account directly from your state and you will avoid paying commissions or adviser fees. According to Klipinger.com more than 60% of investors put their 529 money on autopilot by choosing age based portfolios.
IRS Offers Details on New Small Business Health Care Tax Credit
Back in April 2010, the IRS stated they sent post cards to millions of small businesses to alert them to the new Health Care Tax Credit. Even if you didn’t receive a post card, your small business may still be eligible. Also, if a small business is receiving state health care tax credits they may also qualify for full federal tax credit.
Paying for your employers to have health insurance, when you are a small business, can be a financial strain. The Health Care Tax Credit, part of the Affordable Care Act was designed to encourage small employers to offer health care insurance for the first time or to maintain coverage they already have. This new tax credit aims to ease the financial burden for small businesses while helping to get their employees properly insured or help them stay insured.
To provide new guidelines to help small businesses determine whether they are eligible for the new health care tax credit, the IRS issued a new form, Notice 2010-44. There is also a 3 step form that might be easier to use, to determine your small business’ eligibility. You can find that form here.
The credit is available to small businesses that pay at least half the cost of single coverage for their employees in 2010. For tax years 2010-2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax exempt organizations.
If you are a small business employing 10 or fewer full-time employees you will get the maximum credit. Keep the following information in mind:
Eligibility Rules
- Providing health care coverage. A qualifying employer must cover at least 50 percent of the cost of health care coverage for some of its workers based on the single rate.
- Firm size. A qualifying employer must have less than the equivalent of 25 full-time workers (for example, an employer with fewer than 50 half-time workers may be eligible).
- Average annual wage. A qualifying employer must pay average annual wages below $50,000.
- Both taxable (for profit) and tax-exempt firms qualify.
- Maximum Amount. The credit is worth up to 35 percent of a small business' premium costs in 2010. On Jan. 1, 2014, this rate increases to 50 percent (35 percent for tax-exempt employers).
- Phase-out. The credit phases out gradually for firms with average wages between $25,000 and $50,000 and for firms with the equivalent of between 10 and 25 full-time workers.
Questions for the Tax Lady: May 17th, 2010
Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!
Question #1: I had a Toyota that I turned in before the end of its lease back in 1997. It took Toyota until 2008 to report the mileage to the IRS, and Toyota didn't send me anything to dispute them. The IRS now claims I own them over $800 and they ate my entire refund this year and are now saying I still owe them $300. What should I do?
I am assuming that you are talking about business miles that you deducted on your return, which you include on your tax return the year the miles were driven. I do not quite understand why the IRS would withhold your refund for a mileage issue from 1997, and highly recommend contacting them directly at 1-800-829-1040 to find out why your refund was withheld. If you need any further assistance then I would recommend talk to professional accountant, CPA or tax attorney in order to get to the bottom of this issue.
Question #2: How do I contact the Taxpayer Advocate Service?
Greece Considering Legal Action Against U.S. Banks for Crisis
According to Bloomberg.com, the Greek government might consider taking legal action against U.S. investment banks for contributing to their debt crisis. Prime Minister George Papandreou spoke out about the issue over the weekend.
“I wouldn’t rule out that this may be a recourse,” Papandreou said, in response to questions about the role of U.S. banks in the crisis, in an interview on CNN’s “Fareed Zakaria GPS.” The program, scheduled for broadcast today, was taped on May 13. Neither Papandreou nor Zakaria mentioned any banks by name.
U.S. stocks fell and the euro slumped on concern that Europe wouldn’t be able to contain the debt crisis stemming from Greece. The Standard & Poor’s 500 Index declined 1.9 percent May 14, while the euro fell below $1.24 for the first time since November 2008.
Papandreou said the decision on whether to go after U.S. banks will be made after a Greek parliamentary investigation into the cause of the crisis.
Kagan Filed Brief on Behalf of IRS in Textron Case
Supreme Court nominee Elena Kagan has been in the headlines since President Obama announced her nomination. Since she does not have a judicial record, reporters and bloggers are desperate to learn more about her tax and financial views. According to WebCPA, while servicing as Solicitor General Kagan filed a brief on behalf of the IRS.
“When the case was originally considered last winter, the First Circuit held the documents should not be produced because they were protected by the work product doctrine, which is in both case law and the Federal Rules of Civil Procedure. The doctrine provides that documents prepared in anticipation of litigation do not need to be produced to an adversary,” she said. “The policy is that the adversary should not have the opportunity to build a case by ‘taking a peek’ at the other side’s thoughts and strategies.”
The government wants to look at the work papers, naturally, because they document what the company itself considers its questionable tax positions.
In the government’s brief filed in April urging the Supreme Court not to hear the case, Solicitor General (and now Supreme Court nominee) Elena Kagan stated, “By characterizing essentially any interaction between a taxpayer and the IRS as ‘litigation,’ petitioner [Textron Inc.] and its amici [friends of the court] fail to appreciate the dynamics of our self-assessing tax system. In an administrative tax proceeding, the ‘parties are not adversaries, but rather two elements of the tax regulatory regime, with one party reporting its self-assessed tax liability and the other party attempting to verify that self-assessment.’”
Fed Up, Greece Lists Tax Dodgers
From NY Times.com:
Trying to crack down on rampant tax evasion, the Greek authorities have made good on promises to name — and shame — some of the worst offenders.
The Finance Ministry made public a list of 57 Athens doctors who officials believe are guilty of a variety of tax offenses, including failing to give patients receipts for their fees or even recording the visits.
Twelve of the doctors had reported a combined income of slightly more than $15 million from 2001 to 2008, yet they had deposited more than twice that much — about $39 million — in their bank accounts, the ministry said Thursday.
Experts estimate that the Greek government may be losing as much as $30 billion a year to tax dodgers, a figure that would have gone a long way to solving the nation’s debt problem.
Saturday, May 15, 2010
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.
U.S. Firms Dodge Billions in Taxes by Moving Profits Overseas
As the U.S economy tries to recover, some American businesses are legally dodging billions in taxes by taking advantage of overseas profit transfers. ABC News posted a new article on this questionable tax loophole that is saving U.S. businesses billions of dollars. You can find a snippet of their article below, or read the full post here.
As America struggles with record deficits, tax dodgers apparently are taking billions of dollars out of the country. A new report from the business giant Bloomberg News finds hundreds of companies skirting $60 billion in taxes, and the practice is completely legal.
Thirty million prescriptions were filed last year for the anti-depressant Lexapro, made by the U.S. pharmaceutical company Forest Labs. According to a story in Friday's Bloomberg Businessweek, most of the profits from that drug were transferred overseas, thus avoiding having to pay taxes in the United States.
The news is shocking to Lexapro customers like Tyler Hurst, who buys the drug at a Phoenix pharmacy.
Subscribe to:
Posts (Atom)
