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Elizabeth Warren proposes “wealth tax”
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[b]IRS Records Reveal How Wealthiest Avoid Income Tax[/b][/h1]
[link=https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax]ProPublica[/link] has obtained a vast trove of Internal Revenue Service data on the tax returns of thousands of the nations wealthiest people, covering more than 15 years. The data provides an unprecedented look inside the financial lives of Americas titans, including Warren Buffett, Bill Gates, Rupert Murdoch and Mark Zuckerberg. It shows not just their income and taxes, but also their investments, stock trades, gambling winnings and even the results of audits.
Taken together, it demolishes the cornerstone myth of the American tax system: that everyone pays their fair share and the richest Americans pay the most. The IRS records show that the wealthiest can perfectly legally pay income taxes that are only a tiny fraction of the hundreds of millions, if not billions, their fortunes grow each year. -
I didn’t think Warren Buffett was even hiding this. He’s more or less said the tax system isn’t fair.
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When the government proves it can spend tax money wisely then they can have more of it.
They have enough money already and choose to waste it. What do you think they will do when they get more of it? Same waste and nonsense and will want more and more – See IL, NY, CA, etc. for the playbook.-
I was hoping they’d do things like improve infrastructure, fix things, improve cyber security. Also even though they collect money there’s no reason it shouldn’t be more. Amazon pay no tax.
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[b]IRS Investigating Release of Tax Information[/b][/h1]
Federal authorities are investigating the release of wealthy Americans tax information, Internal Revenue Service Commissioner Charles Rettig said Tuesday, the [link=https://www.wsj.com/articles/irs-is-investigating-release-of-tax-information-of-wealthy-americans-11623179470]Wall Street Journal[/link] reports.
ProPublica, a nonprofit news organization, [link=https://www.propublica.org/article/the-secret-irs-files-trove-of-never-before-seen-records-reveal-how-the-wealthiest-avoid-income-tax]published details[/link] about the reported income and tax payments of some of the richest Americans, including Amazon.com Inc. Chief Executive Officer Jeff Bezos and Berkshire Hathaway Inc. CEO Warren Buffett.
[link=https://www.theinformation.com/articles/bezos-taxes-in-the-spotlight]The Information[/link]: Bezos taxes in the spotlight.
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[link=https://www.axios.com/global-minimum-tax-rate-oecd-yellen-e425a690-8299-4c18-bf8e-933b7fd6c068.html?utm_source=twitter&utm_medium=social&utm_campaign=editorial&utm_content=economy-business-corporatetaxrate]https://www.axios.com/glo…iness-corporatetaxrate[/link]
[h1]130 countries agree to global minimum corporate tax rate[/h1]
130 countries around the world including, crucially, China and India have agreed on a 15% minimum corporate tax rate, in a move designed to prevent what Treasury Secretary Janet Yellen [link=https://twitter.com/SecYellen/status/1410624464799375360]called[/link] a “self-defeating international tax competition.”
Corporations will have to pay tax of at least 15% no matter where they operate in the world. The [link=https://www.oecd.org/tax/beps/statement-on-a-two-pillar-solution-to-address-the-tax-challenges-arising-from-the-digitalisation-of-the-economy-july-2021.pdf]OECD framework[/link], agreed to Thursday but many years in the making, includes penalties for companies and jurisdictions attempting to bypass the rule.
Companies have become expert at concentrating their profits in jurisdictions with low or zero corporate tax rates. (Switzerland, Ireland and the Netherlands are all popular.) That tax dodge which is entirely legal will become much less attractive once this agreement comes into force.
The minimum tax will apply to large multinational companies. Any profitable firm with revenues over 20 billion ($24 billion) will be included from the start, with that number expected to decline to 10 billion ($24 billion) in time.[/QUOTE]
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[b]Ireland Bucks Global Tax Deal[/b][/h1]
Minister for Finance Paschal Donohoe has said that Ireland cannot be part of an international agreement on a minimum global tax rate of 15 percent, the [link=https://www.irishtimes.com/business/economy/ireland-cannot-be-part-of-current-global-tax-reform-proposals-donohoe-says-1.4621213]Irish Times[/link]: reports.
Earlier this month, the [link=https://www.irishtimes.com/topics/topics-7.1213540?article=true&tag_organisation=G7]G7[/link] and OECD countries reached agreement but not unanimous consensus on the key aspects of a global tax deal which seeks to introduce a minimum rate of 15 per cent. Ireland is among a handful of countries, including Hungary, who are opposed to a 15 percent rate.
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[b]Top 1% Are Evading $163 Billion Annually In Taxes[/b][/h1]
The wealthiest 1 percent of Americans are the nations most egregious tax evaders, failing to pay as much as $163 billion in owed taxes per year, the [link=https://www.nytimes.com/2021/09/08/business/irs-tax-avoidance.html]New York Times[/link] reports.
The analysis comes as the Biden administration is pushing lawmakers to embrace its ambitious proposal to beef up the Internal Revenue Service to narrow the tax gap, which it estimates amounts to $7 trillion in unpaid taxes over a decade.-
Yes, please start with charging income tax on people that make their money off investing other people’s money and charging exorbitant fees for the privilege.
Of course they could make sure they pay the taxes they actually owe under the current code as well. -
Quote from dergon
[b]Top 1% Are Evading $163 Billion Annually In Taxes[/b]
The wealthiest 1 percent of Americans are the nations most egregious tax evaders, failing to pay as much as $163 billion in owed taxes per year, the [link=https://www.nytimes.com/2021/09/08/business/irs-tax-avoidance.html]New York Times[/link] reports.The analysis comes as the Biden administration is pushing lawmakers to embrace its ambitious proposal to beef up the Internal Revenue Service to narrow the tax gap, which it estimates amounts to $7 trillion in unpaid taxes over a decade.
Do they actually owe the money – as in they would go to jail for tax evasion or are they just using legal loopholes to avoid paying what the NY Times thinks they should be paying?
Big difference, but as I brought up in another thread, it’s the NY Times so they’re always playing fast and loose with words.-
They owe the money. This is not legal loophole use.
It’s simply that the vast majority of tax avoidance is not caught because the IRS doesn’t audit returns.
if you’re really skeptical of the NYT (major eyeroll) you can read the US Treasury report yourself
[link=https://home.treasury.gov/news/featured-stories/the-case-for-a-robust-attack-on-the-tax-gap]https://home.treasury.gov…-attack-on-the-tax-gap[/link]
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[link=https://www.businessinsider.com/tax-billionaires-wealth-biden-backs-top-senators-plan-capital-gains-2021-9].[/link]
[link=https://www.businessinsider.com/tax-billionaires-wealth-biden-backs-top-senators-plan-capital-gains-2021-9]Biden backs top senator’s idea to tax billionaires’ wealth[/link]
One of those options {to generate “pay for” revenue for the reconciliation package}, proposed by Senate Finance Chair Ron Wyden, is a change to the way the government taxes earnings on assets like stocks and bonds. It would mainly affect the wealthy, because their wealth usually derives from investments more than salaries. The gains on those assets which are called capital gains are taxed at a far lower rate than income brought in through wages. The top [link=https://www.businessinsider.com/personal-finance/what-tax-bracket-am-i-in-federal-income-tax]marginal tax rate[/link] on income is 37%; capital gains for the wealthiest Americans are taxed [link=https://www.businessinsider.com/personal-finance/how-much-is-capital-gains-tax]just up to 20%[/link].
“A priority for me in these negotiations is making it clear that billionaires are not exempt from the general proposition [that] nurses and firefighters see every year: that they have to pay taxes regularly,” Wyden [link=https://www.businessinsider.com/reviews/out?platform=browser&postSource=bi%7C614e00486f685c36897ad00a&sc=false&type=LINK-WITH-REVIEW-SLASH-OUT&u=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fdemocrats-seek-backup-plan-on-taxing-capital-gains-11631893650%3Fmod%3Dseries_budgetrecon&sessionid=1632515949192]told[/link] The Wall Street Journal.
President Joe Biden is on board. On Friday, he leant his support for the measure in a press conference. It’s similar to his earlier [link=https://www.businessinsider.com/biden-reportedly-plans-nearly-double-capital-gains-tax-for-wealthy-2021-4]proposal[/link] to double the capital gains rate to 43%. House Democrats’ [link=https://www.businessinsider.com/house-democrats-unwind-trump-era-tax-cuts-spending-plan-2021-9]proposal[/link] to fund their infrastructure plans would increase the capital gains rate from about 20% to 25%, and they estimated it would bring in $2.9 trillion. Wyden’s preferred rate hasn’t been reported yet.
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Under Wyden’s proposal, unrealized gains would be taxed
I didnt count how many times I read billionaire in the last few minutes. Sure soak the ultra rich. Not one place does it say at what level this will start.
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[ul]
[/ul] [ul]
[/ul] [ul][*]Taxpayers with more than $1 million in annual income and/or more than $10 million in assets for three consecutive years are covered by the proposal. Applicable taxpayers would be covered until they fail to meet the income or asset threshold for three consecutive tax years. [/ul] [ul][*]Personal residences up to $2 million, retirement accounts up to $3 million and family farms up to $5 million are not counted when determining whether a taxpayer meets the asset threshold. Value above these thresholds will be counted toward the asset threshold. For example, if a taxpayer owns a $3 million dollar home, the first $2 million of value is exempt and $1 million is counted toward the asset threshold. [/ul] [link=https://www.finance.senate.gov/ranking-members-news/wyden-unveils-proposal-to-fix-broken-tax-code-equalize-treatment-of-wages-and-wealth-protect-social-security-]https://www.finance.senat…otect-social-security-[/link]-
Thats a good follow up. The first one was written to energize the people that think the rich are too rich. The problem is it is very hard to find the proper cut off.
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It is tempting to say, phew I dont qualify. It will be good to take money from the people who have more than I do. I try not to fall into that trap. Better to think through all downstream effects.
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Quote from dergon
[b]Ireland Bucks Global Tax Deal[/b]
Minister for Finance Paschal Donohoe has said that Ireland cannot be part of an international agreement on a minimum global tax rate of 15 percent, the [link=https://www.irishtimes.com/business/economy/ireland-cannot-be-part-of-current-global-tax-reform-proposals-donohoe-says-1.4621213]Irish Times[/link]: reports.Earlier this month, the [link=https://www.irishtimes.com/topics/topics-7.1213540?article=true&tag_organisation=G7]G7[/link] and OECD countries reached agreement but not unanimous consensus on the key aspects of a global tax deal which seeks to introduce a minimum rate of 15 per cent. Ireland is among a handful of countries, including Hungary, who are opposed to a 15 percent rate.
[link=https://www.forbes.com/sites/lisakim/2021/10/07/ireland-agrees-to-raise-corporate-tax-rate-to-a-minimum-of-15-in-effort-to-craft-global-pact-to-rein-in-tax-havens/?sh=2e2b524d2189]https://www.forbes.com/si…avens/?sh=2e2b524d2189[/link]
[h1][b]Ireland Agrees To Raise Corporate Tax Rate To A Minimum Of 15%, In Effort To Craft Global Pact To Rein In Tax Havens[/b][/h1]
Bowing to a multinational campaign to end the practice of competing to attract foreign businesses with low tax rates, Ireland has agreed to sign onto an agreement to raise its minimum corporate rate for multinationals to 15% from 12.5%.
Ireland was the last developed country to [link=https://www.bbc.com/news/world-europe-58819458]jump aboard[/link]under a low tax scheme set up in 2003, it has [link=https://www.wsj.com/articles/ireland-signs-onto-global-deal-seeking-to-curb-tax-avoidance-11633629646?mod=hp_lead_pos4]attracted[/link] large U.S. tech companies such as Facebook and Apple to set up their European headquarters there.
More than 800 U.S. businesses operate in Ireland, according to the American Chamber of Commerce Ireland, the[link=https://www.wsj.com/articles/ireland-signs-onto-global-deal-seeking-to-curb-tax-avoidance-11633629646?mod=hp_lead_pos4][i] Wall Street Journal[/i][/link] reported, and those businesses have 180,000 employees.
[/QUOTE]Biden administration (purely coincidentally) making strong statements on Northern Ireland and Brexit protocols this morning …. quid pro Joe 😉
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[b]Democrats Bet on Raising Taxes[/b][/h1]
Many Democrats are willingeven eagerto enact tax increases on high-income households and big businesses and campaign on them in next years midterm elections, embracing a stance that the party has struggled with in the past, the [link=https://www.wsj.com/articles/democrats-bet-on-raising-taxes-on-high-income-people-big-businesses-11634376601?mod=hp_lead_pos1]Wall Street Journal[/link] reports.
Although Democrats slim majorities have forced them to abandon some of their most sweeping tax proposals, President Biden and congressional Democrats are still seeking to raise about $2 trillion over a decade from businesses and high-income households.-
Nice. Coming to the middle.
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[b]Democrats Eye Tax on Billionaires Gains[/b][/h1]
A new annual tax on billionaires unrealized capital gains is likely to be included to help pay for the vast social policy and climate package lawmakers hope to finalize this week, the [link=https://www.wsj.com/articles/tax-on-billionaires-unrealized-gains-will-likely-be-in-budget-package-democrats-say-11635096384?mod=hp_lead_pos2]Wall Street Journal[/link] reports.
The tax is expected to affect people with $1 billion in assets or $100 million in income for three consecutive years.-
[link=https://www.washingtonpost.com/us-policy/2021/11/11/billionaire-tax-democrats-wyden/]https://www.washingtonpos…e-tax-democrats-wyden/[/link]
Pelosi didn’t like the billionaires tax, called it a “publicity stunt”-
Nancy Pelosi officiated the wedding of the Getty Heiress recently.
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Yes, she and Paul hobnob with most of the SF wealthy elite. Of course they are themselves.
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[link=https://www.cnbc.com/2022/03/26/president-joe-biden-to-propose-new-20percent-minimum-billionaire-tax-.html]https://www.cnbc.com/2022…-billionaire-tax-.html[/link]
[h1]President Joe Biden to propose new 20% minimum tax rate for households with >$100 million[/h1]
[ul][*]The Billionaire Minimum Income Tax would assess a 20% minimum tax rate on U.S. households worth more than $100 million.[*]Over half the revenue could come from those worth more than $1 billion. [/ul] The proposed levy is expected to reduce the deficit by about $360 billion in the next decade, according to the document.[/QUOTE]
Interesting. Manchin shot down the previous billionaire wealth tax. I wonder if this is closer to something he can get on board with.
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That seems like a low number. So are those people paying less than 20%?
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Yes.
A new AMT. Yes, a bit low. Have to see rules on how it applies.
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Quote from DICOM_Dan
That seems like a low number. So are those people paying less than 20%?
[link=https://www.whitehouse.gov/omb/briefing-room/2021/09/23/new-omb-cea-report-billionaires-pay-an-average-federal-individual-income-tax-rate-of-just-8-2/#:~:text=Briefing%20Room-,New%20OMB%2DCEA%20Report%3A%20Billionaires%20Pay%20an%20Average%20Federal%20Individual,Tax%20Rate%20of%20Just%208.2%25]https://www.whitehouse.go…e%20of%20Just%208.2%25[/link]
New OMB-CEA Report: Billionaires Pay an Average Federal Individual Income Tax Rate of Just 8.2%[/h1]-
This all sounds peachy, until the politicians start fudging numbers, then all of a sudden WE are in the gunsights (even more than now if that is possible).
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Who is we kimosabe?
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Quote from Frumious
Who is we kimosabe?
What’s with the attitude? Do I know you? -
No attitude intended. But who do you mean by we, an honest question. That we you said can imply a lot.
& the only way we know each other is on AM. -
Quote from TurboEcho
Quote from Frumious
Who is we kimosabe?
What’s with the attitude? Do I know you?
He wants we to be “rich” people making between 400-1000K and are “supposed” to pay more to make it fair. -
Quote from TurboEcho
This all sounds peachy, until the politicians start fudging numbers, then all of a sudden WE are in the gunsights (even more than now if that is possible).
Even if it were implemented, I seriously doubt it. You think they’re going to make people mark their homes/farms/small businesses etc to market every year and pay resulting cap gains taxes on unsold assets? No way. We’ll see what, if anything, the details are if/when they are released.
Estimates I saw (from an economist very much in favor of the plan) are $36B in revenue for the first few years (as untaxed cap gains work through the system), then less. That ain’t paying for universal health care, or much else (Fed gov’t alone spent $6.8 trillion last year).
Purpose is not to fix the budget or our social safety net– this is [b]purely[/b] aimed at outrage over how wealthy some Americans are. Whether or not that’s a good thing is a separate issue. The best argument I’ve seen for it is that the extremely wealthy have too much political power. Which creates an interesting dilemma, b/c none of them are going to like this …
What frustrates me is that, to the degree that we’re trying to create a better social safety net, similar to Northern Europe, we don’t seem to be learning from what those countries have done. Soaking the rich isn’t going to pay for it. However, reality is there is no appetite for European style taxes here– Democrats would lose if they proposed such. And so we get political theater. -
Soaking the rich is a bumper sticker phrase. We just need to return to paying middle class wages & taxing everyone the way we taxed in the 1950s & 60s, before tax cuts for the rich & such high deficits became such a fashionable rage issue with Republicans starting with Reagan right up to today.
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Quote from dergon
[link=https://www.cnbc.com/2022/03/26/president-joe-biden-to-propose-new-20percent-minimum-billionaire-tax-.html]https://www.cnbc.com/2022…-billionaire-tax-.html[/link]
[h1]President Joe Biden to propose new 20% minimum tax rate for households with >$100 million[/h1]
[ul][*]The Billionaire Minimum Income Tax would assess a 20% minimum tax rate on U.S. households worth more than $100 million.[*]Over half the revenue could come from those worth more than $1 billion. [/ul] The proposed levy is expected to reduce the deficit by about $360 billion in the next decade, according to the document.[/QUOTE]
Interesting. Manchin shot down the previous billionaire wealth tax. I wonder if this is closer to something he can get on board with.
Sounds pretty complex/cumbersome. Given that they can’t even eliminate either the step-up basis or the carried-interest deduction, I’m skeptical this is more than political theater. But hey, winning elections is partly about political theater, so that’s fine.
One thing that does seem clear: “tax the rich” is supported by the majority of Americans (shocking). The Democrats just need to find a way to make it work. I don’t think this is it.-
And voters are the willing audience in this theater. The performers, the politicians, are only doing what gets them the applause.
We have met the enemy and they is us.
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[h1]If Youre Getting a W-2, Youre a Sucker[/h1] [h2]There are many differences between the rich and the rest of us, but one of the most consequential for your taxes is whether most of your income comes from wages.[/h2] [link=https://www.propublica.org/article/if-youre-getting-a-w-2-youre-a-sucker]ProPublica[/link]:
A [link=https://www.brookings.edu/research/taxing-business-incomes-evidence-from-the-survey-of-consumer-finances/]recent study[/link] by the Brookings Institution set out with a simple aim: to compare what owners of privately held businesses say they earn with the income that appears on the owners tax returns. The findings were stark: More than half of economic income generated by closely held businesses does not appear on tax returns and that ratio has declined significantly over the past 25 years.
That doesnt mean business owners are illegally hiding income from the IRS, though its certainly a possible contributor. There are plenty of ways to make income vanish legally. Tax perks like depreciation allow owners to create tax losses even as they expand their businesses, and real estate developers like Ross can claim losses even on appreciating properties. Losses from one business can also be used to wipe out income from another. Sometimes spilling red ink can be lots of fun: For billionaires, [link=https://www.propublica.org/article/the-billionaire-playbook-how-sports-owners-use-their-teams-to-avoid-millions-in-taxes]owning sports teams[/link] and [link=https://www.propublica.org/article/when-youre-a-billionaire-your-hobbies-can-slash-your-tax-bill]thoroughbred racehorses[/link] are exciting loss-makers.
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This isnt just about a divide between rich and poor. Take two people, each earning $1 million, one through salary, the other through their business. Though they may live in the same neighborhood and send their kids to the same private school, they do not share the same tax world.
[/QUOTE]
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It took a Brookings Institution study to figure this out? It should be obvious.
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There are a few easy solution to the wealth tax. Make a limit on annual longterm capital gains allowances. For example, you can only claim 500k in capital gains taxes per year at the 20% rate. The rest has to be paid at top marginal rate. This would eliminate the ability of the wealthy to live off of low interest loans while delaying taxable events.
Another solution in my opinion is just to simplfy the tax code and make everything a flat tax across the board at 25%. Everyone pays 25% from zero dollars to one billion of income. Those that are below the poverty line could get s universal wage to bring them above the poverty line.
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[link=https://www.bloomberg.com/news/articles/2022-07-22/summers-says-raise-taxes-right-now-to-help-battle-inflation]https://www.bloomberg.com…-help-battle-inflation[/link]
[h1]Larry Summers Says Raise Taxes Right Now to Help Battle Inflation[/h1] [ul][*]Former Treasury chief opposes extending student-debt relief[*]Summers urges corporate-tax measures to salvage global deal [/ul]
Former Treasury Secretary Lawrence Summers said that Washington is forgoing a key tool in helping the Federal Reserve quell inflation, and urged that lawmakers look at raising taxes.
I sure wish we could get past this basically ludicrous economic idea that tax increases are inflationary. We can generate significant revenues [taxing] high-income tax evaders who then go and spend the moneyand that will contribute to reduced inflation.Summers said that any tax hikes shouldnt go toward funding fresh outlays — in contrast to the package of tax hikes and expanded social investment that President Joe Biden has sought from Congress for more than a year now.[/QUOTE]
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Redistribution, Republican style.
[link=https://www.nytimes.com/2022/07/27/opinion/alabama-fines-fees.html?unlocked_article_code=AAAAAAAAAAAAAAAACEIPuomT1JKd6J17Vw1cRCfTTMQmqxCdw_PIxftm3iWka3DKDmwdiOMNAo6B_EGKbK5qbdI21nGVRdlMK_ohSfFpiO9DOkgnAy-Znqy5orVXaSMktdD0GWosw5PGWb1_-ja0MTbhJbs6n7a0sVfbO2TpRK3e1nA-cVxkpMMxJlCr0HFY1b6FRrAuoqR23_8gBph9Ri5RJ3XZ-qm1VGgtfYmOfRre6QIpWu9GWjC1nNWU6rMIcQ86GkuRBTokoj56sIUATYtRaKXvLBcge978iKERDAFqL4SrDp4zRevEhok5YjQNydOvyFYIvNC5HQs&smid=url-share]https://www.nytimes.com/2022/07/27/opinion/alabama-fines-fees.html?unlocked_article_code=AAAAAAAAAAAAAAAACEIPuomT1JKd6J17Vw1cRCfTTMQmqxCdw_PIxftm3iWka3DKDmwdiOMNAo6B_EGKbK5qbdI21nGVRdlMK_ohSfFpiO9DOkgnAy-Znqy5orVXaSMktdD0GWosw5PGWb1_-ja0MTbhJbs6n7a0sVfbO2TpRK3e1nA-cVxkpMMxJlCr0HFY1b6FRrAuoqR23_8gBph9Ri5RJ3XZ-qm1VGgtfYmOfRre6QIpWu9GWjC1nNWU6rMIcQ86GkuRBTokoj56sIUATYtRaKXvLBcge978iKERDAFqL4SrDp4zRevEhok5YjQNydOvyFYIvNC5HQs&smid=url-share[/link]-
White House says that with new IRS money they will only be increasing audit rates on households with > $400k income
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[link=https://www.huffpost.com/entry/irs-biden-rick-scott_n_62fbe25fe4b0c8c57f56c24a]Rick Scott Warns Job Seekers Against Applying To IRS
[/link]The Florida Republican says this will be a short-term gig because Republicans will try to hobble the agency if they win back control of Congress.
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Who needs accountants
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[link=https://www.axios.com/2022/12/23/venmo-cash-app-tax-reporting-2022-irs?utm_campaign=editorial&utm_source=twitter&utm_medium=social]https://www.axios.com/202…&utm_medium=social[/link]
[h1]IRS delays tax change for Venmo, Cash App users[/h1]
The Internal Revenue Service on Friday [link=https://www.irs.gov/newsroom/irs-announces-delay-for-implementation-of-600-reporting-threshold-for-third-party-payment-platforms-forms-1099-k]announced[/link] a one-year delay in the implementation of a [link=https://www.axios.com/2022/12/14/surprise-tax-forms-2023]new tax filing rule[/link] that requires more users of digital payment platforms and e-commerce sites to report their transactions.
The new tax filing policy had prompted confusion and opposition among users of digital wallets and payment platforms, and the delay will likely come as welcome news to the companies that had lobbied against it.
[b] [/b]The [link=https://www.axios.com/2021/03/11/biden-signs-stimulus-bill]American Rescue Plan[/link] introduced a change that required companies such as [link=https://www.axios.com/2018/07/22/venmo-privacy-policy-user-financial-transactions]Venmo[/link], [link=https://www.axios.com/2022/05/05/ten-million-accounts-have-bought-bitcoin-on-cash-app]Cash App[/link] and [link=https://www.axios.com/2022/10/09/paypal-misinformation-fines]PayPal[/link] to send out [link=https://www.irs.gov/forms-pubs/about-form-1099-k]1099-K[/link] forms for users with more than $600 in transactions for goods and services.
Normally, companies sent that form to users with more than 200 transactions exceeding $20,000. But with the new, lower threshold, it would apply to users with smaller businesses and side hustles, [link=https://www.axios.com/2022/12/14/surprise-tax-forms-2023]Axios’ Emily Peck writes[/link].[/QUOTE](had been a lot of chirping about this change to the $600 1099-k threshold as being a potentially large tax increase on small businesses … who are legally obligated to declare that income currently but very frequently do not … getting a 1099 would pressure them to declare the income and pay taxes on it)
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And all along Biden said his tax plan wouldn’t impact people making less than $400k.
Smercornish had a guest on couple of weeks ago on this very issue. Said IRS was not ready for implementing this, people didn’t realize this will be required, and small business impact. The way it’s written the guest used example if you purchased season tickets for a sport and then resold some of the tickets and got more than $600 for the tickets you would have to file the 1099 k.-
All that new $600 tax rule does is hurt individuals and small businesses.
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Yes – the guest, who is non-partisan w extensive tax experience, even said in the interview that Biden’s claim on only taxing wealthier individuals wasn’t true.
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[link=https://www.wsj.com/livecoverage/stock-market-news-today-01-13-2023/card/effective-tax-rate-for-large-profitable-companies-fell-to-9-after-trump-law-report-says-df7LI0X4M1rvHZnjtriz]Wall Street Journal[/link]
[h1]Effective Tax Rate for Large, Profitable Companies Fell to 9% After Trump Law[/h1]
The effective corporate tax rate on large, profitable companies declined to 9% in 2018 in the aftermath of the 2017 tax law, down from 16% in 2014, according to a Government Accountability Office report released Friday. The share of large, profitable companies paying no corporate taxes was 34% in 2018, up from the five-year average of 25%.
That effective rate measures actual corporate tax liability as opposed to what companies report under financial accounting standards. It includes the effects of tax credits and other breaks that can make the effective tax rate lower than the headline, or statutory, rate.
The 2017 law, passed only with Republican votes and [link=https://www.wsj.com/articles/trump-signs-sweeping-tax-overhaul-into-law-1513959753?mod=article_inline]signed by President Donald Trump[/link], lowered the corporate tax rate to 21% from 35%. It also made a series of changes to international tax rules and eliminated or limited some tax breaks.[link=https://www.wsj.com/articles/companies-face-challenges-determining-impact-of-new-minimum-tax-11661247001]The new 15% minimum tax[/link] was part of the Inflation Reduction Act.
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I sold PTO this year. I usually do and it offsets the benefits cost. This year they paid as a lump sum….boy did I fudge up. The $1900 I sold was taxed at 66%. So for the $1900 my check went up like $600ish
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How much do you earn to get a 66% tax liability? Even radiologists don’t get a 66% tax liability.
And your PTO income taxes do not change for the year whether you get a lump sum or pay out over time as used.
You have to explain.-
It for sure did. That lump sum payout got whacked at 66%. It’s really easy to see because it’s the first pay of the year. My pay went up $600ish but my lump sum was $1900. So that $ was taxed like a bonus, or lotto winning. I’m into the 24% bracket for some $.
*it’s not impossible that payroll fudged something-
That’s a single paycheck. It will even out at next year’s filing as all your other paychecks will have your normal values. The same thing happens when you receive a bonus. The liability taken out will be reduced if you get 2 paychecks each calculated separately.
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After months of GOP messaging about IRS stormtroopers coming to attack the little guy, some real and good news. Thanks to hiring new agents there is a huge uptick in calls being answered by agents
[link=https://www.flyertalk.com/forum/redirect-to/?redirect=https%3A%2F%2Fwww.washingtonpost.com%2Fpolitics%2F2023%2F02%2F10%2Fbiden-governors-brazil-president-pence-subpoena%2F%23link-5N6LCUBAEBCFHNAFH57ZEM52Y4]https://www.washingtonpost.com/polit…HNAFH57ZEM52Y4[/link]
The IRS answered 88.6 percent of its phone calls, a Treasury Department official told The Washington Post on Friday, up from the 13 percent of calls answered during the 2022 tax season and 11 percent the year before.
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