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Showing posts with label Taxation. Show all posts
Showing posts with label Taxation. Show all posts

Monday, February 11, 2013

Dr. Carson's Speech - Captivating America

The whole Nation is abuzz with Dr. Benjamin Carson's speech at the National Prayer Breakfast with Obama in attendance. The good Doctor, actually the Director of Pediatric Neurosurgery at Johns Hopkins Hospital, railed against political correctness, about fiscal irresponsibility, about taxation, and host of other issues including his passion for education.

Dr. Carson's creds are over whelming,..I will not take up the reader's time going over them except to say that he is a published author both in the medical field and non-fiction. He and his wife are philantrophists giving scholarships to deserving kids; he is a widely respected surgeon and did all of this growing up in poverty where he learned the importance of education and self responsibility.

I have no idea on Dr. Carson's political affilations or voting record, but he has to be a burr under Obama's saddle as a successful, capitalistic, self responsibility touting black man is opposite of what Obama is and what Obama wants to create for minorities and frankly, everyone else in this country.

Dr. Carson said that people ask him why he gves speeches that border on political issues. He said "why not and that everyone needs to get involved, including physicians, after all six of the founding signers were Doctors." If you do nothing else listen to his entire speech,....and watch Obama's facial expressions and body language.



Tuesday, November 20, 2012

The Fiscal Cliff: How it Affects Your Taxes

From a yahoo finance article which can be viewed in it's entirety here. In a few weeks, tax laws U.S. taxpayers have enjoyed for more than a decade are scheduled to expire. Along with long-standing and historically low tax rates, several popular tax credits and deductions already have or will soon expire.

That scenario is being described as a fiscal cliff. And if American taxpayers are nudged over that cliff by Congressional inaction, most of them will face dramatically higher tax bills.

Estimates by tax policy groups and government accountants put the total tax cost at more than $500 billion in 2013.

That averages out to almost $3,500 per household, according to calculations by the Tax Policy Center. Middle-class taxpayers are likely to see an average increase of almost $2,000.

Using Tax Policy Center data and hypothetical taxpayers, Bankrate shows what some tax bills might look like if lawmakers don't soon put up a guardrail at the fiscal cliff's edge.

The single tax filer

Joe is single and has an adjusted gross income of $60,000 a year. As is the case among two-thirds of the tax-paying population, Joe claims the standard deduction.

After subtracting the projected 2013 personal exemption of $3,850 and standard deduction of $6,050 for a single taxpayer, Joe's taxable income comes to $50,100.

If the current tax laws are extended beyond 2012, that would mean $8,900 of Joe's income would be taxed at only 10 percent, and his top tax rate would be 25 percent. This would leave him with a tax liability of $8,465.

If the current rates expire, however, Joe's tax bill would be $863.50 higher.

The reason? There would no longer be a 10 percent rate, making more of Joe's earnings taxed at 15 percent, and his top tax rate would be 28 percent instead of 25 percent.

Married couple filing jointly

Jane and Bill have two kids: 10-year-old Jimmy and 8-year-old Sarah. Both parents work, bringing home a combined adjusted gross income of $175,000. They don't yet own a home, so without mortgage interest to deduct, they're still claiming the standard deduction.

If the current tax laws stay in place, their four personal exemptions totaling $15,400 plus the $12,100 standard deduction will get them to $147,500 in taxable income, resulting in a tax liability of $28,803.

But Jane and Bill wouldn't have to send the Internal Revenue Service that much. Thanks to the $1,000 per-child tax credit, their final tax bill would be $26,803.

If the tax laws expire, however, Jane and Bill's tax bill will go up by $6,304 to $33,107. That takes into account that the child tax credit would return to its pre-tax-cut level of just $500 per kid.

One reason for the increased tax bill is the return of the marriage tax penalty. This is where a couple pays more taxes by filing one joint return than they would if they filed two returns as single taxpayers. Wider tax brackets and a larger standard deduction for married couples now help ease the penalty.

Instead of facing a top tax rate of 28 percent, Jane and Bill would be in the 31 percent tax bracket if the tax cuts expire.

Single parent head of household

Kathryn is a divorced working mom of 7-year-old Jonah. She makes $75,000 a year via her salary and alimony payments.

By filing as head of household, Kathryn's standard deduction of $8,900 and personal exemptions totaling $7,700 for herself and her son get her to $58,400 in taxable income.

Taxes on that amount are currently collected at the 10 percent, 15 percent and 25 percent rates, giving Kathryn a tax bill of $9,125. She knocks $1,000 off that thanks to the child tax credit.

But if the tax cuts expire, Kathryn's tax liability will be $1,435 more -- $9,560 -- in 2013. The bigger bill comes from losing the expired 10 percent and 25 percent tax rates, putting more of her income into the 15 percent and 28 percent tax brackets.

And just like all parents, married or single, Kathryn will only get a $500 child tax credit for her son starting in 2013.

Expiration of capital gains rates

If any of our hypothetical 2013 taxpayers have investments in a taxable brokerage account, their tax bills next year will be higher.

Long-term capital gains and certain dividend payments are taxed at lower rates than the regular, ordinary income rates, which now top out at 35 percent. Most taxpayers pay capital gains taxes at the 15 percent rate. Taxpayers in the 10 percent and 15 percent brackets don't owe any taxes on their gains.

But if today 's lower rates expire, the capital gains rates will go to 20 percent for most investors and 10 percent for those in the 15 percent tax bracket.

And dividends will lose their favorable tax treatment entirely. These payments will return to being taxed as ordinary income, meaning that taxpayers making enough to put them into the highest income tax bracket in 2013 would pay taxes on dividends at the top 39.6 percent income tax rate.

In addition, a provision in the health care reform law, often referred to as Obamacare, will kick in next year. This new 3.8 percent surtax will apply to capital gains, dividend and interest income of more than $250,000 for married couples filing jointly or $200,000 for other taxpayers.

Payroll tax holiday over

Every person who collects a paycheck knows that taxes reduce take-home pay.

In addition to income taxes, both federal and where applicable state, payments toward Social Security and Medicare, known as FICA taxes, are collected via withholding.

So that workers would have more money to spend and give the economy a boost, Congress enacted a 2 percent cut in the Social Security taxes paid by workers. This so-called payroll tax holiday has been in effect since 2011 but is scheduled to expire Jan. 1, 2013.

That means every worker will pay more taxes in 2013. The increase could be substantial for high-income earners.

Individuals who make up to the Social Security wage base of $113,700 next year will pay $7,049.40 in taxes for the retirement system. That's $2,425 more than this year because the wage base was slightly smaller ($110,100), and workers paid just 4.2 percent of their income toward Social Security instead of the regular 6.2 percent level that returns in 2013.

Other expiring tax breaks

While the possibility of higher tax rates gets most of the attention as taxpayers near the fiscal cliff, many other provisions could cause higher taxes if they are allowed to end Jan. 1, 2013.

In addition to losing half of the current child tax credit, parents would get reduced savings from the child care tax credit.

Students looking for the $2,500 American opportunity education tax credit would find instead its predecessor the Hope credit, which maxes out at $1,800.

Lower paid workers could still claim the earned income tax credit, but eligibility requirements would be tougher and credit amounts lower.

The estate tax would apply to more property left at death, affecting estates worth more than $1 million instead of the current $5.12 million exclusion amount. The tax rate also would rise from the current 35 percent to 55 percent.

Higher-income taxpayers who itemize would again see their overall Schedule A claims reduced by 3 percent. A similar reduction also would apply to personal exemption amounts for wealthier filers.

And legislation to increase the alternative minimum tax income exclusion amount must be approved retroactively for 2012 as well as for 2013, or tens of millions more taxpayers will face higher tax bills because of this parallel tax.


Friday, June 1, 2012

Yep! Ain't It Just So?

This cartoon clip is about the easiest way to understand the difference between socialism with the bondage that creates and the free market society with self-responsibility annd the fredom to pursue happyness according to your work ethics and initiative.

The full documentary is available at I Want Your Money The full length documentary features great in-depth interviews with economic experts and knowledgeable political figures including:



Friday, January 27, 2012

Obama Exploitation of Buffet's Secretary Fails

Alternative Title:  Class Warfare Again?  Are You Kidding Me?
During Tuesday night's State of the Union address, President Obama, showcased his class warfare rhetoric, not to mention exposing the direction of his 2012 campaign, by trying to highlight the "Rich paying less than their fair share, while workers pay more than their fair share" argument. Using the taxes and wages of his pal, Warren Buffet and Buffet's secretary (Debbie Bosanek) as an example, and with Buffet and Bosanek sitting in the audience, Obama railed on how unfair it was for a worker like Bosnaek to pay more in taxes than Buffet who is a billionaire. Obama then put a minimum percentage on the amount of taxes the ultra-rich should pay - 30 percent - which is now being called the Buffet rule.

There are several billionaires saying how un-fair it is that they pay less in taxes than workers. Not only is this untrue, but if they want to pay more, then pay it. Do you need a special invitation!

But yet again Obama uses selective facts and does not present all the truth to make his point.

While it is reportedly true that Bosanek pays a tax rate of 35.8 percent of income, while Buffett pays a rate at 17.4 percent, Buffet's income comes mostly from investment income where the capital gains tax rate is much, much lower than the rate on straight salary, such as Bosanek's. So after all, Bosanek's income places her in the top 1, 2 or 3 % of Americans, just the people who Obama's wants to pay more.

Buffet's say's: "I don't pay hardly any payroll taxes, while Gov. Romney hardly pays any payroll taxes." If Buffet's paid more taxes on his investment income, taxed at the lower capital gains tax, he would have much less money to create jobs with. This is the argument that the Liberals just don't understand.

"I just feel like an average citizen. I represent the average citizen who needs a voice," said Bosanek. "Everybody in our office is paying a higher tax rate than Warren ."

Well if you are over taxed then why did you and your husband buy another house this year? You want people to feel sorry for you?

Where all of this leads is to a fair tax conclusion. Of course, fair in Republican eyes is much different than what's fair in the eyes of Socialists, Democrats and Progressives,....there I go again, being redundant,...I should have just said Liberals.

If we all paid a flat tax rate, wouldn't that be fair? Let's take 10% off the top from everyone. Then everyone has "buy-in" for this country. The 49% not paying any taxes, but drinking at the government entitlement trough will of course fight this,....cause it's unfair.

Just as a comparison, Mitt Romney paid around $3 million in taxes last year. Is this enough?

Monday, January 9, 2012

Obama Doesn't Understand

Watch the animated movie below and imagine this taking place for real. Someone with a sense of humor and insight into President Obama's lack of knowledge and views of the role of Government put this masterpiece together.



From the Bullion Bulls Canada website

Saturday, December 11, 2010

Making The Rounds: What People are Saying

....About social security, taxation, government waste and over spending...

Just a short roll up on some of the blog comments making the rounds:

"I believe the gov. tolerates the low and middle class people only because they pay in enormous amounts of tax revenues and they make the best soldiers in the world. when or if they reach retirement age or for whatever reason they are not as productive as they once were they are then expendable, like most things today " they're throw a-ways"...once the elected officials in washington get elected they never look back, they're are then above the law. the lobbiests, special interest groups, big businesses and drug cartels run and own washington d.c. the american dream is a farce to keep people working, washington enjoys a life style unequaled anywhere on the face of the earth,they are never going to give that up..."

"Maybe all you people crying that you can't live off of what they give you or that somebody else gets more then you for less, should have prepared better. yes the system is broken and run poorly. But what happened to self preservation? Take of care of yourself and not sit around whining you don't get enough. Cause factually everyone gets more then they put in due to cost of living adjustments. People receiving $600month could live off of that easily back when they started putting money into social security. So in the end, you should have gotten off your rump and prepared for your retirement yourself and quit waiting for someone else to take care of you."

"We are all just pigs at the trough of the government and destroying the country for our children. We are the first generation of Americans to leave our country in worse shape for our kids than our parents left us. We should be ashamed."

"If you work for the federal government your pension funds are invested in stocks and bonds listed on the stock exchange. If you are wrapped in the loving arms of Social Security, your retirement funds cannot be invested in the market. Social Security funds are loaned to the govt. and yields about 2% return, the govt. pension funds invested in the market probably yields between 5% to 10% or more."


The above comments were ones that were more reasnable or articulate. Of course you still have people who are blaming Bush for everything,.... people who believe that the Worldwide Wrestling Federation on television is real,.... and people who believe that Obama was born in Hawaii.