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Taxes on Some Wealthy French Top 100 Percent of Income

Photo Credit: Images_of_MoneyMore than 8,000 French households’ tax bills topped 100 percent of their income last year, the business newspaper Les Echos reported on Saturday, citing Finance Ministry data.

The newspaper said that the exceptionally high level of taxation was due to a one-off levy last year on 2011 incomes for households with assets of more than 1.3 million euros ($1.67 million).

President Francois Hollande’s Socialist government imposed the tax surcharge last year, shortly after taking office, to offset the impact of a rebate scheme created by its conservative predecessor to cap an individual’s overall taxation at 50 percent of income.

Read more from this story HERE.

France’s Hollande Seeks Formation of Single European Government

Photo Credit: APFrench President Francois Hollande called on Thursday for an economic government in the eurozone that would have its own budget, the right to issue debt, a harmonized tax system, and a full-time president.

Speaking at a news conference marking his first year in office, a day after economic data showed France had slipped back into recession, the Socialist leader said he sought to create a full political European Union (EU) within two years.

His proposals seemed likely to encounter stiff resistance from Germany, Europe’s leading power, which opposes mutualizing debt among European states and is reluctant to give the eurozone its own secretariat or create new divisions in the EU, of which 10 countries are not in the 17-nation single currency.

It also comes as Britain’s government faces growing domestic pressure to hold a referendum on leaving the bloc.

“My initiative has four points that I am putting to our partners. The first is to create an economic government with the eurozone countries which would meet every month with a real president appointed for a long period and who would be devoted to this task,” Hollande said.

Read more from this story HERE.

IRS Exec Got $42k in Bonuses in Three Years

Photo Credit: ThinkstockLois Lerner, the senior executive in charge of the IRS tax exemption department and the federal employee at the center of the exploding scandal over the IRS targeting of conservative, evangelical and pro-Israel non-profits, was given $42,531 in bonuses between 2009 and 2011.

That figure was included in data provided by the IRS in response to a Freedom of Information Act request by The Washington Examiner. Lerner is director of the IRS exempt organizations division, which processes and approves or denies applications from groups seeking tax-exempt status.

Lerner received $17,220 for 2010, $14,691 for 2011 and $10,620 for 2012, the most recent year for which the IRS said data was available. Read more from this story HERE.

Obama Ousts Acting IRS Head After Agency is Caught Targeting Conservatives (+video)

Photo Credit: APPresident Obama on Wednesday forced out the acting director of the Internal Revenue Service and pledged to work with Congress as it investigates why the tax agency was inappropriately targeting conservative groups that opposed Obama and other Democrats.

IRS Acting Director Steven Miller was asked to resign less than a week after the public learned that the agency was giving closer scrutiny to conservative groups seeking tax-exempt status and delaying approval of their status change.

“Americans are right to be angry about it — and I’m angry about it,” Obama said during a hastily scheduled briefing in the East Room of the White House. “I’ll do everything in my power to make sure nothing like this ever happens again.”

Miller’s firing and the administration’s decision earlier Wednesday to release scores of emails about the terrorist attacks in Benghazi, Libya, marked the start of a what promises to be an extensive damage-control campaign by the White House to quell criticisms over a trio of controversies, including the IRS probing of conservative groups, the Justice Department’s spying on journalists and claims that the president misled the nation about the nature of the Sept. 11 Benghazi attacks that left an ambassador and three others dead.

Obama said other changes will be made at the IRS to prevent similar abuses in the future, but said nothing about additional firings.

Read more from this story HERE.

Senate Passes Internet Sales Tax Bill Amid Opposition from Conservatives

Photo Credit: Scott SadyThe US Senate on Monday passed a bill aimed at ending tax-free shopping on the internet but the move looks set to face fierce opposition before it becomes law.

The Marketplace Fairness Act, which has cross-party supporter and the backing of powerful retailers, would give states the power to require retailers with sales over $1m to collect state and local sales taxes for online purchases.

The bill has the support of president Barack Obama the majority of senators including Republican John McCain but Marco Rubio, seen a potential Republican presidential hopeful, and Rand Paul both voted against the bill.

The bill passed the Senate by 70 votes to 24 but faces a second test in the House of Representatives where internet retailers and conservatives are already lobbying against the tax. House leaders have yet to schedule hearings or votes on their version of the measure.

The legislation would overturn a 1992 supreme court ruling that said a state could not force a retailer to collect sales tax unless the retailer had a physical presence in the state.

Read more from this story HERE.

IRS Now Using Technology to Track All Credit Card Transactions

Photo Credit: US NewsThe Internal Revenue Service relies on technology more than ever to sniff out tax cheats using robo-audits and data mining—but so far it has caught lot of minnows, and big fish are still eluding detection.

Even as millions of people’s accounts are screened online and matched against their digital files elsewhere, the IRS’s data-detection tools come nowhere close to collecting the $400 billion in tax dodges estimated to take place each year. The area in which its robo-audits have had the most impact is on tax returns for low-income taxpayers who try to claim the Earned Income Tax Credit. In total, fraudulent claims totaled $2 billion, just 0.01 percent of the total of individual taxes. The EITC was the biggest single compliance problem cited.

That amount is expected to rise in the tax year ahead as the IRS extends the use of data mining to include the personal data of millions more taxpayers. Its sophisticated data-matching and pattern-recognition technology, largely developed by IBM over the past decade, will reach up the income ladder to include more middle-income and small-business filers who itemize deductions, although it is unlikely to have any impact on the complicated filings of high-net-worth taxpayers in the top 5 percent of income earnings, say tax experts who have studied the IRS plans.

“Real time” audits of electronic tax returns. The IRS’s next phase in high-tech tax collection will be to create a “real-time” check of tax returns to “match them to third party information,” said U.S. Treasury Inspector General for Tax Administration J. Russell George in testimony before Congress. Starting this year, the IRS tools will be able to track all credit card transactions, for starters. The agency has also instructed agents on using online sources such as social media and e-commerce sites including eBay, as well as the rich data generated by mobile devices. In one controversial disclosure in April, the ACLU showed documents in which the IRS general counsel said the agency could look at emails without warrants, but the IRS has said it will not use this power.

Read more from this story HERE.

Federal Case May Hold Obamacare Unconstitutional; the Coming Train Wreck if it Doesn’t

Last year, Justice Roberts upheld the constitutionality of the Affordable Care Act. In his twisted decision, Roberts determined that the Obamacare was a “tax” and could be imposed under the federal government’s taxing power since the Commerce and Necessary and Proper clauses did not provide a constitutional basis for the law.

But Robert’s activist decision to uphold Obamacare under the government’s taxing power may circle back and upend the law. An opinion piece from today’s Christian Science Monitor observed:

Article I, Section 7 of the Constitution says that tax bills – “all bills for raising revenue” – must “originate in the House of Representatives.” The framers wrote this “Origination Clause” because they recognized the potential danger in the taxing power, and they wanted to keep it as close as possible to voters. So they entrusted it to members of the House, who are elected every two years and have smaller constituencies than senators, who represent whole states and serve staggered six-year terms.

But Obamacare didn’t follow the constitutional script. Instead of originating in the lower chamber, it started in the Senate, when Majority Leader Harry Reid took an old bill the House had passed that would have given veterans tax credits to buy homes, struck out all of that bill’s language, and inserted instead the confusing web of provisions that became the Affordable Care Act.

Was this “gut and amend” ploy valid?

That question is now in front of US District Judge Beryl Howell in Washington, D.C., in a challenge to Obamacare filed on behalf of Matt Sissel, an Iowa small business owner who was decorated for service as a medic in the Iraq war.

Obamacare was passed hastily, by lawmakers who admitted they had not read the bill. The legislation was passed during the holiday season, through questionable procedural tricks. It was never popular, and a recent Kaiser Family Foundation poll found that only 36 percent of Americans currently support the law. Even the Supreme Court’s liberal wing agreed that large parts of it were unconstitutional. In part of last June’s decision, Justices Stephen Breyer and Elena Kagan joined the conservatives to hold that Congress had illegally tried to force states to expand their Medicaid rolls.

Obamacare’s Tax Hike Train Wreck

By John Kartch. The most destructive Obamacare tax increases are just around the bend.

Asked about Senator Max Baucus’s (D-Mont.) recent “train wreck” comments, President Obama today said, “A huge chunk of it [Obamacare] has already been implemented.” Unmentioned was the wave of destructive Obamacare tax increases that will begin to hit Americans during the next tax filing season and beyond…

Obamacare Surtax on Investment Income: A new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single)…

Obamacare Medicare Payroll Tax Increase: [from 1.45% to 2.35% for employees, and from 2.9% to 3.8% for self-employed, making over $250,000 ($200,000 single)]…

Obamacare Medical Device Tax: Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales – even if the company does not earn a profit in a given year. In addition to killing small business jobs and impacting research and development budgets, this will make everything from pacemakers to artificial hips more expensive.

Obamacare Flexible Spending Account Tax: The 30 – 35 million Americans who use a pre-tax Flexible Spending Account (FSA) at work to pay for their family’s basic medical needs face a new Obamacare cap of $2,500. This will squeeze $13 billion of tax money from Americans over the next ten years. (Before Obamacare, the accounts were unlimited under federal law, though employers were allowed to set a cap.) Now, a parent looking to sock away extra money to pay for braces will find themselves quickly hitting this new cap, meaning they would have to pony up some or all of the cost with after-tax dollars. Read more from this story HERE.

President predicts ‘glitches and bumps’ in ObamaCare rollout

By Sam Baker. President Obama said Tuesday that his healthcare law is bound to hit some snags as it comes fully into effect over the next six months.

“Even if we do everything perfectly, there will still be glitches and bumps, “Obama said at a news conference.” That’s pretty much true of every government program that’s ever been set up.”

Asked about Democratic concerns that the implementation could be a “huge train wreck,” Obama said the law will be fully implemented on time.

“We’ve got a great team in place. We are pushing very hard to make sure we are hitting the deadlines and the benchmarks,” Obama said.

The president acknowledged the difficult work facing his administration as it scrambles to set up new insurance markets, known as exchanges, by October. Republican governors’ resistance to setting up exchanges in their states has made life harder, Obama said. Read more from this story HERE.
Photo Credit: AP
Health Care Law Is ‘Working Fine,’ Obama Says in Addressing Criticism

By Robert Pear. President Obama said Tuesday that his health care law was “working fine,” and he played down concerns that the law could disrupt coverage or lead to higher premiums for people who already had health insurance.

At the same time, federal officials released simplified application forms to be used by people seeking health insurance, tax credits and other government subsidies under the law, which Mr. Obama signed three years ago.

The new application forms — one for individuals is three pages long, and another for families is seven pages — are significantly shorter than a 21-page draft that the administration circulated earlier this year.

Major provisions of the law take effect next Jan. 1, when most Americans will be required to have health insurance.

The law represents one of the biggest changes in domestic policy in decades, as significant in some ways as the creation of Social Security or Medicare. But at a news conference on Tuesday, Mr. Obama suggested that most Americans would not be affected by changes taking effect next year. And some of his comments may lower public expectations. Read more from this story HERE.

‘Obamacare’ Poll Finds 42% of Americans Unaware It’s Law

By Sarah Parnass. A new poll finds that many Americans are confused about the health care overhaul legislation commonly called “Obamacare.”

The Kaiser Family Foundation released results of a non-partisan study today finding more than 40 percent did not even know the law was in place.

“Four in ten Americans (42%) are unaware that the ACA [Affordable Care Act] is still the law of the land,” the report says, “including 12 percent who believe the law has been repealed by Congress, 7 percent who believe it has been overturned by the Supreme Court and 23 percent who say they don’t know enough to say what the status of the law is.”

The survey showed public opinion on Obamacare is at its second-lowest rating in the past two years.

Less than half – 40 percent – of adults viewed the ACA favorably, whereas 35 percent said they viewed it unfavorably. Another 24 percent said they did not know or refused to answer. Read more from this story HERE.

Senate to Open Debate on Charging National Sales tax on Online Purchases

Photo Credit: Getty

Fresh off last week’s bitter battle over gun control legislation, the U.S. Senate is slated to delve into another divisive issue: legislation to tax Internet sales.

Senate Majority Leader Harry Reid, D-Nev., is expected to begin debate on the Marketplace Fairness Act as early as Monday with a possible vote on the measure by the end of the week.

The bill would allow states to require online retailers of a certain size to collect sales tax, even when the seller is from a different state. States now lose about $11 billion in tax revenue because online sales are not taxed, according to a 2011 report by Fitch Ratings.

Under current law, online retailers must collect taxes only in states where they have a physical presence. The legislation would compel those retailers to collect in all states, with an exception for retailers with annual sales of less than $1 million.

Support for the legislation crosses party lines but so does the opposition in the Senate.

Read more from this story HERE.

Scam: Gang of Eight's Immigration Bill

Photo Credit: Politico

[T]he part of the [Gang of Eight Immigration Bill] that dictates who owes taxes and how much they will have to pay raises several questions, the answers to which could mean millions of dollars in tax revenue and whether the government has a realistic shot at collecting taxes owed by undocumented workers.

“I think no one can go back and guess or surmise how much the unpaid taxes would be for the entire group,” said David Marzahl, the president and CEO of the Center for Economic Progress, a group that works on tax issues with low-income and immigrant groups.

Negotiators had to choose between a hard-line approach favored by Republicans, like Sen. John McCain (R-Ariz.), that would have required immigrants and employers to painstakingly piece together a tax history so the government could collect what is owed and a less burdensome option of focusing on people who already have a past-due bill with the Internal Revenue Service.

They chose the milder approach and punted the details to the Treasury Department and IRS to hash out down the road.

“Getting back taxes is incredibly difficult, particularly when someone has paid into a fraudulent Social Security number,” Sen. Jeff Flake (R-Ariz.), a member of the gang, told POLITICO. “You might have a case where the government owes more back than it gets in. So I don’t know. We’ll leave that up to the IRS to figure how we do it.”

Read more from this story HERE.

GOP Lawmakers Introduce bill to Help Obama, Buffett Voluntarily Pay More Taxes

Photo Credit: Daily Caller

Louisiana Republican Rep. Steve Scalise and South Dakota Republican Sen. John Thune introduced legislation on Tax Day that would make it easier for wealthy Americans like President Barack Obama and billionaire Warren Buffett to voluntarily pay more in taxes.

White House press secretary Jay Carney recently made it clear the president wishes he paid more in taxes, and Buffett has also advocated for tax hikes on the rich.

“If Warren Buffett and others truly feel like they’re still not paying enough in taxes, they can use this Buffett Rule to put their money where their mouth is and voluntarily send in more to pay down the national debt, rather than raising taxes on hard-working Americans,” Scalise said.

“Liberals in Congress and the White House continue to call for more revenue. Here is their chance, but the only prerequisite is that donations that come from the Buffett Rule Act are strictly voluntary and are used to pay down our massive debt, not to fund more irresponsible spending,” he added.

Americans can already donate more money to the Treasury. Scalise’s and Thune’s legislation, however, would add a box to IRS filing forms to make the process even easier.

Read more from this story HERE.