Class Warfare's Next Target: 401(k) Savings - Raiding private retirement accounts, either with an upfront tax or as a conversion to government control, has been under consideration by our rulers in DC for a while now; at least since the Clinton years. That huge pool of wealth is simply too tempting for our money and power hungry rulers to resist.
This is also another example of how our rulers have no shame about changing the rules after the fact in regard to retirement plans, as I have explained on countless occasions when warning about Roth IRAs. How can anyone seriously feel safe about Roths remaining tax free for much longer, when our out of control rulers are openly contemplating a full scale confiscation of private retirement funds?
War Against the Wannabe Rich – Punishing success with Marxist “progressive” tax rates has long been the cornerstone of tax policy in this country and will only get worse with an openly Marxist administration and Congress in charge of our lives.
Class Warfare Tax Policy
Another Obama pick owes back taxes, but it's OK because, now caught, he'll pay up – Obviously nothing new about one more tax and spend hypocrite joining the 0bambi team. What is surprising is that this snarky type look at that team is in the LA Times, which I had always understood to be the Left Coast equivalent of the NY Times, the official propaganda outlet for the DemonRat Party. Are some of the loyal little donkeys finally having their fill of 0bambi hiring tax cheats, while calling for higher taxes on everyone else?
The Silver Lining
Upper-Income Taxpayers Look for Ways to Sidestep Obama Tax-Hike Plan – As I have long been saying, electing a Marxist president would be the biggest boost to our business ever as more people see the need to stay out of his cross-hairs. It’s only a matter of time before that $250,000 threshold is reduced, bringing in more and more victims of Obama confiscation to see us about using income smoothing strategies, such as C corps.
Interestingly, I have noticed that the creative team at Tax Coach Software realized this money making opportunity as well and have been adding more and more Obama defense warnings and strategies to their arsenal over the past several months, with new ones showing up constantly.
As always, the Dims have plenty of tricks, but very few treats for us capitalists...
Rangel explains his NAMT
Rush Limbaugh and Paul Shanklin had this clip of Charlie Rangel in yesterday’s show explaining his new tax plan, to eliminate the current Alternative Minimum Tax (AMT) and replace it with the No Alternative Maximum Tax (NAMT). He explains that this means “You make it and we take it. No alternatives.”
Progressive Tax Rates
Subject: Tax Question and Great Thanks!Let me first say Thank You for your taxguru.org site and your blog. I have been reading the material several times over to get it to sink. Of course, I am consulting my two knowledgeable colleagues and reading IRS doc/online resources to augment your articles.Currently I am an IT consultant but I want to be my own business and try to make my own fortune. The problem is, when I want to learn something new I attack it hard. This means I am in serious study mode right now. Okay , onto the question..:)QuestionI have a question regading the following verbiage taken from this link:"A C corporation has its own progressive tax rate structure, ranging from 15% on the first $50,000 of net income, to as much as 39%. My philosophy is to look at the overall tax picture for individuals and their companies by smoothing income over the personal (1040) and corporate (1120) tax returns. For 2000, a married couple's 15% tax bracket ends at $43,850 of taxable income. It then jumps to 28%, almost double the rate. However, if you consider that the couple's C corporation has its own $50,000 15% bracket, their overall combined 15% bracket has more than doubled to $93,850. That alone can save several thousands of dollars per year in income taxes."What is some good study material to get some practical examples for dividing my income from my business (when I start it) and my personal income to keep me in the lowest possible tax bracket for both?In regards to the very first sentence, why would the tax rate be "flexible" and range from15% to 39%? Why isn't a static figure? Where can I read more to understand this? Or did you mean that the maximumI actually have two more questions but on a different topic but I'll save that for a future correspondence if there is one. I sincerely appreciate any information/advice you can offer.Thank you,
One of the basic fundamental aspects of the income tax system in this country has long been the use of "progressive" tax rates, which penalize those who earn more money by taking a larger percentage of their income away from them. You can see the current tax rate schedules on my website:
If we had just one single flat tax rate, there wouldn't be as much opportunity for tax savings by the income smoothing strategies I mentioned on my website. Unfortunately, the pervasive "hate the rich" mentality in this country will never allow such a change.
Studying issues like this and discussing them with colleagues can only take you so far in understanding how to best maneuver within the tax system. You need to be working with an experienced professional tax advisor who can help you apply these and other strategies to your particular circumstances. There is no one size fits all solution to proper tax planning. What may be a good plan for a colleague could very well end up costing you a lot of needless additional taxes because such things as family members (spouses and kids) and personal likes and dislikes can have huge impacts on any tax saving plans.
Good luck. I hope this helps.
Tax Cuts caused bridge collapse?
The demagogues on the Left never bother to allow simple facts to get in the way of their anti-capitalist agenda. Blaming the Bush tax cuts for the collapse of the bridge is just one more example of how they conveniently ignore the very real fact that the lower tax rates promoted by Bush have resulted in record high tax revenues for all levels of government.
Here are some sample cartoons by leftist morons who want to make the Bush tax cuts appear to be the reason for the recent bridge collapse, as if without those cuts the bridge would be completely intact today.
(Click on images for full size)
Soaking the evil rich...
Dems grapple with ‘rich’ – A cornerstone of DemonRat tax policy has always been classic Marxism by sticking it to those folks that they declare to be the “evil rich.” This article is another illustration of how flexible that term is. As I’ve been describing for decades, there are literally dozens of penalties on the evil rich built into the tax system that each start at different levels of income, and more are obviously being planned. When the Clintons move back into the White House, we can at least be sure of seeing another new tax like their 1993 “millionaire surtax” that kicked in at taxable income of $250,000.
As destructive as such penalties on success are for the economy and capitalism in general, they will be great for those of us in the tax minimization profession as we help more clients use such techniques as income shifting and multiple entities to avoid these new attacks on their wealth.
There are never enough types of taxes to satisfy the DemonRats...
More attacks on capitalism by the DemonRats
DemonRats Seek Formula To Blunt AMT - In their typical Marxist fashion, their solution is to hit the evil rich with even more punitive taxes. Remember that, once accepted as a valid technique, the breaking point for when this surtax applies can always be lowered. The 10% millionaire surtax in the 1993 Clinton-Gore tax increase actually kicked in at $250,000; so the definition of evil rich is entirely flexible and subject to the whims of our crazy imperial rulers in DC.
Wesley Snipes Plays Race Card – The fact that he was an idiot to buy into an already disproven tax protestor scam has nothing to do with the IRS’s prosecution of him for tax fraud? Can you say “grasping at straws” on his way to the clink for being as much of a moron as Richard Hatch?
Hitlary's Tax Plans
Her recent Marxist rants leave no doubt as to the accuracy of this.
The Manchurian Candidate?