Chris Christie Wants A Tax Cut For His People

New Jersey governor proposes a new tax reduction plan

Chris Christie, New Jersey Governor is hitting the airwaves to sell his proposed 10 percent tax reduction for all taxpayers in New Jersey as well as for all U.S Taxpayers. Some see it as prep work before he launches his presidential bid for the 2016 elections.

Governor Christie has appeared on three radio shows and two talk shows with national coverage. The first-term governor portrayed himself as the chief architect of what he refers to as New Jersey’s comeback.

Appearing on Matt Lauer’s Today show on NBC, the host had a hard time remembering that the NJ governor was not yet running for white house.

During the show, he referred to Christie’s state of the State address as the State of the Union address, but he quickly corrected himself. While Democratic governors in New York, California and Illinois have hiked income tax rates for high-wage earners, Christie surprised America by proposing an across-the-board tax cut not only in his home state but also for the entire country.

His actions contradict those of his potential rival Andrew Cuomo, New York governor. Christie made sure he pointed out this fact in his speech.

Christie noted that the best way to compete in the current political climate was to have a different view of things.

Not only does he propose a cut in taxes, but also a cut in government spending.

Under his proposed plan, couples with taxable income of 600,000 per year would save around 4,000 dollars in 2012 taxes. A family with an income of 50,000 dollars would save around 80 dollars per year.

Tax Carnival Ecstasy – January 24, 2012

Welcome to the January 24, 2012 edition of Tax Carnival Ecstasy. In this edition we have DeWitt Dudley explaining how to Report Your Japanese/Foreign Inheritance. The Effective Tax Rate is Not As Simple As It Seems accoring to Patrick LaRue at 2010 Tax. Eva reports that there are Three Days Extra To File Taxes in 2012. And finally we have Robert Moore reporting that the IRS plans to Audit more taxpayers in 2011 than in previous years. Hope you enjoy the material, bookmark, share, tweet, like on Facebook and come back soon.

DeWitt Dudley presents Protecting The Owners and Stock In A Closely Held Corporationposted at Law Offices of Givner & Kaye, saying, “Operating a business in a closely held corporation can be an excellent way to protect the owner from problems with the business. If the business is adequately capitalized, then someone suing the business may not be able to “pierce the corporate veil” and get to the personal assets of the owner.”

DeWitt Dudley presents Reporting Your Japanese or Foreign Inheritance posted at Los Angeles Asset Protection, Estate Planning, Tax Planning Blog, saying, “For complex tax issues, do not settle, contact the Tax Law Experts at Givner & Kaye. We’re dedicated and aggressive. Contact us today. (310) 207-8008”

deductions

Patrick LaRue presents How to Choose Your IRA CD Investment posted at 2010 Tax, saying, “Many IRA account holders who want to increase their retirement funds in a risk free way look into certificate of deposits.”

tax law

Patrick LaRue presents Effective Tax Rate: Not As Simple As It Seems posted at2010 Tax, saying, “Mitt Romney recently expressed the belief that his effective tax rate is roughly 15 percent. Most people become incredulous upon hearing this claim.”

taxes

Mitt Romney at one of his presidential campaig...
Image via Wikipedia

Steve presents How to Avoid Meeting the Inheritance Tax Threshold posted at 2008 Taxes, saying, “Did you know that whenever anyone dies, the money and the property which is left to the beneficiaries are subject to an inheritance tax?”

Eva presents Three Days Extra To File Taxes in 2012 posted at Best Online Tax Software.

Tommy John presents The IRS is Making Immense High-Tech Strides posted at 2010Taxes, saying, “Electronic Filing Services Are Taxpayers’ First Choice!”

Robert Moore presents More IRS Audits Planned in 2012 posted at 2011 Taxes, saying, “Nobody likes being audited by the IRS, although the chances of being audited are now actually higher as there are more of them planned.”

tips

Rachel C. presents 10 Hidden Ways to Save Money on Auto Insurance posted at Auto Insurance Quotes, saying, “When it comes to saving money on car insurance, there are some things that you can control and some things that you can’t. You’re probably already aware of the importance of maintaining an excellent driving record and owning a reasonable vehicle in order to get low rates. There are several other special discounts floating around out there that aren’t often advertised. Familiarize yourself with the following list of special auto insurance discounts and mention them to your insurance company to see if you qualify.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

 

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Santorum Taxes And Tax Plan, A New Road Or Another Detour

Rich Santorum won the Iowa caucuses and has positioned himself as a front-runner. One candidate surges ahead and then dramatically drops down in the polls. The American voter appears uncertain when it comes to choosing a candidate for the GOP nomination. The Santorum 2012 taxes and overall tax plan require closer attention. The United States deficit and rising unemployment continue to be the hot topics in this race.

The Santorum tax plan it is estimated would cut taxes by one-trillion by 2015. A higher the deficit the will lower the value of the American dollar. He promises to cut taxes for individuals making forty-thousand or more a year. His plan would increase the overall spending power of the average American, by increasing their incomes by lowering their tax rates. His plan would create two tax brackets of ten percent and twenty percent. He would lower capital gains taxes to twelve percent from fifteen percent and increase the child exemption for individuals threefold. The biggest tax breaks would go to corporations that would pay around seventeen and a half percent, which is half of what they currently pay. Companies based in the United State would not be required to pay any taxes. This tax measure allegedly would encourage companies to invest in home based industries.

Santorum’s tax plan is designed to increase the nation’s economic growth, but it is based on systems that have not reduced the deficit or increased employment. Giving Companies substantial tax cuts and incentives has not reduced the deficit, or created more jobs. The nation deserves a better tax plan.

The Relationship Between Capital Gains And Economic Growth

Find Out whether or not lower taxes on capital gains promote economic growth.

Mitt Romney admitted on Tuesday that he pays less tax because most of his income is derived from his investments rather than from his wages. Investment incomes are only subjected to 15 percent withholding tax as opposed to the 35 percent tax rate that top employees pay. Romney’s concession reignited the debate as to whether the tax rate on capital gains should be that low.

Jared Bernstein is of the opinion that there is no clear way of showing that low taxes on capital gains promote investments. James Pethokoukis, on the other hand, claims that reduced tax on capital gains spur investment which create more jobs and improves the economy.

The last eight decades has seen a significant reduction of tax rate on investment income. The tax rate for this type of income was highest in 1977 at 39.9 percent. The prevailing rate is now just 15 percent. From these figures, it is clear that people still make investments regardless of the prevailing tax rate.

The New York Times also published an article about this very issue. Warren Buffet claimed that the prevailing tax rate does not make much difference for real investors. From the thousands of investors he has worked with in his long career, Buffet claims that investors never shied away from investing, even when the rates were highest in 1977.

Len Burman and Troy Kravitz of the Urban Institute have shown that over the last five decades, there hasn’t been any relationship between economic growth and tax rates on capital gains.

Tyler Cowen, an economist also has the same take on the issue. He claims that changes to the tax rate on capital gains usually affect investments that have already been made rather than new ones. Some people are of the opinion that a change in rates of taxes might increase 2012 taxes.

Simple Tips To Help You When Determining Your Filing Status

Eight Tips to Help You Determine Your Filing Status

Before you file your federal income tax returns, you must first determine you filing status. There are 5 filing statuses: Married Filing Jointly, Single, Married Filing Separately, Qualifying Widow or Widower with Dependent Child and Head of Household. Your filing status is normally used to determine your standard deductions, filing requirements, eligibility for certain deductions and credits. It also helps in computing correct taxes.

It is important to note that some people may have more than one status. The following are 8 tips to help you when filing your returns. These tips will help you determine your status according to IRS regulations.

Your marital status for the entire year is determined by your marital status on the final day of the tax year.

If you qualify for several filing statuses, choose the one with the lowest tax obligation.

Single filing status applies to you if you are divorced, unmarried or legally separated.

The filing status for married couples is Married Filing Jointly.

If your spouse passed away during the year, you can still use Married Filing Jointly as your filing status for that year.

A married couple might use Married Filing Separately as their individual filing statuses when filing their returns individually.

If your spouse died during the tax year and left you with children who still depend on you, you can choose Qualifying Widow or Widower with Dependent Child provided you did not remarry during the same year.

There is a lot of information regarding tax return filing that the average taxpayer may not know about. For more information about filing your federal return, visit www.irs.gov.

The Effects Of Budget Cuts In The IRS

Budget Cuts Have Affected The Performance Of The I.R.S., Report Claims

Due to budget cuts and an ever increasing workload, the IRS is unable to carry out its primary duty of tax collection effectively. This is according to a report in Wednesday’s issue of the Internal Monitor, a publication of the IRS.

Budget cuts have led to staff reductions causing a huge backlog of work. Hundreds of billions of dollars in taxes are not being collected every year because of these changes. This is what the taxpayer advocate, Nina Olson claims in her report to Congress.

In order to discharge its mandate more effectively, the IRS has come up with a number of automated software to enable taxpayers file their returns without having to deal with costly audits.

A study showed that even when taxpayers file their returns correctly using the software, their refunds took too long to process.

Ms. Nelson claims that the due to budget cuts, the agency has resorted to using short cuts that undermine the rights of taxpayers. She now wants the agency’s budget to be increased and the tax code streamlined to make it easy for the average taxpayer to understand.

On the other hand, senior officials at the agency claim that while budget cuts might have reduced service quality, the tax collection system remained fair and balanced.

A senior official at the agency refuted claims that there is a link between erosion of taxpayer rights and the challenging budget environment as baseless and inaccurate.

The report came at a time when the mandate of the IRS has been extended to oversee the health care scheme proposed by the President and Congressional Democrats.