A Flat Tax, You Say?

Senator Specter’s “Flat Tax” Cuts Taxes for the Richest 5% and Raises Taxes for Everyone Else. (From Citizens for Tax Justice)

Owen S. Arnoff, Enrolled Agent
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http://www.betterbusinessventures.com
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Now, it's the Amazon Tax !

California looks to raise revenue as the budget woes continue.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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Threats Against IRS Employees Are on the Rise ...

... and the agency charged with protecting them says so.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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IRS Audit Figures Are In ...

...and they're up!

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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Now tell us how you REALLY feel about the IRS?

This is a really interesting survey from the IRS Oversight Board. Yes it really is interesting.

85% of respondents said that paid tax professionals were either very valuable or somewhat valuable as a source for tax advice. Higher than IRS representatives, the IRS web site, IRS printed publications, family, friends or any other source.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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If You're a Small Business in California ...

... the Board of Equalization has a message for you.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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The Dreaded Unemployment Tax ...

...is hitting small businesses hard when they can least afford it.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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Thinking About Making a Frivolous Argument to the IRS?

Think again.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
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The Battle of the Budget

The President's budget was just submitted. For those interested in the effect on your taxes ...

• The 2001 and 2003 Bush tax cuts are scheduled to expire by 2011. Under this provision the top two individual income tax rates would revert to where they were in 2001, before passage of the Bush tax cuts. The 33% bracket would become 36% and the 35% bracket would rise to 39.6%. In addition, the long-term capital gains tax rate for these higher earners would increase to 20% (up from 15% currently). The provision would also reinstate so-called PEP and Pease phaseouts for high-income households, essentially reducing their eligibility for a raft of personal exemptions.

• Itemized deductions. A cap at 28% at which high-income households can itemize deductions.

• Estate taxes. The budget assumes the estate tax (currently repealed) will be made permanent at a $3.5 million exemption level per person and a top rate of 45% on taxable estates. While it is much more generous than the repealed law (providing for a $1 million exemption level and a 55% top rate starting in 2011), it is much less generous than a proposal getting bipartisan support in the Senate. The Senate proposal offers a $5 million exemption level per person and a top rate of 35%. Early rumblings this year point to the likelihood of the Senate enacting estate tax reform that will apply retroactively to January 1, 2010.

• There are currently capital gains tax breaks in place for investors in small businesses, defined as companies with gross assets of $50 million or less. The proposal is to eliminate the capital gains tax altogether on stock in small businesses held for at least five years. The proposed measure, however, would only apply to stock acquired after Feb. 17, 2009.

• The budget assumes all the 2001 and 2003 tax cuts will be made permanent for everyone making less than $200,000 ($250,000 for couples). Given that this range of income defines most Americans, today's rates on income tax, capital gains and dividends would remain the same for most filers.

• The administration assumes in the budget that Congress will permanently change the parameters of the AMT. This change, if adopted, would shield tens of millions of middle-income families from having to pay the tax, which was originally intended only for the highest earners.

• The budget calls for a one-year extension of the Making Work Pay tax credit created in last year’s stimulus bill.

• The stimulus package temporarily expanded the Earned Income Tax Credit for very low-income families with three or more children. The proposed makes that increase permanent.

• Under the budget, families making less than $85,000 would be able to claim nearly double the child and dependent care tax credit for which they currently qualify.

Well, that about does it.

Owen S. Arnoff, Enrolled Agent
Admitted to Practice Before the Internal Revenue Service
http://www.betterbusinessventures.com
Sacramento Tax Consulting
Sacramento Tax Preparation
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