Tax Roundup, 7/6/2012: Conserving public funds; worse things than lost deductions; undermining Obamacare

July 6th, 2012 by Joe Kristan

Taking care of public funds.  An Oregon woman was arrested yesterday for claiming (and receiving) a $2 million tax refund that she didn’t deserve.  While this is a serious crime, if the charges are true, it’s possible that the defendant may not be the worst steward of public funds out there:

TurboTax (I think it was probably Oregon – ed) issued a Visa debit card to Reyes with $2.1 million on it, and she spent more than $150,000 before her arrest, the statement says. Items she bought included a 1999 Dodge Caravan for $2,000 and $800 worth of tires and wheels for it.

A 1999 Caravan, and new tires?  Would a state agency ever be that thrifty?

Incomplete: House sales not enough; Kenny Stabler owes $265,000 to IRS (Al.com, Via Woodrow E. McNair)

The Real-World Middle Class Tax Rate: 75%“  (Charles Hugh Smith).  Some of this makes sense, but calling medical costs a “tax” loses me.  (Via Instapundit.)

Obamacare: Seven New Taxes on Citizens Earning Less than $250,000 (Robert Allen Bonelli, Breitbart.com, via Instapundit)

Obamacare’s New Taxes, And How You May Be Affected (Philip Dittmer, William McBride, Tax Policy Blog):

A week ago today, the Supreme Court ruled that Obamacare’s individual mandate is a legitimate use of Congress’ power to tax (see our response here). In the wake of the ruling, the House Committee on Ways and Means produced this useful chart (reproduced below), which outlines this and 20 other taxes comprised in the law. Collectively, these new revenue measures are expected to increase taxes/penalties by at least $800 billion over the next 10 years, according to the Joint Committee on Taxation (JCT). 

Follow the link to see the chart.

Will Enough People Enroll in Obamacare?  (Howard Gleckman, TaxVox).  If they don’t, Mr. Gleckman has a goat in mind:

I also suspect that some tea party-types may organize protests against the ACA—encouraging people to refuse to buy insurance or pay the tax. And imagine commercial products aimed at the same goal: “Learn the Secret of  Beating the Obamacare Tax. Send $29.95 now.”

Would such a movement drive enough people to reject insurance so prices for the rest of us would rise significantly? Probably not, but it is hard to know.

If they fail to enroll, it’s not because of the influence of the sinister Tea Partiers, any more than it is the fault of the Masons or the Illuminati.  They will fail to enroll for the same reasons that millions of people go without health insurance now — cost, hassle,  lack of perceived need, etc.  On top of that, the Obamacare rule against pre-existing condition policy restrictions will make it easier to go without insurance.  That way you can just wait until you are sick to go to the insurance company.  People don’t need the Tea Party to tell them that.  Then again, maybe this is Howard Gleckman’s coming out as a Tea Partier himself: “Bottom line: Notwithstanding the nutty Internet rumors that the IRS is hiring 20,000 revenue agents to collect the tax, most people who really want to game the system will probably get away with it.”

TaxProf: IRS Goes on ‘Hiring Frenzy’ After Supreme Court Ruling Upholding Affordable Care Act

Kay Bell: 12 midyear tax moves for 2012

Anthony Nitti, Tax Court: Third Party Loan to S Corporation Does Not Give Shareholder Debt Basis

Yes, it can. Worker Classification Issue Can Be Worse Than Disallowed Deductions (Peter Reilly)

News you can use: Canada Has Some Very Nice Farmland (Paul Neiffer)

 

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