Tax Roundup, 8/14/2012: Can the rich guy pick up the tab? Plus mugshot modeling!

August 14th, 2012 by Joe Kristan

Extending the Bush-era tax cuts another year would save the average Iowan $1,882, according to the Tax Policy Blog.

 

The rich guy isn’t buying, no matter which way you vote.  Erick Erickson (via Instapundit):

If Barack Obama gets his way and raises taxes on everyone making $250,000.00 a year or more, the amount of money he brings in will not close his own budget deficit.  Nevermind the national debt — he won’t close this year’s budget deficit.

In fact, if we… take 100% of all annual income of everyone making $250,000.00 a year or more, we still won’t close Barack Obama’s budget deficit.

Either the spending comes down or everybody’s taxes go up.  We can look abroad to see how it works.  Finland has an extensive welfare state and most years pays for it without budget deficits.  It does so with income taxes that reach a 2012 top rate of 29.75% at €70,301, which is about $57,021 at current exchange rates.  For a US taxpayer filing single, the 28% rate doesn’t start until taxable income reaches $85,651, and not up to $142,701 on joint returns.  On top of that, Finns pay a 23% Value-added tax on most purchases — a tax that is not tied to income.  But there’s more!  There is a mandatory 4.7% payroll tax on employee gross wages, plus another 18.3% “paid” by the employer — but that necessarily reduces what they can pay the employee after-tax.

If you want that big government, everybody pays big taxes. You can’t borrow forever, and politicians who say that we can solve our budget problems just by taxing the rich some more either are dishonest or bad at math.

 

Howard Gleckman, The Ryan Budget Plan May Be the New Centerpiece of Campaign 2012:

Even more controversy will come on the spending side, where Ryan has consistently proposed deep cuts in government programs: He’d slash Medicaid by $800 billion over 10 years, shift Medicare from a guaranteed insurance program to one where seniors get a government subsidy to buy their own coverage, and chop all other spending from about 13 percent of Gross Domestic Product to about 4 percent…

In a different world, Obama would present his own serious alternative deficit reduction plan, not just attack Ryan’s. If he did so, we might have the kind of fiscal debate so many of us hope for. But in the real world, Ryan’s ideas will be red meat.

 

Jason Dinesen posts the fourth installment of a client’s identity theft tax refund nightmare:

After a ridiculous amount of re-explaining everything I had told them at least three times before, the collections department agreed to place another 60-day hold on further collection actions against Wendy.

I was told — again — to call in 60 days and “update them on what’s going on.” And again, I was told to call before the 60 days were up if we heard anything from the identity theft unit.

Of course, the 60 days came and went with nothing happening.

Service — it’s in their name!

 

She’s probably allergic to kangaroos. Ukraine’s Tymoshenko refuses to attend tax trial: daughter (Chicago Tribune).  But that could never happen in the U.S, right?

TaxGrrrl, Hit Me With Your Best Shot: Tax Pro and Former IRS Agent Pleads Guilty to Hiring Hitman

Kay Bell,  Golden State lawmakers want to exclude medal winnings from state income tax

A Stupid — At Least Unfair — IRS OVDI/OVDP Trick; Denying Overpayment Credit for Barred Years (Jack Townsend).  The IRS is always looking for new ways to torment people with foot-fault violations of their obscure and largely pointless foreign account paperwork requirements.

Janet Novack: UBS Sues Billionaire Olenicoff In Offshore Tax Cheating Case.  Nobody likes to be betrayed.

Lauryn Hill Mugshot Released From Arrest For Tax Evasion (ibtimes.com):

In the picture, her hair is short-cropped and curly, and Hill is wearing a starched-looking white button-up with black pearl-shaped accouterments on the buttons, which are fastened all the way up and cover much of her neck behind a collar.

She also wears earrings, and the photo is may in fact be one of the best ever taken of an arrested celebrity, as she looks like she had some time to touch up her makeup before the mugshot was taken.

No matter how dire the circumstances, appearance counts!  She makes a much better appearance than, say, Randy Travis.

 

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