The Tax Update is in Red Oak, Iowa today for the seventh tour date for the Iowa State University Center for Agriculture and Taxation Farm and Urban Tax School. This is our first visit to Red Oak. From Wikipedia:
Red Oak is a city in and the county seat of Montgomery County, Iowa, United States, located along the East Nishnabotna River. The population was 5,742 in the 2010 census, a decline from the 6,197 population in the 2000 census.
The community has had a disproportionate number of casualties in the Civil War and World War II.
In the American Civil War, the area provided more Union troops per capita than any other in the state. Company M (which also included residents from Montgomery County had 160 casualties among its 250 members; 52 men were killed in action.
Early World War II battles claimed a disproportionate number of soldiers from Red Oak (although the final casualty statistics tend to disprove the oft-repeated statement that Red Oak suffered more losses per capita than any other American community). In the Battle of the Kasserine Pass in February 1943, forty-five soldiers from Red Oak alone were captured or killed. At the time more than 100 telegrams arrived in Red Oak saying that its soldiers were missing in action.
Here is the crowd:
I can confidently endorse the Red Oak coffee and donuts. Register now for the last session next Monday in Ames!
Eric Toder, The Coming AMT Debacle. (TaxVox) If Congress fails to pass an alternative minimum tax “patch,” the AMT is slated to rise drastically for 2012:
Overall, AMT liability will rise from $34 billion to $120 billion. Of that $86 billion increase, new AMT taxpayers will owe $64 billion—an average of about $2,250–while those currently on the tax will pay another $22 billion—an increase of about $5,500 each over the nearly $8,500 average they would pay with a patch.
If you suspect that a tax that affects 32 million households is not limited to the rich, you are right. It is true the enhanced AMT will hit upper middle-income taxpayers the hardest – 98 percent of those with adjusted gross income between $200,000 and $500,000 will pay an average of almost $11,000 in AMT on top of their regular tax liability.
With our political class, failure is always an option.
David Henderson, When Taxes are Cut, What Does Regressive Mean?:
The bottom line is this: Start with any system of progressive taxation, cut everyone’s taxes by the same percent, and you will have implemented, by their standard, a regressive tax cut.
Exactly. If you only tax rich people, any tax cut “disproportionately benefits the rich.”
Anthony Nitti, Here’s Your Update On The Fiscal Cliff Negotiations: Both Parties Agree That the Other Party’s Proposal Stinks. This time, they’re both right.
Paul Neiffer, Watch Your Timing On Year-End Gifts
Brian Strahle, D.C. Ruling Presents Franchise Tax Opportunity
Jack Townsend, I Should At Least Mention Stolen Identity Refund Fraud
To dream the impossible dream… Musical theater maven Robert D. Flach tilts at a windmill:
I have a dream that our elected officials in Washington can create a simple and fair Tax Code.I have a dream that our elected officials in Washington are really not just self-centered and self-absorbed idiots.
That’s right up there with my dream of winning the Triple Crown. As a horse.
No, we’ve been trying that for a long time here. Can tax on witch-doctors cure Swaziland’s fiscal pain? (Nanette Byrnes, Tax Break)
That’ll work: Alan Simpson goes ‘Gangnam Style’ in deficit reduction video effort (Kay Bell)
Sacre Bleu! Gerard Depardieu Leaves France After Tax Increases (Joseph Henchman, Tax Policy Blog)
Robert Goulder, Timeless Tax Policy & The Other Colbert (Tax.com)
It might someday help him clear the AGI floor for health cost deductions: Law Student Wins Krispy Kreme Doughnuts for a Year and Wonders: What Are the Tax Consequences? (Tax Prof)