Well, that commute was fun.
They said we wouldn’t get snow. It hasn’t really stopped since 7 am yesterday.
Mr. Stewart is off the mark if he believes he has uncovered a myth. Besides the posturing of celebrities, no one claims that at the very moment someone whispers “tax increase” one thousand millionaires head to the border. What really happens is that these higher tax burdens cause wealth and income to flee to states and countries with lower burdens and higher economic growth over time. High-tax states such as Vermont, Michigan and Missouri have not been magnets for jobs over the long run. Look over at Europe, which is once again scaring investors. It is a continent with excellent climate, culture and an educated workforce, but its high taxes and spending have stalled population and economic growth for a decade or more. America will go that way if we continue down the same path, driving out investment, businesses, and jobs.
Over the years I have seen people move out of Iowa for tax reasons. Back in the 1980s, when Illinois was a low-tax state, I saw an S corporation owner pay for a fancy new house in East Dubuque in one year by the simple expedient of moving across the river from Dubuque. Tax isn’t always the decisive factor, but to say it’s not a factor at all ignores the most basic tenet of economics: incentives matter.
Their hopes are fulfilled. At least that second one. Wave the jazz hands and hope for the best-Politicians hope that voters are clueless about tax, writes Tim Harford
Richard Morrison, Happy Birthday to the Kennedy Tax Cuts (Tax Foundation)
Congress took up Johnson’s suggestion and passed what became the Revenue Act of 1964, which the President signed on February 26, 1964. The bill dropped the top marginal tax rate from 91% to 70% (and also reduced the corporate tax rate from 52% to 48%). In the wake of this reduction on high-earner households, federal revenue actually increased, rising from $94 billion in 1961 to $153 billion in 1968, an increase of 33 percent in real terms.
Clearly the old rates were on the far side of the Laffer Curve.
Jana Luttenegger, Unfortunate Reminder of the Need for Powers of Attorney (Davis Brown Tax Law Blog):
A recent news story in the Des Moines area covered a family looking for assistance to cover legal bills for a family member who is in a coma following a car accident. The family is unable to get access to bank accounts or insurance information, and unable to pay her bills (or even know what bills exist) as they come due. The only way for family members to get access to this information is to go through the court system and have the court appoint someone to take care of those matters.
This sort of planning isn’t just for rich people.
Paul Neiffer, How Step-Up In Basis Works. On the resetting of basis at date-of-death value when a farmer dies.
Jason Dinesen, A “Standard Deduction” for Sole Proprietors?
Kay Bell, Tax reform is job 1. Well, HR 1, anyway.
Jim Maule, Special Low Tax Rates Hurt the Economy and Thus the Nation. He doesn’t like low capital gain and dividend rates. How about this, professor: lower the top rate to 20% for all income, allow a corporation dividends-paid deduction, and I’m good with getting rid of a capital gain break. Otherwise you are double-taxing earnings, and to the extent gains result from inflation, you are collecting a tax on treading water.
Andrew Lundeen, Buffet Rule Still Not a Good Solution. (Tax Policy Blog) Never will be:
The low rates we sometimes see from wealthy individuals is because they derive much of their income from investments, which is double taxed anyway. A capital gain or dividend is first taxed at the corporate level, as a corporate profit, then at the shareholder level. The result is a combined average tax rate of 56.7 percent in the United States – higher than every developed country in the world except, France, Denmark, and Italy. This creates a huge disincentive to invest, ultimately slowing economic growth.
David Brunori, Capital Gains from Copenhagen to Bakersfield (Tax.com)
Patrick Temple-West, EU financial transactions tax to go global, and more. Bad idea, as this New York Times piece explains.
Howard Gleckman, What if the Outrage over Excessive Welfare Extended to the Tax Code? (TaxVox).
Me from earlier: Hoarders, wreckers and the Accumulated Earnings Tax. Will the administration use this tax law relic to force corporations to put their cash to work?
From yesterday: IRS issues 2013 vehicle depreciation limits
Mo’ Money might lead to Mo’ time in prison. Mo’ Money Taxes employee pleads guilty to fraud
In case you were wondering. 10 Ways To Become A Victim Of Tax Identity Theft (Janet Novack)
Tags: Andrew Lundeen, Buffett rule, David Brunori, Howard Gleckman, James B. Stewart, Jana Luttenegger, Janet Novack, Jason Dinesen, Kay Bell, Kyle Poerleau, maule, Patrick Temple-West, Paul Neiffer, Richard Morrison, tax crime, TaxGrrrl, Tim Harford