Good intentions don’t always mean good results. That’s one of the lessons in Michael Schuyler’s post Evaluating the Growth Effect of the Earned Income Credit at the Tax Policy Blog:
The Tax Foundation study concluded that while the EIC raises the incomes f low-income workers, its net result is to reduce both national output and total hours worked. This result may seem surprising because the credit creates a strong incentive for workers with very low incomes who are within the EIC’s phase-in range to work more since each extra dollar of earnings brings a larger credit. Unfortunately, for the larger number of low-to-middle income workers who are within the EIC’s phase-out zone, the loss of benefits with rising earnings generates a powerful deterrent against additional work effort.
IRS, Disclosure Authorization and Electronic Account Resolution retirement delayed three weeks. It’s nice of them to delay making it harder for tax pros to resolve client problems.
In the early days of the Republic, many states got burned by canal-building schemes and other enterprises that well-connected corporations talked state governments into financing.
By the time the Iowa constitutions were written, in 1846 and 1857, people had become wary of states getting involved with corporations. Hence the restrictions such as those in the Iowa Constitution.
Today, the restrictions are easily gotten around, and the spirit of state-corporate separation expressed in the Constitution is ignored as government rushes into entanglements.
Politicians will sell their souls for a mess of ribbon cuttings and press releases.
Megan McArdle, Fixing the Mandate From Hell:
I’m kind of surprised to hear a lot of liberals agree that the 30-hour rule is bad policy, and even more surprised to hear that it would be easy to repeal or reform. In fact, while I opposed the law, I find it easy to see why they designed an employer mandate for all employers who worked more than 30 hours, and difficult to imagine how it could be reformed.
Welcome to the brave new world of 29-hour per week jobs.
Brian Strahle, FEAR AND UNCERTAINTY: ARE YOU PLAYING THE “WAIT AND SEE” GAME? “In the world of state taxes, companies are faced with vast amounts of
‘uncertainty’ when applying multiple state rules that lack conformity to their company’s situation.” I don’t think you need to qualify the uncertainty with scare quotes.
TaxProf, The IRS Scandal, Day 95
Peter Reilly, Windsor As A Precedent – Much More Than Taxes
Russ Fox, Once Again, Registration of a Tax Preparer Doesn’t Stop Him from Bad Behavior. Tax preparer regulation just gives the bad ones a government seal of approval.
Look on the bright side! AICPA to CPA Exam Candidates: Hey, at Least You Don’t Have Kidney Stones! (Going Concern)
Flushing out tax crime. Toilet attendant who kept £35,000 in loose change she made from tips faces tax evasion charges in Germany after investigators discover 1.4 tonne pile of coins in her garage (London Daily Mail).
It sounds like she was some sort of bathroom boss:
The website reported how the woman would drive to a number of toilets across the country in her Mercedes collecting the money.
Police started investigating the woman after she fell out with an employee.
Officers were called to one of the toilets after the pair started fighting but they later opened investigations into how the company was run after suspicions were raised.