Tax Roundup, 11/26/13: If they can spend your money better than you, by all means write them a check. And more!

November 26th, 2013 by Joe Kristan

20130117-1I really wasn’t baiting anybody when I asked Would you trust a state legislator to spend your $54?   but Des Moines Register columnist Rekha Basu bit anyway with $54 refund would do us more good if state kept it.  This is classic (my emphasis):

Your 54 bucks might get you a dinner out, a pair of jeans, a couple of sideline tickets to a Hawkeyes football game, or some fancy bottles of wine. But consider what it could have done for the state.  The budget for fixing roads and bridges falls $215 million short of need every year. That especially riles state Sen. Joe Bolkcom, who chairs the Senate’s Ways and Means Committee. Not only could our little refunds take care of critical infrastructure repairs, but they’d create jobs in the process, points out the Iowa City senator.

You don’t matter; the state does. You’d just squander your money, but the all-wise state would unerringly direct your money to where it is most needed for the greatest good.  Just like Joe Bolkcom did when he voted for the Iowa Film Tax Credit Program, which gave tens of millions of taxpayer dollars to grifters and Hollywood sharpies before it collapsed in scandal and disgrace — but not before Rekha Basu could sing its praises:

But some benefits can’t just be measured on a dollar-for-dollar basis. The movies provide employment to local actors, construction crews, artists, caterers, drivers and a host of others. They expose non-Iowans to what the state has to offer. More intangible is the benefit of interactions in a state that can be cut off from the trends and centers of power. Not to mention the excitement factor. We’ve relied on caucuses every four years to bring action and celebrities to town. Now, sightings are anytime, any place.

 Saturday, “The Experiment” had a wrap party downtown. Brody and Whitaker were there, mingling and posing for pictures. Frank Meeink was there. The Iowan who may have inspired the 1998 “American History X” has an acting role. Deb Cosgrove, the nurse, was there. She’s been tending to the medical needs of the film’s luminaries. Casey Gradischnig, local multi-media designer, was there. He’s been working for Whitaker.

Yes, this is the sort of critical infrastructure that we should be trusting our wise leaders to fund on our behalf, so we don’t blow it on football games or bottles of wine, or groceries or medicine — all of which “creates jobs” just as much as money given by politicians to well-connected contractors or filmmakers.

Ms. Basu says she is “tempted” to return her $54.  Talk is cheap.  If she really thinks the state can spend her money better than she can, she can write a check to “Treasurer, State of Iowa,”  mark it as a donation to the state, and send it to the Department of Revenue, Attn: Courtney Kay-Decker, 1305 E. Walnut, Des Moines IA 50319.   Otherwise, she reveals that she doesn’t really trust the state to spend “her” money;  only other peoples’ money.

 

William Perez,  Strategies for Reducing the Net Investment Income Tax.  “Planning strategies for the NIIT focuses on managing adjusted gross income, managing investment income or managing both.”

I would add that many strategies that might otherwise be unwise because of Alternative Minimum Tax, like prepaying state income taxes on big capital gains, become helpful in dealing with the net investment income tax.

 

I’ve seen niftier.  Nifty Scheme Lands Five at ClubFed (Russ Fox)

 

nfl logoJeremy Scott, The NFL Is Tax-Exempt? Yes, But . . . . (Tax Analysts Blog):

Removing the league’s tax exemption would be a largely symbolic move that would raise little revenue and wouldn’t change much about how the league does business. Far more significant would be increased debate and transparency over publicly financed stadium construction and the tax favors that are doled out to keep teams from moving…

The teams themselves are taxed, and that’s where the real money is.

 

Brian Strahle, MARKET-BASED SOURCING GOES INCOGNITO:

The trend toward market-based sourcing of revenue from services has been increasing over the past several years. Some states have adopted market-based sourcing by enacting legislation, and others have imposed it by interpreting their statutes and regulations to allow it.

Legislators looove taxing non-voters.

 

Stephen Olson, Summary Opinions for 11/22/2013 (Procedurally Taxing).

TaxGrrrl, Chrysler Slows But Doesn’t Put Brakes On IPO Amid Questions Over Taxes 

Peter Reilly, Decision On Clergy Housing Tax Break Evokes Memory Of JFK .  Not a connection I would have made.

Kay Bell, Religious housing tax break deemed unconstitutional

 

Elizabeth Malm, Richard Borean, Monday Map: Adjustment of State Income Tax Brackets for Inflation (Tax Policy Blog)

20131126-1

 

Clint Stretch, Max Baucus and the Stamp Tax (Tax Analysts Blog).  I don’t think Sen. Baucus was around for the Stamp Act of 1765, but I’m not so sure about Sen. Grassley.

 

TaxProf, The IRS Scandal, Day 201

 

Tuesday is Buzz-day at Robert D. Flach’s place!

One of these things is not like the others?  Tax Simplification, Male Prostitution, and Mormon Thrift Stores (Going Concern)

 

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