Things that are due Monday:
– Second Quarter estimated tax payments.
Kyle Pomerleau, How Scandinavian Countries Pay for Their Government Spending (Tax Policy Blog). This post considers avowed Socialist and quixotic presidential candidate Bernie Sander’s affection for Scandinavian tax and spending policies:
Specifically, Sanders wants the United States to adopt a lot of the spending policies that many of the Scandinavian countries (Denmark, Norway, Sweden) are commonly known to have. Policies such as government sponsored college education, paid parental leave, and universal healthcare.
Many of these new government programs would be expensive and necessitate higher taxes. It is instructive to look at how Scandinavian countries structure their tax systems in order to raise revenue for these programs. Interestingly, some of the ways that Scandinavian countries raise revenue may make Sanders, who is a proponent of highly progressive taxation, uncomfortable.
Two charts from the post tell the story:
High top rates…
…that kick in at much lower income levels than here:
In words, somebody making just a little more than the average income in Denmark pays a 60.4% rate on every additional dollar of income, while you have to make 8.5 times the average U.S. income to hit the top U.S. marginal rate of 39.6%.
A high top tax rate sounds great when it’s being paid by some rich guy you don’t know, but when you pay it, it doesn’t soound so good. That’s the bait and switch behind the spending policies of Bernie Sanders and his ideological soulmates. They tell you that somebody else will pay for all of this bountiful government spending, but the rich guy isn’t buying — he can’t.
Leona May, Accounting Firms Need More Career Options If They Want to Retain Talent (Going Concern):
With partner being the only laudable end goal, no wonder the big accounting firms have become essentially an accounting industry training ground. Firms pay to train us, and then we jump ship after a few years if that shinin’ disco light partner standard does not jibe with our long-term career aspirations.
The failure to retain good employees who don’t want equity is an expensive failure for our industry.
Robert D. Flach says SEE YOUR TAX PRO FIRST! “Very, very important – if you are considering entering into a business enterprise visit your tax professional and your accountant (if not the same person or firm) before you visit your attorney.”
Hank Stern, Centennial State HIX Hiccups (InsureBl0g). On the ugly state of Colorado’s ACA exchange.
Robert Wood, IRS Still Isn’t Ready For Obamacare, Says Watchdog
Carl Smith, Is The Tax Court an Agency or a Court for FOIA Purposes? (Procedurally Taxing)
Kay Bell, NYC attorney pleads guilty to amended tax return fraud. If the tax agency asks you why you haven’t filed your tax returns, filing fraudulent ones is an unwise response.
Jack Townsend, The Vatican Signs On To FATCA
TaxProf, The IRS Scandal, Day 763. Today’s link puts the Tea Party scandal in its context as part of the larger movement to regulate (and, inevitably, restrict) free speech via campaign finance “reform.”
Renu Zaretsky, “The Waiting Is the Hardest [and Most Constant] Part” Today’s TaxVox headline roundup covers the IRS funding standoff and the continuing Kansas budget fight, among other things.
Cara Griffith, Are REITs Paying Their Fair Share to States? (Tax Analysts Bl0g)
Carl Davis, Sales-Tax-Free Purchases on Amazon Are a Thing of the Past for Most (Tax Justice Blog). “Effective June 1, Amazon is now collecting sales taxes in fully half the states that are collectively home to over 247 million people, or 77 percent of the country’s population.”
This could catch on a lot better than that Irwin Schiff stuff. Austrian Brothel Offering Free Sex And Drinks In Tax Protest