Posts Tagged ‘Curt Schilling’

Tax Roundup, 4/26/2013: The Earned Income Credit elephant in the room.

Friday, April 26th, 2013 by Joe Kristan
The Ultimate Swiss Army Knife. Flickr Image courtesy redjar under Creative Commons license.

The Ultimate Swiss Army Knife. Flickr Image courtesy redjar under Creative Commons license.

Christopher Bergin, Dilemma – The Earned Income Tax Credit (Tax.com).  An excellent summary of the problems with the tax law’s biggest welfare program:

Our politicians have tried to do too much through the tax law. And that has created a complicated mess of winners and losers that makes the task of trying to reform it, even to some level of sensible, a daunting one.The poster child for this mess is the Earned Income Tax Credit. Like it or not, the EITC is welfare administered through the tax system. Do we really want our tax system to do that?

The tax law works best if it is seen solely as a tool to finance the government.  Much of its hideous complexity comes from using it is the Swiss Army Knife of public policy.  As you add more gadgets it becomes less useful at being a knife.

Mr. Bergin isn’t afraid to mention the elephant in the room:

And there is another huge problem. The EITC program leaks like a sieve. More bluntly and honestly stated, well-intentioned as it may be, the EITC has been corrupted. Don’t take my word for it. Recently, the Treasury Inspector General for Tax Administration released a report stating that up to one-quarter of EITC payments made in fiscal 2012 were improper. How much does that represent? Try $13.6 billion. In one year. Using a ten-year budget window, that’s $136 billion, and that’s just the tainted stuff.

Supporters say the EITC is a program that “works.”  Can you say that something “works” when it sprays billions to thieves every year?

Read the whole thing.

 

Fairness:

 But the compliance costs imposed by the Marketplace Fairness Act would place smaller upstarts at a distinct disadvantage, which is, I suspect, one reason that market incumbents such as Amazon support the tax. The real cost of taxes is not the revenue out the door to the taxman; it’s the revenue out to the door to the taxman plus all of the costs involved in complying with the tax code.

- Kevin Williamson, via Instapundit

 

Megan McArdle draws  Lessons from Curt Schilling’s Failed Business.  I would add one more: states shouldn’t finance private businesses.  Iowa hasn’t gotten the memo.

Peter Reilly,  How 38 Studios LLC Turned A CPA Into A Warrior

 

Paul Neiffer,  What About Those 1099s?!

Kay Bell,  Sony deal could help singer Lauryn Hill pay delinquent tax bill

Me: But how can we slap money launderers on the wrist if we don’t throw the book at widows?

Phil Hodgen,  How to Compute Net Tax Liability for Form 8854

Patrick Temple-West,  UK’s Cameron fights tax evasion, and more

TaxGrrrl,  H&R Block Offers Apology, Cash To Make Up For Filing Snafu

Howard Gleckman,  Will the Retirement of Max Baucus Open the Door to Tax Reform?

 

Jim Maule, When Taxes Are Cheaper:

And perhaps the short-sightedness and narrow-mindedness is compounded by  the “freedom” mentality that has taken such a hold in modern culture

Yes, let’s all get on board with the new hip “docile submission” mentality.  Because the government knows best!

David Cay Johnston,  Taxpayers Subsidize Rich Anti-Taxers (Tax.com).  Speaking up against the ALEC bogeyman.

 

It’s Friday, you aren’t being productive anyway.  Let’s Play a Game of Accountant/Not an Accountant! (Going Concern)

 

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Tax Roundup, 7/24/2012: Why should death be simple? Film trial starts; did corporate welfare doom Curt Schilling?

Tuesday, July 24th, 2012 by Joe Kristan

Because why would they do something simple and sensible?  Tax Analysts reports ($link):

Practitioners should not expect a simplified estate tax return for electing portability, said James Hogan, branch 4 chief, IRS Office of Associate Chief Counsel (Passthroughs and Special Industries), on July 23.

The current estate tax law, which expires at year-end absent Congressional action, allows a surviving spouse to use a deceased spouse’s unused lifetime estate tax exemption — but only if an estate tax return is filed electing the carryforward for the deceased spouse’s estate.  In many cases neither spouse will owe estate tax, but there’s always the chance that the widow will win the lottery, so executors are filing a lot of these otherwise unneeded estate tax returns in self-defense.   It looks like that silly state of affairs will continue.

Casting Call.   Attorneys interview prospective jurors in Iowa film tax credit trial (Rod Boshart, QCTimes.com).  The report says the trial is expected to take about two weeks, with the panel to be seated today.  The charges against film-credit broker Chad Witter can be found here.

What happens when non-taxpayers run the show (Tax Foundation):

 Killed by corporate welfare?  An interesting item via Going Concern about Curt Schilling’s ill-fated video game venture:

Desperate to gain outside funding, Schilling used his fame to gain meetings with investors “practically every week for the company’s first three or four years.” But no one bought in, scared off by the company’s amateurish business plan and lack of experience. So when Rhode Island came calling with a sweetheart business development loan, 38 Studios jumped at the chance—even if it meant opening up a new office and hiring more employees, which hastened its demise.

If a business plan is any good, it will probably find funding without government help.  If it needs government help, it probably isn’t a great idea to start with.

No, the government doesn’t really have a big pot of cash waiting for you to claim it.  Two more taxpayers have pleaded guilty for their involvement in a Missouri-based scheme to claim $100 million in fraudulent refunds under the “1099-OID” scam.

Overruled.  Las Vegas Lawyer Pleads Guilty to Tax Evasion (USDOJ)

Steve Sink explains why rising tax rates may make this the year to sell your business (IowaBiz.com).

Peter Reilly: Romney’s Olympic Horse Not Jumping Through The Last Hoop Of Deductibility

Eh? Is the American Girl Really (Gasp) Canadian? (TaxGrrrl)

Firms Pass Up Tax Breaks Due to Hassles and Costs (Paul Neiffer). The elaborate “targeting” of tax breaks often misses the mark.

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Tax Roundup, 5/17/2012: Athletic welfare queen edition

Thursday, May 17th, 2012 by Joe Kristan

From Minnesota to the Gulf, Corporate welfare for wealthy athletes and wealthier team owners flows like a big muddy river.  The Tax Policy Blog passes on the bad news for the taxpayers who are picking up the tab:

A new sports facility has an extremely small (perhaps even negative) effect on overall economic activity and employment. No recent facility appears to have earned anything approaching a reasonable return on investment. No recent facility has been self-financing in terms of its impact on net tax revenues. Regardless of whether the unit of analysis is a local neighborhood, a city, or an entire metropolitan area, the economic benefits of sports facilities are de minimus.

But, but… the Vikings!

Do corporate welfare queens wear bloody socks? Rhode Island has invested $75 million in a video game company started by Curt Schilling. It’s starting to get ugly. (Hat tip: alert reader Brendan).

David Brunori ponders taxes on “violent” video games:

Do violent video games make people more likely to commit crimes? Supporters pointed to a real-life cop killer who was known to play Grand Theft Auto — in 2003. The real Nazis (not the zombies) committed the most horrific acts known to mankind without once watching a violent video game. Perhaps World War II wouldn’t have occurred if we had taxed Mein Kampf?

Unless the characters somehow emerge from the screen and start shooting up the house, it’s hard to see how something that happens only on a computer screen is “violent.”

TaxProf: Tax Savings From Facebook Co-Founder’s Renunciation of U.S. Citizenship: $67 Million

Jack Townsend: Renunciation of U.S. Citizenship to Save U.S. Tax

What’s your all-in cost of government? The AICPA has posted an online calculator to estimate your total liability for federal, state and local taxes. It’s easy to use, and the results are sobering. 

You negotiated a debt workout? The IRS may be glad to hear that. My newest post at IowaBiz.com, the Des Moines Business Record’s group blog for entrepreneurs.

Kay Bell: Tax record keeping tips and the statute of limitations on IRS audits

Adding insult to fatal injury: Deputies: Jailed murder suspect tries tax fraud with victim’s ID (TBO.com, Tampa)

Anthony Nitti: Bobby From Birmingham Does Little to Further the Cause of the Persecuted CPA

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