Posts Tagged ‘Ilya Somin’

Tax Roundup, 3/16/16: Coupling heads to the Governor. And: Trainwrecks, brackets, and that dreaded DNA!

Wednesday, March 16th, 2016 by Joe Kristan

coupling20160213Almost Coupled. Both houses of the Iowa General Assembly passed the bill to couple the Iowa tax law to federal tax law for 2015, with the exception of bonus depreciation (HF 2433). The House of Representatives vote was overwhelming, and the Senate was unanimous.

The debates before the votes featured complaints about how school funding is suffering because businesses get the same Section 179 deduction on their Iowa returns as on their federal returns. Yet not one school-funder mentioned any other ideas about finding additional $97.6 million funding lost to the Fiscal 2016 budget. For example:

Iowa credits fy 2017

So apparently school kids are important, but less so than, say, the Geothermal Heat Pump tax credit. (Related: What Iowa considers more important than Sec. 179.)

The bill also repeals the manufacturing supplies sales tax rule set forth by the Department of Revenue that was set to take effect in July. It replaced it with the manufacturing supplies tax exemption passed by the house in 2014, only to die in the Iowa Senate.

In addition to Section 179 coupling, the bill also allows on Iowa 1040s a number of other provisions enacted by Congress in December, including:

Exclusion for IRA contributions to charity
Exclusion of gain from qualified small business stock
Basis adjustment for S corporation charitable contributions
Built-in gain tax five-year recognition period
$250 above-the-line educator expense deduction
Exclusion of home mortgage debt forgiveness
Qualified tuition deduction
Optional sales tax deduction
Conservation easement deductions
Deduction for food inventory contributions

The Des Moines Register coverage of yesterday’s votes makes it appear that the Governor is on board, though he hasn’t said so in so many words. It quotes spokesman Ben Hammes:

“As the chief executive, it is the governor’s job to look at how this bill fits into the bigger budget picture and how it will impact jobs and Iowa taxpayers and he will review it accordingly. The governor is pleased that the Legislature was able to come together and find resolution on these key issues,” Hammes said.

So he doesn’t exactly say he’ll sign. I think he will, but I will feel better when he does.

Unfortunately, the bill only applies to 2015, so we have to do it all again next year.

 

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Hank Stern, More (bad) trainwreck news (InsureBlog):

As we mentioned at the end of January, Open Enrollment v3.0 was pretty much doomed from the start:

“About 6 million people have signed up for health coverage that will take effect on Jan. 1 in the states that use the [404Care].gov enrollment.”

That was way off the (implausibly) predicted 21 million anticipated to sign up. But it’s also only part of the story…

It’s not affordable, and they don’t care.

 

Mitch Maahs, Tax Brackets: Revisiting the Tax on Gambling Winnings just in Time for the NCAA Tourney (Davis Brown Tax Law Blog). “Note however that losses may only be deducted to offset gambling winnings, and are only deductible up to the amount of winnings for the year.”

William Perez, New Rules for Deducting Repairs and Maintenance. “The IRS increased the threshold for deducting repairs and maintenance expenses under the safe harbor election from $500 to $2,500.”

TaxGrrrl, FBAR, FATCA Filings Top 1 Million As IRS Increases Scrutiny On Foreign Accounts. “The penalties for noncompliance may, under the law, result in civil penalties, criminal penalties or both: the list of potential penalties that may apply is distressingly long. It’s all very draconian but it’s also very real.”

 

Jack Townsend, Tax Court Holds FBAR Penalty Collected Is Not in the $2,000,000 Threshold for Whistleblower Award under § 7623(b)

Jason Dinesen, What is a 501(c)(3) and What’s the Big Deal? “First of all, the terms not-for-profit and tax-exempt are not interchangeable.”

A. Levar Taylor, Update On The “Late Return” Dischargeability Litigation: 9th Circuit To Hold Oral Argument in Smith Case (Procedurally Taxing)

Robert Wood, What To Provide When IRS Requests Documents

 

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Caleb Newquist, That Time One of Donald Trump’s Companies Got in Trouble for Reporting Ludicrously Deceptive Non-GAAP Results (Going Concern).

TaxProf, The IRS Scandal, Day 1042. Timely thoughts of what happens when the power to abuse taxpayers goes to a new abuser-in-chief.

David Brunori, Immigrants Continue to Be Good for Us (Tax Analysts Blog). “In a report, the Institute on Taxation and Economic Policy says immigrants who entered the country illegally paid roughly $11.6 billion in state and local taxes in 2013.”

Renu Zaretsky, Budget Battles Continue. Today’s TaxVox headline roundup covers federal proposed budget and Pennsylvania’s no budget, among other news.

 

If you are perplexed by voter choices this year, this may help explain things. 80% of Americans Support Mandatory Labels on “Food Containing DNA” (Ilya Somin)

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Is it a tax? Is it a floor wax? Is it a dessert topping?

Tuesday, March 27th, 2012 by Joe Kristan

The Supreme Court yesterday pondered whether the penalties for not buying insurance under Obamacare are a “tax” for purposes of whether the lawsuits against it can proceed.  The Supremes don’t seem to think so.  Coverage:

Tax Prof

Tax Policy Blog

Anthony Nitti

Althouse

Ilya Somin

Opponents of the law have to run the table to prevent the tax increases in the law from taking effect in 2014 – most noticeably a 3.8% tax on most investment income.  They have to both have the mandate ruled unconstitutional and they have to get the court to decide that it isn’t “severable” from the rest of the legislation.  Arguments resume today.

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