Christopher Bergin ponders our congresscritters:
The point is that you could set these folks pants on fire and they still wouldn’t get it. Our tax system is a mess, and we are heading into another recession (yes, I’m “doubling down” on that bet!). And these folks squabble like children.
The tax world is a microcosm of what is going on in Washington. Our political system is completely dysfunctional. Congress, when it manages to pay attention, is totally reactionary. Our lawmakers will do nothing but bicker until catastrophe hits. Bet on it.
But, sincerely, let’s all try to have a nice summer.
Maybe setting their pants on fire wouldn’t help, but it’s worth a try.
But Political Preening Season is. Middle Class Tax Cuts Not Extended (TaxGrrrl)
Jason Dinesen: Enrolled Agents – The Lichtenstein of the Tax World:
In terms of name recognition, EAs are far, far behind. We may outnumber attorneys but that doesn’t mean our name recognition is better than that of attorneys, and we are light years behind CPAs.
The IRS’s program to “professionalize” unenrolled preparers will help enrolled agents, with their stricter requirements, not at all.
No. Any more questions? Do Higher Education Tax Credits Make Sense? (Kim Reuben, TaxVox).
Unfortunately, we are flying blind in our efforts to reform these subsidies. There are limited data to help evaluate the effects of these programs, including recent expansions. We know little about what the grants and credits mean for students over time. A key question is whether either or both programs result in higher tuition.
The key answer is almost certainly yes.
California refund claim opportunity? A California court rules that California’s double-weighted sales factor apportionment factor is optional, reports Russ Fox. The traditional three-factor formula weighs payroll, property and sales equally. Extra weight on the sales factor punishes out-of-state corporations, which is why Iowa uses only sales. Brian Strahle has more. If the decision holds up, taxpayers may want to file amended California returns to use the traditional three-factor formula.
Got Drought? Roger McEowen explains the rules for deferring crop insurance and disaster payments for farmers.
So stop making it. Ethanol Makers are Getting Squeezed (Paul Neiffer)
Joining the rest of us: Senate, House Take Turns Hatin’ On One Another (Anthony Nitti)
Peter Pappas is posting again: Obamacare Will Cost Taxpayers $1 Trillion Over Next Ten Years
Tax Policy Blog has Updates to Bush Tax Cuts Calculator