You’ve had your calendar’s marked for a long time, and here it is: Iowa’s annual sales tax holiday is tomorrow and Saturday. From the Iowa Department of Revenue:
If you sell clothing or footwear in the State of Iowa, this law may impact your business.
- Exemption period: from 12:01 a.m., August 1, 2014, through midnight, August 2, 2014.
- No sales tax, including local option sales tax, will be collected on sales of an article of clothing or footwear having a selling price less than $100.00.
- The exemption does not apply in any way to the price of an item selling for $100.00 or more
- The exemption applies to each article priced under $100.00 regardless of how many items are sold on the same invoice to a customer
- any article of wearing apparel and typical footwear intended to be worn on or about the human body.
“Clothing” does not include…
- watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, roller blades, skates, and any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
Stylish tax-savvy shoppers can combine holidays across states. For example, you can pick up a cute new outfit in Iowa this weekend and wear it to Louisiana for their September firearms tax holiday.
Joseph Henchman, Sales Tax Holidays: Politically Expedient but Poor Tax Policy
Robert D. Flach has some sound ADVICE FOR A NEW GRADUATE STARTING OUT IN HIS/HER FIRST FULL-TIME JOB. One nice bit: “If you have any cash from graduation gifts left over open a ROTH IRA account and use this money to fund your 2014 contribution.”
Jason Dinesen makes it easy to follow his excellent series on one client’s ID theft saga: Find All of My Identity Theft Blog Posts in One Location.
The increase in public spending for pensions has impacted the ability of our state and local governments in Iowa to pay for other services. The result is a decline in the quality of public services and an increase in property taxes. For example, all Des Moines libraries have closed an additional day each week just to help cover the cost of police and fire pensions. Urbandale is raising property taxes. Some have questioned whether it’s worth the substantial public cost to pay such a generous benefit to so few individuals. Police and firefighters in our largest 49 cities can retire at age 55, and receive 82 percent of their highest salary each year for the remainder of their lives. Almost all of the retirees in this system will have a higher standard of living post-retirement than they did during their highest earning years.
This is true even though Iowa’s public-sector pensions are better-funded than those in many other states. The problem won’t be fixed until public employees go on the same defined contribution model as the rest of us — you get paid the amount that has been funded. Defined benefit plans are a lie – to the taxpayers about what current public services cost, or to the employees about what they can expect as pension income, or to both.
Paul Neiffer, Another Cattle Tax Shelter Bites the Dust:
Essentially, Mr. Gardner would issue a promissory note to these entities for the purchase of cattle and/or operating expenses and equipment. The promissory notes totaled more than a $1 million, however, it appears that Mr. Gardner effectively paid less than $100,000 on any of these promissory notes. Also, in almost all cases, Mr. Gardner defaulted on all notes and no collection efforts were made to collect.
This is almost quaint. When I first started working in the 1980s, I saw a few shelters like this. A cow worth, say, $2,000 would be sold for $50,000, $2,000 down and the rest on a “note” that would never be collected — but the “farmer” would depreciate $50,000, rather than $2,000. I’m a little surprised it still going on, considering the at-risk rules, passive loss rules, and hobby loss rules against this sort of thing.
Jim Maule’s “Tax Myths” series includes “Children Do Not Pay Tax.” He notes “A child of any age, with gross income exceeding whatever standard deduction is available, has federal income tax liability.”
TaxProf, The IRS Scandal, Day 448. Read this and tell me again how the Tea Party targeting was just a non-partisan, unbiased attempt to clear a backlog of application that was driven by low-level functionaries in Cincinnati.
Jack Townsend notes UBS Continuing Woes, Including Settlement with Germany
Cara Griffith, Access to Public Records Isn’t a Fundamental Right – But It Should Be (Tax Analysts Blog). But bureaucrats everywhere prefer to work without witnesses.
Leslie Book, The Tax Law, EITC and Modern Families: A Bad Mix (Procedurally Taxing). “I read a summary Tax Court case from a few weeks ago that reminds me that the tax laws in general– and the EITC and Child Tax Credit rules in particular– can sometimes lead to unfair results, especially in light of the complicated and at times messy modern family lives.”
Len Burman, What Ronald Reagan Didn’t Say About the EITC (TaxVox). I bet he didn’t say it was a floor wax or a dessert topping, either.
Peter Reilly, Obamacare Upheld Against Another Challenge – Court Rules Against Sissel. The origination clause argument was never more than a forlorn hope.
Lyman Stone, Kentucky Considers Tax Rebate for Creationist Theme Park (Tax Policy Blog). Considering how many legislators think they can play God with state economies by means of tax credits, this has a sort of perverse logic going for it.
Adrienne Gonzalez, PwC Report Declares a Future Free From Nine-to-Five Work (Going Concern). When I worked at PriceWaterhouse, a PwC predecessor, they were already free from nine-to-five work. Nine-to-five would have been wimp work for a Sunday.