Why so grumpy? Because it’s the first “official” day of tax season as the IRS begins processing returns. But only some of them. The last-minute Fiscal Cliff tax law is delaying the processing of many forms, delaying most business filings until “late February or into March.” They also have delayed processing of returns with education credits until sometime next month.
Oh, and the streets are a mess.
Taking your money to give to the well connected. From Taxing the Rich to Pay for Big Business Tax Credits by Veronique de Rugy:
Taking from the small businesses, giving to the big business with pull.
Wouldn’t it be wonderful if we could start with a blank slate and ask ourselves (as Iowans): Who is the smartest, most dependable, most thoughtful person we could send to an august body of decision-makers who are challenged with bringing wisdom and sobriety to the decision-making process of government?
Like somebody like that would stand a chance.
Why bother with a state corporate income tax? While state income taxes are a reliable source of work for people like me, they do surprisingly little for the states, according to a new report released by the Tax Foundation yesterday. Nationwide state corporate income taxes accounted for only 3% of 2010 state revenues. In Iowa, it’s even lower. Here are the revenue sources from Iowa and some nearby states:
The corporation income tax raises little revenue, is expensive to administer, is exploited by the well-connected and well lobbied, and is almost certainly a job-killer. Why not go for a low-rate, low-loophole system like The Tax Update’s Quick and Dirty Iowa Tax Reform Plan?
TaxProf, A Distributional Analysis of the Tax Systems in All 50 States, passing on a report from the Center on Budget and Policy Priorities says state tax systems are regressive. Keep this in mind:
If you only look at the distribution of taxes paid and ignore the value of services and cash payments received, you miss a lot.
Janet Novack, IRS Tips Won’t Protect You From Identity Theft Tax Fraud.
Jason Dinesen, An Obligatory 1099-K Post for 2013
Trish McIntire, Before You Sign. A timely reminder that you are responsible for what’s on your return, even when you use a paid preparer.
Patrick Temple-West, Mickelson and the sports star migration, and more (Tax Break)
William McBride, CRS: Tax Rates Do Matter for Profit Shifting (Tax Policy Blog)
Joseph Thorndike, The Income Tax Is Inquisitorial — Get Over It. (Tax.com) May he have a good National Research Project exam in his future.
Robert Goulder, French Budget Minister Caught In Tax Probe (Tax.com)
That wouldn’t take much. Payroll Tax Cuts May Boost the Economy More than You Think (Howard Gleckman, TaxVox)
Bad news, good news: The Twinkie is Dead! Long Live the Twinkie! (Megan McArdle).
News you can use. Tax Law Warning: Don’t Cut Mom a Rent Break (Jim Maule)