September 18, 2012 |
WASHINGTON -- Many of the people criticized by Republican presidential candidate Mitt Romney for not paying income taxes actually do pay taxes -- specifically the federal payroll tax, the independent Tax Policy Center said. And nearly half of those who do not pay federal income taxes are elderly, the group found in an analysis last year. About 46.4% of households paid no income tax in 2011, according to a breakdown by the center, a joint venture of the Urban Institute and the Brookings Institution.
December 13, 2011 |
Newt Gingrich's proposed tax plan would cut federal revenue by nearly $1.3 trillion, or 35%, according to an analysis by the nonpartisan Tax Policy Center. Much like Texas Gov. Rick Perry's plan, Gingrich proposes to let taxpayers choose if they want to calculate their tax using the current code, or a flat 15% rate. (Perry's plan gave the option of a 20% flat rate.) Because the plan allows taxpayers to choose how they want to calculate what they owe, nobody would be worse off. But, as was the case with Perry's plan, the idea that taxpayers would have to calculate their liability twice might turn some people off. The plan would do away with the Alternative Minimum Tax and most deductions and credits, but would keep deductions for mortgage interest and charitable gifts and the earned income, child and foreign tax credits.
January 2, 2013 |
Americans may be breathing a deep sigh of relief that Congress resolved the so-called fiscal cliff crisis for the time being - until they see their next pay stubs. That's because payroll taxes will increase on most workers after Congress decided not to reverse an expiration of a payroll tax cut - a development that was largely expected. Payroll taxes rose to 6.2% under the deal, from 4.2% last year. The nonpartisan Tax Policy Center estimates that 77% of Americans will see higher taxes because of the elimination of the payroll tax cut, meaning $115 billion less in disposable income.
August 14, 2012 |
In Washington, it's called the “magic asterisk,” the fudge factor that policymakers use to make recalcitrant numbers come out as desired. Such devices often surface during budget discussions, when a convenient bit of legerdemain, usually accompanied by a promise to fill in the details later, often can get a lawmaker past a politically difficult choice. Rep. Paul D. Ryan's budget plan includes a massive example . In his case, the asterisk covers the heart of his budget.
September 12, 2012 |
Help wealthy people dodge taxes. Go to prison. And cap it off by getting $104 million for ratting out your former clients to the IRS. In one of the largest whistle-blower cases in U.S. history, the federal government is paying that amount to a globe-trotting banker who once smuggled a client's diamonds in a toothpaste tube to avoid detection by tax authorities. The financier, Bradley Birkenfeld, later confessed his transgressions and helped the Internal Revenue Service nab thousands of Americans who had stashed money overseas to avoid paying taxes.
October 11, 2012 |
CORAL GABLES, Fla. -- President Obama cast the “new, latest version of Mitt Romney” as a salesman simply softening his image in an effort to close the deal with voters. After running in a Republican primary in which Romney called himself “severely conservative,” Obama said Thursday, “he's trying to convince you that he was severely kidding.” “He's trying to go through an extreme makeover,” Obama told a crowd in the basketball stadium at the University of Miami. As for analyses that estimate Romney's plans to cut taxes would cost close to $5 trillion, Obama said, the Republican nominee for president “just pretends it doesn't exist.” “'What $5-trillion tax cut?