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.
December 7, 2005 |
The tax-cut debate in Congress resumes today as a contest between the merely rich and the super-rich. Congressional leaders are working on a way to make winners out of both. The Senate has passed a bill that, in the most costly of its many provisions, would include one more year of relief from the alternative minimum tax, which was added to the tax code in 1969 to prevent the wealthy from sheltering most of their income.
January 5, 2012 |
Mitt Romney's proposed tax plan would slash federal revenue and deliver a substantial tax cut to the wealthiest Americans, according to a new analysis by the nonpartisan Tax Policy Center. Romney, the former Massachusetts governor and leading contender for the GOP presidential nomination, proposes to make permanent the George W. Bush-era tax cuts; slice the corporate income tax rate from 35% to 25%; repeal the federal estate tax and do away with taxes on long-term capital gains, dividends and interest income for households making less than $200,000; among other things.
February 15, 2012 |
President Obama is combining his proposal to raise taxes on the wealthy with a new effort to lower the levy on middle-class Americans. In his fiscal 2013 budget proposal, the president called for abolishing the alternative minimum tax. It was designed years ago to prevent wealthy people from dodging taxes, but nowadays is blindsiding a growing number of middle-income people. The president wants to replace the AMT with the so-called Buffett rule, which would require people making more than $1 million a year to pay at least 30% in taxes.
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.