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.
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.
March 22, 2013 |
In proclaiming March as Women's History Month, President Obama stated that "too many women feel the weight of discrimination on their shoulders. " Liberals often make this claim, citing the fact that women earn only 77 cents for every dollar earned by men, and call for stronger protection against gender-based discrimination by employers. Conservatives typically respond by pointing out that men and women tend to make different choices about occupation, working hours and whether to take time off from the labor force.
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.