Tax Law Archives - Page 24 of 41

ObamaNomics: An Endless Downward Spiral

Liberty Works: “ObamaNomics is built on the assumption that politicians are better stewards of economic resources than the millions of individuals and business enterprises who created those resources. The Democrats’ plan is to dramatically increase taxation to fund programs through which government can exert greater control over our lives. But these data show that the private sector’s ability and willingness to generate wealth for government to seize through taxation is rapidly diminishing. These data show that Obama’s own actions are are literally killing the goose that lays the golden eggs he needs to fund his agenda. The drop in individual income tax revenue in fiscal 2009 was the steepest since 1939. As the chart shows revenue continues to plummet in fiscal 2010.”

tax revenue chart

IRS Hits Arizona Cardinals’ Antrel Rolle With $2.2 Million Tax Bill

Forbes: “Football safety sues after audit nixes his big charitable and business deductions. The Internal Revenue Service says Arizona Cardinals safety Antrel Rolle understated his taxable income by more than 50% during his first two years in pro football, sending him a $2.2 million bill for back taxes, interest and penalties. The IRS claims are contained in a previously unreported lawsuit Rolle filed in U.S. Tax Court against the agency.”

Tax Hikes: An Economic Time Bomb

Wall St. Journal: “if the Democratic economic policies continue nevertheless, this year will be nothing like the bitter economic January we will be living in a year from now. Government spending has already hugely increased, and so has the size and scope of government, but next year there will also be substantial tax increases for a great many Americans. The first reason will be the expiration of the Bush tax cuts . The top personal income tax rate will rise next Jan. 1 to 39.6% from 35%, a hike of nearly one-eighth. The dividend tax rate will rise to 39.6%, more than 2½ times the current 15%. And the capital gains tax rate will rise by a third, to 20% from 15%. If the House health care bill had passed, all three of these rates would have risen to 45%.”

Why Can’t the I.R.S. Help Fill in the Blanks?

New York Times: “IN the digital age, filing income tax returns should be a snap. The important data from employers and financial institutions have already been sent to the government’s computers. Yet taxpayers are still required to perform the anachronistic chore of preparing a return from scratch. And, in many cases, they pay a software company for the privilege. Requiring taxpayers to file returns without being told what the government already knows makes as much sense ‘as if Visa sent customers a blank piece of paper, requiring that they assemble their receipts, list their purchases — and pay a fine if they forget one,’ said Joseph Bankman, a professor at the Stanford Law School.”

Pro Golfer Thorpe Sentenced to Prison for Tax Evasion

Bloomberg: “Professional golfer Jim Thorpe, who has won more than $15 million in his career, was sentenced to one year in prison for failing to pay U.S. income taxes for three years. Thorpe’s request to avoid prison time was rejected today by U.S. Magistrate Judge Karla Spaulding in Orlando, Florida. The former college football player pleaded guilty in September to two counts of tax evasion for failing to pay more than $2 million in personal income taxes for 2002, 2003 and 2004.