It’s Fix the Tax Code Friday! “Above the line” deductions are deductions that you can take even if you don’t itemize. As such, they aren’t subject to phase-outs and income limits. Some common “above the line” deductions are: * Alimony (My favorite! Don’t you just have a mental picture of our a large number of…
One of the most polarizing features of the proposed immigration bill is whether illegal immigrants currently living in the United States should be granted a form of amnesty. Opponents claim, among other things, that illegal immigrants have not paid taxes while living and working in the United States. Proponents of the bill say that’s not…
Earlier in the week, I reported that Georgia is considering implementing a tax on personal services, meaning that professions like barber shops, law firms and accountants would impose a tax on their services, which would likely be passed through to the consumer. This tax would replace property taxes in Georgia. Now, normally, my Fix the…
A number of the presidential candidates have suggested replacing the current tax system with a more simple program. It feels like it shouldn’t be hard to do since Title 26, the Tax Code, is the largest section of the U.S. Code. To put the laws and related documents on paper now takes more than 55,000…
It’s Fix the Tax Code Friday! In the last presidential election, we heard quite a bit about the so-called 527 organizations like “Swift Boats for Truth”. To recap, 527 organizations are named after 26 U.S.C. § 527 – basically section 527 of the Tax Code (the Tax Code is Title 26). Generally, tax exempt organizations…
There’s lots of talk on the Hill these days about repealing the alternative minimum tax (AMT). So today’s Fix the Tax Code Friday question is: Should the AMT be repealed or should it be amended to apply to high wage earners only?
So, my father-in-law was saying that he always claimed the standard deduction, despite the fact that he would have saved more money by itemizing, just because it was easier. That brings up an interesting point… Why have itemized deductions at all? Why not just have everyone claim the standard deduction? So, today’s Fix the Tax Code Friday question is:…
I’ve received a number of queries about the capital gains exclusion for the sale of a personal residence (more on that next week). But it made me start thinking about the policy reason for exempting gain and why a limit would be imposed. So, I’m curious to hear what you think. Today’s Fix the Tax…
It’s Fix the Tax Code Friday! It’s also election time. Folks are throwing their hats into the ring left and right… literally. So today’s question is: Should contributions to political candidates be tax deductible (psst, currently, they’re not!)?
When Congress first introduced the wacky legislation that is the current federal estate tax situation (an exemption that gradually rises to $3.5 million per person, is eliminated in the year 2010 and returns in 2011 to its “old self”) most folks assumed we had plenty of time to fix it. 2010 seemed years away. Now,…