As Congress gets to work on a second stimulus package, there have been a number of suggestions for how to kick start the economy. Some ideas that have been made public include extending unemployment benefits, adding a second stimulus check, payroll tax cuts, expanding business loans (like the PPP), and a vacation tax credit to…
Earlier this week, the House introduced the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act (you can read my summary here). Included in the bill were corrections to the CARES Act and an additional round of stimulus checks. It’s a controversial bill with some saying that the timing isn’t right. That brings…
It’s Fix the Tax Code Friday! Charitable deductions have been limited to taxpayers who itemize their deductions rather than claim the standard deduction. With the doubling of the standard deduction under the Taxpayers Cuts and Jobs Act, fewer taxpayers itemize their deduction. That means that fewer taxpayers have a tax incentive to make a charitable…
It’s Fix The Tax Code Friday! Today’s question: Should we limit or eliminate the charitable deduction?
It’s Fix The Tax Code Friday! Donald Trump ruffled some feathers in Kansas City when he suggested that what he wanted most in terms of tax reform was: I want to put H&R Block out of business. I want to put ‘em out of business. A person with a simple tax return can’t figure it…
It’s Fix The Tax Code Friday! One of the points that was stressed repeatedly in the presidential debates is the complexity of the Tax Code. Almost all candidates agree that some kind of tax reform is needed but there are differing views of what that reform should look like (you can see a brief overview…
It’s Fix The Tax Code Friday! This week, there has been a lot of focus on structuring following several high profile cases that made news, including charges against former Speaker of the House Dennis Hastert. Structuring occurs when large transactions are broken into smaller ones in order to avoid bank reporting requirements which kick in…
Earlier this week, the Supreme Court struck down Maryland’s personal income tax scheme as unconstitutional because it discriminated against interstate commerce “without regard to the tax policies of other States.” A great deal of the opinion hinged on the notion of the dormant Commerce Clause, which, as spelled out in the opinion, prohibits “certain state…
Warren Buffett was in the news again for suggesting that rather than raise the minimum wage, we should tackle the income gap through tax policy. Specifically, Buffett recommended modifying (likely expanding) the earned income tax credit (EITC). The EITC is a refundable federal income tax credit targeted to low to moderate income working individuals and…
Earlier this week, the National Football League (NFL) announced that it would voluntarily give up its tax-exempt status. The NFL has been tax-exempt since 1942 under section 501(c)(6) of the Internal Revenue Code which grants tax-exempt status to organizations with a goal “to promote the common business interest” with activities “directed to the improvement of…