Federal Income tax offset and State tax advantages
Different States have told that change in federal income tax will affect the tax changes for all tax payers of different income groups. State lawmakers ignores the point that tax reform proposals for State citizens also vary with federal income tax rates and applies individually for the States. The high income groups and wealthy taxpayers offset the federal income tax payment with their property taxes and local income. It is important to know about federal offset and change of State taxes for their citizens. The federal offset policy explains those forgotten links between federal income taxes and state changes.
Federal income tax has facilitated the individuals to claim for personal expenditure of itemized deductions when they pay the federal imposed taxes. So an individual can offset the cost of property tax payments, local income, interest payment for homes and charity contributions. Such deductions will make it affordable to pay to the charitable institutions, payment of loan for home or payment of mortgage. It means some of the federal taxes are optimized and lowered down through your itemized deductions or federal offsets.
So who benefit from federal offset? When you itemize the federal income tax and write off your local and state taxes, then your property tax bills and income tax will never be as much as you are paying today. But it is important to know that lower income tax payers who itemize the federal income tax will not be able to get the benefit of federal offset.
Categories: Federal Tax, Income Tax, State Tax Tags: federal income tax, federal tax, income tax, state tax, tax law
Nike gets NO NEW TAXES
Oregon- Nike is proposing on being a job creator in Oregon in exchange for a freeze on their state taxes. This proposal could amount to hundreds of jobs for the state which has prompted legistlators to approve this measure as emergency legislation.
Critics of the approval are suspicious about the timing and intent of this special session. When other legislators were out on holiday break Oregon legislators came together and approved an emergency assurance to one of the largest shoe and athletic companies in the world.
This deal once again proves that Oregon will go to great lengths to protect this corporate giant and all it brings to the state. Money and power has once again tromped common sense and assessing fair taxes equally on all taxpaying parties.
“We have a wonderful, wonderful company that’s going to be remaining in Oregon because of what we’re doing here today,” said Democratic Sen. Ginny Burdick of Portland.
This Nike deal is completely unconventional in a world where tax cuts for the wealthy have become commonplace in the political world.
Due to its emergency nature the meeting cost taxpayers $13,000 and came right before the regular legislation was set to be held. With all of these circumstances the deal seems rather peculiar that it happened in such a manner.
Such factors led Kitzhaber to acknowledge the emergency legislative session was “extraordinarily awkward.”
With this initiative in place Nike has promised to make more than 500 jobs and invest at least $150 million dollars into Oregon’s economy. The bill could be signed as early as next week by the governor.
It is still unclear as to why the emergency legislation took place but one could surmise that Nike may have been threatening to expand outside of Oregon. Nike declined to comment.
In a statement, Nike spokeswoman Mary Remuzzi thanked legislators for acting “quickly and decisively.”
“This is a very positive step forward, not only for our company but for the state of Oregon,” the statement said.
This new infrastructure and job creation is critical in a state that has low property tax, no sales take and relies heavily on personal income taxes. Why in such a tax strapped state legislators are actually giving up tax collection on one of the largest employers in the state. No one knows.
Nike justifies this by claiming that these new jobs to be made are in high income positions and therefore will help bolster the economy.
Nike has been quiet on its new expansion plans or what it plans to do or what the workers plan on doing.
Nike has roots deep within Oregon when it was created in the 1960’s by a runner and his college track coach. Nowadays this company has blossomed into one of the most influential and popular brands in the world. The company is also a very large donor to the University of Oregon.
One can see just how much pull money and power can bring into the legislative sphere. It looks like Nike has their state politicians calling emergency legislative sessions and pulling favors for them. What’s next?
Categories: Income Tax, State Tax, Tax Law Tags: avoiding taxes, corporate tax, federal income tax, federal tax, nike tax, oregon tax, political corruption, state tax, tax increase