New Tax Laws Proposed For Electric & Hybrid Vehicles
When the federal government spends more each year than it collects in tax revenues, it has three choices: It can raise taxes, print money, or borrow money. While these actions may benefit politicians, all three options are bad for average Americans. –Ron Paul
Recently, there have been multiple states that have begun to consider legislation which would specifically tax hybrid and electric vehicles. The reason, they are arguing, is that gas tax revenue is expected to drastically decrease in the future due to greater fuel efficient vehicles. As such, with much of the funding that goes towards our nation’s roadways arising from gas tax revenue, some states fear that at some point, the revenue generated will not be enough to help cover the costs of maintenance and upkeep.
However, this has a lot of people up in arms, specifically those that own electric and hybrid vehicles. They feel that they are being penalized for going “green”, also that on average, green vehicles are significantly more expensive to purchase. Most of which, do not receive sales tax breaks for purchasing such vehicles. It’s felt that more effort should go towards saving tax payer’s money rather than creating new laws to tax people more.
So what should be done?
It’s obvious that everyone does need to pitch in to ensure our roadways are safe and maintained. This is going to take money, which does indeed have to come in the form of taxes. But is our taxing system fair? With gas taxes, those with lower efficiency vehicles as well as those that simply drove more were already footing a larger portion of the bill. But perhaps the time to reexamine our tax system for maintaining roadways has come. What follow here are a few ideas of different methods of taxing that may be more fair for drivers.
Highway Tax Based On Usage
One option that should be considered is a highway tax based on usage. The number of miles driven as well as the weight of a vehicle certainly determine the overall wear and tear on our highway infrastructure, and when it comes down to it, that is the reason we are being taxed right? Because through our use of it, roadways become worn, and as such, those that use roadways more frequently and drive heavier vehicles should be taxed more. It seems fair from the surface, but there would certainly be those that disagree. Mainly, companies that deal with freighting and transportation, but again, they are using it more and should be paying more as a result.
Weight would be an easy determination and could be calculated into a taxing system relatively easy. As far as usage is concerned, there have been ideas about reporting your vehicles odometer reading annually and being taxed off of that. Deepening on the total number of miles driven in a year dictates exactly what should be taxed. Anyone caught falsifying their actual reading can be fined or face some form of penalty.
Highway Taxes Separate From Car Ownership
Another idea is that even though a person may not own a car, they should still pay for the upkeep of our highway system. The reason being that even though they are not driving, they are certainly benefiting from proper roadways being in place. They may be taking the bus, or carpooling, but beyond that, everything from the food they consume to the clothes they purchase and entertainment they enjoy at some point used roadways to make it’s way to them. Transportation in this country, and all that entails, is not free. There are costs, and we all benefit from it. For that reason we should all be chipping in to ensure our roadways are maintained and safe.
New Technology To Increase Roadway Longevity
There are those that feel rather than finding new ways to tax people for road maintenance, perhaps we should be investing in ways to increase the longevity of our roads. This can come in the form of new concrete compositions, or new materials that can be used altogether. In that way, the initial cost may be more expensive, but over the long run, the cost of maintenance and repair would go down. If this worked, we would not need to be taxed as much since once in place, roads could withstand a lot more wear and tear. This is sort of a proactive approach rather than a reactionary one, and should most definitely be considered by policy makers.
In The End
In the end, one of these options, a hybrid of them all, or other ideas should be considered. It certainly doesn’t make much sense to punish those for buying more fuel efficient vehicles when the trend in our country has been to become more fuel independent. If anything, a string of new laws taxing hybrids and electric vehicles will only result in the slowing of their acceptance by the public. Hopefully this will be resolved in the best manner and does not simply throw the burden onto a select few individuals. But as we know about the taxing system in this country, that is generally the case that occurs.
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License: Royalty Free or iStock source: http://www.sxc.hu/photo/1198014
The author of this article is Damien S. Wilhelmi. If you enjoyed this piece you can follow me on Twitter @JakabokBotch. If you are in need of a Colorado Brake Repair, be sure to check out one of the many AAMCO locations at AAMCOColorado.com.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: automobiles, cars and technology, electric cars, hybrid cars, laws
Five Ways To Avoid IRS Tax Problems
From business people and entrepreneurs to college students, individuals from all walks of life can feel overwhelmed when confronted with IRS tax problems. However, don’t panic if you get into a bit of trouble with the government; through the help of dedicated professionals, you can efficiently deal with these problems. Here are five ways to avoid serious tax problems this season.
1. File Returns Regardless of Personal Circumstances
Individuals need to file tax returns, even if they feel they have earned no taxable income. Some people go for years without filing returns. These misguided individuals may feel that if they’ve lasted so long without facing disaster that they can continue for years to come. Regardless of individual circumstances, not filing tax returns is a prosecutable federal crime. IRS agents have a habit of waiting until people are comfortable before moving in with swift, decisive action.
2. Pay Tax Bills on Time
The best way to avoid tax problems is to pay taxes fully and in a timely fashion. Beyond simply paying late fees and penalties, late payers increase their likelihood of facing audit. The IRS uses a software algorithm to influence its random selections of taxpayers for auditing. While the IRS naturally keeps details of this algorithm secret, any taxpayer actions that hint at noncompliance can likely cause problems.
3. Find Professional Tax Help
Fortunately, experienced accountants and tax attorneys have mastered plenty of techniques for guiding their clients avoid tax headaches. These attorneys can help people negotiate settlements with the IRS. Without these settlements, people can struggle with burdensome tax liens on their properties and possessions.
4. Communicate With the IRS
Individuals with tax problems should continue communicating with the IRS, no matter how unpleasant these interactions may become. Without adequate communication, the IRS may take drastic action by issuing levies. Levies are direct, enforceable requests for money from banks or other responsible institutions. For example, the IRS serves levies to banks to tap bank accounts for unpaid taxes. The IRS generally only issues levies when taxpayers are totally non-compliant.
5. Understand the Authority of the IRS
Some taxpayers simply postpone IRS negotiations with honorable intentions to comply at later times. Many assume that tax bills are subject to statues of limitations and are waiting until their problems disappear. Remarkably, the IRS is not bound by any statute of limitations. The IRS has tremendous power to seize homes, cars and all other assets. The tax authority continually gains new powers to harass and hound taxpayers. By exercising prudence and utilizing professional help, taxpayers can usually avoid IRS tax problems.
This is simply some advice to help you stay out of IRS tax problems, not a solicitation for legal services or tax help.
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License: Creative Commons image source
By Jordan Mallory, a single mom with experience working in taxes who writes as a hobby on the side.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: IRS, irs audit, irs extension, irs tax credits, irs tax services, irs wage garnishment
You’ll Be Hearing From My Solicitor!
Okay, so that heading was a shameless ploy to get your attention. It’s a line beloved of dramatists when, usually rather over-starched, people get themselves into some kind of difficulty. But, in the same way as a dog isn’t just for Christmas, solicitors aren’t just for the bad things in life. You don’t need to be involved in a court case in order to need one.
Safe as Houses
Property is an area where solicitors often come into our lives. Most of us will encounter a solicitor when buying or selling a house as they handle the conveyancing process. This is the transfer of the legal title of the property from one person to another and the filing of all the paperwork associated with it.
The conveyancing process usually takes several weeks though the exact time can vary depending on a number of legal, personal and financial issues. The sale contract isn’t legally binding until contracts are exchanged.
Where There’s a Will, There’s a Way
The other area where solicitors come into people’s lives is wills and inheritances. It’s possible of course to write your own will, but solicitors have the experience to write it in such a way that you ensure your wishes are carried out. Solicitors can also help with the administration of your estate when you pass away and planning for inheritance tax. They can also store your will safely for you so that your relatives know where to find it.
Business Management
If you run a business then you’ll probably need to be involved with a solicitor for that too. Again they can help with property transactions, although a solicitor can also make sure you’re on the right track with other contracts too.
You may require help drawing up shareholder agreements or partnerships for example. Or you may need to draw up contracts for mergers or buy outs. If you’re buying a franchise or carrying out some form of intellectual property transaction then you’ll probably need a solicitor to help you with that too.
Using a solicitor to help you draw up employment contracts can ensure that you avoid disputes later. Getting the legal issues right is particularly important when it comes to things like redundancies and dismissals. Getting the advice of an employment lawyer early in the process helps ensure there won’t be problems in future.
Finding a Solicitor
When it comes to finding a reputable firm of solicitors, try to find one that specialises in the area of law that you need. The Law Society’s website lets you search for local solicitors and the areas they specialise in.
It’s important to find out about the fees that will be charged before you approach a solicitor. Many firms will offer a free or low-cost initial interview to allow them to find out your requirements and help you to decide if you want them to work for you.
It’s important to be clear when briefing your solicitor and to keep copies of all relevant paperwork. If you need to send documents through the post, make sure you use a secure method like recorded delivery to ensure that they arrive safely.
Whatever you need a solicitor for; you should be able to find a firm in your locality. There’s nothing to stop you shopping around a few different firms to ensure you find one that you’re comfortable working with and that is able to meet your needs.
Paula Whately is a writer who understands that a solicitor can be an important person to seek help from in many situations. If you are looking for reputable solicitors, Camberley experts can guide you in finding one which suits your personality and needs
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: business management, law, property, solicitors, sourcing, wills and trusts