Tax Breaks Were Instrumental in Reaching State Budget Deal

As part of a new budget deal, Republican and Democratic lawmakers approved 16 tax breaks that are worth an estimated $13 million. These breaks in taxes would aid restaurants, mint farms, nonprofit gun clubs, beekeepers, and international investment firms.

These exemptions in taxes were necessary for Senate Republicans to agree to end current tax breaks for residential phone service that they expect will net around $85 million by 2015.

Rep. Reuven Carlyle of Seattle says, “In addition to ending the tax break for phone service, Democrats also got an agreement to set expiration dates on tax breaks, and to disclose the value of future exemptions. The only way we were able to get the bill through was because of that.”

The new breaks in taxes will open opportunities to create jobs and stimulate the economy.

The House and Senate approved the operating budget on Friday. The breaks in taxes are contained in a separate measure, Senate Bill 5882; both cleared both chambers with large majorities.

Senate Democratic Leader Ed Murray, D-Seattle, said “Tax breaks can serve a useful purpose. Tax loopholes we absolutely need to close, but there are tax incentives that I think are valid. (In the past) we closed the tax loopholes for banks, but we gave one to newspapers and the dairy industry … Not every tax break is necessarily bad.”

Some of the tax breaks that were approved just extended exemptions that were due to expire. The beekeepers one alone is worth $120,000 over two years.

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Posted by Taxmaster - October 20, 2013 at 12:28 am

Categories: Federal Tax, Income Tax, State Tax   Tags:

Man Charged in Alleged Mitt Romney Tax Scheme

Michael Mancil Brown, 34, of Franklin, Tennessee has been formerly charged after he allegedly claimed that he had former GOP Presidential candidate Mitt Romney’s income tax returns. This alleged activity took place in 2012 during Romney’s presidential campaign, court documents state.

Brown is charged with six counts of wire fraud and six counts of extortion. A federal grand jury indictment was filed in the United States District Court in Nashville, Tennessee on Wednesday June 27, 2013.

According to the allegations Brown sent an anonymous letter to the offices of accounting firm PricewaterhouseCoopers LLP located in in Franklin, Tennessee. The letter was received in the height of 2012’s presidential campaign. In the letter Brown allegedly demanded $1 million in the digital currency Bitcoin in exchange for the copies of Romney’s taxes that Brown alleged were in his possession.

The letter was delivered just before the Republican and Democratic national conventions. It stated that parties could get the alleged “tax forms released in exchange for $1 million in Google Bitcoins.”

Allegedly Brown claimed to have come into possession of Romney’s tax information after he accessed PwC’s internal systems. The indictment found these claims to be false.

At the time Romney had refused to release his tax returns from before 2010.

The charges that Brown faces in the indictment are merely accusations. He is still innocent until he is proven guilty.

These charges against Brown were investigated by the Nashville Field Office of the U.S. Secret Service with assistance from the Nashville Resident Agency of the FBI.

Brown faces charges of extortion and wire fraud. He continues to maintain his innocence.

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Posted by Taxmaster - October 15, 2013 at 12:26 am

Categories: Federal Tax, Income Tax, Tax Evasion, Tax Law   Tags:

Man Adopts His Partner to Avoid Inheritance Taxes

This odd tale began nearly 45 years ago when John met Gregory at a gay bar in downtown Pittsburgh. Forty five years later the loving couple has been through losing friends to Aids, the gay rights movement and Pennsylvania constitutional laws that prevented them from becoming a married couple.

Now at 65 and 73 they face financial and emotional in-securities. Fearful of financial strains due to Pennsylvania’s inheritance taxes John adopted Gregory. Now instead of being a couple they are father and son.

Gregory is the older of the two, but because John’s father is still alive he could not legally adopt him.

In states such as Pennsylvania, same-sex couples still struggle with health-care decision-making and filing statuses on their state taxes.

John and Gregory had considered marrying in another state. But they found out that because Pennsylvania does not recognize their marriage they would still be subjected to the inheritance laws.

After their lawyer filled out the proper paperwork Gregory and John had a 15-minute hearing at the courthouse.

They had to answer several questions including, “How long had they known each other? How long had they lived together? How long had they been in their current place?”

Before making a final decision the judge asked, “I am really curious, why are you adopting [Gregory]?”

‘Because it’s our only legal option to protect ourselves from Pennsylvania’s inheritance taxes,'” John explained. “He got it immediately.”

The judge signed the adoption papers on the spot. He handed the papers to the clerk then turned to John and said, “Congratulations, it’s a boy.”

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Posted by Taxmaster - October 5, 2013 at 12:25 am

Categories: Federal Tax, Income Tax, Tax Law   Tags:

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