Posts tagged "fiscal cliff"

TaxSmith now offers tax relief

For those of you that are struggling with back taxes or IRS penalties may have a new option. Taxsmith.com.The website recently launched this service to provide immediate solutions to individuals struggling with Penalties by the IRS and unpaid back taxes.

Federal income taxes are imposed by local, state and by government agencies on every single individual of the United States. Becoming delinquent on your federal taxes could spell a slew of problems from an individual including higher interest rates, late fees, and even jail time. This new service can help those individuals that are stuck in this type of situation .

TaxSmith can now help individuals and entities that are burdened by this financial hardship brought on by unpaid taxes and overdue IRS fees.

Reliance on tax software like Turbotax is subject to human err and complications that could lead to mistakes in filing. Using low level amateur accounting firms won’t give you the level of customer service that this new TaxSmith seeks to offer. TaxSmith claims to offer consultation, forms, and service unmatched to any others.

Only time will tell whether or not TaxSmith will become a leader in the tax filing field. Please check back online to see how TaxSmith with fare in the reviewsphere. One thing we know for sure. With the fiscal cliff weighing down heavily on us and the future of the tax code being uncertain, we need a lot more services like TaxSmith around.

 

 

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Posted by Taxmaster - December 18, 2012 at 6:28 pm

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

Tax hikes on the rich “negligible” for growth on the economy

Washington- A recent report was re released after Republicans tried to claim that tax hikes on the wealthy would be detrimental to growth in the economy. The report states that revoking the Bush era tax cuts on the wealthiest Americans will have a “negligible” impact on the economy. The report also states that the the Bush Era tax cuts did very little to help spur the growth of the economy. The report also stated that the Bush Era tax cuts helped fuel the income inequality among income classes.

“Analysis of such data conducted for this report suggests the reduction in the top tax rates has had little association with saving, investment, or productivity growth,” the study says. “It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth.”

The study takes into account tax rates and economic growth that dates back to the world war 2 era. Needless to say Democrats pounced on the opportunity to prove to Republicans that tax cut for the wealthy don’t necessarily equate to growth and that the top two percent of earners should go back to Clinton Era tax rates when growth was substantial. Republicans, as they always seem to, complain and swear that raising taxes on the wealthy will only bring gloom and doom for the US economy.

“What this report demonstrates is at the core of the debate we’re having right now,” said Maryland Rep. Chris Van Hollen, the top Democrat on the House Budget Committee, adding that it “put a stake in the heart of the Republican argument that small increases in marginal tax rates for wealthy individuals somehow hurt economic growth.” He also noted that during the Clinton years with tax hikes the US economy was doing a lot better off than when Bush introduced his tax cuts.

“What this CRS report does is take away the last little fig leaf that [Republicans] had to justify big tax cuts for very wealthy individuals,” Van Hollen said.

“Republicans have simply failed to face up to the reality,” said Rep. Sander Levin (D-Mich.), the top Democrat on the House Ways and Means Committee. “I hope that this CRS report will add further impetus to the speaker to sit down with Republicans, because when I’ve talked to a few of them, I don’t think they’ve had this discussion.”

Republican lawmakers claim that the report was written by a left wing study group and that its findings are biased and therefore fallacious.

This is a continuing trend with Republicans denying the facts when they stare them point blankly in the face.  Maybe this report will be the wake up call needed to raise taxes on the top 2 percent.

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Posted by Taxmaster - December 16, 2012 at 3:33 am

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

Reinvent the Tax Code

5With the fiscal cliff looming and tax hikes on the inevitable rise it would seem that the most rational solution would be to revise the tax code rather than raise taxes.  Now policymakers are trying to decide on whether or not they should extend 100% of the tax cuts or only 98% for a majority of Americans.

As a result of the fall elections President Obama has been insistent that we should raise taxes on the wealthiest of the American population, or those making $250,000 dollars a year or more. Republicans are completely soured by the idea of breaking their precious “no new tax” pledge to Grover Norquist. Republicans are stuck on the idea that if the wealthy pay a dime more in taxes then they have to they will stall the economy, lay off their employees, and screw the American people over in any way they can. They insist that taking away entitlements from the middle class and poor is the only way to fix this mess…even though the rich pay lower taxes than the middle class and poor and could easily afford it.

Nobody, I mean nobody, Republican or Democrat, is talking about reforming the tax code to make it fairer to the population. I mean a lot of the wealthy exploit loopholes in taxes to negate paying their fair share. This would only seem fair as the tax code is rigged so that only the very wealthiest can take full advantage of the loopholes.

Tax reform is a great option. But with a tax serviced based economy and the entire branch of the IRS being dependent on a complex tax code

Is this the right approach?

There was an attempt to fix all of these loopholes and deductions by implementing the 1986 Tax Reform Act. This act was passed in good faith but it didn’t work. Eventually the tax loopholes and deductions slowly crept in as lobbyists made their way to Capital Hill.

So what if we fixed the tax code by closing loopholes and eliminating deductions we could lower tax rates on the different income brackets. Also we would have a simpler tax code that will make taxes easier to understand and simpler to pay. Also this may encourage businesses to engage in better corporate behavior as they won’t have an incentive to exploit the tax code for their own gain. This will also lead to an overall sense of fairness amongst all individuals.

Wouldn’t this simple solution bypass all of the nagging and stonewalling in congress and make everything a bit easier for all of us? I sure would enjoy it. Wouldn’t you?

 

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Posted by Taxmaster - December 12, 2012 at 4:59 am

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

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