#Tax Law

[floral-ashes]

Math is the tax law of STEM. I will not elaborate.

[bitchesgetriches]

Would You Rather Owe Taxes or Get a Tax Refund This April? The Answer Might Surprise You!

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By Jake Johnson

Common Dreams

Jan. 9, 2024

"Almost nobody says we should have the richest pay the least. And yet when we look around the country, the vast majority of states have tax systems that do just that."

Nearly every state and local tax system in the U.S. is fueling the nation's inequality crisis by forcing lower- and middle-class families to contribute a larger share of their incomes than their rich counterparts, according to a new study published Tuesday.

Titled Who Pays?, the analysis by the Institute on Taxation and Economic Policy (ITEP) examines in detail the tax systems of all 50 U.S. states, including the rates paid by different income segments.

In 41 states, ITEP found, the richest 1% are taxed at a lower rate than any other income group. Forty-six states tax the top 1% at a lower rate than middle-income families.

"When you ask people what they think a fair tax code looks like, almost nobody says we should have the richest pay the least," said ITEP research director Carl Davis. "And yet when we look around the country, the vast majority of states have tax systems that do just that."

"There's an alarming gap here between what the public wants and what state lawmakers have delivered," Davis added.

In recent years, dozens of states across the U.S. have launched what the Center on Budget and Policy Priorities recently called a "tax-cutting spree," permanently slashing tax rates for corporations and the wealthy during a pandemic that saw billionaire wealth skyrocket and company profits soar.

A report released last week, as Common Dreamsreported, showed ultra-rich Americans are currently sitting on $8.5 trillion in untaxed assets.

According to ITEP's new study, tax systems in just six states—California, Maine, Minnesota, New Jersey, New York, and Vermont—and the District of Columbia are progressive, helping to reduce the chasm between rich taxpayers and other residents.

Massachusetts, which has one of the more equitable tax systems in the nation, collected $1.5 billion in revenue last year thanks to its recently enacted millionaires tax, a measure that improved the state's ranking by 10 spots in ITEP's Tax Inequality Index. Minnesota has also ramped up its taxes on the rich over the past several years while expanding benefits for lower-income families, ITEP's study observes.

"The regressive state tax laws we see today are a policy choice, and it's clear there are better choices available to lawmakers."

But the full picture of U.S. state and local systems is grim. In 44 states, tax laws "worsen income inequality by making incomes more unequal after collecting state and local taxes," ITEP found.

Florida has the most regressive tax code in the U.S., with the richest 1% paying a mere 2.7% tax rate while the poorest 20% pay 13.2%.

Florida is among the U.S. states that don't have personal income taxes, which forces them to rely on consumption and property taxes that are "nearly always regressive," ITEP notes in the new analysis.

"Eight of the 10 most regressive tax systems—Florida, Washington, Tennessee, Nevada, South Dakota, Texas, Arkansas, and Louisiana—rely heavily on regressive sales and excise taxes," the study says. "As a group, these eight states derive 52% of their tax revenue from these taxes, compared to the national average of 34%."

Aidan Davis, ITEP's state policy director, said that "we've seen a lot of states shift their tax systems to become even more regressive in recent years by enacting deep tax cuts for the wealthiest."

The report points to Kentucky's adoption of a flat tax and repeated corporate tax cuts, which "delivered the largest windfall to families in the upper part of the income scale and have been paid for in part through new or higher sales and excise taxes on a long list of items such as car repairs, parking, moving services, bowling, gym memberships, tobacco, vaping, pet care, and ride-share rides."

Davis said that "we know it doesn't have to be like this," arguing there is a "clear path forward for flipping upside-down tax systems and we’ve seen a handful of states come pretty close to pulling it off."

"The regressive state tax laws we see today are a policy choice," said Davis, "and it's clear there are better choices available to lawmakers."

[gwgaccountant]

I've seen a few memes about how being able to deduct property taxes on your taxes but not rent is class warfare. I agree with the spirit, but it mostly makes me think the people writing those memes don't actually know much about taxes.

On one hand, it's not specifically property taxes. You get to deduct all taxes you pay to state and local governments. You could say that rich people getting to deduct more taxes than poor people is class warfare, but that's true of all deductions to some extent, and the state/local tax deduction less than pretty much anything else. After all, the state/local tax deduction is limited to $10,000, no matter how much state income tax you paid.

On the other hand, home mortgage interest is also tax-deductible, without any umbrella rule that happens to include home mortgage interest, and without any cap on how much can be deducted.

[ghlawstudent]

27.02.2023

The semester started two weeks ago and it's been heavy. I've been studying so much already and i still feel like i'm behind on everything.

Also tax law... not my cup of tea, oh my...

[thistlehorse]

She’s getting ready to collect

[legal-poppy]

reading tax law cases about employers giving "gifts" to employees then deducting the gift as a business expense is really making me worry about all the "gifts" i received at my last job

[imkeepinit]

The Culture War Is the Class War. We Need To Win Both

[alabs1]

NFF: German Tax Law Responsible For Collapse Of Labbadia Deal

...Names Eguavoen As Caretaker Coach The Nigeria Football Federation (NFF) blamed the “stringent regulations of German tax authorities” for the collapse of Bruno Labbadia’s appointment as Super Eagles head coach. On Tuesday, NFF announced Labbadia as the Eagles’ new coach. The federation said an agreement had been reached with the German, adding that he would take over the team immediately. On…

[whats-in-a-sentence]

Westpac said:

Although Westpac has effectively hedged [interest rate and currency] risks on a pre-tax basis, it is not able for US tax purposes (in contrast to the tax laws of other jurisdictions) to recognise gain or loss arising from transactions between its branches, although such a gain or loss is recognised for transactions with customers . . . The increase in tax liability relates to an area of US tax law that is not clearly defined and results from a reassessment of the appropriate treatment of interbranch transfers of customer swaps and a review of transactions that might be subject to such treatment. Westpac is implementing changes in its interbranch hedging of global trading of swaps and foreign currency forward contracts to minimide future imbalance between tax jurisdictions. Mr Anthony J. Walton, chief general manager, Americas and Europe group and a director of the bank, informed the board that he had relied on assurances from his senior management that all tax matters had been or were being addressed. He also said that, if the board wished, he would offer to leave. The board has asked Mr Walton to continue in his executive position into the first quarter of 1993 to work out an orderly transition. It has also accepted his resignation as a director and acknowledged his outstanding contribution to the bank.

"Westpac: The Bank That Broke the Bank" - Edna Carew

[reitmonero]

How to Use Tax Losses to Your Advantage in a Small Business

Managing a small business involves a lot of moving parts, and one of the more challenging aspects is handling taxes. If you’ve faced a tough year financially, you might be feeling overwhelmed by the prospect of tax season. However, there’s a silver lining to those tax losses: they can actually be advantageous if you know how to leverage them properly. Here’s a guide to turning your tax losses into a strategic asset for your small business.

Understanding Tax Losses

First, let's define what we’re talking about. A tax loss occurs when your business’s deductible expenses exceed your revenue, resulting in a net operating loss (NOL). This situation isn’t uncommon, especially for small businesses that are in their growth phase or are dealing with unforeseen challenges. While seeing a loss on your financial statement isn’t ideal, it can provide valuable tax benefits.

1. Carry Forward or Backward

The IRS allows businesses to carry forward or backward tax losses to offset taxable income in other years.

Carryforward: This means you can apply the loss to future tax years. For example, if your business has a net operating loss this year, you can use it to reduce your taxable income in the future years, potentially lowering your tax bills for several years to come. This is especially useful if you expect your business to be more profitable in the future.

Carryback: Although less common since the 2017 tax reform, some businesses can still carry losses back to previous tax years. This can result in a refund of taxes paid in those years, offering immediate financial relief. However, it's essential to check the current regulations as they can change.

2. Utilize Losses for Tax Credit Eligibility

Certain tax credits are dependent on the profitability of your business. By utilizing your tax losses strategically, you might qualify for credits that you otherwise wouldn’t have. For instance, if your business operates at a loss, you might be able to claim credits for expenses related to research and development or renewable energy investments, depending on the specific credits available.

3. Strategic Business Planning

Understanding how your losses can impact future tax years allows you to plan strategically. For example, if you anticipate a profitable year ahead, you might accelerate some expenses or defer income to maximize the benefit of your current tax losses. This way, you ensure that your business benefits from the loss in the most effective manner.

4. Consult a Tax Professional

Navigating tax laws can be complex, and the rules governing NOLs and other tax considerations can vary significantly depending on your location and the specific circumstances of your business. A tax professional can provide personalized advice on how to apply your losses effectively and ensure compliance with all applicable tax laws.

5. Document Everything

To make the most of your tax losses, meticulous documentation is crucial. Ensure that all your financial records are accurate and up-to-date. Proper documentation will not only support your claims but also help you track the effectiveness of your tax strategy over time.

6. Monitor and Adjust Your Strategy

Tax laws and your business circumstances can change. Regularly review your tax strategy and adjust as necessary to reflect new information or changes in your financial situation. Keeping an eye on both will help you stay on top of potential tax benefits and avoid pitfalls.

Conclusion

While facing a tax loss might not be what you envisioned for your small business, it doesn’t have to be a purely negative experience. By understanding and utilizing tax losses strategically, you can turn them into a powerful tool for future financial success. Always consider seeking advice from a tax professional to navigate the complexities and make the most informed decisions for your business.

[bitchesgetriches]

Hey bitches! I just did my taxes and they got me this year. They got me good and I'm furious. Thanks to an int 1099 form combined with my income it put me $3 over the IL cutoff for the earned income credit. $3. Thanks to $3 I got a federal return of $36 instead of one over $600. If I had made $3 less or my interest was $3 less I would have essentially gotten an entire paycheck for a return which I could really use right now. This is the first year this combo has done this. If it was a few hundred or more over it would sting less. But $3?!?!?????? Ugh!!!!!!

And I guess we'll see what happens next year. My fiance has gotten me set up with different investments and such in the past month which will come into play next year. 🙃

Yeah boo, I feel you. I had a 4-figure tax bill this year because of various technicalities. Just breathe deep, think of the children, and admire all those [checks notes] roads and bridges you're funding.

Also, this:

Taxes: Your Annual Fee for Membership in CivilizationDid we just help you out? Join our Patreon!

[jessicazoe]

Tax exemptions proceed to extend via newsdirectory3.com

The overall funds for the monetary yr 2024-2025 gives for various tax exemptions with the purpose of stimulating investments. Nonetheless, beneficiaries ought to be cautious of makes an attempt at misuse. Let us take a look at some merchandise that profit from exemptions. Regulation No. 1/19 of June 28, 2024 which units the final funds of the Republic of Burundi for the fiscal yr 2024-2025 gives…

[nationallawreview]

Treasury Proposes Clean Electricity Tax Guidance

On May 29, 2024, the Internal Revenue Service (IRS) and the Treasury Department released the pre-publication version of proposed guidance to implement “technology-neutral” clean electricity tax credits, including deeming certain technologies as per se zero-emitting and outlining potential methodologies for determining how other technologies—namely those involving combustion or gasification—could…

[davidl2001]

Navigating the Landscape of Corporate Law: Key Considerations for Businesses

Corporate Law In the intricate world of business, understanding the vast landscape of corporate law is not just an advantage; it’s a necessity. The realm of corporate law encompasses a plethora of regulations, from formation and operation to the dissolution of a company. It acts as the backbone of business operations, safeguarding the interests of stakeholders and ensuring the smooth sailing of…