The Daily Deduction

Weekly Tax Inventory - 03/29/2013

Singer Dionne Warwick owes nearly $10 million in back taxes and has filed for bankruptcy. In a Chapter 7 petition filed this month in New Jersey, Warwick lists liabilities that include nearly $7 million owed to the Internal Revenue Service for the years 1991 to 1999 and more than $3 million in business taxes owed to the state of California. Warwick lists her current address in South Orange.

Virginia buyers, Maryland drivers facing higher taxes – The Examiner

Sales tax is rising for Virginia. Gas prices are increasing for Maryland. Virginia Gov. Bob McDonnell on Tuesday presented mostly minor amendments to a sweeping transportation funding reform package that will generate nearly $6 billion over the next five years by raising the sales tax from 5 percent to 5.3 percent statewide and to 6 percent in Northern Virginia and Hampton Roads.

Sales taxes for all online purchases? Resistance in House is strong – Christian Science Monitor

Updated news on the Marketplace Fairness Act, which would require any e-commerce business with over $1 million in sales to charge sales tax. In other words, if Sillyasstoys.com has over $1 million in sales, it would have to charge New York sales tax for any toys shipped to New York or any other state with a sales tax. Yes, add $2.18 to the toy.

Who Voted For Those Taxes On Gays And Seniors?William Baldwin via Forbes.com

Our tax code and monetary system impose some strange burdens, such as on gay couples, retirees and renters.

The tax on gays. Gay families may owe more tax than similarly situated heterosexual families.

Example: John and Mary have an income of $120,000, all earned by one while the other is a homemaker, and they have a young child. If they use the standard deduction and file a married joint return, their federal income tax will be $15,741 after a partial child credit.

John and Adam have the same income and family status. But they can’t file a joint return. The one with the job will file as “head of household.” He’ll get two exemptions instead of three, a lower standard deduction, a higher tax rate and no child credit. Federal tax: $20,570, or 31% more.

The Taxes You Don't Think AboutSteve Parrish via Forbes.com

We’re in the middle of the dreaded tax season. All the year’s blood, sweat and tears are temporarily boiled down into one simple question: How much do I owe the government? It is difficult in this environment to gaze out any further than our green eye shades, but may I humbly suggest we start paying attention to what the future holds?

Most High Earners Aren't Cutting Back, Despite Higher Taxes – Huffington Post Business

Before Jan. 1, many warned that taxing the wealthy would snuff out the recovery. If the wealthy had to pay more taxes, they would spend less, invest less and give less to charity. So far, it doesn't seem to be happening—at least not on a large scale.

According to a new poll, a majority of people making $500,000 or more (those paying the higher income tax rate) said that the tax hikes have not impacted their spending, charitable giving or investment strategies. 

Posted To: The Daily Deduction By: Lauryn on 3/29/2013 12:00:00 AM
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