....well, I guess that I MUST, since $9.30 more of my USAF retirement check was deducted. My pay stub details "due to recent legislation your federal withholding tax was increased". As I recall, my president told me that only those earning $250K or more per year would see tax increases......I wonder what happened?. I know this: if I was making $250K a year, then I'd be having a LOT more fun!......:shock:
Replies
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SoWal Insider
Strom Thurmond - Wikipedia, the free encyclopedia James Strom Thurmond (December 5, 1902 ? June 26, 2003) was an American politician who served as governor of South Carolina and as a United States Senator. He also ran for the Presidency of the United States in 1948 as the segregationist States Rights Democratic Party (Dixiecrat) candidate, receiving 2.4% of the popular vote and 39 electoral vote He conducted the longest filibuster ever by a lone U.S. Senator in opposition to the Civil Rights Act of 1957, at 24 hours and 18 minutes in length, nonstop. He later moderated his position on race, but continued to defend his early segregationist campaigns on the basis of states' rights in the context of Southern society at the time,[2] never fully renouncing his earlier viewpoints.[3][4] After his death it was revealed that Thurmond and a black maid, Carrie Butler, had a daughter whom Thurmond never publicly acknowledged.[5] He is the only U.S. Senator to reach the age of 100 while still in office. joe wilson is a protege of strom thurmond, to wit Early legal and political career
Wilson was active in South Carolina Republican politics from a young age, participating in his first Republican campaign in 1962. As a teenager he joined the campaign of Congressman Floyd Spence, later working as an aide to Senator Strom Thurmond.
Wilson was active in South Carolina Republican politics from a young age, participating in his first Republican campaign in 1962. As a teenager he joined the campaign of Congressman Floyd Spence, later working as an aide to Senator Strom Thurmond.
Beach Fanatic
i keep hearing they will tax health insurance benefits. taxing something we partially pay. i am surprised we all don't have our congressmen on speed dial.
Beach Fanatic
TFT, you are right to a point. There have been no tax increases signed by President Obama. My FITW was changed without any request from me or notice to me. It means more of my money can be used by the government until I see fit to refigure my whole income tax scheme. I don't wish to do that at this time and so the government gets use of my money until I file on April 15th.
It seems this administration is doing many things that are not considered to be the normal course for governmental agencies to take. I, and many other citizens, are frustrated with the machinations of the federal government. To make a long story short, am I better off today or I should say next year than I was last? The answer, with pending healthcare, cap and trade and who knows what else is coming down the pike, is no.
It seems this administration is doing many things that are not considered to be the normal course for governmental agencies to take. I, and many other citizens, are frustrated with the machinations of the federal government. To make a long story short, am I better off today or I should say next year than I was last? The answer, with pending healthcare, cap and trade and who knows what else is coming down the pike, is no.
SoWal Insider
TFT, you are right to a point. There have been no tax increases signed by President Obama. My FITW was changed without any request from me or notice to me. It means more of my money can be used by the government until I see fit to refigure my whole income tax scheme. I don't wish to do that at this time and so the government gets use of my money until I file on April 15th.
It seems this administration is doing many things that are not considered to be the normal course for governmental agencies to take. I, and many other citizens, are frustrated with the machinations of the federal government. To make a long story short, am I better off today or I should say next year than I was last? The answer, with pending healthcare, cap and trade and who knows what else is coming down the pike, is no.
Actually, this is not the first time that Congress has let the tax breaks expire. They are called "extenders" for a reason. Personally, I would be quite happy if Congress called me everytime there was a tax being considered for my approval, but I would also like to win the mega millions, but don't see that happening anytime soon.
Between trying to squeeze in Healthcare Reform and the 2010 Defense Budget, Congress couldn't get to all the tax breaks. I'm sure they would have liked to since some of the tax breaks aide in job creation. Also, about 3 dozen were approved about 3 weeks ago, but in order to pay for some of the tax extenders, private equity firms, hedge funds and off shore funds were taxed higher and Republicans held up the Bill because they protested it. After all these industries have contributed to our economic meltdown, a protest against taxing these firms higher is beyond me. Perhaps you may wish to contact your party and ask why? Then maybe they would have had time to pass more tax breaks that may have affected your withholding.
SoWal Insider
He's raised the cap gains tax in 2011, and increased the dividend tax. Those aren't extenders that expired as far as I understand things. The dividend increase is a true tax increase on the middle class, fwiw.
But really, none of this is unexpected. We knew this would happen. There's really no point in complaining that he didn't keep a promise either, presidents "break" campaign promises because they don't control legislation.
When the dems are in charge, taxes usually go up. When the reps are in charge, they usually go down. When it's a mixed political bag, things can fluctuate, but recent history indicates taxes tend to go down as dems loose control and are forced to work with reps. Which is why I'm looking forward to the mid terms.
But really, none of this is unexpected. We knew this would happen. There's really no point in complaining that he didn't keep a promise either, presidents "break" campaign promises because they don't control legislation.
When the dems are in charge, taxes usually go up. When the reps are in charge, they usually go down. When it's a mixed political bag, things can fluctuate, but recent history indicates taxes tend to go down as dems loose control and are forced to work with reps. Which is why I'm looking forward to the mid terms.
Beach Fanatic
It is simply not true to say the qualified dividend and capital gains increase have anything to do with President Obama.
The tax cuts of 2001 and 2003 were signed by President Bush. In order to be revenue neutral they both were to expire on Jan 1, 2011.
It is astonishing that President Obama is blamed for something that happened when he was a state legislator in Illinois.
As a Certified Financial Planner, it is my professional opinion that doing away with the step-up in basis of inherited assets (part of the 01 &03 tax cuts) is an equally (or a more) heinous middle class tax increase than the two mentioned.
Have a Happy New Year!
The tax cuts of 2001 and 2003 were signed by President Bush. In order to be revenue neutral they both were to expire on Jan 1, 2011.
It is astonishing that President Obama is blamed for something that happened when he was a state legislator in Illinois.
As a Certified Financial Planner, it is my professional opinion that doing away with the step-up in basis of inherited assets (part of the 01 &03 tax cuts) is an equally (or a more) heinous middle class tax increase than the two mentioned.
Have a Happy New Year!
SoWal Insider
Congress Lets 50 Tax Breaks Expire
When members of the U.S. Senate finally head home, they will be leaving the future of 50 individual and business tax breaks in limbo. All expire at the end of 2009.
Congress Lets 50 Tax Breaks Expire - ABC News
When members of the U.S. Senate finally head home, they will be leaving the future of 50 individual and business tax breaks in limbo. All expire at the end of 2009.
Congress Lets 50 Tax Breaks Expire - ABC News
SoWal Insider
It is simply not true to say the qualified dividend and capital gains increase have anything to do with President Obama.
Well he and the current congress are in charge.. are you saying they are powerless to do anything about expiring changes? :roll: Also, if I remember things correctly, the democrats were the ones who demanded these cuts expire, in which case Obama and the democrats prior and current are entirely responsible for these tax increases.
The tax cuts of 2001 and 2003 were signed by President Bush. In order to be revenue neutral they both were to expire on Jan 1, 2011.
Well we certainly aren't concerned about that anymore now are we?
It is astonishing that President Obama is blamed for something that happened when he was a state legislator in Illinois.
As a Certified Financial Planner, it is my professional opinion that doing away with the step-up in basis of inherited assets (part of the 01 &03 tax cuts) is an equally (or a more) heinous middle class tax increase than the two mentioned.
Have a Happy New Year!
Are you referring to the one year hiatus of the 50% death tax? If so, how is that a middle class tax increase?
(I do appreciate having someone knowledgeable in tax law here commenting Buz.. looking forward to your response.)
Edited
Beach Fanatic
Watching football right now, trying to take the day off.
War Eagle
Will follow up
Happy New Year
War Eagle
Will follow up
Happy New Year
Beach Fanatic
Buz, you just said two words I NEVER thought I would hear you say! Just had to give you a hard time about it. (What a game!) 
Beach Fanatic
I usually pull for SEC teams.
Especially after Tennesee got waxed.
Since there are no games on here is my answer to a question from yesterday.
Are you referring to the one year hiatus of the 50% death tax? If so, how is that a middle class tax increase?
(I do appreciate having someone knowledgeable in tax law here commenting Buz.. looking forward to your response.)
------------------------------------------------------------------------------------------------------------------
First I know enough about tax law to know what I don't know is more than what I know.
Second, a public internet bullentin board is not the best place to get tax advice (it may adtually be the worst). If one needs tax advice they should meet wth a professional. This is even more critical if you have an estate tax liability.
Third, I really, really, don't want to deal with partisan straw man arguements that are prevalent on internet bullentin boards.
Beginning in mid 1970s, heirs could establish a "step up in basis" on the value of inherited assets. With the temporary repeal of the estate tax the step up in basis was eliminated.
In 2009, a married couple could pass to their heirs up to $7,000,000 ($3.5M each) with no estate tax liability. Futhermore the heirs could turn right around and sell $7,000,000 worth of assets and have zero capital gains tax liability since their basis would have been "stepped up" to $7,000,000.
This year, worst case scenario, same heir inherits low basis assets and has no estate tax liability but will have a capital gains liability. Large capital gains liabilities often trigger AMT liability-wfich is definitely a middle class tax that the tax cuts of 2001 & 2003 failed to address.
The repeal of the estate tax includes a cumbersome (to me) type of basis carryover with some type of credit that I do not understand. It appears - from my cursory view-that some estates would benefit from this. The fly in this ointment is that taxpayers could be faced with justifying the decedent's orginal cost basis. With real estate this will not be so bad. However for mutual funds with decades of reinvested dividends, stock splits, mergers, individuals often do not know their basis of stocks/mutual funds.
The step up in basis is simply much easier to understand and to implement.
To further complicate (my opinion) things is the tax cut of 2001 has a mechanism that lowers the $3.5M indvidual estate tax exclusion (2009) to $1M in 2011.
Unless Congress makes some changes the estate tax will go away for one year and then kicks back in with a vengence in 2011 since the individual exclusion drops to 1M with a 50% tax rate.
Congress appears to be inclined to keep the 3.5M exclusion(indvidual) with a lower tax rate (45% maybe). Plus there appears to be a strong interest in reinstating the step up in basis.
To me, a tax bill that has an estate tax exclusion of 3.5M in 2011 and adjusted for inflation is preferable to the current one that has no estate tax liability for one year but has a much lower exclusion (1M) in subsequent years. I thnk continuing the step up in basis is preferable also.
If you have an estate tax liability there are a host of options available to minimize or to eliminate the burden.
This is broad overview and should not be taken as tax, financial or legal advice.
Whew....I knew I should have kept my mouth shut.
Time to listen to Marketplace Money on NPR.
Especially after Tennesee got waxed.
Since there are no games on here is my answer to a question from yesterday.
Are you referring to the one year hiatus of the 50% death tax? If so, how is that a middle class tax increase?
(I do appreciate having someone knowledgeable in tax law here commenting Buz.. looking forward to your response.)
------------------------------------------------------------------------------------------------------------------
First I know enough about tax law to know what I don't know is more than what I know.
Second, a public internet bullentin board is not the best place to get tax advice (it may adtually be the worst). If one needs tax advice they should meet wth a professional. This is even more critical if you have an estate tax liability.
Third, I really, really, don't want to deal with partisan straw man arguements that are prevalent on internet bullentin boards.
Beginning in mid 1970s, heirs could establish a "step up in basis" on the value of inherited assets. With the temporary repeal of the estate tax the step up in basis was eliminated.
In 2009, a married couple could pass to their heirs up to $7,000,000 ($3.5M each) with no estate tax liability. Futhermore the heirs could turn right around and sell $7,000,000 worth of assets and have zero capital gains tax liability since their basis would have been "stepped up" to $7,000,000.
This year, worst case scenario, same heir inherits low basis assets and has no estate tax liability but will have a capital gains liability. Large capital gains liabilities often trigger AMT liability-wfich is definitely a middle class tax that the tax cuts of 2001 & 2003 failed to address.
The repeal of the estate tax includes a cumbersome (to me) type of basis carryover with some type of credit that I do not understand. It appears - from my cursory view-that some estates would benefit from this. The fly in this ointment is that taxpayers could be faced with justifying the decedent's orginal cost basis. With real estate this will not be so bad. However for mutual funds with decades of reinvested dividends, stock splits, mergers, individuals often do not know their basis of stocks/mutual funds.
The step up in basis is simply much easier to understand and to implement.
To further complicate (my opinion) things is the tax cut of 2001 has a mechanism that lowers the $3.5M indvidual estate tax exclusion (2009) to $1M in 2011.
Unless Congress makes some changes the estate tax will go away for one year and then kicks back in with a vengence in 2011 since the individual exclusion drops to 1M with a 50% tax rate.
Congress appears to be inclined to keep the 3.5M exclusion(indvidual) with a lower tax rate (45% maybe). Plus there appears to be a strong interest in reinstating the step up in basis.
To me, a tax bill that has an estate tax exclusion of 3.5M in 2011 and adjusted for inflation is preferable to the current one that has no estate tax liability for one year but has a much lower exclusion (1M) in subsequent years. I thnk continuing the step up in basis is preferable also.
If you have an estate tax liability there are a host of options available to minimize or to eliminate the burden.
This is broad overview and should not be taken as tax, financial or legal advice.
Whew....I knew I should have kept my mouth shut.
Time to listen to Marketplace Money on NPR.
Edited
SoWal Expert
Simple inheritance laws like that is why my parents are just trying to spend it all before they die.
SoWal Insider
....well, I guess that I MUST, since $9.30 more of my USAF retirement check was deducted. My pay stub details "due to recent legislation your federal withholding tax was increased". As I recall, my president told me that only those earning $250K or more per year would see tax increases......I wonder what happened?. I know this: if I was making $250K a year, then I'd be having a LOT more fun!......:shock:
? Congress Tinkers with Withholding Tax Tables for 2010 - Big Government
The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.
Democrats slipped a tweak of the withholding thresholds into legislation last spring. This boils down to a small forced loan from taxpayers to the federal government. The amount of money to individuals is small, but the combined numbers will help pump up tax receipt numbers (but not revenue) going into an election season. :roll: You'll get your money back, in the spring of 2011.
Edited
Beach Fanatic
Simple inheritance laws like that is why my parents are just trying to spend it all before they die.Your parents are very wise. Betty and I have already told our children, six of them, and our grandchildren, seven of them, that if anything is left we didn't plan well.
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