Tax reform Feed

Michael Horowitz, Inspector General for the U.S. Department of Justice and Chair of the Council of the Inspectors General on Integrity and Efficiency, welcomes one and all to Oversight.gov, a new website that consolidates public reports from federal Inspectors General. Whenever talk turns to tax reform, there also are discussions on cutting federal spending. After all, if some of us get more favorable tax treatment, the money to make up for that lost revenue must come from somewhere. Conventional wisdom and political rhetoric tends to focus on Uncle Sam's inefficiencies, both perceived and real. If a federal agency or department... Read more →


Who's in the middle class will determine in large part whether that group of Americans gets Republican-promised middle class tax relief. One of the big debates about any tax reform is whether or how much it will benefit the middle class. That was a question in today's #TaxBuzzChat about the recently released Republican framework for tax reform. First, however, we need to decide what is and who is part of the United States middle class. There are several ways to define the middle class. Some say it is based on income. Other define it by lifestyle. Still others say middle... Read more →


Congress hopes to move beyond talk and have tax reform details in writing by mid-November. The Senate Budget Committee released its 2018 budget blueprint on Sept. 29, setting the stage for up to $1.5 trillion in tax cuts over the next 10 years. That's an astounding, alarming, amazing, pick-your-adjective amount. But the figure that caught my eye, and which earns this week's By the Numbers honor, is 13. As in Nov. 13. That's the date set in the Senate budget resolution by which it wants some legislative flesh attached to the framework of a tax reform that Republicans released on... Read more →


Shelley Long and Tom Hanks confront one of many (MANY) problems of homeownership in 1986's "The Money Pit." (Click image to view full MovieClips.com scene.) How expensive is owning a home? So expensive that many homeowners view "The Money Pit" as a documentary. But, we console ourselves, at least we get some nice tax breaks for our piece of the American Dream. In many cases, though, the reality of buying a house is, at best, a wash economically. Some folks would be better off financially renting. Ah, but emotionally, there's little that can beat the feeling of having your own... Read more →


House Ways and Means Chairman Rep. Kevin Brady of Texas, surrounded by his Republican colleagues, displays a postcard tax return his Party says will be possible under the tax reform framework released today. (Screenshot of C-SPAN video; click image to watch tape.) And so tax reform 2017 begins. Unfortunately, it begins vaguely. The Republican Party today released its "Unified Framework for Fixing Our Broken Tax Code." That long title, which is in dramatic all capital letters on cover of the nine-page document, belies the amount of information it provides. In fact, there are fewer tax details in this latest GOP... Read more →


Real estate taxes, along with other now-deductible state and local levies, could be eliminated as part of the forthcoming Republican tax reform plan. One thing is true when it comes to tax law changes. Some people win and some people lose. The big question as we await the Trump Administration's tax reform proposal is who will end up in which group. One segment seen as a potential big loser in the proposal Republicans will release on Wednesday, Sept. 27, are the Americans who pay state and local taxes. These include income, sales and property taxes, all of which currently can... Read more →


We'll finally know this week just what's in the Trump Administration's tax plan. One area individuals and businesses are closely watching is whether the proposal will include changes to company-offered retirement plans known as 401(k)s. Photo by 401(k) 2012 via Flickr Most workers participate in a traditional 401(k) plan, in which employees' retirement contributions are made with pre-tax dollars, the fund grows tax-deferred and then account owners pay tax on their withdrawals in retirement at ordinary income tax rates. These 401(k)s are attractive to many not only because of the usual match by their employers of at least some contributions,... Read more →


Owners of small businesses, like these along Story City, Iowa's main street, are hoping federal tax reform will provide them some financial relief. (Photo by Brood_wich via Flickr CC) It looks like the Graham-Cassidy attempt to repeal and replace Obamacare is running out of steam, thanks once again to Arizona GOP Sen. John McCain. That means Capitol Hill can shift its full attention to the tax code. Republicans say they'll release more tax reform details the week of Sept. 25. Small business owners should be happy. Tax reform tops biz concerns: The latest Paychex Small Business Survey, conducted in late... Read more →


One of the major drivers of the latest federal tax reform effort is the corporate tax rate. The Trump Administration is still pushing for a 15 percent corporate tax rate, the White House's budget director, Mick Mulvaney, told CNBC last week. However, just the day before Treasury Secretary Steven Mnuchin conceded a 15 percent rate would be difficult to attain. Meanwhile, one Washington, D.C.-based tax policy group has looked at how much corporate taxes contribute per capita to state coffers. That analysis by The Tax Foundation earns this week's Shout Out Saturday honors. Not a major tax matter: "The corporate... Read more →


Donald J. Trump is Tweeting about tax reform. He's also holding bipartisan dinners at the White House to talk taxes. West Virginia Democratic Sen. Joe Manchin was pleased steak was on the menu. The White House website has a video explaining how the tax code is broken. House Speaker Paul Ryan says Congressional Republican's tax reform plan outline will be released in a couple of weeks. Meanwhile, pundits have been honing their prognostication skills, attempting to tease out tax possibilities and their potential effects. But despite all this action, the bottom line is that it's still just a big tax... Read more →


Texas Rep. Kevin Brady, left, accepts a truckload of help from his New York colleague Rep. Tom Suozzi to help Hurricane Harvey victims. Now Brady wants to offer more help via special tax relief for retirement account withdrawals. (Photo from Rep. Brady via Facebook) Here's a clear indication that tax reform isn't going to be as easy as many hope. Talk of tax reform has focused variously on tax rate cuts, deduction reductions and overall simplification of the Internal Revenue Code. Rep. Kevin Brady, the Texas Republican in charge of the House tax-writing committee, is himself considering adding a new... Read more →


Congress is looking to revise at least part of the bloated U.S. tax code in the coming months. In addition to reducing taxes, lawmakers say they want to make things simpler for taxpayers. In support of this argument, politicians and policy groups often point to the Internal Revenue Code’s complexity and compare it unfavorably to other nations. Our closest ally, however, shares a lot of the same tax troubles, at least according to one British economics writer. Growing British tax code: "Every [English] government promises to simplify taxes. None succeeds. We need more scrutiny of schemes that are too easy... Read more →


Tax reform, or at least tax cuts, will top Congress' agenda when it gets back from August recess. But will Representatives and Senators actually rewrite the tax code the way most Americans want? Today's Shout Out Saturday piece says maybe not. Donald J. Trump reportedly is now backing a corporate tax rate of 20 percent to 25 percent, up from the 15 percent rate included in his April tax overhaul outline. That slightly higher business tax rate jibes with what corporate executives and business lobbyists say is attainable. That, however, is not what American taxpayers want, according to a recent... Read more →


Does the surging stock market mean it's time to take capital gains? Tax reform could complicate the decision. The U.S. stock market passed another notable boundary today, moving above the 22,000 mark. It didn’t stay there long, bouncing around a bit before, yes, finally closing at 22,031. UPDATE, Oct. 18, 2017, 10 a.m.: It's still happening. The U.S. market hit 23,000 for the first time on Oct. 17, 2017, before closing just below that historic mark. Today, major indexes hit intraday records and the Dow industrials returned above 23,000 as the latest round of corporate earnings continued to support the... Read more →


Every taxpayer is well aware of the length of the federal tax tentacles. What Congress does to the Internal Revenue Code affects state taxes, too. And it’s not just the residents who live in the states who are affected. It’s the states themselves. Even before any tax code changes have been made, many are already feeling the Trump Effect on their treasuries. “April income tax returns brought bad news for state budgets,” according to the Rockefeller Institute of Government. “Payments with tax returns usually arrive in April and early May, and often they are surprising. By mid-to-late May, states know... Read more →


"We looked at healthcare and said let's make sure that we do tax reform better and differently." — House Speaker Paul Ryan (R-Wisconsin) talking about what's next legislatively after the GOP failed earlier today to deliver on its seven-year pledge to end Obamacare. House Speaker Paul Ryan has been pushing his "A Better Way" economic and tax plan for years. Will he finally succeed in 2017 as a Republican-led Congress and White House turn their attention to tax reform? Doing a better job in rewriting the tax code than they did during the recent Affordable Care Act repeal and/or replace... Read more →


Rep. Josh Gottheimer (D-New Jersey), center, makes a point as he and fellow Problem Solvers Caucus member Rep. Tom Reed (R-New York), right, talk with MSNBC's Stephanie Ruhle about their efforts in late April to prevent a federal government shutdown. Click image to watch the full interview. The email topic line said something about the Congressional Problem Solvers Caucus, so naturally I almost hit delete thinking that such an oxymoron had to be spam. But curiosity got the better of me. I opened the message. Lo and behold, the Problem Solvers Caucus is a real deal. How effective it can... Read more →


Americans have again dived into the deep end of the personal debt pool "Americans have now borrowed more money than they had at the height of the credit bubble in 2008, just as the global financial system began to collapse," write Michael Corkery and Stacy Cowley in today's New York Times' DealB%k column. The $12.73 trillion in debt reported in the first quarter of 2017 is comprised mainly of housing-related borrowing. But there is a bit of good news here. Here's hoping that the new residents find being homeowners as sweet as these house warming cupcakes. (Photo by Danl Lurle... Read more →


Federal tax reform is still a ways off, but the prospect of an Internal Revenue Code rewrite already has prompted Oklahoma to change one of its tax laws. Republican Gov. Mary Fallin on May 12 signed legislation that will decouple the Sooner State's standard deduction from the current federal standard deduction. The reason for the change? If the Trump Administration's proposal to double the federal standard deduction eventually becomes part of the tax law of the land, Oklahoma stands to lose a lot of tax revenue. Federal, state tax ties: Oklahoma's tax system, like that of many states with income... Read more →


If you're like me, you're probably spending your Sunday perusing the possibilities for tax code change under the Trump Administration's recently announced plan. National Economic Council Director Gary Cohn, left, and Treasury Secretary Steve Mnuchin announce the new administration's tax plan on April 26. Click image for full CNN video report. The document — officially titled "2017 Tax Reform for Economic Growth and American Jobs" and officially subtitled "The Biggest Individual And Business Tax Cut in American History" — really is more of an outline. Deleting deductions: Under the proposal's simplification bullet point, the first item is eliminate targeted tax... Read more →