Don't Mess With Taxes

Tax issues of the wealthy have been getting a lot of attention. No, this time I'm not talking about the candidates for the Republican presidential nomination.

The topics covered last week at my other tax blog were the appropriate tax rate for wealthier Americans and the spending habits of charitable foundations.

Two recent public opinion surveys revealed conflicting points of view on taxes on the rich. One survey showed support for the so-called Buffett Rule that would tax the wealthy more. But another found that three-quarters of those surveyed said the rich should pay at most a 30 percent tax rate.

Establishing a charitable foundation is common among the rich. But setting up a foundation and making it work are two different things. That's what Kanye West found out.

The rapper's foundation has closed, and a review of the organization's 2009 and 2010 tax returns appears to offer a reason why. The Kanye West Foundation spend hundreds of thousands of dollars on administrative costs and gave away only a few hundred dollars those two years.

You can check out my new posts at Bankrate Taxes Blog on most Tuesdays and Thursdays. If you happen to miss them there, you can find a wrap-up here each Saturday.

You also might find these items of interest:

• The Buffett Rule is a great replacement
  for the Alternative Minimum Tax
• Charitable checkoff questions raised by Illinois
  'borrowing' tax return donations