Rich Wealthy Feed

Harvard University, pictured here in Richard Rummell's 1906 watercolor landscape, would pay the most if a Massachusetts tax bill tied to students who get in based on family connections is enacted. (Image Courtesy of Arader Galleries via Wikipedia Commons) Following the Supreme Court's ruling that effectively ends affirmative action in college admissions, a proposal by two Massachusetts state lawmakers is getting a lot of attention. Their bill would tax rich colleges in the Bay State, including Harvard, whose policies were the basis of the high court decision, and put the money into a trust to fund community colleges is getting... Read more →


If you were rich, what would you buy with all your money? (Photo by Leon Kohle on Unsplash) During the 1992 presidential election, then-candidate Bill Clinton's mantra was "It's the economy, stupid." It worked. Clinton was elected and served two terms. Now a group of wealthy individuals worldwide are hoping a tweaking of Clinton strategist James Carville's iconic phrase will help them convince governments to increase taxes on the rich and simultaneously raise the minimum wage. "It's the inequality, stupid," say those who are part of the nonprofit Patriotic Millionaires. The group points to the astounding escalation of economic inequality... Read more →


The United States avoided defaulting on its debt, thanks to last-minute deal reached by President Joe Biden and House Speaker Kevin McCarthy and grudgingly agreed to earlier this month by Congress. Park of the package was a $21.4 billion cut to money the Internal Revenue Service was supposed to use for tax enforcement. The agreement called for an immediate $1.4 billion reduction, plus the loss of $20 billion over the next two years, most of that coming from the nearly $80 billion in extra funding the IRS was given as part of the Inflation Reduction Act. Critics of the hit... Read more →


After legislative and court fights, Washington State's capital gains tax took effect on Jan. 1, 2022. The Evergreen State's 7 percent tax applies to the sale of stocks, bonds, and other financial assets exceeding $250,000. And its collection, with the tax's first payments due this past April, has been a boon for the state's treasury. Initial estimates predicted the capital gains tax might provide Washington State around $248 million in this fiscal year, which ends on July 1. The actual amount the state has collected as of May 9 was more than three times that: $849 million. Education boost: Washington... Read more →


A view from the left field upper deck of the Milwaukee Brewers' ballpark, back when what is now American Family (AmFam) Field was known as Miller Park. (Photo by Brewersfan1061 via Wikipedia Commons) We're six weeks into the Major League Baseball season and my two favorite teams are giving me plenty of reasons to cheer and rant. But ain't that the way with all sports? At least my teams, the Orioles and Astros, are settled in Baltimore and Houston. I feel for the Oakland fans, where the few still going to Oakland-Alameda County Coliseum are watching their underperforming A's run... Read more →


The Treasury Department and Internal Revenue Service today released an extensive plan on how the tax agency will spend the nearly $80 billion in added funds it received in the Inflation Reduction Act (IRAct). New IRS Commissioner Daniel Werfel, in the introduction to the 150-page Strategic Operating Plan, said the plan is structured to achieve the following five objectives — Dramatically improve services to help taxpayers meet their obligations and receive the tax incentives for which they are eligible. Quickly resolve taxpayer issues when they arise. Focus expanded enforcement on taxpayers with complex tax filings and high-dollar noncompliance to address... Read more →


White House Budget video screenshot. Full video is available at Facebook and Twitter. The Biden Administration released its fiscal year 2024 budget today (March 9, 2023). Thanks to previews from President Joe Biden, there are no surprises as far as taxes. "I want to make it clear I'm going raise some taxes," Biden to told a group in Virginia Beach, Virginia, who gathered Feb. 28 to hear about healthcare. "Many of you are billionaires out there. You're going to stop paying at 3 percent. Not a joke." The president's promise was put in writing today with the issuance by the... Read more →


There's still time to give for 2022 tax purposes, especially if you make an electronic donation. If you're among the minority of taxpayers who still itemize, year-end philanthropy is one of the easiest ways to boost your Schedule A deductions. And much of that giving his happening right now. Nonprofits Source, a digital marketing consultant for nonprofit groups, says an estimated 30 percent of annual giving occurs in December. Ten percent of those gifts are made in the last three days of the year. If you're part of this last-minute giving group, here are some tips on getting your potentially... Read more →


Merry Monday Holiday After Christmas on Sunday. Happy Boxing Day. Joyous End-of-Year Tax Tasks to Complete Week. Yep, the start of the last week of 2022 has a lot of identities. But it's that last designation that you need to pay close attention to, since the end of the tax year is critical when it comes to many tax moves. Here are eight you need to consider and, if they apply to you, complete by Dec. 31 — or actually by Friday, Dec. 30, in some cases since it's the last business day of 2022. 1. Take your required minimum... Read more →


Not all foreign tax havens are tropical islands, but the idyllic getaways do conjure images of tax crooks enjoying isolated beaches at Internal Revenue Service's expense. (Photo by Asad Photo Maldives) Correlation does not imply causation, but in a couple of high-profile offshore tax evasion cases, it's starting to look like trying to allegedly put one over on the U.S. tax collector is not a healthy move. For the second time in four months, a defendant in an offshore tax evasion case has died. Carlos Kepke, a Houston-based tax attorney who was indicted on charges that he helped hide $225... Read more →


These senior citizens celebrate their shared birthday month, if not the required traditional IRA withdrawals the big days may trigger. A QCD can help avoid tax on the mandated distributions. (Photo by Kay Bell) Most of us still have a real life, old-school, snail mail box. Every November, it is the target for the most mail of the year. Yep, the holidays are here. My curbside box is jammed with two types of correspondence, catalogs and charity solicitations. I get a kick out of thumbing through the catalogs. And yes, I even order a few (too many) things. The donation... Read more →


A single winning ticket for the record $2.04 billion Powerball lottery jackpot was sold in Altadena, California. The good news for the buyer, or buyers if it's a shared ticket, is that California is one of two states that don't tax lottery winnings. The other is Delaware. The bad news is that the U.S. Treasury still gets a big chuck of the huge payout when the winner(s) finally collect. Winnings are ordinary taxable income: Since lottery winnings are considered under the Internal Revenue Code as gambling proceeds, the Internal Revenue Service will get a cut. When winnings are more than... Read more →


Before law changes, the now inflation-indexed Alternative Minimum Tax, known as the AMT, seemed to work like an ATM for the Internal Revenue Service, allowing it to collect this parallel tax from more than the wealthy for whom it was created. (Photo by Erik Mclean) Calculating one tax bill is bad enough, but some people have to deal with a second one at tax filing time. The Alternative Minimum Tax, or AMT, is a separate tax system created to ensure that the wealthiest pay at least some tax. The parallel AMT was added to the Internal Revenue Code in 1969... Read more →


Plus a look at how higher costs of living affect capital gains, youngsters' investment earnings, gifts, and more. Image via Giphy Them that got, are them that get. Not only is that a lyric (and theme) from a fabulous Ray Charles song, it's a good synopsis of the current estate tax law, especially with 2023 inflation adjustments. Many of the current wealth-related tax provisions help the richest among us stay that way. But some of them can help all of us, regardless of our income level, increase our relative wealth. And, as reviewed in this Part 6 of the ol'... Read more →


Tyle Perry working on one of his many productions. (Facebook photo) Most of us would celebrate getting a $9 million refund from the Internal Revenue Service. But then, most of us aren't billionaire media mogul and philanthropist Tyler Perry. When an IRS audit resulted in Uncle Sam handing over the multimillions, Perry fired his accounting team. "I'll let you make a million mistakes, but you can't do the same thing over and over again. That's how I run my business. Here's the mistake. Let's fix it; let's move forward," Perry told the audience at a recent Earn Your Leisure Conference.... Read more →


The Social Security Administration (SSA) gave retirees and other recipients of the program's payments good news this week. Next year, they'll get an 8.7 percent cost-of-living increase. That's the highest in more than 40 years, and comes on the heels of this year's bump that, at the time, was the largest retirement benefits bump in decades. Some higher earners, however, aren't so happy. Today's SSA announcement also noted that the amount of income subject to payroll taxes also is going up in 2023. This amount, known as the Social Security wage base, is the maximum earnings, by both salaried workers... Read more →


The Internal Revenue Service saw its largest tax fraud case ever end on Aug. 5 when Robert T. Brockman died. The 81-year-old billionaire had been charged with 39 criminal financial crimes, including tax evasion. Federal investigations alleged that Brockman was part of an elaborate offshore tax fraud scheme that cheated the U.S. Treasury out of more than $1.4 billion in taxes, penalties, and interest. While the criminal case is over, legal actions in civil and tax courtrooms to recoup the allegedly unpaid taxes (and add-on charges) continue. Special tax action to protect collection: As part of that process, the IRS... Read more →


Some come to the Cayman Islands for the beauty of Seven Mile Beach and other natural recreational areas. Others enjoy the Caribbean locale for financial and tax reasons. For more than a decade, wealthy U.S. tax evaders have taken advantage of a gaping tax law loophole that allows them to stash billions in foreign bank accounts, according to a recently released congressional report. Even though the 2010 Foreign Account Tax Compliance Act (FATCA) requires them to report any non-U.S. accounts and pay taxes on all income earned, too many non-taxpayers are using what the Senate Finance Committee report describes as... Read more →


Photo by krakenimages on Unsplash Are you freaking out about the possibility that one of the new Internal Revenue Service enforcement agents will be coming for you? Most of us don't have to worry. The prime targets are the very wealthy. Why has the IRS been instructed to go after this filing demographic? One reason is because the richest taxpayers who try to hide taxable assets offer the biggest return when they are caught. Another reason is that they've been flying under the IRS audit radar for way too long. Dramatic drop in high wealth audits: A Government Accountability Office... Read more →


Tax legislation is much more than just changes to the Internal Revenue Code. It's also a political statement. In an election year, which is essentially every year nowadays, it's also a political weapon. Republicans, who currently are slightly outnumbered on Capitol Hill by Democrats, didn't waste any time latching on to the Senate's passage on Aug. 7 of the Inflation Reduction Act. Notably, they cited potential added Internal Revenue Service scrutiny of taxpayers, thanks to part of the bill. Well aware that every federal return filer, even the most honest among us, worries about the IRS taking a closer look... Read more →