Category Archives: Tax Rates

The Marketplace Fairness Act

The Marketplace Fairness Act

One of the many perks of online shopping, the lack of online sales tax, may soon be a thing of the past as the Marketplace Fairness Act, an official Senate Bill, is on its way to the House of Representatives. As of 1992, online retailers have only been required to collect sales tax from consumers that live in the state where the online store has a “physical presence”. However, tension was slowly mounting as smaller businesses tried to keep up with the many perks the online world offered.

English: Lochalsh Butchers Located in Station ...

English: Lochalsh Butchers Located in Station Road, Kyle of Lochalsh. This is a thriving local business with three other shops in the locality, offering online shopping, home delivery and mail order. (Photo credit: Wikipedia)

Retailers on the web slowly began to push that little edge, and allowed cheaper prices for the same product. Physical stores eventually caught onto the new trend, realizing that they had become showrooms for consumers who would end up leaving the store to buy the same product online.

The only thing slowing online shopping then was the shipping. Most would offer free shipping as a way to rope in new buyers; but people that really want something, have to have it right away, right? Nothing beats having your purchase in your hand right away. That was, until the start of the same day or next day shipping guarantee. That was the last push that gave small businesses all of the evidence they needed to argue the clear advantage online retailers possessed. They questioned how online retailers successfully carried out those guarantees without in-state affiliates. The bill easily passed with a vote of 69 to 27, getting support from both the Democrat and Republican parties. While large corporations and the average customer may not be affected much, this could mean a big loss for online retailers.

VN:F [1.9.22_1171]
Rating: 10.0/10 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +2 (from 2 votes)

Related Posts:

States Consider Alternative To State Income Tax

Alternative To State Income Tax

A trend in tax filing is already taking place in some Republican led Southern and Midwest states. Other states are considering a similar plan to eliminate their state income taxes and replace it with a higher sales tax to make up for loss of revenue. Legislative watchdogs and tax reform experts can only speculate to the success of these new tax reform campaigns.

The Push for State Tax Reform

English: Map of US states by state tax as a pe...

English: Map of US states by state tax as a percentage of average income per capita, 2007. Legend: 5%-5.5% 5.5%-6% 6%-6.5% 6.5%-7% 7%-7.5% 7.5%-8% 8%-8.5% >8.5% (Photo credit: Wikipedia)

Since there is little hope for any more changes with the federal tax system, many states are making plans to spur economic growth within their own region from changes in tax law. Reform activist agree that any major tax changes for this year will have to take place at the state level. However, they do not agree that states will be successful, or that this strategy is the answer to the reform problem. The states of Texas and Florida have no individual income tax which makes them attractive to residents and businesses.

States Considering Lower state income Taxes

Louisiana and North Carolina are two states who have made recent announcements with similar plans. Kansas cut those taxes last year and are talking of more reductions for the coming year. Oklahoma wasn’t successful in their attempts last year and may push another attempt through this year. Alaska eliminated their state income tax but were able to replace the lost revenue with income from the oil industry.

An Example of Republican Economics

This type of reform is an example of “trick-down” economics that was adopted by many in the Republican party 30 years ago. Eliminating the state individual tax filing would give citizens more money in their pocket and initiate consumer spending. Taxing consumers products and services would replace the lost revenue.

The Effect on Socioeconomic Class

The lower and middle socioeconomic classes would be hit the hardest with the change. Many consumers who didn’t pay the state any taxes on their income previously, would now be paying more for necessary items. Additionally, people who would normally receive a refund would no longer qualify for that income assistance.

Many states are making plans to reform their tax laws and alter their state income taxes. As the year progresses, it will be interesting to see other creative economic plans take shape.

VN:F [1.9.22_1171]
Rating: 10.0/10 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +2 (from 2 votes)

Related Posts:

President Obama And The Fiscal Cliff Deal

President Obama has left out certain important aspects of the fiscal cliff deal, in a video broadcast on the Web. This could give a wrong impression of the deal’s impact on the deficit and taxpayers

President Obama seems to be boasting that families coming under the middle-class category will not be paying more than $2000 extra as taxes during the year. This is correct for taxes on income; however, the President fails to mention, that there is allowance in the deal for the cut on payroll taxes to expire. More taxes will be paid this year by 77% taxpayers, which is almost $1200 extra by those who earn $75,000 to $100,000, and this income range falls into the middle class, as defined by Obama.

English: United States President Barack Obama ...

English: United States President Barack Obama signs into law the American Recovery and Reinvestment Act of 2009 as Vice President Joe Biden looks on. (Photo credit: Wikipedia)

President Obama says the deal is going to reduce the deficit. However, there is going to be an increase in deficit by around $4 trillion during the next decade, as there are extensions to the tax cuts provided by the Bush administration, which comprises of one percent top taxpayers. There will be a “deficit reduction” by the deal, only in comparison to a situation, if the Bush cut on taxes were extended to everybody.

All the talk by President Obama of preserving tax cuts for the middle class in the deal to prevent the fiscal cliff seems to create the impression of people paying same amount in taxes for the year, except people who are wealthy. However, that is quite incorrect. Obama has left out in his analysis that temporary reduction of couple years payroll taxes of Social Security has been permitted to expire. This will result in many people paying more taxes in the year.

VN:F [1.9.22_1171]
Rating: 9.5/10 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +2 (from 2 votes)

Related Posts:

Understanding The Fiscal Cliff Deal

The Fiscal Cliff Deal

The taxes paid by most Americans will definitely increase despite the fiscal cliff deal just signed by Congress.

President Obama has declared that the fiscal cliff deal as a victory for middle class households. This may not be true because taxes are bound to go up and this will lead to an increase in middle class taxes.

The percentage of households and individuals i...

The percentage of households and individuals in each income bracket. “US Census 2005 Economic Survey, income data” . . Retrieved 2006-12-09 . “US Census Bureau, personal income distribution” . . Retrieved 2006-12-09 . (Photo credit: Wikipedia)

America also has a huge national debt of $16 trillion. The tax relief and pork included in the new deal will add about $4 trillion to the national debt over 10 years. The fiscal cliff deal has been hailed as a victory for the middle class but this deal means that about 77% of the American population will pay more federal taxes in 2013. There are bound to be tax increases in 2013 and this affect the people in the middle classes too.

This may seem pretty high but people in high income brackets will pay much more than this in 2013.
The new deal will definitely affect people in the $400,000-$450,000 income bracket.

For those in the top income bracket, investment taxes will increase from 15% to 20%. Another category of top income earners will experience an increase of 4.6% in the taxes they already pay. This means that the tax will move up from 35% to 39.6%.

The Obama 2010 health care law necessitated a higher amount of tax for families which earn high incomes. In 2013, households with incomes in the $500,000 and $1 million bracket will pay $14,812 more. Families making more than $1million per year will fork out $170,341 in federal taxes.

The new tax deal was passed into law on January 1, 2013. The aim is to get more money for social security which is financed by taxes paid by employees and employers of labor. The fiscal cliff deal was opposed initially by republicans but the law has now been passed into law.

VN:F [1.9.22_1171]
Rating: 9.5/10 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +2 (from 2 votes)

Related Posts:

Saving Money With Tax Services

Locating free 2012 tax filing services would be a great idea for anyone that has a need to save some money. Spending hundreds of dollars on tax software is likely something you cannot afford when dealing with the large burden of taxes. However, it is important that you find a way to get your taxes done as quickly as possible. When you use out of the best free options on the market today, you will be able to keep hundreds of dollars in your pocket. Throwing away money on software is likely something you cannot justify on a limited budget, free options can help you to get great results while also allowing you to save some money in the process. There are many companies that attempt to make it difficult to get taxes done, this helps them to ensure that they are able to profit off of your need for help.

However, free 2012 tax filing services offer many alternatives that can put the power back into your hands. The company you select to complete your taxes is very important. Making the right choice would help to limit your tax burden. Additionally, you can eliminate much of the time that goes into filing your taxes. The turbo tax 2012 software would be one of the best options that you could find available to you today. This program is very simple, it takes just a few minutes to enter all of the required information. Once you have put all of your finance information into the program, you will be able to see your savings and enjoy the ability to count on professional presentation and reliable customer service if you need help at any point.

VN:F [1.9.22_1171]
Rating: 9.5/10 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +2 (from 2 votes)

Related Posts:

Tax Carnival Ecstasy – January 2, 2013

Welcome to the January 2, 2013 edition of Tax Carnival Ecstasy. Alex Fennings starts off our carnival edition with an article on How do you Buy Stocks Online? Bill Smith takes a look at 2011 Federal Tax Filing. We also take a look at the Fidelity New Markets Income Fund (FNMIX) in a post by Habeeb. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back soon.

Alex Fennings
presents How do you Buy Stocks Online? Learn all there is to know! | The Forex Base posted at The Forex Base, saying, “Learn all the information you need to effectively trade stock online and turn a profit”


JD Blake
presents Rhode Island Court says SSQ client offered best price ever posted at Structured Settlement-Quotes Blog, saying, “SSQ company review. We buy structured settlement for a lump sum. Get not one but six free quotes.”


Nicholas Jackson
presents Who Wins?: The ethics, risks, and practicalities of selling a structured settlement or other annuity stream posted at Nicholas Jackson, saying, “Having pension is good, but if you want to have cash, SYSS will arrange for the purchase of full or part of your annuity so you can use it almost immediately.”

Economic Map of the World: Emerging Markets an...

Economic Map of the World: Emerging Markets and Developed Markets as of June 2006 (Photo credit: Wikipedia)

credits

Daniel Rosenstein presents Are your finances on autopilot? | Miss Money Bee posted at Miss Money Bee, saying, “Most people operate under the mindset, “If it isn’t broke, don’t fix it.” This can be a great way to set a routine that works for you and keep to a schedule that helps you avoid forgetting about responsibilities, but when you apply this mindset to your finances, you may be missing out on opportunities to improve yourself and bolster your savings account.”

retirement

Habeeb presents Fidelity New Markets Income Fund (FNMIX) posted at Dividend Paying Mutual Funds, saying, “Fidelity New Markets Income Fund (FNMIX) has $5.5 billion in assets under management and pays an outsized 5.2% dividend. The fund has a strategy of investing 80% of its assets in debt securities of emerging markets including sovereign bonds, agency bonds, corporate and treasury bonds. Examples of emerging market countries include Venezuela, Mexico, Turkey, Qatar, Brazil, etc. If you had invested $10,000 in this fund on July 11th, 2002, your portfolio would be worth $33,085.59 as of July 11th, 2012. This means an average annualized rate of return of 12.8% which is superb”

taxes

Bill Smith presents 2011 Federal Tax Filing posted at 2011 Tax, saying, “If you think 2011 federal tax filing is confusing, maybe this will help you. Below are some things that you will need to know for the tax season.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Share |

Technorati tags: tax carnival ecstasy, blog carnival.

VN:F [1.9.22_1171]
Rating: 10.0/10 (2 votes cast)
VN:F [1.9.22_1171]
Rating: +2 (from 2 votes)

Related Posts:

Turbo Tax Program

TurboTax 2012

If you are looking for information on turbotax 2012, maybe this will help you. Turbo tax is a company that specializes in filing taxes. You can file your 2012 tax with them relatively easy.

The company asks you questions and then puts those answers on the right tax forms. Their products include the EasyGuide feature which gives you step by step instructions through your taxes just like the GPS does. These steps are clear and easy to follow and will give you your maximum refund. The company can even speed up the refund you are going to get with their TurboTax refund card. You can have your refund deposited into a re-loadable prepaid VISA card without waiting for a check or using a bank account. You will get your refund in about 7 days when you e-file.

If you have questions or concerns while filing your taxes, the company can help you by answering those questions to the best of their ability. The company has a tax expert service that will help you at no cost to you. They can help you have peace of mind so that you no you are filing correctly and that you are getting all of the deductions that fit with your life. You can access the tax expert by going to TurboTax online or visit TurboTax Support and click on the contact us button to get the advice you need.

 

VN:F [1.9.22_1171]
Rating: 9.0/10 (1 vote cast)
VN:F [1.9.22_1171]
Rating: +1 (from 1 vote)

Related Posts: