tax Archive
So You Want to Raise an IRC § 7602(e) Issue…
October 27, 2021
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TweetShareSharePin0 Shares Previously, I wrote about why it is IRC § 7602(e) wouldn’t keep the IRS from using information returns from banks to audit taxpayers. Let’s now suppose my analysis from the prior post is completely and entirely wrong and the IRS can’t use information returns in the way I suggest. What happens if the
Reconciliation Bill Tax Innovation Effects
October 27, 2021
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TweetShareSharePin0 Shares When examining how tax policy impacts the economy, researchers typically look at labor supply and investment responses. One other channel through which taxes impact the economy has been less studied: innovation. A new National Bureau of Economic Research (NBER) paper reviews the literature and concludes that taxes have a significant impact on the
Tax Proposals Coming Fast And Furious
October 27, 2021
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TweetShareSharePin0 Shares Pelosi: Spending bill before infrastructure bill. Source link TweetShareSharePin0 Shares
Gaming The SALT Cap May Be Congress’s Worst Tax Idea Of The Year
October 27, 2021
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TweetShareSharePin0 Shares Ever since Congress capped the state and local tax (SALT) deduction in 2017, a small group of Blue State Democrats has demanded the cap’s repeal. Indeed, they have made it their price for supporting President Biden’s Build Back Better social spending bill. Now, it appears they may get their wish. The result, though,
Billionaires Tax on Capital Gains Invites Tax Collection Volatility
October 26, 2021
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TweetShareSharePin0 Shares Congressional Democrats are reported to be weighing a special tax on the assets of billionaires to raise revenues to pay for their Build Back Better spending plan. There are two fundamental challenges to such a plan. First, the incomes and wealth of such individuals are anything but stable; they rise and fall with
IRC § 7602(e) Will Not Save You (From Bank Information Return Exams)
October 26, 2021
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TweetShareSharePin0 Shares Lately there has been much fury and gnashing of teeth on the Biden administration proposal to vastly increase bank reporting requirements to the IRS. In a nutshell, the proposal would require banks and credit unions to send information returns to the IRS wherever an individual hits a threshold amount of “inflows and outflows”
A Billionaire Tax And Repealing The SALT Cap (Temporarily)
October 26, 2021
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TweetShareSharePin0 Shares Growing optimism for a framework this week. President Biden wants one before he leaves for the United Nations Climate Summit at the end of the week. Sen. Joe Manchin says he thinks that will happen and expressed support for a proposed billionaire tax. Negotiators have scaled back the Build Back Better plan to
Washington Voters to Weigh in on New Capital Gains Income Tax
October 25, 2021
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TweetShareSharePin0 Shares On May 4th, Gov. Jay Inslee (D) signed legislation creating a 7 percent capital gains tax, to take effect next year. On November 2nd, Washington lawmakers will learn what voters think about it. Although the ballot measure asking voters to recommend on retaining or repealing the new tax is purely advisory, this gauge
Lawmakers Could Pay for Reconciliation While Improving the Tax Code
October 25, 2021
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TweetShareSharePin0 Shares With corporate and individual rate hikes potentially out of the Build Back Better (BBB) reconciliation package, lawmakers are weighing alternative options to raise revenue. Rather than come up with complicated changes to the tax base, or untested proposals such as mark-to-market for billionaires, they should prioritize options that raise revenue while improving the
Wyden’s Billionaire Income Tax Is Ambitious But Problematic
October 25, 2021
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TweetShareSharePin0 Shares Senate Finance Committee Chairman Ron Wyden (D-OR) likes to say: “There are two tax codes in the United States: one for workers who pay taxes out of every paycheck and the other for high-fliers who use games and tricks to avoid their taxes.” He’s now proposing to add a third tax code, one for
