Change an '8' to a '1' and Raise Over $1 trillion. One piece of the tax proposal is to raise the corporate income tax from 21% to 28% on 'C' corporations. At first blush this would seem to affect big companies, and it will. Estimates vary, but a tax increase to 28% will affect S&P 500 earnings negatively, possibly by as much as -6%. Lower profits mean investors will pay less for a stock.
The Tax Code needs to put both kinds of entities on parity, and therein lies the rub. If we tax C-corps at 28%, we need to allow pass-through owners to deduct 20% of their business income (called Qualified Business Income, or QBI). Otherwise, C-corps would have a lower tax rate. If we raise the corporate rate, the drafters of legislation would have to change the pass-through rules and lower the deduction. Hence, raising the corporate rate affects most small businesses.
Missed the deadline to file taxes? Here's what it's going to cost you
(NEXSTAR) – May 17 was the last day to request an extension to file your tax returns. So if you missed that deadline — and still haven't made any payments — you can expect to owe a little extra to the IRS.
The Internal Revenue Service expects taxpayers to file and pay their taxes by the annual deadline unless the taxpayer can provide valid "reasonable cause" for not being able to do so. Otherwise, interest begins to accrue on any unpaid balance, and penalties can be imposed for failing to pay and file your taxes.
Yellen pushes higher taxes, stronger unions, more competition to U.S. Chamber
Treasury Secretary Janet Yellen called on Tuesday for business leaders to pay higher taxes to support government stimulus spending, and backed stronger labor unions and lowering barriers to foreign competition.
In a speech to the U.S. Chamber of Commerce, Yellen reiterated the White House's intent to raise taxes on corporations and the highest earners as part of an ambitious infrastructure spending plan .
4 Ways Your 2021 Taxes Will Be Different From 2020's
You've checked and rechecked your 2020 tax return, sent it to the IRS, and then spent some time sobbing in the basement. Now you're all set to plan for your 2021 tax return.
No? Think of it this way: A bit of planning now can keep you from wailing and gnashing your teeth next year, when you fill out your 1040 for this year.
Bear in mind that the White House has proposed major tax changes, most of which affect high-income taxpayers — those earning more than $400,000 a year — and those with taxable investments. Will those tax changes take effect for 2021? Probably not, although you never know.
IRS unemployment tax refunds may be seized for unpaid debt and taxes
The IRS will start issuing tax refunds on unemployment benefits this week. But some people may see a smaller refund — or none at all.
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New monthly child tax credit payments will start July 15
The top reason Americans abroad want to dump their U.S. citizenship
Home equity hits a record high — how to tap your house for cash
In the private sector, funds may be garnished by third-party creditors (like banks, for past overdraft charges) once they hit a taxpayer's bank account, according to Nina Olson, executive director of the Center for Taxpayer Rights.
Jeff Winick Sued By IRS For Allegedly Evading Taxes
Jeff Winick, the founder and CEO of Winick Realty Group and one of New York's top retail brokers, is being sued by the IRS for not paying his taxes.
In a complaint filed Monday, the IRS says that Winick underpaid taxes owed on approximately $23 million in income between 2012 and 2016, and avoided paying by renting and leasing his homes and cars and transferring assets to his daughter and other friends.
Iowa Senate passes bill to cut income, inheritance and property taxes
Iowa lawmakers have reached a deal on a sweeping plan to move funding for mental health services from county property taxes to the state, cut taxes, end Iowa's inheritance tax and boost a range of tax credits.
Republican legislative leaders in the House and Senate have been working with Reynolds for weeks to come to an agreement on a tax cut package. The negotiations have kept lawmakers working past April 30 — the target end date for the legislative session — and the deal eliminates one of the main barriers keeping the session from ending.
Can Higher Taxes On The Mega-Rich Create More Unicorn-Entrepreneurs?
Media outlets that cater to the business and investment communities worry about how taxing billionaires is unfair or will unleash Armageddon (Economist, 11/9/19, page 68). Billionaires are lamenting that they may not be allowed to control or keep their wealth, or distribute it as they see fit. But taken to its extreme, none of us should be paying taxes. We should all be able to target our money to our favorite causes.
I am sure most of us will agree that we need more unicorn ventures to create wealth and jobs. To do so, we need more unicorn-entrepreneurs who can capitalize on emerging industries and emerging trends to create the next generation of unicorns. They will need leading-edge technical skills and education to jump on emerging trends and dominate them. Unicorn-entrepreneurs need to bring the venture from idea to Aha, when potential is evident, because VCs invest after Aha.
Taxation isn't theft, but avoiding taxes is
While most Americans across the nation begin to file their taxes, numerous ultra wealthy corporations await their notice from their tax lawyers telling them that they don’t owe a single penny to the national coffers. With President Biden considering a total rewrite of our corporate tax code to fund overdue infrastructure repairs and investments, he must ax these corporate giveaways and make corporations pay their fair share.
Happening on Twitter
2day is federal TAX DAY Im all for catching tax cheats +closing tax gap BUT Biden plan 2pump more $$ into IRS & exp… https://t.co/0mezjsLOvo ChuckGrassley (from Iowa) Mon May 17 19:52:57 +0000 2021
Tax Day would be a lot worse for Americans if Biden passes his American Bankruptcy Plan. The plan gives $80 billi… https://t.co/mt11nbpdhH GOPChairwoman Mon May 17 19:58:25 +0000 2021
Help is here for millions of American families and children thanks to President Biden's American Rescue Plan 🙏 https://t.co/5QHpinKokN MattHill46 (from Washington, DC) Mon May 17 12:42:45 +0000 2021
Seriously. https://t.co/Slt1sqaFoi ewarren (from Massachusetts) Tue May 18 21:53:08 +0000 2021
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