So-Called Temporary Recession Tax Not So Temporary

A,Pile,Of,Cardboard,Boxes,And,A,Red,Arrow,Down.

Remember the great recession of 2009? Although the recession may now be a thing of the past, some so-called “temporary” taxes are having a harder time fading into the background. That’s because many states throughout the country are still collecting on tax bills that were enacted solely for the purpose of refilling public reserves.

Fourteen states and the District of Columbia imposed 25 new measures during the recession years of 2008 – 2011. So what’s the status of those measures now that the recession is over? Good question. Nine of them have expired on schedule, while three more have yet to reach their termination date.

So what about the other 13? They have all been extended, replaced or in some cases they’ve even been made permanent. For example, in Connecticut, a 10 percent “temporary” corporate income surtax has been renewed twice and has also jumped up to 20 percent. In Kansas, lawmakers imposed a sales and excise tax from 5.7 percent to 6.3 percent then lowered the tax to 6.15 percent, but also made it permanent.

In New York, the state took direct aim at one income group by imposing a tax hike on the rich. They upped the ante even more by imposing a second “temporary” hike on the even richer. That increase is set to expire in 2017 and will impose an 8.82 percent top rate on anyone with income more than $2 million.

The bottom line is if you live in a state that increased taxes for some “temporary” help with the recession, then don’t hold your breath if you’re expecting those measures to disappear anytime soon.

Posted in ,
retirement

Retirement Income – Will You Have Enough?

Retirement Income – Will You Have Enough? You could spend as much time in retirement – 30 or even 40 years – as you have spent saving for it. That is why planning for your retirement savings to generate income is critical. Developing a solid plan and appropriate investments for years of income is well…

invest

Systematic Investing: Retirement Plan Opportunities

Systematic Investing: Retirement Plan Opportunities Tax-deferred retirement plans, especially the popular 401(k) plans, have become the key to building financial independence through regular, systematic investing. Take full advantage of your opportunities. Self-employed? Start your own retirement plan. Employed by others but not covered by a retirement plan? If neither you nor your spouse has access…

RETIREMENT PLAN PENALTIES: FAILING TO MAKE THE REQUIRED MINIMUM DISTRIBUTION (RMD)

Retirement Plan Penalties: Failing To Make the Required Minimum Distribution (RMD)

Retirement Plan Penalties: Failing To Make the Required Minimum Distribution (RMD) Failing to make the Required Minimum Distribution from a retirement plan can result in one of the IRS’ highest penalties. Take these steps to help your senior clients avoid the penalties. Mary Kay Foss, CPA Director Greenstein Rogoff Olsen & Co. LLP One of…

Career Advice Young Individuals Need To Know

Career Advice Young Individuals Need To Know

Although everyone’s career path is unique, there is career advice all young individuals need to know. For many young people the reality of choosing a career path after college can be very daunting. Unlike students with fairly clear career paths, like those who graduate from law school or medical school, most other students face a…