So-Called Temporary Recession Tax Not So Temporary
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.
Fashioning a Charitable Gift: Creative Ways of Giving
Fashioning a Charitable Gift: Creative Ways of Giving The idea of “planning” a gift to charity may not spring as readily to mind as investment or retirement planning. Yet there are many ways to give, and many kinds of gifts to consider, especially when your philanthropic impulse is strong. Initial steps Of course, the very…
Durable Power of Attorney: Manage with Care
Durable Power of Attorney: Manage with Care With over 35 million people age 65 and older, more and more families are grappling with the needs of their elderly parents. Care-giving arrangements may be necessary, involving some difficult choices and emotional upheaval. For children with parents of substantial means, there may be concerns that extend beyond…
Gifts to Grandchildren: Generation-Skipping Transfer Tax
Gifts to Grandchildren: Generation-Skipping Transfer Tax The federal government currently imposes three distinct taxes on the transfer of wealth. The first two limit the total amount of assets that a person can pass tax free to others in life or at death. The gift tax and/or the estate tax take a substantial portion of all…
Independent Retirement Account – Defined, What Are The Options?
Independent Retirement Account – Defined, What Are The Options? There are typically two types of beneficiaries for an Independent Retirement Account (IRA). A beneficiary can be either a spouse or non-spouse, and each group has different options and benefits to receiving money from an inherited IRA. INHERIT INDEPENDENT RETIREMENT ACCOUNT FROM SPOUSE If you inherit…