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.
Top Tax-Saving Moves Used By High Net Worth Individuals
One of the biggest complaints certain groups or individuals have against the wealthy is that they can take advantage of too many tax breaks and loopholes to lower their tax bill. So what are some of the top tax strategies that high net worth individuals use to keep their tax rates down, and could anyone…
Should University Donations Trigger Tax Breaks for the Wealthy?
Universities big and small receive donations from many different sources, including wealthy alumni. However, not all donations are created equal and because the wealthy donors get a huge tax break for their significant donations, some wonder if that is really fair. For example, Nike co-founder, Phil Knight, recently donated $400 million to Stanford, where he…
Money-Saving Tips for Freelancers
When you hear the term freelancer, you might think of someone working a small business out of his or her home and just doing things on the fly. However, freelancers come in all forms and many owners of small businesses or startups are also freelancers. Being a freelancer means you are self-employed and being self-employed…
Who Really Qualifies as a Dependent for Taxes?
How many dependents do you really have? Who can really be counted as a dependent? These are some of the most common questions that all taxpayers have. Can you count all of your children, live-in help, or perhaps a dog or other family pet? What about a friend who decides to crash at your place…