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.
House Pushes Through Internet Tax Ban Bill but Will Senate Agree?
Everyone loves the Internet and most people couldn’t live without it. There are a lot of great things about the Internet; with one of those things being that fact that there are no state and local taxes to use it. Over the years, they have been many arguments back and forth as to whether or…
Which Is Higher, Your Food Bill or Your Tax Bill?
How high is your tax bill? Would you say you spend more on taxes than you do on food? What about clothing and shelter; do you spend more on them than you do on your taxes? The answer might surprise you. That’s because in actuality you probably spend more on your taxes every year than…
The Skinny on Tax-Deferred Retirement Accounts
Just about anyone could benefit from a tax-differed retirement account. These accounts, most commonly known as 401Ks or IRAs, are a great way to save for retirement and in many cases save on taxes. The real question is when do you plan on cashing out that retirement fund? While you will always see immediate savings…
Now Is the Time to Fix California’s Messed up Tax Code
The California tax code is about as healthy as the federal tax code. In other words, it needs a lot of work. Of course, there are many interested parties that are all hard at work trying to create plans that will help improve the state’s economy and tax revenue while helping those from the lower…