Category Archive:IRS

this so called ‘fiscal cliff” is merely a smokescreen for the Obamacare taxes that start kicking in from now until 2014.

 

Even if lawmakers somehow stop the Bush-era tax rates from expiring, taxes are still expected to rise on Jan. 1 — thanks to a trio of new fees tied to the federal health care overhaul.

The IRS this past week published rules for some of the first major taxes meant to help pay for President Obama’s massive insurance coverage expansion. Together, they will raise investment and income taxes on top earners and impose a separate — and controversial — tax on medical devices.

The bundle of fees has been largely overlooked as lawmakers and the White House bicker over the Bush tax rates, with Republicans demanding they be extended for everyone and Obama insisting rates rise for top earners. But that same group of earners is already in the crosshairs under the ObamaCare tax rules published this week.

Starting Jan. 1, investment income for individuals earning over $200,000 and households earning over $250,000 will be subject to a new 3.8 percent tax. Further, regular income above those thresholds will be hit with a .9 percent Medicare surtax. Should the Bush tax rates expire for those workers, those increases will be compounded.

But the rather obscure medical device tax is the one that has stirred the most controversy in Washington and the business community. This week, groups and lawmakers renewed their calls to repeal it as the IRS published its final rules.

“This week, the Internal Revenue Service outlined which medical supplies and technologies will be subject to a tax. Now, everything from latex gloves to pacemakers will become more expensive and in some cases, more scarce,” Rep. Tom Price, R-Ga., said in a statement. “The tax on medical devices harms America’s ability to conduct the necessary research and development to maintain our global competitiveness, resulting in the loss of tens of thousands of jobs and fewer groundbreaking innovations in this field. With millions of Americans unemployed, this simply makes no sense.”

The Affordable Care Act imposed the 2.3 percent tax on medical devices with the goal of raising nearly $30 billion over the next decade.

Equipment makers, though, argue that the tax ends up being much higher than that since it’s on gross sales. One industry spokesman estimated earlier this year that the impact on actual earnings is more like 15 percent.

Already, some have warned that the tax will stifle growth. Indiana-based Cook Medical earlier this year announced it was scrapping plans to open five new plants because of the tax.

via Deal or no deal, ObamaCare taxes poised to hit next month | Fox News.

If you have any kind of gov’t aided pension like roth or 401k..anything tax free…get that money out now…otherwise the gov’t is going to take it within the next 4 years.  Maybe 8 if Obama amends the constitution for a 3rd term.

 

A recent hearing sponsored by the Treasury and Labor Departments marked the beginning of the Obama Administration’s effort to nationalize the nation’s pension system and to eliminate private retirement accounts including IRA’s and 401k plans, NSC is warning.

The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.

“This hearing was set up to explore why Americans are not saving as much for their retirement as they could,” explains National Seniors Council National Director Robert Crone, “However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up.”

A representative of the liberal Pension Rights Center, Rebecca Davis, testified that the government needs to get involved because 401k plans and IRAs are unfair to poor people. She demanded the Obama administration set up a “government-sponsored program administered by the PBGC (the governments’ Pension Benefit Guarantee Corporation).”

Such “reforms” would effectively end private retirement accounts in America, Crone warns.

“These people want the government to require that ultimately all Americans buy these government annuities instead of saving or investing on their own.The Government could then take these trillions of dollars and redistribute it through this new national retirement system.”

“This effort ultimately is designed to grab the retirement nest eggs of America’s senior citizens. This new government annuity scheme, even if it is at first optional, will turn into a giant effort to redistribute the wealth of America’s older citizens,” explains Crone. “This scheme mirrors what I expect the President will try to do with Social Security. He wants to turn that program into a welfare program, too.”

via » Government Sets Its Sights on Private Retirement Accounts: “Giant Effort to Redistribute the Wealth of America’s Older Citizens” Alex Jones’ Infowars: There’s a war on for your mind!.

The below isn’t bold it’s nearly stupid.  If you are using a gov’t mechanism to get around your entity having to pay taxes you shouldn’t be surprised when said gov’t pulls on your chain..because you’re wearing one!  If you don’t want the gov’t “interfering” then give up the npo and you can freely talk about anything you want.

 

Some pastors have been brave enough to rise up and do exactly that.  This weekend is “Pulpit Freedom Sunday” in churches across the country.  Pastors in pulpits across the country will not only endorse candidates from the pulpit, but will also send the tapes of the services directly to the IRS.  Now that’s bold!

via Pastor to Taunt IRS Over Free Speech – Gina Loudon – Townhall Finance Conservative Columnists and Financial Commentary – Page 1.

This is SOOOOOOOOOOOOO True..in every single word.

 

Obamacare Summed Up in One Sentence – YouTube.

Read the entire article.  It’s breathtaking.

 

Sunday will mark the start of the 100-day countdown to “Taxmageddon” – the date the largest tax hikes in the history of America will take effect.  They will hit families and small businesses in three great waves on January 1, 2013:

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for small business owners, families, and investors (later re-upped by President Obama and Democrat Congress in 2010).  The following tax hikes will occur on January 1, 2013:

Personal income tax rates will rise on January 1, 2013.  The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which the majority of small business profits are taxed).  The lowest rate will rise from 10 to 15 percent.  All the rates in between will also rise.  Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates.  The full list of marginal rate hikes is below:

-The 10% bracket rises to a new and expanded 15%

-The 25% bracket rises to 28%

-The 28% bracket rises to 31%

-The 33% bracket rises to 36%

-The 35% bracket rises to 39.6%

Higher taxes on marriage and family coming on January 1, 2013.  The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of taxable income.  The child tax credit will be cut in half from $1000 to $500 per child.  The standard deduction will no longer be doubled for married couples relative to the single level. 

Middle Class Death Tax returns on January 1, 2013.  The death tax is currently 35% with an exemption of $5 million ($10 million for married couples).  For those dying on or after January 1 2013, there is a 55 percent top death tax rate on estates over $1 million.  A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors on January 1, 2013.  The capital gains tax will rise from 15 percent this year to 23.8 percent in 2013.  The top dividends tax will rise from 15 percent this year to 43.4 percent in 2013.  This is because of scheduled rate hikes plus Obamacare’s investment surtax.

via Americans for Tax Reform : 100 Days Until Taxmageddon.

These pastors are forgetting you are using a gov’t instrument to get around paying taxes.  Because you are using a gov’t instrument the gov’t can most assuredly do this.  Want freedom from gov’t interference?  Drop your NPO status voluntarily.  if you are paying taxes as per the laws of the land you can preach anything you want.

 

More than 1,000 pastors are planning to challenge the IRS next month by deliberately preaching politics ahead of the presidential election despite a federal ban on endorsements from the pulpit.

The defiant move, they hope, will prompt the IRS to enforce a 1954 tax code amendment that prohibits tax-exempt organizations, such as churches, from making political endorsements. Alliance Defending Freedom, which is holding the October summit, said it wants the IRS to press the matter so it can be decided in court. The group believes the law violates the First Amendment by “muzzling” preachers.

“The purpose is to make sure that the pastor — and not the IRS — decides what is said from the pulpit,” Erik Stanley, senior legal counsel for the group, told FoxNews.com. “It is a head-on constitutional challenge.”

Stanley said pastors attending the Oct. 7 “Pulpit Freedom Sunday” will “preach sermons that will talk about the candidates running for office” and then “make a specific recommendation.”

“We’re hoping the IRS will respond by doing what they have threatened,” he said. “We have to wait for it to be applied to a particular church or pastor so that we can challenge it in court. We don’t think it’s going to take long for a judge to strike this down as unconstitutional.”

An amendment was made to the IRS tax code in 1954, stating that tax-exempt organizations are “absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.”

“Violation of this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise tax,” the IRS says in its online guide for churches and religious organizations seeking tax exemption.

via Pastors pledge to defy IRS, preach politics from pulpit ahead of election | Fox News.

I am going to cross post this to both blogs as this affects me both as a person and a business man.

 

Now consider this — the PPACA sets forth a “fine” (tax) of $2,000 per employee for a business that has 50 or more and does not provide “at least” the minimum “insurance” to all.

There is no health care plan I’m aware of that a business can buy today that costs less than $2,000 per employee per year, and which also meets the requirements in the law.  None.  That was almost impossible to meet back in 1995 for a healthy, 18 year old insured single male.  It’s flatly impossible now and it’s doubly-so if your workforce has other than 18-year old single, healthy males in it.  I know this to be factual because I was responsible for buying it for our employees as a CEO of a company.

Therefore the incentive is for all businesses to drop health care. 

Period.

Second, your choice is to either (1) buy and have said plan (whether through employment or individually) or pay a “fine” (tax) of 1% of income (increasing to 2.5% of AGI in 2016.)  The minimum “fine” is $95 starting in 2013, rising to $695 in 2016.  The average family income is about $50,000/year, which means that the fine (tax) will be $1,250 in 2016.  It’s less now.

You cannot buy health insurance at their “minimum level” for anything approaching $1,250 a year no matter how healthy you are at any age. 

The law prohibits insurance companies from charging you more if you’re sick, or refusing to cover you at all.  They must accept everyone on equal terms.

Therefore:

Businesses will drop coverage; it’s cheaper (by far) for them to pay the fine and, for those under 133% of the federal poverty level, those employees can go onto Medicaid.  This is a “family of four” income of $31,900 (as of today; it will go up of course.)  That’s roughly the second quintile.

Individuals will drop coverage and pay the fine, since it’s far cheaper than to buy the “insurance.”

Both will buy the “insurance” only when they get sick, since they cannot be upcharged.

The cost of “insurance” will thus skyrocket to 10x or more what it costs now, just as it would if you bought auto insurance only after you wrecked or homeowners insurance only after you had a fire.

At the higher price nobody will be able to afford to buy the insurance at all, since that will be indistinguishable from just paying for whatever is wrong with you, plus the insurance company markup.

In very short order the entire medical system and health insurance scheme will collapse, leaving only two choices — either a return to free market principles (including all I’ve argued for since this debate began) or a single-payer, fully-socialized system ala Canada.

You can bet the government will continue to try to change the terms of the deal — including ramping up the tax/fine and other games, to prevent this outcome, but they will fail.

Now the question becomes this:

Which Presidential political candidates have told you the above, and what are their answers to this dilemma?

Let’s go down the list.

We know what Obama’s is — he passed it.  You will lose your private health care under Obama.  Period.  We are headed for a fully-socialized medical system and a collapse of the current medical paradigm under Obama.

We know what Gary Johnson’s position is — he wants to “block grant” all Medicare and Medicaid to the states, cut the amount of money in the budget (all line items) 43% and repeal Obamacare (including the mandate.)  But he refuses to demand an end to the cost-shifting where Juanita the illegal Mexican immigrant who is 7-1/2 months pregnant while drug and alcohol dependent shows up in the hospital, in labor, and foists off a $2.5 million NICU and birth expense bill on you!  He also refuses to stop the drug companies from effectively forcing Americans to bear the cost of all drug and device development and he has refused to put a stop to differential billing.  The latter two only exist because of explicit federal laws that make lawful in the health industry market behaviors that are illegal in virtually every other line of work (see The Sherman Act, The Clayton Act, and Robinson-Patman for starters.)  All of these facts are why the costs are ramping in the first place, which means his plan will simply force the States into bankruptcy and continue screwing you at the same time.

We don’t know what Romney’s plan is in detail.  He’s been oddly silent in that regard.  He says “Obamacare is not the answer” but he passed it as Governor on a state basis!  He too advocates nothing to put a stop to the cost-shifting and anti-competitive acts of drug and device makers nor hospitals and other medical providers.  He too wants to block grant Medicaid but that does nothing to address the problem and will simply bankrupt the state budgets (as noted for Johnson.)   Conspicuously absent from Romney’s plan (as is true for Johnson) is (1) a repeal of EMTALA, (2) a demand for level, consistent pricing irrespective of how one pays for a service (3) and a demand to remove anti-competitive laws protecting differential billing across state and national boundaries (e.g. Viagra for $2 in Canada .vs. $20 here) so that Americans are not forced to subsdize everyone else in the world and you pay the same price as the guy next to you in the hospital for the same product or service, instead of 2x, 3x, 5x, or even 100x as much.

So we have three Presidential candidates, none of which will do a damn thing to fix what’s wrong with health care.  All three are promoting a path that will bankrupt the States, bankrupt the Federal Government, bankrupt you or all three.

via PPACA And The Death Of Medical Care (And Choice) in [Market-Ticker].

This bill will do nothing to folks such as those mentioned in this article. It will only increase the flight from our country and they will all raise the middle finger since they’ll never have to come back to this country nor touch any operations that have any kind of business nexus in it either.  F-U money is what these folks have and they will utilize said Middle Finger power quickly.

 

Theres dumb and then theres real dumb.  This is in the latter category:During the 2012 election cycle Democrats are positioning themselves as the “defenders of the middle class,” and Sen. Bob Casey Jr. is honing that message by attacking the top .001 percent of income earners, including Facebook co-founder Eduardo Saverin.Along with NY Sen. Chuck Schumer, Casey is introducing a bill that would prevent U.S. citizens from renouncing their citizenship in order to avoid taxes.Good luck Senators.People with enough money to care about this also wont care about your bill.  Theyll leave, take their money with them, and never come back.  You can chuckle about how “you got them” but the truth is that they got you, and all of America.Theres a point where people get what is commonly called “fuck you” money.  As the name implies it enables them to say exactly that to anyone they disagree with and who pisses them off — including petulent little Senators and their petty games.  Facebooks co-founder has no reason to come back into the United States, and you cant reach him beyond our borders, so what I expect youll see is a giant middle finger erected in your direction — from Singapore.There is no material revenue impact from this bill that will be forthcoming.  There will, however, be a capital drain that will accelerate and harm America.And when it does, it will be your fault.

via Senators File “Screw Capital” Bill in [Market-Ticker].

I’ve spoken about this kind of thing before.

 

While the federal government and the Catholic church wrestle over healthcare-required contraception and abortions, city and county governments may have found a unique method of backdoor taxation on nonprofits.

They simply double the water bill for churches and schools.

That’s the focus of a court case that is being carefully watched by churches and nonprofits across the nation. Soon, an Oregon judge will decide whether to allow the practice.

One of the 600-plus ordinances for the city of Canyonville, Ore., states that “churches, schools, and non-profits like our local YMCA and a non-profit senior residence will be charged double the normal water rates and substantially elevated sewage fees.”

One of the current ordinances explains that the surcharges are to be paid “in lieu of taxes.”

Meanwhile, a sign posted in city hall, tells Canyonville residents that they pay less on their water bills than neighboring towns. The non-profits, who are paying double, say that their surcharge is the reason.

Among those affected is Canyonville Christian Academy, founded in 1924. Officials there stumbled onto the double billing, finding that the extra surcharges date back three decades and may total close to $200,000, according to school officials.

Said the school headmaster, Cathy Lovato, “We offered to settle this for a very modest amount last Christmas but the city said ‘no.’”

via Scheme opens door to tax the tax-exempt.

If you don’t want the gov’t or any other entity to be able to interfere with you then don’t use their vehicles to avoid paying taxes or get around regulations they also enforce.  Otherwise they do have the right to regulate your behavior while using said instruments.  If you truly want to be free then don’t be an NPO.  Otherwise you have to deal with their interference.

A religious group is charging the Internal Revenue Service with using a legal loophole to first tax nonprofits’ free speech, then run away with impunity when challenged in court.

The nonprofit Catholic Answers tasted this tactic firsthand in 2008, when its president, Karl Keating, posted a discussion on the organization’s website arguing that, according to church rules, Sen. John Kerry, D-Mass., should not be allowed to receive communion in the Catholic Church because of his support for legalized abortion.

The IRS then levied an excise tax on Catholic Answers for engaging in alleged “political speech” against then-presidential primary candidate Kerry, a tax Catholic Answers paid.

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But when challenged in court, the IRS simply refunded the tax, while refusing to change its ruling that Catholic Answers’ speech was taxable political intervention in an election. Lower courts then ruled Catholic Answers had no course of action against the IRS.

But Catholic Answers, together with the James Madison Center for Free Speech, are now asking the Supreme Court to step in, claiming this “tax-and-run” strategy allows the IRS to arbitrarily tax churches, charities and religious activists into silence, or dodge the consequences if the nonprofits fight back.

“Not only did the federal courts in this case misapply Supreme Court law, they have allowed the IRS to engage in trickery by penalizing nonprofits who exercise their right to speak, only to return the money at the last possible second,” explained James Bopp Jr., general counsel for the James Madison Center and co-chairman of the Election Law Subcommittee of the Federalist Society. “So long as the IRS is allowed to do this, nonprofits like Catholic Answers will be deterred from speaking about individuals who are political candidates in any context for fear they’ll be investigated and taxed. Nothing prevents the IRS from doing this again. And these groups now have no judicial remedy.”

via Faith group to IRS: Don’t tread on us!.

I’m no fan of hte abuses of the IRS but these pastors are forgettign one thing.  You are using an IRS regulation to avoid paying taxes( the 501 (c) series).  If you are taking government funds or using govt regulations to get around something you can expect the government to exercise it’s monetary authority over you.  If you want to be free of government interference you need to renounce your NPO status.  This way you have a leg to stand on when not if the government comes a calling.  These pastors who are challenging the IRS are going to loose if they are Federal NPOs and i bet all of them are.  If you want to have the ability to truly tell the government to go away stop using hte government to avoid taxes.  Until you do the government has the ability to and they will use it to tell you what you can and cannot say.  Once you take money from the government or you use a government regulation to bypass something like taxes you are ceding control to said government.

Hundreds of pastors thumb noses at IRS.