Posts Tagged ‘taxes’

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India May Eliminate Tax Returns For Salaried Citizens

Thursday, January 27th, 2011


credit: vlima.com

Someone must have heard about the 6.1 billion hours Americans are spending slaving over their tax returns every year, because India is considering whether or not to simplify its tax system and allow roughly 17.5 million taxpayers to skip the tax return filing from now on.

Of course, this break wouldn’t apply to everyone. To qualify, taxpayers would have to be salaried (which means you are paid annually, not hourly, so that your employer and bank can accurately report your earnings to the government), and you must have no additional source of income.

In the U.S., people spend a lot of time trying to reduce their taxes by claiming deductions for things like charitable donations and education expenses. If India eliminates this process for half of its taxpayers, does that mean they don’t offer the same kind of tax breaks?

From the department of how you spend your time… 6.1 billion hours spent filing taxes every year!

Wednesday, January 26th, 2011

Scary stuff. Really makes you appreciate the accounting profession, right?

Have you ever filed your own taxes? How long did it take you?

Swiss Banker Goes Rogue, Calls Out 2,000 Alleged Tax Evaders Through WikiLeaks

Friday, January 21st, 2011

“LONDON — A former senior Swiss bank executive said on Monday that he had given the WikiLeaks founder, Julian Assange, details of more than 2,000 prominent individuals and companies that he contends engaged in tax evasion and other possible criminal activity… ‘The man in the street needs to know how this system works,’ he said, referring to the offshore trusts that many ‘high net worth individuals’ around the world use to evade taxes.”

What do you think?

Is public humiliation an appropriate way to deal with tax evaders? Do you think people should have a right to absolute financial privacy, even if that helps them get away with illegal activities?

“Tax Cuts For Millionaires” Democrats’ New Rallying Cry

Friday, December 3rd, 2010

Republicans and Democrats are once again failing to compromise – this time it’s on a major tax decision for wealthy Americans.

  • During the Bush presidency, taxes were cut for pretty much everyone, at every income level. But now Congress is having a pretty heated debate about whether to renew them this month.
  • Republicans want to keep the tax cuts, but Democrats believe that raising taxes on the rich (to pre-Bush levels) is the only way to reduce our giant budget deficit and fund relief for Americans suffering from the recession.
  • Publicly, Democrats are fighting the extension of Bush-era tax cuts, calling them “tax cuts for millionaires.” But because opposition from Republicans is so strong, they may be forced to accept a renewal of today’s tax structure.

Facts & Figures

  • Republicans once coined the emotionally-charged term “death tax” to turn public opinion against estate taxes
  • Some Dems have proposed a compromise that only raises taxes on households making more than $1 million

Best Quotes

In the Democrats’ corner:

“Just as the death tax sort of put Democrats on the defensive on the estate tax, the millionaires’ tax is putting the Republicans on the defensive on tax policy. I think it is a potent issue with the public.” – New York Democratic Senator Charles Schumer

The Republican perspective:

“They are trying to create class warfare. But I don’t care who they take it from. It’s still money out of the private sector.” – South Carolina Republican Senator Jim DeMint

Group Of 20 Wants The World’s Currencies To Stay Steady

Monday, October 25th, 2010

It doesn’t make sense at first, but sometimes countries actually want their currencies to be worth less. Of course, if everyone tried to do it at the same time, disaster would ensue…

  • The G-20 – a group of financial leaders from 19 nations and the European Union – met this weekend in South Korea to discuss economic policies related to global economic stability.
  • One of the goals of this meeting was to encourage countries to end “competitive devaluation of currencies.” Devaluing your country’s currency makes it cheaper for other countries to buy from you, and more expensive for your citizens to import goods from other countries. This can boost domestic production and export profits. When a country devalues its currency, other countries often do the same so they can remain competitive in the export market.
  • Both China and the U.S. were singled out for recently devaluing their currencies. Though the G-20 hasn’t set up specific regulations and wouldn’t have the power to enforce them if it had, the hope is that public shaming will keep finance ministers around the world in line.

Facts & Figures

  • China is currently taking in 4% more money than it is expending, reflecting a favorable balance of trade.
  • The U.S. is spending 3.2% more money than it is taking in, indicating a trade deficit.
  • As of Monday morning, one euro was worth $1.39, and one dollar was worth 81.31 yen.

Best Quote

“I want the market to value the fact that we were able to forge a certain level of agreement.” –  Yoshiko Noda, Japanese Finance Minister

How do you keep track of your investment profits or losses?

Wednesday, October 6th, 2010

When you calculate your net profit or loss on an investment, you have to factor in what it cost you to make the investment in the first place. That’s called the “cost basis” or “tax basis.”

Here’s a simple example: let’s say you buy 100 shares of Company A for $10 a share – $1,000 in total. That $1,000 is your cost basis. Your gain on the investment is whatever you make that’s above that number. So if you later sell those 100 shares for $15 a share, you make $1,500 in that transaction, but you have to subtract your cost basis, so your profit is $500. If you sell them for $7.50 a share, you make $750, but once you factor in your cost basis, you actually have a $250 loss.

A W-2 is…

Wednesday, October 6th, 2010

A W-2 is a tax form that your employer gives you to help you fill out your federal tax return correctly. Basically, the form adds up all your wages and tips from that particular job. Every employer is required to send you a W-2 before the national tax filing deadline.

But the W-2 isn’t the whole story. If you’ve made money some other way – by working as an independent consultant, for example, or by collecting earnings on your investments, you’ll have to add up and report that income by yourself.

Things Are Looking Up For Greece

Thursday, August 19th, 2010

Greece, after plummeting into an economic black hole a few months ago, is slowly crawling back to more stable territory.

  • Greece is in the process of implementing their austerity program, which includes civil service pay, reduced pensions and increased taxes.
  • The initial success of this program allows Greece to receive the next installment of its bailout package – a $9 billion boost.
  • Though the progress of Greece’s economy is overwhelmingly positive, there are still large economic glitches to overcome.
  • In the first half of the year, tax collection was below target and local government spending was over budget.

Facts & Figures

  • The Euro, which dropped to $1.19 in June has rebounded to $1.32.
  • Greece is trying to dig itself out of a $400 billion budget deficit.

Best Quote

“You have a government here that is clearly determined to move ahead. This program is off to a very good start. I would say a very impressive start.” – Paul Thomsen, Head, I.M.F. Delegation.

Tax Break And Debate

Wednesday, July 28th, 2010

Republicans and Democrats squabble over the extension of tax breaks for middle income families.

  • Debates over taxes and spending in Washington are prevalent as both parties attempt to address The Unites States’ ballooning budget deficit.
  • Democrats advocate extending tax cuts for the middle class while eliminating tax cuts for higher income Americans.
  • Republicans say that it is unwise to allow upper income tax breaks to expire, insisting that it will weaken an already unstable economy.

    Best Quote

    “Washington Democrats are poised to allow the largest tax increase in American history to take effect next year.” – Mike Pence, Republican, Indiana

    Sales Tax is…

    Wednesday, July 14th, 2010

    Sales tax is a set-percentage tax applied to the selling of goods and services. For example, in New York City, the sales tax is 8.875%. So if you buy a chair for $100 in Manhattan, you’ll actually end up paying $108.89 with the sales tax included.

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