Month: March 2012

Tax Adjustments Now For The Taxes Are A Changing

April 15th, this is the date that all Americans associate with the IRS. For many it is a stressful situation to try and figure out what exactly needs to go on their return. This is where a Certified Public Accountant or other tax professionals can help by pointing out useful tax adjustments now for next year’s return.

The regulations and codes for taxes are constantly changing and that is truer for this year because the Bush tax cuts are set to expire December 31. These cuts are projected to change how deductions can be made for retirement plans like the traditional IRA and Roth IRAs. Contributing more to a 401k through work can also be a good way to lower the taxable income one acquires within a fiscal year.

For the more affluent individuals it might make sense to roll over any traditional IRAs they own into Roth IRAs if they are projecting that their income after the age of 59 and half will be higher than it currently is. This would allow them to draw the payments from the Roth IRA as non-taxable income when they retire because they have already paid the taxes on the interest returns from those accounts.

Again, it is imperative to talk to tax professionals in order to gain the advice needed to plan for the changes coming in the next year. Seeking the advice of the benefits office within one’s company can help and is where the necessary adjustments need to be requested for changes in the 401k and the withholding forms. Also, the customer service representatives of the financial institutions that the retirement portfolios are being managed can also offer some guidance to tax adjustments now.

Related articles

Governor Kasich Wants To Tax Oil Drillers More

Higher Taxes and Tougher Regulations for Oil Drillers – Governor Kasich

John Kasich, Ohio Governor is proposing changes in the way Ohio taxes and regulates oil and gas drilling companies. He wants a comprehensive energy strategy in the country starting with his home state.

Some of the proposed changes, which require approval from the legislature, include disclosure of chemicals used in fracking, higher tax rates for drillers, higher standards for sinking of wells, and new rules on gas gathering lines.

These proposals were released as part of a Mid Biennium Review. The governor also said that he wants a balance between policies that create new investments and jobs and those that protect the environment.

Kasich believes that Ohio can create policies that can be adopted throughout the country.

States like North Dakota, Pennsylvania and Ohio have been forced to review their policies regarding fracking, or hydraulic fracturing. While industry experts say that the method is safe, residents of these states have complained of contamination in their water sources.
Showing the Money

According to the governor’s office, drillers will be required to pay a severance tax of 4 percent, while income tax rates for small businesses and individuals will go down.  If enacted into law, the proposals will allow the local government to collect 25,000 dollars for each well. This upfront fee will be used to cover the effects of drilling.

Oil and gas companies like Chesapeake Energy Corporation (CHK), Exxon Mobil Corp and Devon Energy Corp have already started sinking wells in Ohio’s Utica Shale which is estimated to have 15.7 trillion cubic ft of natural gas and five and half billion barrels of crude oil.

Related articles

Maryland Senate Votes To Tax The Rich

Maryland state senate has voted in a new tax and people are unhappy about it. Not too long ago the state senate in a majority vote decided to introduce a so called millionaire’s tax that would make people who earn more than half a million dollars pay more in taxes.
The collective thought of the senate is split at the moment, many think this is the right thing to pursue and others think that this is no fair to the people and that everyone should be taxed equally.
This tax vote came as the State Senate approved its version of the budget. This new measure moves next to the House of Delegates, which has flagged an openness to approaching the rich and asking them to pay more – but not really using the same outline favored by the Senate committee.
This proposed idea reflects a nationwide debate that has pitted the president against the congressional right leaning republicans in a tense standoff over the best way to lower the federal deficit. This also sparked an identically heated discussion in the Maryland State Senate. This idea also revives a higher tax bracket in Maryland that has in the past led to years of concern as to whether or not it would drive high earners out of the state before it expired two years ago.
The Maryland State Senate’s budget includes around half a billion dollars in spending cuts, moves the approximate quarter billion dollars in teachers’ pension costs to the counties for around five years, and then gives the state authority to seize the local income tax collections if counties don’t appropriately fund their education system.
The entire ‘Tax the rich’ vote sounds like a modern day  Robin Hood act.

Related articles

Maryland Senate Votes To Increase Tax Rates For High Income Earners

From Tax Cuts to Tax Increases – Maryland Senate Votes to Tax the Rich More

Maryland residents who earn more than $500,000 annually will have to pay more taxes after the Senate voted to increase tax rates for the rich. Many people see this as class warfare launched by liberals.

The proposal dubbed the “millionaire’s tax” was approved after liberal-leaning Senators refused to approve a smaller tax rate for all taxpayers unless the rich took a special hit.

More than 15,000 households will be affected by the new law. Couples filing jointly will have to pay at least 2,752 dollars more on their income.

The idea is similar to the proposals of President Obama that have pitted him against congressional Republicans in a serious standoff.

Senator Robert A. Zirkin, a democrat from Baltimore County, was against the proposal because it literally discriminated a certain group of people based on their earnings.

At one time Senator David Brinkley offended his colleagues after claiming that Karl Marx would be happy with the move. He apologized later on for the statement.

Senator Paul Pinsky, a Prince George’s County liberal democrat defended the proposal claiming that it is not wrong to ask high income earners to pay higher taxes.

After the Senate approval, the measure will be moved to the House of Delegates which has already indicated that it would like the wealthy in the society to pay more, but does not agree with the mechanism proposed by the Senate.

The Senate is planning to cut spending by nearly 500 million dollars. It has also indicated that it will authorize the state to collect local income tax if the counties do not provide adequate funds for their schools.

Related articles

Smart Regulation And Lower Taxes For Businesses

Dozens of CEOs met with members of the Blue Dog Coalition today during several Business Roundtable gatherings to discuss ways to boost a slumping economy.

“Taking Action for America” is a plan that will balance the federal budget as well as reestablish federal regulations and lower taxes.

The Roundtable president, John Engler, met with President Obama on Tuesday evening and is scheduled to meet with Treasury Secretary Timothy Geithner later today.

The Roundtable chairman and Boeing Co. CEO, Jim McNerney, believes that until businesses can become united with government, successfully repairing the economy will not be possible. He suggested that tax reform must not wait until after the elections in November.

Andrew Liveris, who is the Dow Chemical Co. president and CEO stated that Washington cannot afford to do nothing.

The members of the Roundtable are CEOs of the biggest corporations in the country and are adamant about the creation of a “smart regulation”. This would help to eliminate some of the more complex regulations that do little more than cost these businesses undo money.

During Boeing’s dealings with the National Labor Relations Board last year, it was found that much of it was not productive. In fact, occasionally it felt led by political motivation. McNerney believed that the company should not have been subjected to the ordeal.

As Japan prepares to lower their tax rates in a few short weeks, the U.S. will gain the spot for the highest corporate tax rate in the world. While the Obama administration proposes the decrease in the rate of tax from 35 percent down to 28 percent, the CEOs believe that is not enough. For the tax decrease to gain the support of the Business Roundtable the tax rate would need to be around 25 percent.

Proctor & Gamble’s president and CEO believes that the time to lower taxes is at hand.

Related articles

E-File And Get Your Tax Return Sooner

At the beginning of every year literally millions of people across the country are rushing to get their tax returns. A lot of people choose to file on paper which can be plagued by the usual delays of using the mail. If you would like to get your return more promptly then the best option is probably to e-file.

Doing taxes used to be a mess of paperwork for most people. Many people used to use expensive preparation services to help them deal with this chore. Now there is no need to go through endless papers or to take your taxes to someone else. Millions of people now choose to file electronically and you could say that this has become the norm.

E-filing has advantages. First of all there is software designed to help make it much easier than in the past. You can make sure you do not miss out on any deductions as well as maximize your refund with this help. No more getting confused sorting through reams of papers looking for obscure instructions. Another nice advantage of filing electronically is that your refund will be processed right away and can be direct deposited to your account within days of filing in some cases.

So if you are looking for the best ways to take care of your tax returns, perhaps you should look at the many ways to e-file. You will save time and money as well as receiving any money owed you quicker than through the mail.

Related articles