Tag: Barack Obama

A Recent Poll Shows Popularity Of The Millionare Tax

Most people agree with President Obama’s plan to require millionaires to put a significant amount of their income toward their 2012 taxes. However, the same people would prefer to see a cut in spending rather than a millionaire tax to help balance the federal budget. These results come from an Associated Press-GfK Poll.

The survey shows that Obama’s millionaire tax plan has a lot of support. However, his plan has not changed people’s opinions on how to bring down the budget deficit. United States deficits have been larger than $1 trillion dollars a year. Sixty-five percent of the people polled agreed with President Obama’s plan to tax millionaires at a rate equal to 30 percent of their income. According to the poll, only 26 percent of those surveyed were against the idea.

Interestingly, 56 percent of those polled preferred spending cuts rather than hikes in 2012 taxes to fix the budget. Thirty-one percent of those polled preferred tax hikes. This same question was asked a year ago, and the response changed only slightly.

The poll further showed that the majority of people have a more favorable view of Democrats than they do of Republicans. This should be good news for President Obama as we enter election season. According to the poll, 54 percent of those surveyed gave the Democrats good ratings and 46 percent of those surveyed gave Republicans favorable ratings.

Although Obama has little chance of having his proposal passed by Congress during the campaign season, it serves as a Democratic rallying cry. It also shows a stark contrast between Democrats and Republicans who would like to lower the tax rate for millionaires. It will be interesting to see how these issues are approached during the election.

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Taxes And The Proposed Tax Rates

The President Plans to Double Tax Rates for the Wealthy

President Obama is planning to tax income from capital gains as ordinary income. This will increase the top tax rate to 39.6 percent. These changes are meant to raise taxes of up to 1.4 trillion from top earners over the next decade.

Couples earning more than 200,000 annually will be required to treat income from dividends as ordinary income. According to the president, this would raise 206.4 billion dollars over the next decade.

According to Gene Sperling, the country cannot afford to lose 206.4 billion dollars on its revenue budget  by offering lower tax rates and tax cuts to top earners.

The president plans to increase the top tax rate to 39.6 percent by next year from the prevailing top rate of 35 percent. Capital gains would be taxed at a top rate of 20 percent from the prevailing 15 percent.

As part of his healthcare law, the president plans to increase the unearned income tax rate by 3.8 percent for couples earning at least 200,000 annually. Experts predict that in the next financial year, some taxpayers will have to pay federal taxes amounting to 43.4 percent on their dividends. This is almost an increase of 300 percent of what they are currently paying.

Pre-2003 Taxation

These proposals would return tax rates to pre-2003 levels. Proponents of these changes claim that it will promote a more efficient and just allocation of capital.

Generally, the president intends to reduce tax deficit on 2012 taxes by taxing the wealthy.

President Obama recently stated in a speech that the government does not need to continue offering tax cuts to individuals who are already doing very well.

There are many other changes in the tax codes that the Obama Administration is proposing.

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Taxes And The Proposed Budget

Obama’s 2013 Budget Estimates and Tax Changes

President Obama has plans to make changes in the tax code to raise funds for his 2013 budget to jump start the U.S. hiring.

His proposals are only a wish list to congress, which is not required to act on any of them. However, some of these proposals have already been acted on in the recent years.

The United States Tax code, which hasn’t been overhauled in a quarter century, is riddled with special deductions that favor select groups. While major changes in the tax code during an election year is unlikely, analysts are of the opinion that deficits in 2012 taxes may ignite debates in 2013.

The following are the proposed changes and budget estimates.

INDIVIDUAL TAXES

  • TAX CUTS. Workers are expected to pay lower payroll taxes through 2012.
  • BUSH TAX CUTS. Tax cuts for households earning more than 250 thousand dollars per year will not be available in 2013.

The issue must be resolved before the end of the year, or every taxpayer will be required to pay more taxes.

  • CARRIED INTEREST. Private equity managers and other wealthy people will be forced to pay a tax rate of 35 percent from the current 15 percent on capital gains.
  • BUFFET RULE. The buffet rule will be put into action. The rule states that every taxpayer who earns more than a million dollars per year should pay a minimum of 30 percent tax rate on all their incomes.

  • ITEMIZED DEDUCTIONS CAP. Exemptions for taxpayers who earn more than 200 thousand dollars will be removed.

    • CORPORATE TAXES

    • THE PROPOSED CORPORATE TAX RATE. The Obama administration is expected to lower the corporate tax rate from the current 35 percent to 20 percent.

    There are many other proposals that have elicited different remarks from people all over the country. Other changes are meant to simplify the process of tax return filing by U.S. taxpayers.

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    Tax Carnival Ecstasy – January 3, 2012

    Welcome to the January 3, 2012 edition of Tax Carnival Ecstasy. We have the top 5 articles this week for the carnival including how to get Free Tax Advice by Phone this tax season from a software company. Joe Morgan takes a look at being Prepared to Pay $3,598 More in Income Tax for 2012. And Clint Cora examines the W8BEN Form For Canadians,  this form is for Foreigners Who Work In The US. Hope you find the information helpful, bookmark, share, tweet, like on Facebook, and come back soon.

    tax law

    Lawyer presents What is Tax Law? Do You Need to Pay Tax Law? posted at Legal Advice & Legal Aid, saying, “Read our comprehensive review about new Tax Law for 2012!”

    taxes

    Darren Marks presents Free Tax Advice by Phone… From a Software Company? posted at Consumer-Rankings, saying, “Introducing a free new feature from Turbotax just in time for tax season, free phone consultations with tax experts.”

    Joe Morgan presents Are You Prepared to Pay $3,598 More in Income Tax for 2012? posted at Simple Debt-Free Finance, saying, “This article covers the effect of expiring tax laws and how they could cost the average American family $3,598 in additional taxes for the 2012 tax year – without any change in their income.”

    tips

    Clint Cora presents W8BEN Form For Canadians And Foreigners Who Work In The US posted atMotivation Diversity Success Blog, saying, “To help foreigners who get some income in the US reduce withholding tax”

    Tyler presents Are You Sure You Want to Pay Taxes With a Credit Card? posted at Credit Card Chaser, saying, “I hope you find this article fitting for your readers! Some people don’t realize they’re instantly paying a significant extra charge! Please let me know if you have any questions or concerns. Look forward to seeing this on your next blog carnival! Have a great day! Tyler”

    That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

     

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    The Debt Deal. Time To Do Your Own Tax?

    Many people are confused about the recent debt deal and how it will affect them. The details of the deal raise a lot of questions and offer few answers. Federal spending will face huge cuts over the next 10 years and about one third of all cuts will come from defense and security.

    One of the bills main feature is the establishment of a committee whose aim is to find a further $1.5 trillion in cuts. There are no guidelines as to where these funding cuts will be made and some commentators expect to see significant reductions in Social Security and increased taxation. However if this committee fails to come up with a comprehensive spending reduction plan then a series of automatic cuts will come into being. These cuts will hit Medicare, Medicaid, and military spending the heaviest.

    There are a few things that savers and investors can do in order to protect themselves in these uncertain times. Investors should investigate how dependent the companies they hold shares in are on government contracts. These contracts will surely dry up in the coming years.

    Anyone close to retirement should hold off on stopping work in order to defer their Social Security retirement plan. This will add 8% to your benefits, which is a lot more than you’ll get by putting that money in the bank.

    If you are not already doing so you should do your own tax. You’ll save money by doing 2011 taxes yourself instead of hiring a professional. Once you have done your own tax for one year, you will be able to continue to make this saving for many years to come.

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    Taxes And Their Effect On Big Oil

    The oil industry has wanted to increase domestic production for some time, and the most recent quarter shows that they have done so.  The American Petroleum Institute president, Jack Gerard, has said that increasing drilling in the United States, as opposed to increasing taxes above their 2011 taxes levels, will create more income for the country as a whole.

    The Bedford Report did thorough research on the topic, covering multiple companies in the Oil and Gas industry, particularly one the biggest players in the industries, and has produced their full report on the companies on their website.

    Profits have been good for the oil companies leading many, including President Barack Obama, to say that the tax subsidies the companies enjoy should come to an end.  But reports are also saying that new sources of oil across the world are needed to fulfill demand.  This leads those oil companies to the United States for new oil sources.

    The largest of the companies, BP and Exxon, have reported lower rates of oil production from outside the United States.  Part of this was due to manufacturing issues, though some of it was that foreign countries are increasing their own taxes, forcing the companies to extract less oil to stay highly profitable.

    The Bedford Report produces quality, independent reports on the energy industries as a whole, and helps their investors make solid decisions on their investments and therefore is a trusted resource.  Any publicity that their reports create are not compensated by the mentioned companies.  Their sole compensation is through advertising through third party companies, and act as an independent source for quality research to help influence decision making.

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