Buffett Calls for Super Rich to Pay their Way

Warren Buffett has once again called for the Super Rich to be made to pay more taxes by Washington. Writing in an editorial piece for the New York Times Buffett declares that it is time the super rich played their part in the needed ‘shared sacrifice’ of our times and called for Congress to increase taxes on ‘millionaires and billionaires.’

In a passionate and persuasive editorial he points out that while most poor and middle class Americans are struggling, the mega-rich continue to enjoy incredible tax breaks. He notes that people like investment managers, who earn billions of dollars, are allowed to class their earnings as ‘carried interest’ which is taxed at a wonderful 15% rate of tax. In addition he notes that others get hold of stock index futures for around ten minutes and then have roughly 60% of their gains subject to tax at that same bargain 15%, as though they were long term investors.

Decrying the fact that Washington seems to be compelled to protect the superrich as if they were an endangered species, Buffett suggests instead that:

“I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get…

“… But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate…”

Some people have pointed out the hypocrisy of Buffett calling for these super rich tax increases when only a few weeks before he had been lecturing the President on the fact that he was scapegoating private jet companies and the private jet industry.

But on the whole, most people agree with him and when Warren Buffett thinks the rich should be paying more taxes, it is perhaps time to listen.

Alex is a freelance journalist and financial blogger. He loves to write about baseball and jazz but spends most of his days writing about mortgages, markets and umbrella companies .

Learning About Currency Trading Taxation

Before starting to trade in the Forex market, there are some basics about currency trading taxation a Forex trader should be aware of. Notwithstanding the fact whether a Forex trader is going to become a long-term investor, or whether he/she just plans to try and see how it goes, it must be mentioned that currency market provides enormous tax advantages, especially in comparison with other financial markets.

It doesn’t matter whether a forex trader focuses on forex options/futures or on the spot market – there are tax benefits for both of them. Forex options/futures traders are taxed according to the IRC 1256 contracts in which 60% of gains/losses are calculated as long-term gains/losses and 40% as short-term ones. So, the total tax rate appears to be 23% (compare this to 35% tax rate in stocks trading). Spot forex traders are taxed on the basis of IRC 988 contracts, which provide an enormous loss protection – all losses can be calculated as ordinary losses as opposed to the first 3000 US dollars.

IRC 1256 contracts are more difficult in comparison with IRC 988 contracts – the latter provides the same tax rates for the gains and losses, which makes calculations much easier. In addition, IRC 988 contracts are more favorable for counting losses, while IRC 1256 contracts are more advantageous for the gains calculations.

When deciding which tax group to choose, a forex trader should ground on the expected amount of gains and losses.

If a forex trader consults an accounting firm, they will refer him/her to IRC 988 contracts if he/she has decided to trade on the spot forex market and to IRC 1256 contracts if he/she has chosen to be a futures/options forex trader. The key thing to keep in mind is that it is impossible to change from to IRC 988 contracts to IRC 1256 contracts during the trading year.

It must be mentioned that certainly most of the forex traders expect their gains to exceed the losses, so they often opt for IRC 1256 contracts, since they are more beneficial to gains.

What is important to keep in mind when it comes to forex taxation are the deadlines for filing (it is crucial to choose your tax group before the beginning of the trading year), keeping the detailed tax records and the importance of paying taxes, actually, since some forex traders believe they can get away with it, but are eventually caught up by the IRS.

A sensible forex trader will pay close attention to taxes if he/she wants to maximize the profits and minimize the losses. Proper taxation can save great sums of money, in point of fact, so it is well worth doing.

Alexander Collins is CEO at Forexeasystems, who is chief developer of forex trading strategy ProFx and creator of free metatrader prugin Fx Pulse that shows accurate forecasts and historical data from Forex news, etc.

Advice for Texas Living Wills

There are a number of ways to handle your money properly as well as improperly that Texas living wills are a good idea. Inheritance tax planning advise is always given as a way of keeping everything the way you want it to be with your money and estate when you’re gone. Lots of people get inheritances from deceased family members, and sometimes not all of the inherited property and money is actually theirs. Taxes are involved and some confusing laws may be applied to this inheritance and can be very confusing.

Another option you may want to consider is a living will, because you will know who gets what without the fear of it getting fought over or twisted once you are gone. These can happen because the death of a family member is very emotional and hectic. As you decide between your options in giving or getting inheritance, getting professional advice can really help. There are dozens of people and companies with the professional backgrounds who can and are willing to help you out, so going without advice is a bad idea.

A person can easily get wrapped up and confused when it comes to applicable laws and taxes that figuring out inheritance can be stressful. This is why having professional advice is important, and because you want to be sure you dont make mistakes which could be costly or disasterous. With a professional walking you through either side of the process, you will have much less to worry about in an already emotional time. Whether giving or receiving a large sum of money or property, you want to be 100 sure of yourself and stress-free.

Looking for professional advice should not be stressful in and of itself. Try to look for compassionate tax advisors locally or online to avoid this completely.

Wills in Texas – planning for inheritance tax

A will is a legal document outlining who will receive your accumulated wealth and assets upon your death. Wills in Texas help you distribute your wealth as you desire among those you love. After your death, if you do not plan your estate properly, your loved ones could end up having to pay hundreds of thousands of dollars in taxes upon your death.

Planning for inheritance taxes is one last thing you can do for your loved ones to help them keep as much of your property as possible. There are two kinds of properties. Real property is land, improvements on that land, gas, oil, and mineral rights. All other property is called personal property. It helps to know what is taxable and what isnt so you can leave your relatives with as much as possible without having to pay a lot in taxes.

If the sum of your personal and real property is above the Inheritance threshold of your state, your beneficiaries will be taxed a good percentage of the remainder. Inheritance tax is a controversial law. Having to pay taxes on already taxed income seems unfair. However, it also seems unfair that wealth will be perpetuated within a family line. Inheritance tax helps to redistribute wealth to the government and the common man.

You can limit the amount of money you have to pay in taxes by opening a living trust, giving money to charitable projects, and investing your money into your business or agriculture. Agricultural land may be left the farmer sun of a farmer and be up to 90 tax exempt. Property invested in the family business may also be exempt from taxes up to 90. Planning your wealth and passing it on to your relatives in the most orderly fashion takes time and professional assistance. Texas wills advisors can help you in your planning for inheritance taxes.