Health/Food Posts Tagged as 'Tax'
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Taxpayers Footed Major Bill to Quell George Floyd Protests
When state governments and President Donald Trump called on the National Guard to quell protests over the killing of George Floyd, taxpayers ended up footing the bill. And it wasn’t cheap. Ten states have reported spending almost $52 million on deploying Guard personnel to help law enforcement respond to the protests, according to an ongoing Daily Beast analysis.
The Daily Beast
So Long, California? Goodbye, Texas? Taxpayers Decide Some States Aren’t Worth It
Two years after President Trump signed the tax law, its effects are rippling through local economies and housing markets, pushing some people to move from high-tax states where they have long lived. Parts of Florida, for example, are getting an influx of buyers from states such as New York, New Jersey and Illinois.
Many people saw their overall taxes go down after the 2017 law was passed. But the law had two main changes making it tougher to live in high-cost, high-tax states, especially compared with lower-taxed options. It essentially curbed how much homeowners can subtract from their federal taxes for paying local property and income taxes, by capping the state and local tax deduction at $10,000. It also lowered the size of mortgages for which new buyers can deduct the interest, to $750,000 from $1 million.
These changes have the biggest impact on a sliver of the population who have high incomes and live in expensive areas. They tend to have white-collar jobs and the ability to pick up and move. Many own their own businesses, work remotely or are nearing retirement.
Critics say the changes have hurt everyone who lives in high-tax states, by taking a bite out of tax revenue. New York Gov. Andrew Cuomo, for example, panned the state and local tax cap last year. “It has redistributed wealth in this nation from Democratic states—we’re also called blue states—to red states,” he said at the time.
The Bible could be a victim in Trump's trade war
The trade war President Donald Trump has waged against China could literally turn biblical.
If negotiations between Washington and Beijing falter, Trump has vowed to place tariffs on all of America's imports from China. Book publishers are warning that those tariffs will cause the price of printing the Bible to soar and potentially spark shortages.
The problem is that most US publishers print the Bible in China because of the high cost and complexity involved in printing a text with roughly 800,000 words. HarperCollins Christian Publishing, a leading Bible publisher, estimates that about three-quarters of its Bible manufacturing expenses are in China.
The proposed tariffs amount to "levying a 'Bible Tax' on consumers and religious and educational organizations," HarperCollins Christian Publishing CEO Mark Schoenwald wrote in a letter last month to Trump's top trade official.
Too much money (and too few places to invest it)
A truly bizarre trend is having an impact on the economy — wealthy people and corporations have so much money they literally don't know what to do with it.
Why it matters: At a time when growing income inequality is fueling voter discontent and underpinning an array of social movements, the top 1% of earners and big companies are holding record levels of unused cash.
The big picture: U.S. companies raked in a record $2.3 trillion in corporate profits last year, while the country's total wealth increased by $6 trillion to $98.2 trillion (40% of which went to those with wealth over $100,000).
So, where is all the money going? The IMF notes large companies around the world are overwhelmingly and uniformly choosing not to reinvest much of it into their businesses. They're hoarding it in cash and buying back stock.
"There are only 2 things that money can do — sit on a balance sheet unused, where it's just earned income earning an interest rate of zero," ICI chief economist Sean Collins points out. "Or it makes sense to release it to share buybacks or dividends."
Your House Should Not Be Your Retirement Plan
The average American is more likely to own a home than to have saved enough money for retirement. In fact, for many Americans, their house is their retirement plan: They’re counting on the value of that nest egg to fuel their golden years. But while real estate can be a good investment, it isn’t wise to rely on a house to fund your retirement. To explore why, Barron’s spoke with Teresa Ghilarducci, the Irene and Bernard L. Schwartz Chair in economic policy analysis in the Economics Department at the New School, and the author of How to Retire With Enough Money.
“You can’t eat your house a sandwich at a time,” she says.
How Federal Disaster Money Favors The Rich
Disasters are becoming more common in America. In the early and mid-20th century, fewer than 20 percent of U.S. counties experienced a disaster each year. Today, it's about 50 percent. According to the 2018 National Climate Assessment, climate change is already driving more severe droughts, floods and wildfires in the U.S. And those disasters are expensive. The federal government spends billions of dollars annually helping communities rebuild and prevent future damage. But an NPR investigation has found that across the country, white Americans and those with more wealth often receive more federal dollars after a disaster than do minorities and those with less wealth. Federal aid isn't necessarily allocated to those who need it most; it's allocated according to cost-benefit calculations meant to minimize taxpayer risk.
Put another way, after a disaster, rich people get richer and poor people get poorer. And federal disaster spending appears to exacerbate that wealth inequality.
Bill Nye: Should we penalize parents for having ‘extra kids’?
Bill Nye “the Science Guy” did exactly what scientists are supposed to do this week — ask questions — and people are blasting him for it.
The engineer-turned-comedian-turned-TV host has sparked widespread outrage on social media thanks to an idea he proposed Tuesday on his new Netflix series, “Bill Nye Saves the World.”
During a panel discussion, the 61-year-old Cornell grad asked: “Should we have policies that penalize people for having extra kids in the developed world?”
Travis Rieder, a bioethicist at Johns Hopkins University, said he believed it was a good idea.
“I do think that we should at least consider it,” he told Nye.
Millionaires Flee California After Tax Hike
According to new research released by Charles Varner, associate director of the Stanford Center on Poverty and Inequality, California lost an estimated 138 high-income individuals following passage of the Proposition 30 income tax increase championed by Gov. Jerry Brown (D) and approved by Golden State voters in 2012.
This new research by Varner updates a previous paper released six years ago that looked at domestic migration to and from California following a 2004 income tax hike.
Trump plan would raise rents on poor people by 26% on average
The Trump administration’s latest attack on housing assistance would boost rents by an average 26 percent for millions of financially vulnerable Americans and increase the risk of homelessness, a Center on Budget and Policy Priorities analysis found.
Department of Housing and Urban Development (HUD) Secretary Ben Carson claimed the “Make Affordable Housing Work Act,” which he announced on April 25, would create a path towards self-sufficiency for low-income Americans receiving housing assistance.
Under the plan, which still needs Congressional approval, people receiving housing assistance would see the percentage of their total income they are required to pay towards housing increase from 30 to 35 percent. It would also raise the minimum monthly rent on the 712,000 most financially vulnerable families from $50 to $150 per month, eliminate deductions for medical care and child care, and allow housing authorities to impose work requirements.
How tax breaks help the rich
President Donald Trump and Republicans in Congress hope to give the US tax code its biggest overhaul in 30 years. Trump says their goal is “to make the tax code simpler and more fair for everyday Americans.”
But their plan would keep three tax breaks that benefit the wealthiest Americans: the mortgage interest deduction, the charitable deduction, and the preferred rate for capital gains.
These tax breaks are incredibly expensive. Each year, the mortgage interest and charitable deductions cost the US Treasury $100 billion and $70 billion, respectively. That’s more than we spend on Head Start, the federally funded preschool program, and on Pell Grants for low-income students to go to college.
Senate tax bill strips NFL, other sports leagues from tax-exempt status
Stephen Curry Responds to Being Only Person Mentioned in GOP Tax Plan
The newly proposed Republican tax plan mentioned only one individual by name in its proposal: Golden State Warriors superstar Stephen Curry.
That particular section of the tax plan reads:
"The Tax Cuts and Jobs Act includes specific safeguards to prevent tax avoidance and help ensure taxpayers of all income levels play by the rules under this new fairer, simpler tax system. Our legislation will ensure this much-needed tax relief goes to the local job creators it’s designed to help by distinguishing between the individual wage income of NBA All-Star Stephen Curry and the pass-through business income of Steve’s Bike Shop."
On Thursday, Curry responded...
San Francisco residents freaking out after swanky street sells for $90K
Residents of the upscale Presidio Terrace neighborhood in San Francisco are outraged after learning their street was sold for $90,000 at auction, according to local reports.
Michael Cheng and Tina Lam purchased the block-long street, which is lined with multimillion dollar mansions, at a city auction after the homeowners association failed to pay taxes, the San Francisco Chronicle reported.
Cheng and Lam purchased the property in April 2015 and have been talking to land-use experts about how to leverage their holding. According to the San Francisco Chronicle, they are considering charging residents to park on the street.
"We could charge a reasonable rent on it,” Cheng said.
According to NBC-Bay area, the home owners association failed to pay a $14-a-year- property tax bill because the bill was being mailed to an accounting office, which is now a pilates studio.
Meet the 18 profitable companies that paid no taxes over 8 years
President Donald Trump and the GOP leadership have vowed to reduce U.S. corporate taxes, arguing that the statutory 35 percent rate is far too high.
But thanks to loopholes and tax-minimization strategies, few large, profitable corporations actually pay that rate. Among the roughly half of Fortune 500 companies that were consistently profitable between 2008 and 2015, the effective federal income tax rate was 21.2 percent over that eight-year period, according to a study from the Institute on Taxation and Economic Policy. Eighteen of them, including General Electric (GE) and Priceline.com (PCLN), paid no federal income taxes during that time.
The findings come amid pledges by Republican leaders to slash corporate taxes, arguing that American companies are at a competitive disadvantage compared with countries such as China and Mexico, which have top rates of 25 percent and 30 percent, respectively.