Archives for February 2024

No More Tax-Free Lunch for Billionaires

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Why did Willie Sutton famously say he robbed banks? “Because that’s where the money is!” So why, then, don’t we tax the rich? Well, we do! The bottom 20% of American earners, who make less than $30,000, contribute less than 1% of the total tax bill. The top 20%, earning over $190,000, pay 67% of all individual income taxes collected. That amounts to roughly 25% of their income. And the top 1%, earning over $982,600, pay a whopping 26% of all income tax collected. That amounts to 31% of their income.

And still, last year, Uncle Sam spent $1.7 trillion more than he took in. Way to go, Washington!

Magic Eight Ball Says . . .

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Tax professionals hoping to rescue wasted dollars for their clients for are hoping to harness AI’s power. A startup company called Blue J has introduced two services for tax pros eager to hop on the AI bandwagon. Their diagramming tool helps planners create helpful illustrations for transactions like mergers and acquisitions, corporate spinoffs, and the like. And they’re more exciting “Ask Blue J” chatbot promises “research with confidence” to help planners research caselaw, clarify understanding, and expedite drafting. But Yogi Berra once said, “It’s difficult to make predictions, especially about the future.”

What Happen$ in Vegas Goes to Washington

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The IRS is always a big winner on Super Bowl Sunday. The Las Vegas Convention and Visitors Authority expects it to generate $600 million in economic impact for the city. Much of that $600 million will eventually find its way to Washington in the form of taxes.

The bottom line is that much of the Super Bowl betting that used to go through bookies (where it got spent on pinkie rings) has moved to legal sports books (where it gets taxed). Today’s legal sports books report your winnings to the IRS. Then, they report their own income, too. And that means the IRS wins no matter which team scores the most points.

Read on, and let us help you stop wasting money on taxes you don’t need to pay – and put those dollars toward your seat in the stadium next year!

How is My LLC Taxed?

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I originally posted this blog article in November, 2010. But I find that even over a decade later, many business owners – and their professional advisors- don’t understand how a Limited Liability Company is viewed under U.S. and state tax laws. Here’s a quick reboot of this important information, and an invitation to reach out […]