tax reduction

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.”

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 […]

Suze Orman is Full of It

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America has always been a land of opportunity, but most Americans don’t seem very good at managing those opportunities. The average American has just $87,000 saved for retirement, dimming hopes for endless days of pickleball in the sun. Nearly 4 in 10 can’t cover $400 in an emergency, which explains a landscape littered with dollar stores, pawnshops, and payday lenders.

Too Many Men on the Field?

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The NFL playoffs mark the unofficial beginning of Tax Ad Season. As usual, Intuit’s TurboTax will be suiting up against H&R Block. TurboTax is charging out of the locker room with a new “Make Your Moves Count” campaign celebrating those who are “carving their own path, making bold moves and living in new and modern ways.” We’re not sure what any of those things have to do with taxes, but the ads will focus on the company’s tax experts, AI technology, and filing solutions, “ensuring the best outcomes for all types of filers.”

The Twelve Days of Taxmas

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Every year, PNC Bank publishes its “Christmas Price Index” to track the cost of the Twelve Days of Christmas. For 2023, it’s a hefty $46,730. That’s up 13% since we looked two years ago. (Inflation bites.) The index may not be completely accurate—for example, the ten lords-a-leaping are valued using the cost of male ballet dancers rather than card-carrying British lords. As for those eight maids-a-milking, well, “cows not included.” But still, we always wonder what sort of taxes we’re looking at on the whole affair.