Last month, Peacock aired the series finale of their monster hit Yellowstone. (One big spoiler to come!) For five and a half seasons, the show chronicled the ups and downs of the Dutton family, heirs to the largest contiguous ranch in the United States, as they fought to defend their land. On one side, greedy developers conspired to turn it into the next Park City. On the other, the neighboring Broken Rock tribe wanted to reclaim their ancestral home. Real Montana ranchers say the show is remarkably true-to-life, especially the gunfights, beatings, explosions, and occasional “long black train” to the back of the head.
tax strategy
Poop. Farts. Burps.
This week’s story is mostly ridiculous, unless you’re a five-year-old boy just starting to learn dirty words. But it illustrates just how far some countries will go to find new sources of revenue. It also illustrates how precisely lawmakers can target taxes to influence their citizens’ behavior. Fortunately, we’re on your side, using our opposable thumbs every day to help you pay less!
When Irish Eyes Are Smiling
Economies across the board are roaring back from the pandemic. But few have roared back faster than Ireland. The Emerald Isle is projected to grow by 2.5% this year and 3% next year. The Wall Street Journal reports the government is stashing cash in two sovereign wealth funds and regulators are warning they’re spending so fast they may overheat the economy. Still, there’s enough left over to start work on a €2.2 billion children’s hospital and spend €10 million on keeping the kids off their phones at school. (If you figure out an answer, could you maybe send it our way?)
Taxing “Climate Criminals”
Last week, we discussed how the 2017 tax cuts are scheduled to expire at the end of 2025—and how the election results make it likelier that Washington will extend them. Here’s the problem: it won’t be cheap. The Congressional Budget Office estimates extending the current rules will blow a $4 billion hole in the budget over the next 10 years, along with an unknown amount of higher interest payments on the new debt. That’s making life difficult for a new administration that also wants to eliminate tax on tips, overtime pay, and Social Security benefits, along with other giveaways.
Gaze Into Our Crystal Ball
As President Donald Trump’s first year in office drew to a close, Washington gave us the Tax Cuts and Jobs Act of 2017. That legislation reformed the system in conventional Republican fashion by broadening the base (subjecting more income to tax) and lowering rates. On the corporate side, they did this mainly by closing avenues to avoid tax on international income. On the individual side, they did it by raising standard deductions and eliminating or limiting personal deductions such as mortgage interest and state and local taxes.
Good News Bad News
Dying without a will is a great way for a celebrity to waste money on unnecessary taxes. It also means their assets can wind up with someone they never would have chosen. When Doors frontman Jim Morrison died at age 27, his estate passed to his wife, Pamela Courson. Just a few weeks after a court finalized her inheritance, she OD’d, with no will—and Morrison’s estate passed to her parents. Morrison’s mom and dad had to spend six years fighting in court for 50% of the Lizard King’s royalties.