Tax Initiatives and Proposals - Michigan is proposing a November referendum for an additional 5% tax on married couples with taxable income over $1 million and individuals over $500,000, with funds directed to the state's school system [1] - In California, a ballot measure is being initiated to impose a one-time 5% tax on residents worth at least $1 billion, primarily funding the state's Medicaid program [3] - New York City's Mayor is advocating for higher income taxes on the wealthy to fund universal childcare, requiring state legislative support [1] Political Landscape - The tax proposals are primarily emerging in Democratic-leaning states, contrasting with Republican states that are reducing income tax rates [6][7] - California Governor Gavin Newsom opposes the proposed ballot measure, while the political climate suggests a potential shift in attitudes towards wealth taxes by 2026 [6][13] Public Sentiment and Polling - Polls indicate a significant portion of the public believes billionaires pay too little in taxes, with 62% of respondents expressing this view [11] - There is a discrepancy between public sentiment and voting behavior, raising questions about the actual implementation of proposed tax measures [12] Wealth Tax Debate - The debate over taxing wealth versus income is ongoing, with proposals like California's aiming to tax unrealized gains, a concept that is unprecedented in the U.S. [23][25] - Legal challenges are anticipated if the California measure passes, potentially reaching the Supreme Court by 2027 [26] Migration Trends - High-profile individuals, including billionaires, are reportedly relocating to states with no income tax, such as Florida and Texas, raising concerns about capital flight from high-tax states like California [21][18] - However, studies show that New York's top earners have a low outmigration rate, suggesting that tax policies may not significantly deter wealthy residents [20]

Thana Prasongsin / Getty Images When you work for yourself, you're responsible for paying taxes that an employer would normally handle for you. Key Takeaways When you're self-employed, you pay 15.3% in Social Security and Medicare taxes—double what employees pay, because there's no employer to cover half. Tax payments are due quarterly. Missing them triggers IRS penalties that can add up fast. Starting a business sounds exciting until you think ahead to the taxes you might pay. Then the anxiety kick ...

Core Insights - The article discusses the financial implications for Ed Bambas, an 88-year-old veteran who raised approximately $1.85 million through a GoFundMe campaign, highlighting the amount he will actually receive after fees and potential tax considerations [5][14]. GoFundMe Fees and Contributions - GoFundMe charges a transaction fee of 2.9% plus $0.30 per donation, which can significantly reduce the total amount received by the recipient [4][3]. - Based on the total raised of $1.85 million, processing fees could amount to approximately $75,000 before Bambas receives any funds [3][4]. Tax Considerations - Donations to personal GoFundMe campaigns are generally considered 'personal gifts' and are not subject to income tax for the recipient, provided that donors do not receive goods or services in return [7][10]. - Bambas will likely receive an IRS Form 1099-K for payments exceeding $5,000, which requires him to document that the funds were gifts, not income [8][9]. Donor Tax Implications - Individual donors who contribute more than $19,000 may need to file a gift tax return, but most small donors will not face tax implications [10][11]. Support from Employers - Meijer, the supermarket chain where Bambas works, is providing him with free financial planning assistance for life to help manage the funds effectively [12][11]. Broader Context - Bambas' story highlights systemic issues faced by elderly individuals, particularly veterans, who may struggle financially despite a lifetime of work [13][14]. - The funds raised may not resolve the underlying systemic problems but could provide Bambas with a better quality of life and the ability to retire [14].

Core Insights - President Trump claims that the tariff regime will generate significant revenue, allowing for debt reduction and potential dividends to American citizens [1][2] - The projected revenue from tariffs is currently falling short of expectations, with actual customs duties for fiscal year 2025 at $195.9 billion, while interest payments on national debt are significantly higher at $1.22 trillion [3][4] - The Congressional Budget Office has revised its long-term projections for tariff revenue down from $4 trillion to $3 trillion, indicating a decrease in expected effectiveness of the tariff scheme [5] Revenue Generation - Tariffs are expected to bring in trillions of dollars to the U.S. economy in the long term, but current figures show only $195.9 billion generated in customs duties for fiscal year 2025 [3] - In October, tariffs generated a record monthly income of $31.4 billion, an increase from $29.7 billion in September [3] Debt Impact - The yearly income from tariffs is estimated to be within the $300 billion to $400 billion range, which is insufficient to cover the interest payments on the national debt [4] - For fiscal year 2026, the government has already incurred $104 billion in interest payments at a rate of 3.355% [4] Economic Projections - The Congressional Budget Office's recent report indicates a downward revision of tariff revenue projections, with a reduction of $1 trillion in expected deficit reduction [5] - The CBO attributes two-thirds of this revision to new data and adjustments in tariff rates, which have lowered the effective tariff rate overall [5]

Fiscal Policy Outlook - Next year is projected to be the largest tax refund season ever [1] - The government plans to issue dividends to the people, funded by tariff revenue [1][2] - The tariff revenue is estimated to be in the trillions of dollars [1] - The government aims to reduce debt alongside issuing dividends [1][2] Future Tax System - The government anticipates a future where income tax may be significantly reduced or eliminated due to substantial revenue intake [3] - The possibility of keeping income tax at a very low rate or for symbolic purposes is being considered [3]

Group 1 - The document contains various references to tax-related topics, including due dates for ETDS returns and changes in excise duty rates, indicating ongoing regulatory updates in the financial sector [1][2] - There are mentions of specific financial instruments such as fixed deposits and mutual funds, highlighting investment opportunities available to individuals and businesses [2] - The document discusses the implications of the Goods and Services Tax (GST) and its impact on various sectors, suggesting a significant shift in the tax landscape [2] Group 2 - The document outlines the importance of compliance with tax regulations, emphasizing the need for timely filing of returns and payments to avoid penalties [1][2] - It includes references to financial planning and investment management, indicating a growing focus on personal finance and wealth management strategies [2] - The document also touches on the role of financial services in supporting economic growth, suggesting that the sector is adapting to new challenges and opportunities [2]

Core Viewpoint - The federal tax code has created a disparity between working Americans who pay taxes and the ultrawealthy who largely avoid taxation through various means [1][2]. Tax Avoidance Strategies - The wealthy often avoid earned income, escaping payroll taxes and ordinary income tax rates. They can also avoid capital gains taxes by not selling appreciated assets and instead borrowing against them [2]. - Inheritance is received tax-free, further contributing to the wealth gap [2]. Proposed Tax Reforms - Boston College law professor Ray Madoff suggests several reforms: repealing the estate tax, taxing inheritances over $1 million under the income tax, and taxing capital gains upon transfer, not just sale [3][4]. - NYU Law School's Lily Batchelder proposes a more ambitious plan that includes taxing inheritances under both payroll and income taxes, which would be particularly relevant for Social Security funding [5]. Revenue Estimates and Tax Structure - The Urban-Brookings Tax Policy Center provided revenue estimates for lifetime exemptions of $500,000, $1 million, and $2.5 million, with a focus on a $1 million exemption for Madoff's proposal [6]. - Under Batchelder's proposal, taxpayers receiving gifts and inheritances over $1 million would pay income and payroll taxes on the excess, with revenues directed to Social Security and Medicare trust funds [7].

RT Brad Smith (@CommishSmith)Did the Conservative movement flop, as many right-oriented populists claim? Just a few policy examples:In 1980, 1 state had a "shall issue" concealed carry law. Today "shall issue" (or no permit) is the rule in all 50 states.In 1980, the top marginal income tax bracket was 70%. Today it is 37%. Rates are lower in all income brackets.In 1980, there was no indexing of income tax brackets for inflation. Today there is.In 1980, the Soviets were on the march in the cold war. Today, C ...

Core Insights - Transferring retirement savings from a 401(k) to a Roth IRA can reduce or avoid required minimum distributions (RMDs) and income taxes in retirement, providing flexibility in tax planning [1][4] - Roth accounts are not subject to RMD rules, which can help retirees manage their tax liabilities and financial situations better [4][5] - Converting a significant portion of a 401(k) can lead to a substantial immediate tax bill, potentially pushing individuals into a higher marginal tax bracket [2][6] Group 1: Roth Conversion Benefits - Roth conversions allow for tax-free withdrawals for heirs, making them an attractive option for estate planning [1] - By eliminating RMDs, retirees can potentially pay fewer income taxes and have more disposable income for lifestyle expenses [5] Group 2: Tax Implications of Roth Conversions - Amounts converted from a tax-deferred account to a Roth IRA are considered taxable income, which can significantly impact the individual's tax bracket [6] - For instance, converting 25% of a $1 million 401(k) could result in an additional $250,000 in taxable income, leading to a tax bill of approximately $53,014 for a single filer in the 32% marginal tax bracket for the 2024 tax year [7]

New York City's mayoral candidates faced off last night in their final uh debate before the election on November 4th. >> I know that we desperately need to build more housing in this city and I also know that the jobs we create in the building of that housing should be good jobs as well. >> Political answer.What is your opinion Zoran. Yes or no. >> Come on.>> Yes or no. >> What is your opinion. Yes or no.Zoron. >> True. >> Don't be a politician here.I got it. >> They're they're pointing out what I was about ...