TaxEsqBlog -by Ronald J. Cappuccio, J.D., LL.M.(Tax)

The Bipartisan Tax Fairness and Simplification Act of 2010, would also eliminate the alternative minimum tax and reduce the number of individual tax brackets from the current total of six to three: 15 percent, 25 percent and 35 percent. The bill would nearly triple the standard tax deduction. Wyden and Gregg plan to make it possible for most taxpayers to file a simple one-page 1040 form, and allow individuals and families to request that the IRS prepare a tax return for them to review and sign. To encourage small business growth, those with gross annual receipts of up to $1 million would be able to permanently expense all equipment and inventory costs in a single year. To help American corporations compete internationally, the Wyden-Gregg bill would reduce the top corporate tax rate of over 35 percent and replace the existing six corporate rates and eight tax brackets with a single flat rate of 24 percent. Wyden-Gregg would reduce corporate tax rates approximately 30 percent — below t...

Greece is having Massive Economic Problems. Germany is trying to bail it out so it does not pull down the EU and the World economy. Greece is yet one more example of a government offering its population loads of benefits, while at the same time, running an economy too weak to generate the necessary cash. (It actually sounds a lot like the U.S.!) Some economists are concerned that a move like this by Germany might be a quick fix, but that the runaway deficits in some of the PIIGS (Portugal, Italy, Ireland, Greece, Spain) are still a major cause for concern. Greece, for example, is being asked by the EU to decrease its current deficit of 13% to just 3% by 2012, and we all know how tough it is to reign in government spending. (Again, it certainly sounds like the U.S.!) With 6 unempliyed Americans looking for every job, it is certainly time to get the government out of the economy!

The death tax, as many refer to the Estate Tax, was changed earlier in the decade so that in 2009 it would impose a tax rate of 45 percent to the estates of people who die with more than $3.5 million in assets. Before the law was changed — back in 2001 — the death tax had applied a tax rate up to 55 percent on estates in excess of $1 million. Now, without action on the part of Congress to set up a plan or new law for the estate tax, in 2010 there is no tax on estates of persons dying this year. In 2011, however, the law will revert back to how it existed before the 2001 law change, with a $1 million exemption and up to 55 percent tax on the deceased’s assets following a death. Under the 2009 law, just 6,000 estates throughout the country would have had to pay the estate tax. In 2011, when all estates worth more than $1 million will be subject to the death tax, more than 61,000 estates could be affected. Note many States "decoupled" with the Federal Estate Tax Exemption and ap...

The World Bank's Doing Business 2010 report lists Singapore, New Zealand and Hong Kong as the top 3 places to do business in the world. The US Ranks number 4. The US's strengths are employing workers, protecting investors and getting credit (this last item makes me wonder about the difficulties in other countries!) The U.S. is closely followed by the U.K, Denmark, Ireland, Canada and Australia. The full report is on our Extranet . If you do not have a sign-on, call us at 856 665-2121.

Existing Home Sales Increase in October In October, existing home sales rose by 10.1% and are now 23.5% above the year-ago rate. Sales were at a seasonally adjusted annual rate of 6.10 million, up from 5.54% in September and a 4.94 million pace a year ago. Existing single family home sales rose by 9.7% to a 5.33 million pace, while condo sales soared by 13.7% to a seasonally adjusted annual rate of 770,000. Click Here for full article.

Congress has not fixed the Estate Tax. The current estate tax rate is 45 percent with an exemption level of $3.5 million for individuals and $7 million for couples. Unless something is done, in 2010 the rate and exemption level will fall to zero and then jump up to 55 percent and $1 million, respectively, in 2011.

States Attack Business! In order to collect more money to pay for their profligate spending many states are hiring collectors and placing judgments against taxpayers who owe taxes. Many states are trying to declare businesses as being resident of their state and therefore requiring them to register and pay taxes with the state. New York is leading the attack, but others are quickly following suit. Full Article....