The Washington D.C. rumor mill is predicting an effort by the GOP to pass what has come to be known as Tax Cut 2.0. Republicans want to make permanent the individual tax cuts enshrined in last year's tax reform, and to make additional tax cuts. To get the cuts passed though, the GOP will need buy-in from at least 9 Democrats. Bloomberg reports: Democrats have assailed the new law as a giveaway to corporations and the wealthy, and they’ve called for drastic changes. “I’m ready to have a discussion with them. They want to fix some problems in the tax law? I want to fix some problems in … [Read more...]

After capturing a capital gains tax break on the Goldman Sachs stock he was "forced" to sell when he joined government, and preventing the Trump administration from cutting the carried interest tax break, and shepherding through a tax break that would definitely help his former employer, Gary Cohn is leaving the White House. There have been many reasons rumored as the cause of Cohn's exit. The official story is that he's against the President's announced tariffs, and so wants nothing more to do with the administration. That may be true to an extent, but it seems like there's more. Some … [Read more...]

The tax reform law passed by Congress and signed by President Trump last year included a new rule that allowed businesses to immediately write off 100% of their asset purchases. The bill also allowed this treatment for used equipment that may have already been written off by another company. The WSJ reports that tax planners think companies may begin to shuffle around assets simply to take advantage of the tax treatment. Tax planners say the market for used equipment—including railcars, airplanes and industrial machines—is likely to heat up in the months ahead as firms try to take advantage … [Read more...]

During your working career you can make adjustments on the fly. Paychecks are still coming in, and you can cut some spending to shore up holes in your savings plan. But once you retire, there's no more income to offset any unexpected spending you may have done. That's why you must be acutely aware of how you position yourself and your money in retirement. After you have invested your money to best avoid risk, the biggest threat to your income is taxation. Retirees must do everything possible to avoid the painful bite of income taxes. To help them, GoBankingRates.com has developed a list … [Read more...]

Originally posted November 14, 2017. Want to get away? If you live in blue-states New York, New Jersey, Connecticut, Rhode Island, Massachusetts, and while I’m at it California, you do now. As the so-called tax “cut” grinds its way through the sausage maker in Washington, why would you stick around any longer than you have to? Most of you aren’t sticking around for the weather. It’s more likely you’re here for your family. Last time I checked, raising a family is a big investment and where you live is a huge part of the equation. Which is why I have a problem with this tax “cut” … [Read more...]

There’s no perfect answer but I like the idea of a boots on the ground approach through vacationing or a seasonal rental. Once you determine you actually like living somewhere new, then it’s time to make the big move. Research is part of the fun and here’s one way to get you on the road again. Glenn Ruffenach at The Wall Street Journal gives potential movers a way to compare destinations: So, as you indicate, combining results from several resources generally works best. Here are some good places to start: The nonprofit Council for Community and Economic Research in Arlington, Va., has … [Read more...]

“I simply asked for one thing in this broken process: a 15-minute vote on whether those caps should or should not be broken. The furor this request set off among leadership, the wailing and screeching among Big Government advocates in Congress and in the media — well, you would think I had asked them to shut down forever,” writes Senator Rand Paul in Time. He wanted them to act like spending matters, “Like the process matters.” “The sad irony is that December’s Republican tax cut is supposed to save Americans $1.5 trillion over 10 years. But the new spending is essentially a $1.5 trillion … [Read more...]

After months of negative press over the prophesied ill effects of tax reform, the liberal media has come to admit the greatest benefit of all from tax reform: rising wages. The AP wrote today that despite the tax bill being "contentious," workers are starting to take home more pay. Big corporations across America have announced wage increases and bonuses as a direct result of the cut in their corporate tax rates. While some have called these benefits for employees "crumbs," the numbers are really beginning to add up.  The AP writes: Treasury Secretary Steven Mnuchin has estimated that the new … [Read more...]

While high tax Northern states are desperately attempting to find ways around new rules in the tax reform legislation passed at the end of 2017, the South is cheering them on. The problems stem from high state and local income and property taxes in the North that will no longer be fully deductible for federal tax purposes. Meanwhile, in the low tax South, those issues aren't a concern, and a lower federal corporate rate looks great to the states that have made themselves attractive to big employers with Right to Work laws and low state taxation. Cameron McWhirter and Arian Campo-Flores … [Read more...]

Apple's CEO Tim Cook has announced that Apple will be paying $38 billion in taxes to bring home profits it had been keeping overseas. The impetus for the repatriation is the favorable treatment created by the recent passage of tax reform. Along with the boon for nation's budget, Apple will be investing $30 billion in capital in the U.S. over the next five years, including the creation of a new campus. In all the spending will create as many as 20,000 jobs. The repatriation reform is long overdue. Tripp Mickle reports: The total includes a new campus, which initially will house technical … [Read more...]