Income tax – Im Just Sayin http://imjustsayin.net/ Thu, 29 Sep 2022 04:52:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://imjustsayin.net/wp-content/uploads/2021/10/icon-5-120x120.png Income tax – Im Just Sayin http://imjustsayin.net/ 32 32 Portuguese government to offer income tax reduction for innovative companies – EURACTIV.com https://imjustsayin.net/portuguese-government-to-offer-income-tax-reduction-for-innovative-companies-euractiv-com/ Thu, 29 Sep 2022 04:52:19 +0000 https://imjustsayin.net/portuguese-government-to-offer-income-tax-reduction-for-innovative-companies-euractiv-com/ The government will on Wednesday propose a selective reduction in corporate tax for companies that favor higher wages and investment in research and development, according to the proposal seen by Lusa. The measurements are part of the government proposal of a medium-term agreement to improve incomes, wages and competitiveness. The document provides for a “selective […]]]>

The government will on Wednesday propose a selective reduction in corporate tax for companies that favor higher wages and investment in research and development, according to the proposal seen by Lusa.

The measurements are part of the government proposal of a medium-term agreement to improve incomes, wages and competitiveness.

The document provides for a “selective reduction in corporate tax (IRC) for companies with active collective bargaining, with an increase in wages and a reduction in the salary range”.

The government also proposes a selective reduction of the IRC “for companies that invest in R&D [Research and Development]strengthening the conditions of the tax incentive scheme for business research and development (SIFIDE II) in the direct investment component.

This proposal for a medium-term agreement on income, wages and competitiveness does not provide for a cross-cutting reduction in the IRC rate (which is currently 21% and to which are added state and municipal surcharges).

On September 18, the Minister of Economy, António Costa Silva, said he was in favor of a general reduction in the corporate tax rate, deeming it “beneficial”.

After these statements, and asked about the tax changes that could be included in the state budget for 2023, the Minister of Finance, Fernando Medina, referred the issue to negotiations with the social partners within the framework of the agreement on income and competitiveness, emphasizing that “on this issue of corporation tax, as in all matters of the agreement, the government has a say”, while reserving “until the end of negotiation to talk about it”.

(Lucilia Tiago/Lusa.pt)

]]>
Governor says state can’t afford income tax cut and property tax cut https://imjustsayin.net/governor-says-state-cant-afford-income-tax-cut-and-property-tax-cut/ Mon, 26 Sep 2022 16:53:17 +0000 https://imjustsayin.net/governor-says-state-cant-afford-income-tax-cut-and-property-tax-cut/ Gov. Jim Justice, a former proponent of property tax cuts for businesses, concluded that the state would gain more economic benefit from an income tax cut — and that it cannot afford to do so. both. The governor says the state’s current fiscal health now means it can afford a major personal income tax cut. […]]]>

Gov. Jim Justice, a former proponent of property tax cuts for businesses, concluded that the state would gain more economic benefit from an income tax cut — and that it cannot afford to do so. both.

The governor says the state’s current fiscal health now means it can afford a major personal income tax cut.

“Let’s be completely fair. Nobody on the planet would have ever really dreamed — nobody on the planet would have ever dreamed that we would ever be able to get rid of personal income tax. Personal income tax is a real engine of real growth for people across the country,” he said on MetroNews’ “Talkline” today.

“Now today we have a chance – we have a chance to do this. Listen, I would be in favor of removing all taxes in all honesty, but you can only afford to do so much. So today oday we are at a crossroads.

Justice crosses the roads of West Virginia to deliver this message.

The governor was in Wheeling on Friday to promote his income tax cut proposal while campaigning against the passage of Amendment 2, which would give lawmakers the ability to change property taxes. Today, the governor’s schedule took him to Beckley for the same message.

In previous years, the governor has expressed support for lower property taxes that businesses pay on their equipment, machinery and inventory.

In his 2018 State Address State, Justice presented a proposal he called “Just Cut Taxes and Win”. “What I want to start is the elimination of the tax on manufacturing machinery and equipment and manufacturing inventory,” he told the crowd that evening.

For 2019 addresshe went on to state, “Today I call for the elimination of the business inventory machinery tax.”

And in 2020, he repeated the message“The tax on business stocks and machinery is holding us back in certain areas. We have to try – we have to try to find a solution where we can either put ourselves on a glide path or quickly on a better glide path to eliminate this tax if we can.

In those 2020 remarks, the governor expressed some caution about the types of local services supported by property taxes in West Virginia. But his conclusion remains in favor of lowering property taxes.

“We have to be careful. There are counties to consider, school boards, there are people we absolutely want to protect. We have to be careful. We have to be careful about where we are with our general finances. We have to be careful and we have to be smart. But I don’t want anyone to doubt that I’d like it to go away. I would like it to disappear. At least gone in time.

The governor’s current message places greater emphasis on the role property taxes play in supporting schools and other aspects of local government. Today he said he would cut all the taxes he could – but he’s learned enough to be careful when it comes to property tax.

“We know a lot more things now,” he said. “In 2018 and 2019, if you had said to Jim Justice, let’s get rid of taxes, I would absolutely support removing anything that we could have gotten rid of, but it’s a different animal today,” he said.

State lawmakers have long talked about having more flexibility with property taxes, especially those that businesses pay on equipment and inventory. Last year, lawmakers passed a resolution that could allow changes to personal property tax rates.

Because it is a constitutional issue, voters in West Virginia have their say on the issue through the general election ballots.

Property taxes are a primary component of how counties pay for services such as school systems, ambulance services, libraries and more.

Earlier this month, the boards of directors of the West Virginia Counties Association and the West Virginia County Commissioners Association voted to oppose Amendment 2, “the Property Tax Modernization Amendment”. The first group represents county assessors, circuit clerks, county clerks, prosecutors and sheriffs.

Kent Carper

The groups cited the loss of authority over an estimated $550 million in “dedicated and constitutionally protected revenue” — and “turning that money over to the Legislative Assembly.” They also expressed concern over the lack of consensus between the Senate, House and governor on a solid plan to offset local government revenues.

“This is really a transfer of fiscal responsibility. You have to concede it. You just have to do it,” Kanawha County Commission Chairman Kent Carper said today on “Talkline”.

]]>
Texas needs a state income tax https://imjustsayin.net/texas-needs-a-state-income-tax/ Fri, 23 Sep 2022 23:33:10 +0000 https://imjustsayin.net/texas-needs-a-state-income-tax/ With the election of Dolph Briscoe as Governor of Texas in 1972, the slogan “no new taxes” became popular with aspiring politicians seeking office. The slogan belies the fact that we don’t take the time to compare old taxes with possible new taxes and what is in our best interest. In today’s political world, it […]]]>

With the election of Dolph Briscoe as Governor of Texas in 1972, the slogan “no new taxes” became popular with aspiring politicians seeking office. The slogan belies the fact that we don’t take the time to compare old taxes with possible new taxes and what is in our best interest.

In today’s political world, it seems the public is increasingly tolerating words that were once considered taboo to be uttered on television or radio. Note the fact, however, that you almost never hear a politician running for office even mention the word “tax”.

Our legislature continues to rely primarily on local property taxes to support our state public education system. The difference in property wealth of school districts has been a problem for several years. It remains to be resolved. There have been several failed attempts to address the issue, many of which are highly unpopular, such as forcing wealthy school districts to donate a portion of their revenue to poorer school districts.

The problem is the fairness of the distribution of real estate wealth across our state that forces bosses in some districts to set their rates at maximum to raise an insufficient amount to provide a quality education while wealthier districts can collect more that’s enough with only half the effort with a much lower tax rate. The system came under serious scrutiny in the 1960s when an impoverished school district in San Antonio sued in federal court. The federal court ruled that although the state system was not unconstitutional, it was highly questionable and something had to be done to fix the problem.

If we are to judge the quality of school districts fairly, they should all have the same access to resources. A fixed and reasonable income tax would solve this problem.

The fear of a state income tax is likely caused in large measure by Americans’ distrust of the IRS and high state income tax rates. A state income tax, however, is generally a very different animal from the federal income tax. The vast majority of states that tax income set the rate very reasonably. The rate of state income tax could be capped by our state constitution if such a tax were passed by the people. A ceiling could also be imposed on the property tax.

Usually, most states using state income tax only take 1 or 2 percent or nothing from those earning $50,000 a year or less.

One problem with not mentioning the word “taxes” is that in a democracy most of our problems are solved by reasonable discussion and debate. A problem that is never discussed is rarely solved, especially in a democratic type of government. Instead of simply turning a blind eye to taxation, our politicians should look for ways to make taxation more efficient and fair.

Most Americans, especially Texans, would probably be surprised to learn that many states with income taxes take less money from citizen homeowners than Texans. In California, for example, personal California homeowners are taxed less than citizen homeowners in Texas. A recent report by the Institute of Taxation and Economic Policies pointed out that several states tax less than states that do not have income tax.

Think for a moment of a professional athlete who earns a multi-million dollar salary but resides in only a small condo in Texas and lives elsewhere. He is not taxed on his multi-million dollar salary, while the owner of a three-bedroom, two-bathroom home in the same neighborhood is heavily taxed. A small additional tax on the many billionaires who reside in Texas would certainly not harm their standard of living. The institute pointed out that most billionaires in Texas have a tax rate of 20% while oilfield workers and refinery workers, welders and normal workers pay 33.5% of their total income.

At 88, I seriously doubt I will ever live to see a Texas income tax. But a study of the facts related to taxation is worth a look.

Carl Parker of Port Arthur is a lawyer and former state senator. If you have a possible guest column for the company, send your idea or the column itself to Opinions@BeaumontEnterprise.com. If you have something to say, we want to hear from you!

]]>
Income tax decentralization is expected to cost the Scottish government a fortune. So why is nobody talking about it? – John McLaren https://imjustsayin.net/income-tax-decentralization-is-expected-to-cost-the-scottish-government-a-fortune-so-why-is-nobody-talking-about-it-john-mclaren/ Thu, 22 Sep 2022 03:55:24 +0000 https://imjustsayin.net/income-tax-decentralization-is-expected-to-cost-the-scottish-government-a-fortune-so-why-is-nobody-talking-about-it-john-mclaren/ Scotland would have been better off sticking to the original Barnett formula, devised by Labor politician Joel Barnett in 1978 (Picture: PA) In practice this does not mean there will be less funding available, rather it means that taxes – mainly on households – will be much higher in Scotland than elsewhere in the UK, […]]]>
Scotland would have been better off sticking to the original Barnett formula, devised by Labor politician Joel Barnett in 1978 (Picture: PA)

In practice this does not mean there will be less funding available, rather it means that taxes – mainly on households – will be much higher in Scotland than elsewhere in the UK, but with next to nothing to show for that.

According to Scottish Government estimates, £1.5billion is roughly equal to 9p on the basic rate of income tax, or nearly 4p on all income tax rates – from the starting rate to the highest rate.

So rather than the revenue generated from higher taxes being used to increase spending, which might have been rather helpful, it instead had to be used to help fill the funding gap due to slowing economic growth in Scotland. .

This is in fact the end result of the partial decentralization of tax powers since 2017-2018. Why is that? For three reasons.

First, the growth of the economy has been slower than in the UK. Second, the growth of top tax bracket incomes – which account for a disproportionate share of total taxes – has been slower. Third, the population is aging faster, which affects the size of the workforce.

Could this have been foreseen? To some extent, no. For example, the decline of North Sea oil and its high-wage jobs was difficult to predict with precision, even if the general direction was known. But to a large extent, yes. So why go ahead with the transfer of such powers? Political, of course, the Scottish government and parliament wanted more powers, whatever the outcome.

Read more

Read more

GERS figures: Independent Scotland would face difficult choices despite John Swinney…

It took some time for the negative consequences of fiscal decentralization to become apparent, but now they seem quite clear, if little discussed.

The Scottish Tax Commission’s (SFC) latest report from the end of last month highlights that “slowing income and employment growth in Scotland has contributed negatively to the net position”, where the “net position” is determined by the extent to which Scottish income tax per capita increases. faster or slower than the rest of the UK.

“This is offset by the divergence in Scottish and UK income tax policies, which has helped keep the net position positive in most years. We believe that in the absence of differences between Scottish and UK income tax net position would have been minus £1,004 million [£1bn] in 2022-23. By having relatively higher tax rates in Scotland and lower thresholds for higher rate taxpayers, the net income tax position drops to minus £157m in 2022-23,” adds the SFC report.

This negative net position is then expected to reach over minus £1.5 billion by 2026-27, mainly due to demographic effects.

While the Scottish Government may be concerned about rising energy prices and highlight it as a humanitarian crisis in its latest program for government, there is not a word in this document about the higher tax burden. that Scottish households are inflicting on themselves due to the transfer of income tax powers.

No doubt the SNP-led government, and perhaps others, would argue that slowing economic growth is largely beyond their control as Westminster retains key powers. This may, to some extent, be true, but then why negotiate for more powers when you think the UK government’s economic policies will end up costing the Scottish budget dearly?

The strange thing about all of this is that the ‘higher tax no benefit’ position that Scotland currently finds itself in is not part of the political debate. When the SFC recently released the £1.5billion figure, there was no political furor, only silence.

If we can expect that the SNP did not want to discuss the figures, what about the other parties? This is certainly a clear and obvious deficiency that needs to be highlighted and the government challenged on this.

The analytics providers we have – the Fraser of Allander Institute, the Scottish Parliament Information Center (SPICe) and the SFC itself – have highlighted the emerging problem, but to no avail to give it greater political visibility. What does this say about our government and our parliament?

While many may lament the UK government’s many shortcomings, it is at least held accountable and challenged in various ways. Whether through strong opposition parties, the House of Lords, the Commons committee system, think tanks or the media, bad policies are exposed and debated, especially in terms of the economy.

In Scotland, there is no such broad system of political accountability. As a result, the economic debate suffers, as does the debate around other important areas of public policy like health, education and beyond.

All of these omissions have costs, it’s just that in the case of economics we see those costs explicitly defined, in terms of a smaller budget that has to be supplemented by higher taxes. When it comes to education, international results from the OECD Pisa suggest that education is also suffering. No doubt health in some ways too.

At the moment, Scottish politics is in a bad way, with the state of the economy being just one of the casualties. Clearly there is no turning back on devolution so the choices are to rejuvenate the Scottish Parliament as it is or push for independence which would force a change in approach, for better or for worse, on economic and other issues.

For now, we remain in an unhealthy position, with a parliament that pontificates at length but brings little change in practice. Meanwhile, as the Scottish Revenue Commission continues to illustrate, the costs of such disengagement continue to mount.

John McLaren is a political economist who has worked at the Treasury, the Scottish Office and for various economic think tanks.

]]>
FBR advised to fix issues for smooth filing of tax returns https://imjustsayin.net/fbr-advised-to-fix-issues-for-smooth-filing-of-tax-returns/ Tue, 20 Sep 2022 18:49:37 +0000 https://imjustsayin.net/fbr-advised-to-fix-issues-for-smooth-filing-of-tax-returns/ The Pakistan Tax Bar Association (PTBA) has urged the Federal Board of Revenue (FBR) to fix the issues in the Iris portal for smooth tax filing for the 2022 tax year. In a letter sent to the President of the FBR, the PTBA indicated that taxpayers should benefit from the legal deadline of 90 clear […]]]>

The Pakistan Tax Bar Association (PTBA) has urged the Federal Board of Revenue (FBR) to fix the issues in the Iris portal for smooth tax filing for the 2022 tax year.

In a letter sent to the President of the FBR, the PTBA indicated that taxpayers should benefit from the legal deadline of 90 clear days for the submission of their tax returns from the day the Iris – the portal – is error-free.

READ MORE: Tax return becomes invalid depriving refund adjustment: PTBA

The Supreme Tax Bar stated that with respect to the filing of tax returns for the 2022 tax year, it endorsed the observations regarding system errors/issues highlighted by the affiliated regional bars, including the Karachi Tax Bar Association (KTBA).

“So far, the current IT team has failed to deliver an efficient, user-friendly and hassle-free IT system in a professional manner,” he added.

The PTBA informed the President of the FBR that according to the law, the taxpayer has the right to request an adjustment of his previous refunds against the tax payable for the current tax year, but the corresponding column for the refund adjustment has been unlawfully locked which is contrary to fundamental rights and present legislation under the Income Tax Order 2001.

Similarly, the draft manual declaration of income for individuals and associations of persons (AOP) for the tax year 2022 was published no later than August 26, 2022, while SRO 1733(I)/2022 final was published on September 13. , 2022. “This means that only 17 days were allowed to file manual returns, which is insufficient as required by law,” the PTBA pointed out.

READ MORE: Tax rates on profits from bank deposits in the year 2022/2023

He further pointed out that the tax declaration form introduced for the SME sector was issued on the IRIS system without project sharing, which is mandatory under the law. “The simplified declaration for SMEs uploaded without issuing the draft declaration, it may lead to illegality,” said the PTBA and suggested that the issuance of a draft followed by the final declaration be issued to meet the requirements. of the law.

The PTBA stated that the IRIS portal calculates an incorrect normal and initial depreciation allowance on the purchase of plant and machinery with respect to the provision of Article 23 read with Part II of the Third Schedule of the Ordinance of 2001 on income tax.

The IRIS portal calculates the incorrect/excess tax liability on the gain on the sale of immovable property in breach of Section 37(1A) of the Income Tax Order 2001.

It should be noted that the rate of collection of tax under Section 153(I)(c) for individuals and AOP contractors is 7%, which is the minimum tax. “In the relevant part of the operating statement of attributable income, there is no line with a tax rate of 7%, nor does the system allow the credit of said deduction.

Currently, the IRIS portal calculates the incorrect tax liability on income covered by Article 153 of the Ordinance, based on incorrect fixed/predefined formulas due to which taxpayers are liable to pay high tax instead of their real tax liability, which is against the spirit of self-declaration and the current regime of the law. “Unfreezing the allocation and allowing taxpayers to enter correct numbers/data to file their return on time can solve the problem,” the PTBA suggested.

READ MORE: Up to 70% income tax imposed on dividends for the year 2022-2023

The tax bar at the top pointed out that the IRIS portal calculates incorrect tax on Bahbood certificates on profits / returns / retiree’s benefit account / Shuhada family welfare account, while clause (c) of sub- Section (I) of Section 39 provides that the tax shall not exceed 10 per cent of such profit/return read with clause (6) of Part III of the Second Schedule to the Taxation Ordinance 2001 income tax.

The IRIS portal treats normal income for the tax year 2022 instead of final income to interest/profits on debts on public securities in accordance with clause (20( of part III of the second schedule of the order on Income Tax, 2001, where that said clause has been omitted by the Finance Act 2022 and is applicable for the tax year 2023, which cannot be applied retrospectively.

READ MORE: FBR updates payroll tax map for year 2022-2023

The PTBA said taxpayers in general and the legal fraternity in particular face acute hurdles in preparing tax payment disputes as the system response in this regard is very slow. “Most of the time it requires many attempts for tax challan preparation due to some website problem and tax challan preparation in one attempt is difficult and it is very common practice/problem that are faced by almost every taxpayer while preparing the tax challan, hence the website/system issue should be resolved immediately and sufficient lead time is also required for timely filing of returns.

Where a revised wealth statement under section 116(3) of the Income Tax Order 2001 for the tax year 2021 resulting in a change in the closing balance of wealth net for the 2021 tax year has been filed, the system does not carry forward the opening balance. net worth for the 2022 tax year (showing the opening balance of the opening statement of the net worth of the last year’s closing balance).

Finally, the PTBA highlighted the issue regarding the uploading of the Computerized Payment Receipt (CPR) and the statement that the system displays the message “challan/CPR does not exist” against the valid CPR duly filed at the Treasury.

LEARN MORE: FBR Releases Withholding Tax Rates on Imports for Tax Year 2022-2023

]]>
Do you hate paying taxes? These 7 States Have No Income Tax https://imjustsayin.net/do-you-hate-paying-taxes-these-7-states-have-no-income-tax/ Thu, 15 Sep 2022 12:32:49 +0000 https://imjustsayin.net/do-you-hate-paying-taxes-these-7-states-have-no-income-tax/ Image source: Getty Images Why waste more money in taxes than necessary? Key points State income taxes can eat away at your income. From coast to coast, you will find a tax-free existence in these states. Life has a way of being dear. From car payments to mortgage costs to the need to put food […]]]>

Image source: Getty Images

Why waste more money in taxes than necessary?


Key points

  • State income taxes can eat away at your income.
  • From coast to coast, you will find a tax-free existence in these states.

Life has a way of being dear. From car payments to mortgage costs to the need to put food on the table, many people struggle to stretch their paychecks month after month. And what complicates the issue is the question of taxes – having to pay a portion of your earnings to the federal government and, in many cases, to your home state.

Some states, however, do not impose income tax. And so if you’d rather keep more money to yourself, you might consider making one of these your home.

The seven states without income tax

You will not pay any income tax if you move to the following states:

Discover: Find the best tax software for your situation here

Save: We’ve researched free tax software and compiled a list of the best here

  1. Wyoming
  2. Washington
  3. Texas
  4. South Dakota
  5. Nevada
  6. Florida
  7. Alaska

It should also be noted that Tennessee and New Hampshire do not impose state income tax on wages. However, they tax other types of income, such as the interest you earn on your savings account. They also tax dividend income you earn in a brokerage account.

Should you move to a state with no income tax?

It depends. Obviously, not paying income taxes could be a big source of savings. But you could spend more money another way.

Alaska, for example, is a very expensive state to live in, even though it has no state taxes. Because a lot of goods have to be brought in, you might pay more for groceries and essential household items. And also, because things are quite spread out in Alaska, you might spend more on transportation. Housing there is not cheap either.

Parts of Washington, meanwhile, can be very expensive, especially around Seattle. Likewise, while there are plenty of low-cost cities you can move to in Texas, if you’re considering a big city, like Austin, you’ll need to be prepared to spend a small fortune on housing.

Then there are other factors to consider, like school systems (if you have kids), climate, and access to amenities. Alaska is beautiful. But it is also very cold most of the year.

Meanwhile, in many parts of Wyoming and South Dakota, you’ll enjoy beautiful open spaces. But you may have to travel far to access shops or restaurants. And while you enjoy the Florida heat in January, you might also find yourself cursing your decision to move there once the summer heat makes stepping outside feel like stepping into a furnace.

Also consider where your friends and family live. If your entire support network is concentrated in the Northeast, giving it up to move to Nevada may prove more difficult than expected.

Finally, think about the jobs available in your field. If you are a teacher or a nurse, you may be able to find a job anywhere. But if you work in tech, opportunities in Wyoming may be limited unless you have a job that allows you to work remotely full-time.

All in all, it pays to research the states above and see if they are right for you. But don’t switch to just one because there’s no income tax.

Ascent’s Best Tax Software for 2022

Our independent analysts have looked at the benefits and user reviews of the most popular tax services to find the best choices for filing your taxes. Start by checking out our list of the best tax software for 2022.

]]>
Louisiana lawmakers discuss eliminating income tax https://imjustsayin.net/louisiana-lawmakers-discuss-eliminating-income-tax/ Tue, 13 Sep 2022 23:35:03 +0000 https://imjustsayin.net/louisiana-lawmakers-discuss-eliminating-income-tax/ BATON ROUGE (AP) — Louisiana lawmakers are at it again discuss a possible path to the elimination of state income tax. Lawmakers acknowledged at Tuesday’s tax drafting committee meeting that proposals to eliminate the income tax would face huge tax hurdles, but others say there is a need to help retain and attract residents, businesses, […]]]>

BATON ROUGE (AP) — Louisiana lawmakers are at it again discuss a possible path to the elimination of state income tax.

Lawmakers acknowledged at Tuesday’s tax drafting committee meeting that proposals to eliminate the income tax would face huge tax hurdles, but others say there is a need to help retain and attract residents, businesses, and corporations to Louisiana. Republican Representative Richard Nelson, who led the conversation, described an overhaul of the state’s tax system as a “mouse trap” – allowing it to compete with states with no income tax, like neighboring Texas, which have experienced faster and greater growth.

“When you look at the state and you look at the trajectory that we’re on, I think the tax structure in Louisiana is one of the fundamental things that’s holding us back,” Nelson said at the House Ways and Means committee meeting. .

Overhauling the state’s complex tax code is likely to face fiscal and political challenges, given that personal income tax is expected to bring in $4.3 billion of the $39 billion annual operating budget. of state dollars.

If income tax is removed, lawmakers will need to consider how the funds would be replaced, whether that means raising sales and property taxes or reducing exemptions. Subcommittees will be tasked with performing an analysis of the state’s tax structure, examining the cost of exemptions and credits and other taxes that may be subject to change.

Debbie Vivien, chief economist of the Legislative Tax Office, warned that now may not be the time for huge change.

“We’re seeing very high revenue, we know it’s probably going to go down. We’ve got a recovery from the hurricane, we’ve got a lot of federal money coming in. We know it’s going to go down, so we’re just warning you… if you’re tempted to cut, keep in mind that we have a long way to go at this point,” Viviane said.

Eight states – Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – have no personal income tax.

“Texas, our neighbor to the west, has grown six times faster than us. Florida is pretty much the same,” Nelson said. What do they have in common? They have no income tax. It’s one of the main things that attracts people from across the country.

Last year, Louisiana voters approved a constitutional amendment that lowers the top personal income tax rate from 6% to 4.25% starting next year.

The Louisiana legislature can tackle tax issues in odd years. The ways and means committee is expected to make recommendations on changes to the tax structure to the Legislative Assembly for the 2023 regular session, which begins April 10.

]]>
Tax refund: how and who must file an amended tax return https://imjustsayin.net/tax-refund-how-and-who-must-file-an-amended-tax-return/ Sun, 11 Sep 2022 15:30:25 +0000 https://imjustsayin.net/tax-refund-how-and-who-must-file-an-amended-tax-return/ Aaccidents happen, even when filing your taxes. You must submit your income tax return accurately and on time for this reason. That said, keep in mind that mistakes can still happen despite your best efforts, so if you discover one on your taxes, it is indeed possible to have it corrected. The most frequent errors […]]]>

Aaccidents happen, even when filing your taxes. You must submit your income tax return accurately and on time for this reason.

That said, keep in mind that mistakes can still happen despite your best efforts, so if you discover one on your taxes, it is indeed possible to have it corrected.

The most frequent errors generally concern a taxpayer reporting status or the credits and deductions to which they are entitled.

You only need the correct forms and tax software to correct errors. Here is the procedure in action.

Made a mistake? You will need to file an amended tax return

You only need the correct forms and tax software to correct errors. Here is the procedure in action.

Taxes can be confusing and difficult to understand, increasing the likelihood of reporting errors.

Taxpayers who have to file revised returns frequently make one of the following mistakes:

  • Incorrect or changed deposit status
  • Incorrect income
  • Credits or deductions were not claimed correctly

For example, if your filing status changed, you might no longer have been eligible to file as head of household, but instead filed as single.

Compared to a single declarant, heads of household benefit from a lower tax rate and a larger standard deduction. Therefore, if left uncorrected, you could lose thousands of dollars on your tax return.

You must file a modified statement to correct your income if you omitted money on your return or got a corrected information statement with revised income or withholding amounts.

A change in credits or deductions simply indicates that you unintentionally included or excluded a dependent, or mistakenly claimed expenses as a deduction.

It is important to avoid doing anything that could cause problems with the Internal Revenue Service (IRS).

How do I file an amended tax return?

According to the IRS, taxpayers can file an updated tax return either electronically or by mail. You must complete the form 1040-X if you wish to file on paper. Forms 1040, 1040-A, 1040-EZ, 1040-NR or 1040-NR EZ are corrected by 1040-X, according to the IRS.

In general, you must file a form 1040-X within three years of the original filing date of the return or within two years of the tax payment date, whichever is later, to claim a refund.

By selecting the Where is my amended statement option on the IRS website, you can find out the status of your return.

It is important to keep in mind that it can take up to three weeks for your updated statement to appear in their system.

Form 1040-X must be completed electronically using all available tax software packages if you wish to file your 2019 return online and make changes to your 2020 or 2021 return.

There will be a limit of three “approved” amended returns that registrants can submit electronically. However, any further attempts will be denied after the third revised declaration has been accepted.

Only returns for 2019 and later can be changed. For all other tax years or tax types, amended returns must be filed on paper.

Also, if you are updating a return from a previous year and the original return was submitted on paper for that year, your amended return must also be submitted on paper.

]]>
Refundable earned income tax credit at the state level could reduce high-risk HIV behaviors https://imjustsayin.net/refundable-earned-income-tax-credit-at-the-state-level-could-reduce-high-risk-hiv-behaviors/ Fri, 09 Sep 2022 18:33:59 +0000 https://imjustsayin.net/refundable-earned-income-tax-credit-at-the-state-level-could-reduce-high-risk-hiv-behaviors/ A state-level refundable earned income tax credit was associated with a 21% reduction in high-risk HIV behaviors among low-income women last year, suggesting that the policy can reduce this burden. According to a recent study, the State Earned Income Tax Credit (SEITC) may reduce HIV risk behaviors among low-income single mothers. The primary outcome was […]]]>

A state-level refundable earned income tax credit was associated with a 21% reduction in high-risk HIV behaviors among low-income women last year, suggesting that the policy can reduce this burden.

According to a recent study, the State Earned Income Tax Credit (SEITC) may reduce HIV risk behaviors among low-income single mothers. The primary outcome was a composite measure of HIV risk, including factors such as drug use, treatment for sexually transmitted diseases, and trading money or drugs for risky sex and sexual behavior.

“This is the first study to examine the relationship between state earned income tax credit laws and HIV risk behaviors,” said the authors of the study, published in AIDS and behavior.

The highest HIV diagnoses occur among women whose median household income is less than $36,000 a year, according to the CDC. HIV and other sexually transmitted infections (STIs) are directly linked to poverty.

The precursor to the SEITC was the Federal Earned Income Tax Credit (FEITC) of 1975, a refundable tax for low-income workers. In 2020, it actually increased the income of poor people by $2,411, according to the researchers. The state income tax program is adopted by 28 states and the District of Columbia, and its benefits are in addition to those provided by the FEITC.

After noticing a few studies on the extent to which income support could reduce high-risk sexual behaviors among women in the United States, the researchers implemented data from the Behavior Risk Factor Surveillance System (BRFSS) and a plan quasi-experimental study to study the impact of the SEITC law on HIV. risk behaviors among single mothers with little education.

The team obtained data from BRFSS and other state documents from 2002 to 2018 on single mothers aged 18 to 55 with young children, performing a multi-state, multi-year differences-in-differences analysis. . The low education measure was restricted to women with a high school diploma or less.

The results suggest a link between a reimbursable SEITC – equal to or greater than 10% of what the FEITC offered – and a decrease in HIV risk behaviors among low-educated single mothers.

Investigators found that HIV risk behaviors were relatively reduced by more than 30% with a 10% increase in the generous refundable credit. However, a refundable credit of less than 10% of the EIFTC amounts might not have an impact on risky behavior, according to the study.

The researchers further suggested that non-reimbursable SEITC laws had no association with HIV risk behaviors.

“Non-refundable credits and less generous credits did not show statistically significant associations with HIV risk behaviors,” the study authors reported. “We find that a 10% increase in the generosity of state earned income tax credits is associated with a 2.3% reduction in HIV risk behaviors.”

The study was limited because it was observational and the BRFSS could form selective biases. Additionally, the researchers admit to potentially underestimating the effect of SEITC laws on certain populations and the sensitivity of the issues.

“There may be a significant opportunity to influence the trajectory of HIV in this population through increased adoption of state earned income tax credit laws, changes in the way laws are implemented implementation and an increase in benefit generosity,” the researchers concluded.

Reference

Narain K. and Harawa N. Evidence for the role of state-level economic policy in reducing HIV risk: Generosity of state-earned income tax credit and HIV risk behavior among single mothers. AIDS-related behavior (2022). Accessed September 9, 2022. https://doi.org/10.1007/s10461-022-03754-x

]]>
Post Courier High PNG income tax is a deterrent https://imjustsayin.net/post-courier-high-png-income-tax-is-a-deterrent/ Wed, 07 Sep 2022 18:01:11 +0000 https://imjustsayin.net/post-courier-high-png-income-tax-is-a-deterrent/ BY BARNEY OREREborere@spp.com.pg The subject of personal income tax that does not fairly compensate workers in Papua New Guinea has been around for a long time but it continues to fall on deaf years. About a year ago, a UK tax expert who visited the University of Papua New Guinea raised the issue of the […]]]>

BY BARNEY ORERE
borere@spp.com.pg

The subject of personal income tax that does not fairly compensate workers in Papua New Guinea has been around for a long time but it continues to fall on deaf years.

About a year ago, a UK tax expert who visited the University of Papua New Guinea raised the issue of the high income tax regime in PNG. No one really took the academic’s views into account.

There was no reaction from the government.

Now we are whispering on the same subject. Hopefully a follow up will come if there is a real seriousness involved.

Huge tax burdens and increasing public order problems are the challenges facing the government.

Economic hardship on an unprecedented scale, corruption and unemployment are on the rise.

Fifteen years ago, the Governor General, the late Sir Silas Atopare, at the opening of the Seventh Parliament, said PNG faced many social, political and economic challenges. We have suffered from a prolonged and unmanageable level of inflation, he said.

It has distorted our economic decisions, penalized growth and disadvantaged already struggling families,” said Sir Silas.

Unemployment and for employees, the refusal of a “fair return” for them through taxation “has penalized success and prevented us from maintaining full productivity.

But as heavy as our tax burden was, it had not kept pace with public spending.

For years we have accumulated deficit after deficit, mortgaging our future and that of our children for the temporary convenience of the few,” said Sir Silas.

When assessed, the mismanagement of the country is borne by the taxpayer.

The mismanagement of the country means that the people cannot prosper; the tax burden kills them and it is an unfair system.

The more economic problems we encounter, the more the tax burden increases accordingly, hoping that it will bring the solution.

But the mismanagement continues, which means the taxation will continue; potentially in an ever-increasing upward spiral.

It makes no sense if there are no results for the better.

HER MAJESTY’S GOVERNMENT

The GG is the Queen’s representative.

We have it because the Queen is away in England; at the other end of the world.

She is the head of state.

This is what we intended by becoming a member of the British Commonwealth of Nations at independence and adopting the Westminster system of government.

This means that the government of Papua New Guinea is Her Majesty’s government and the people of PNG are the Queen’s loyal subjects under her watch. We need to understand this structure.

As heavy as our tax burden is, the GG has pointed out that it has not kept pace with public spending.

Public order problems have become endemic and social problems are on the increase, mainly related to poverty.

The high income tax system denies a fair return and penalizes success and prevents Papua New Guinea from achieving full productivity.

The people are the country’s number one resource. But they have been despised and they will not rise again.

There is no innovation; they are discouraged and will not use their God-given talents. It’s too expensive to live in a poor country. A lot of dreams have been shattered and there are fewer dreams out there.

The worker has less money in his pocket because the income tax takes it away from him.

The mismanaged economy in the same system means there are no jobs and the cost of living is too high.

This prevents the human person from realizing their full potential. In the final analysis, this country is poor because its people are.

WHY PEOPLE ARE POOR

There are two reasons why we should worry about poverty and the lack of jobs.

The first is what economists call “human capital,” meaning that any nation relies on its people to create development.

If the population is healthy and well educated, the country has the basis on which to build and create jobs and wealth.

If the population is sick and poorly educated, the chances of attracting investment and creating jobs are bad and the investments will go to other countries.

The second is that a poor and unemployed population still needs to eat and live under shelter and they must somehow find the means to do so.

If there are no jobs available, the only recourse is crime.

The Australian National University has estimated that almost 20% of the total population of cities in PNG depend in some way on crime or prostitution for a living.

The level of crime and other forms of lawlessness is now one of the main reasons why companies do not invest in PNG.

This applies to existing businesses as well as new businesses.

Almost daily we hear about how rich PNG is, how we have unlimited mineral resources or the potential to grow any sort of cash crop we want.

In recent years we have derived enormous wealth from oil and minerals.

Revenues from our primary products have been very strong and we have seen our timber resources harvested at record rates.

All of this produced income that should have translated into development.

SLUSH FUNDS

Instead, the opposite happened.

Three times in the 1990s, PNG came close to bankruptcy.

Some of the causes are beyond our control, but we had to get to the edge of a very steep cliff before realizing we had to do something about it.

Slush funds have increased year by year and yet services to rural areas have deteriorated.

We never knew where all the money went. All we knew was that suddenly we had none.

A government is no different from the functioning of a family.

It receives money from taxes and other sources and establishes a budget for the year.

He will decide how much money he can borrow and how he can repay that money. When the government and the public service are functioning properly, they follow this budget.

To run a large organization, there must be experienced and honest people running it.

Appointments should be made based on what a person has done before and what they know about the job they will be doing.

Part of this job is to inform governments that what they are planning to do is illegal or will not be good for the country.

They should be able to give reasons and what will happen if the government or the minister insists on doing what they want.

At the end of the day, they have to do what the current government orders them to do, regardless of whether they think it’s right or wrong.

We haven’t followed this practice for many years now.

Appointments were made not on the basis of what the person knows but who they know.

Ministers almost always fire the head of their department when appointed. .

They replace them with people from their own party or people they owe favors to and the person doesn’t need to know anything about the job or have management experience.

The trend has been that these people have been appointed with increasingly higher salaries and working conditions, especially the presidents and managers of statutory institutions.

The person who has been made redundant will be paid, not like someone in the private sector for three weeks’ salary and other rights, but the full contract.

We have allowed the management of the government to get so bad that there has been no concern to ensure that the government or the statutory body gets the best deal for the people. We continually read about deals being done for a lot more than they should be.

Corruption is bad because it means our managers are not doing their job and we are not getting the best value for money.

Corruption leads to lazy and bad management.

These conditions cannot be corrected by raising taxes or making people pay.

MINIMUM WAGE

Raising the standard of living of workers is a means of combating poverty.

Responsible wage adjustment is good for the national economy. In our capitalist style economy, supply and demand are the main driver.

An upward wage adjustment stimulates demand.
When there is money in workers’ pockets, they spend it on goods and services.

This will have the effect of generating economic and commercial growth.

A few years ago, the General Secretary of the PNG Trades Union Congress, John Paska, made these observations:
– Minimum wage earners spend almost all of their money onshore on local products, while those at the top end of the wage structure tend to spend a high proportion of their income on offshore products and services.
– Luxury goods are mainly imported. They command prices that are above the minimum wage, so it is those at the top of the wage bracket who buy these goods.
– In the determination of the minimum wage of 1992, the minimum wage was reduced from 120 K per fortnight to 45 K per fortnight.

The 2008 Minimum Wage Determination set the new rate at K2.28 per hour or K182.40 per fortnight. The current rate is 3.50K per hour.

The negative impact of not being judicious enough is clearly seen in the difference between the wage bill and the contribution of employees to the minimum wage.

Paska said wage economics, because of its intrinsic value to the economy, should be based on logic and economic sense.

The rationale for the reduction in the minimum wage in 1992 was that the reduction in real wages would create an impetus for employment as employers would have an incentive to hire more workers.

While it is true that employers would be willing to pay wages up to a certain point, it is equally true that workers would be willing to accept employment when offered wages up to a certain point.

Spending on luxury goods and services meant repatriating money overseas since most companies that engaged in such activities had their roots outside the country.

The value of the wage earner at the minimum wage was therefore very vital for the growth of the national economy, especially in rural areas where most wage earners were hesitant.

The idea that workers would somehow respond to robotic command at the flick of a finger by the employer was as archaic as the master/servant conundrum of serfdom and slavery. And yet it happened and not just once, but twice.

The first in determining the 1992 minimum wage and the second in determining the 2000 minimum wage.

The result turned out to be disastrous, Paska said. There was no bump in the employment period and that 10% has remained static to date.

This raises the question of why there was an insistence on following the same failed path. We had eight years between 1992 and 2000, enough time to analyze the data.

But we persisted with a failed prescription. The answer lies not in econometrics but rather in ideology.

  • Next: What do we mean by management?
]]>