Archives For Tax rate

Year-end 2013 brings many new planning opportunities along with the traditional year-end tax planning strategies. It also brings challenges for both individuals and businesses.

There is much for taxpayers and their tax advisors to consider in taking action before 2013 ends, including the important changes made by the American Taxpayer Relief Act of 2012 (ATRA) (signed into law on January 2, 2013), the provisions in the Patient Protection and Affordable Care Act of 2010 (Affordable Care Act) (scheduled to take effect in 2013, 2014) the Supreme Court’s decision on same-sex marriage and the release of significant new IRS rules on many pressing issues.

There is also the prospect of comprehensive tax reform in 2014, which will require some “crystal ball” forecasting of what Congress may or may not do in the coming year. On top of everything, the IRS shutdown in October could delay the start of the 2014 filing season, although the long-term effects have yet to be determined.

This week-long CCH briefing explores some of the 2013 year-end planning opportunities available to taxpayers, especially as the result of provisions that are new-for-2013 and those that at the moment are scheduled to expire after 2013. Continue Reading…

While some taxes get more attention than they deserve, others fly totally under the radar.

The wireless tax is one of them and the mobile industry isn’t happy about it. As seen in a previous infographic which we posted, I bet you didn’t know wireless taxes grew 4X faster than general sales tax has in the last decade. Continue Reading…

Check out this infographic if you are curious about how Presidents in the last 20 years have raised or cut taxes for you.

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Tax Attractiveness Index

German economists, Sara Keller and Deborah Schanz, have created a tax attractiveness index (see Measuring Tax Attractiveness Across Countries). The index, using attributes from the tax environment and tax planning opportunities, covers over 16 components of corporate tax systems within each country and then ranks them accordingly. Continue Reading…

A recent report to Congress revealed that effective tax rates (ETRs) for large corporations were lower than the statutory rates– a lot lower.

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A new IRS report reveals that when stock markets rallied following the financial crisis of 2007-09, the wealthiest Americans saw their taxable income rise while their effective tax rates fell. Continue Reading…

In an undeniably bad year for Facebook’s PR, recently revealed figures show that the company used tax avoidance strategies to pay less than 0.1% in taxes on foreign profit—$4.5 million on over $1.3 billion.

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The nonpartisan Congressional Budget Office (CBO) announced that in 2009, Americans paid the lowest federal tax rates in 30 years. Analysts claim this is partly due to Obama’s tax cuts to combat the recession. The wealthiest Americans had a steep decline in income from 2007-2009 – according to the CBO, household income fell over average 12% and income among the top 1% fell by more than a third.

The CBO calculated the tax rate during 2009 was 17.4%. To put this in perspective, this is a two-point drop from 2007 and 4 point drop from 2009. The average tax rate between 1979 and 2009 was 21% and this includes all forms of federal taxes – income, payroll, and corporate. The “Making Work Pay” tax credit passed in 2009 assisted in delivering reduced tax payments for income earners across the board. The lowest fifth of earners only paid 1% of their before-tax income to the government while the top fifth of earners paid 23.2% (a 1.5% decrease since 2007).

The top 1% of income earners (who make $1.2 million+ annually) paid a 28.9% federal tax rate in 2009. They are the only income bracket to have their taxes rise during that year.

This post is meant to be completely bi-partisan. The numbers listed are merely the figures obtained from the Congressional Budget Office.

JDKatz, P.C. is a full-service law firm focused on tax law and estate planning. We are dedicated to minimizing your existing liability and risks while providing valuable tax planning to streamline your tax issues in the future. Please call us at 301-913-2948 to schedule an appointment to meet with one of our trusted attorneys.

2012 Tax Rate Card

January 26, 2012 — 1 Comment

How taxing will taxes be this year? Here are the 2012
Individual, corporate and estate and trust income tax rates,
Estate tax rates,
Capital gains tax rates
Standard deduction and personal exemption amounts
FICA rates and MACRS percentages
Social Security earnings limitations for retired workers
Contribution limits for various retirement plans

AMT rates, exemptions and phaseouts
HSA contribution limits
Long-term care insurance deduction limits
Coverdell ESA contribution limits and phaseouts
Section 179 expensing limit and phaseout threshold
Depreciation classes, methods and 200% DB schedules
Social Security benefits.

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