Tax code – Sound Effects Online http://sound-effects-online.com/ Tue, 17 May 2022 08:57:10 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sound-effects-online.com/wp-content/uploads/2021/11/favicon-4-120x120.png Tax code – Sound Effects Online http://sound-effects-online.com/ 32 32 How the IRS can unlock the tax code to open up American generosity https://sound-effects-online.com/how-the-irs-can-unlock-the-tax-code-to-open-up-american-generosity/ Tue, 17 May 2022 08:57:10 +0000 https://sound-effects-online.com/how-the-irs-can-unlock-the-tax-code-to-open-up-american-generosity/ I have long believed that Americans naturally want to help those in need. I have seen this generosity firsthand in my decades of service with the Salvation Army, and have always felt that this deep impulse to give is the product of seven factors, or “keys.” The desire to be generous stems from a historical […]]]>

I have long believed that Americans naturally want to help those in need. I have seen this generosity firsthand in my decades of service with the Salvation Army, and have always felt that this deep impulse to give is the product of seven factors, or “keys.”

The desire to be generous stems from a historical awareness of the importance of giving in the history of our nation, an acknowledgment that we each have a role to play in maintaining this heritage, gratitude for a certain kindness in our own past, the belief that our gift will make a difference, compassion for those in need, trust in the institution to which the gift is made, and the joy that comes simply from having done something good for someone else. These keys come into play every year in Salvation Army red kettles across the country, and they never fail to inspire me.

But for a key to work, it needs a door. I have therefore come to believe that our nation should provide more opportunities for individuals to use these keys, thereby opening up new opportunities to build a better future that we all work and pray for.

Today, the generosity of the American public is needed more than ever. The pandemic monster that we have all struggled with for over two years has a long tail and it has devastated those in need. It was not until after the Great Recession of 2007-2009 that we at the Salvation Army saw its full economic impact, with people living in poverty for years after the recovery began. Although Americans clearly responded in unprecedented ways at the height of the pandemic, I fully expect Covid-19 to leave an equally tragic legacy. We have already seen this instability in the rising cost of goods, the scarcity of essential goods and the profound changes in the labor market.

So the real question is how we can create more doors at this critical time. One way may be to think carefully about the tax code and how it can facilitate charitable giving. It’s no coincidence that 47% of Americans said they would give more if they were allowed to claim an increased charitable donation deduction on their federal income tax. Imagine how our nation could turn the tide of need if nearly half the country increased its giving to people experiencing poverty and the organizations that serve them.

Here are three suggestions to help open doors to achieve this goal:

Door n°1: Make permanent the rule that allows Americans to take the standard deduction AND claim a charitable deduction. Last year, the IRS proposed a temporary rule that did not require taxpayers to itemize their receipts to claim a charitable deduction. This rule expired for 2022, meaning those who choose to take the standard deduction cannot claim a deduction for their charitable contributions. Why is this important? Because nearly nine out of 10 taxpayers claim the standard deduction and because the standard deduction doubled in 2018, the incentive to itemize has been further reduced. By expanding this rule in the future, which has made it easier for more Americans to deduct up to $600 in donations to qualifying charities, we can encourage 90% of taxfilers to increase their donations and offset their needs.

Door no. 2: relax the rules for donating assets appreciated as shares. It is also true that not all taxpayers are aware of the deductions currently available to them. Donating appreciated assets to charity is an often overlooked form of gifting that allows the taxpayer to avoid capital gains tax while deducting the fair market value of the gift. It also offers no tax burden on the donation for the charity receiving it. This type of donation has benefits for both parties and should be more widely promoted and simplified as an opportunity for taxpayers.

Door no. 3: Allow professional volunteer services to count as cash contributions. The IRS does not allow volunteer work to be considered a donation, even if that work is essential to the operation of charitable organizations. It’s definitely the Salvation Army. So I would recommend creating a new rule to deduct professional services up to some reasonable limit.

How would that work? Consider a CPA who agrees to help a nonprofit organization by managing its books and managing its taxes. Currently, these hours cannot be deducted, and the only deduction available would be for personal expenses related to volunteer hours. But if hours were deductible, we’d create an incentive for Americans to help in new ways, encouraging more volunteerism and freeing up more resources for the charity to focus on direct service, helping more people. in need.

These gates do not currently exist, but it would not take long to build them. And I’m confident that once installed, the keys to American bounty would quickly unlock them. In no time, we would be opening new doors to give and offer new hope to those in need.

The United States of America is the most generous nation in the world, and our tax code should capitalize on that fact.

This article does not necessarily reflect the views of the Bureau of National Affairs, Inc., publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Commissioner Kenneth Hoder is the National Commander of The Salvation Army, the nation’s largest direct social service provider, and is a member of the Generosity Commission, a non-partisan, cross-sector group working to shape the future of giving and giving. civic engagement.

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How the IRS can unlock the tax code to open up American generosity https://sound-effects-online.com/how-the-irs-can-unlock-the-tax-code-to-open-up-american-generosity-2/ Tue, 17 May 2022 08:57:10 +0000 https://sound-effects-online.com/how-the-irs-can-unlock-the-tax-code-to-open-up-american-generosity-2/ I have long believed that Americans naturally want to help people in need. I have seen this generosity firsthand in my decades of service with the Salvation Army, and have always felt that this deep impulse to give is the product of seven factors, or “keys.” The desire to be generous stems from a historical […]]]>

I have long believed that Americans naturally want to help people in need. I have seen this generosity firsthand in my decades of service with the Salvation Army, and have always felt that this deep impulse to give is the product of seven factors, or “keys.”

The desire to be generous stems from a historical awareness of the importance of giving in the history of our nation, an acknowledgment that we each have a role to play in maintaining this heritage, gratitude for a certain kindness in our own past, the belief that our gift will make a difference, compassion for those in need, trust in the institution to which the gift is made, and the joy that comes simply from having done something good for someone else. These keys come into play every year in Salvation Army red kettles across the country, and they never fail to inspire me.

But for a key to work, it needs a door. I have therefore come to believe that our nation should provide more opportunities for individuals to use these keys, thereby opening up new opportunities to build a better future that we all work and pray for.

Today, the generosity of the American public is needed more than ever. The pandemic monster that we have all struggled with for over two years has a long tail and it has devastated those in need. It was not until after the Great Recession of 2007-2009 that we at the Salvation Army saw its full economic impact, with people living in poverty for years after the recovery began. Although Americans clearly responded in unprecedented ways at the height of the pandemic, I fully expect Covid-19 to leave an equally tragic legacy. We have already seen this instability in the rising cost of goods, the scarcity of essential goods and the profound changes in the labor market.

So the real question is how we can create more doors at this critical time. One way may be to think carefully about the tax code and how it can facilitate charitable giving. It’s no coincidence that 47% of Americans said they would give more if they were allowed to claim an increased charitable donation deduction on their federal income tax. Imagine how our nation could turn the tide of need if nearly half the country increased its giving to people experiencing poverty and the organizations that serve them.

Here are three suggestions to help open doors to achieve this goal:

Door n°1: Make permanent the rule that allows Americans to take the standard deduction AND claim a charitable deduction. Last year, the IRS proposed a temporary rule that did not require taxpayers to itemize their receipts to claim a charitable deduction. This rule expired for 2022, meaning those who choose to take the standard deduction cannot claim a deduction for their charitable contributions. Why is this important? Because nearly nine out of 10 taxpayers claim the standard deduction and because the standard deduction doubled in 2018, the incentive to itemize has been further reduced. By expanding this rule in the future, which has made it easier for more Americans to deduct up to $600 in donations to qualifying charities, we can encourage 90% of taxfilers to increase their donations and offset their needs.

Door no. 2: relax the rules for donating assets appreciated as shares. It is also true that not all taxpayers are aware of the deductions currently available to them. Donating appreciated assets to charity is an often overlooked form of gifting that allows the taxpayer to avoid capital gains tax while deducting the fair market value of the gift. It also offers no tax burden on the donation for the charity receiving it. This type of donation has benefits for both parties and should be more widely promoted and simplified as an opportunity for taxpayers.

Door no. 3: Allow professional volunteer services to count as cash contributions. The IRS does not allow volunteer work to be considered a donation, even if that work is essential to the operation of charitable organizations. It’s definitely the Salvation Army. So I would recommend creating a new rule to deduct professional services up to some reasonable limit.

How would that work? Consider a CPA who agrees to help a nonprofit organization by managing its books and managing its taxes. Currently, these hours cannot be deducted, and the only deduction available would be for personal expenses related to volunteer hours. But if hours were deductible, we’d create an incentive for Americans to help in new ways, encouraging more volunteerism and freeing up more resources for the charity to focus on direct service, helping more people. in need.

These gates don’t exist at the moment, but it wouldn’t take long to build them. And I’m confident that once installed, the keys to American bounty would quickly unlock them. In no time, we would be opening new doors to give and offer new hope to those in need.

The United States of America is the most generous nation in the world, and our tax code should capitalize on that fact.

This article does not necessarily reflect the views of the Bureau of National Affairs, Inc., publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Commissioner Kenneth Hoder is the national commander of The Salvation Army, the nation’s largest direct social service provider, and is a member of the Generosity Commission, a non-partisan, cross-sectoral group working to shape the future of giving and giving. civic engagement.

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Scholars Strategy Network: The tax code is unfair, but it doesn’t have to be https://sound-effects-online.com/scholars-strategy-network-the-tax-code-is-unfair-but-it-doesnt-have-to-be/ Tue, 10 May 2022 08:00:07 +0000 https://sound-effects-online.com/scholars-strategy-network-the-tax-code-is-unfair-but-it-doesnt-have-to-be/ Americans don’t seem to agree on much today. But one thing they agree on is that the US tax code is unfair. A 2017 Pew Research Poll found that 56% of Americans, including majorities of Democrats and Republicans, view the tax system as unfair. Political scientist Vanessa Williamson to research shows that Americans actually view […]]]>

Americans don’t seem to agree on much today. But one thing they agree on is that the US tax code is unfair. A 2017 Pew Research Poll found that 56% of Americans, including majorities of Democrats and Republicans, view the tax system as unfair. Political scientist Vanessa Williamson to research shows that Americans actually view paying taxes as an important civic duty. But they are unhappy with what they see as an injustice in the system.

We shouldn’t be too surprised by this, given that 55 of the country’s largest corporations paid no tax in 2020, despite billions of dollars in profits. Twenty-six of those companies, including FedEx, Nike and Dish Network, avoided paying any federal income tax over a three-year period.

As the COVID-19 pandemic has brought grief, economic instability and massive hardship to millions of Americans, it has been a godsend to the country’s billionaires. There are 740 billionaires in the United States and their wealth has increased by $2 trillion since the start of the pandemic. And many of these billionaires end up paying little or no taxes. Over a nine-year period, the nation’s 400 richest billionaires paid a tax rate of just 8.2%. My wife and I paid more than double that tax rate last year, and I can guarantee you we didn’t come close to making a billion dollars.

One of the main problems with the US tax system is that it is primarily aimed at income – the money that one regularly earns, such as wages – rather than wealth, which includes assets such as real estate, collections works of art and investments (less debts). . Today, the top 0.1% hold almost as much wealth like the bottom 90%.

This means that because billionaire Jeff Bezos base salary at Amazon is only about $80,000 a year, he would pay the same federal income tax as a public school teacher earning the same amount (although it should be noted that the average teacher salary does not is that of $62,000). But Bezos actually earns well over $80,000 a year because as Amazon’s stock grows, so does Bezos’ wealth. In fact, a report showed Bezos earning nearly $4,000 per second, nearly four times the median full-time weekly earnings of most Americans. But because our tax system prioritizes labor income over wealth, Bezos can continue to reap profits without having to pay taxes on his massive accumulation of wealth.

But President Biden’s recent budget proposal offers a plan to address this disparity. the “Billionaires Minimum Income Tax” “would require billionaires to pay a tax rate of at least 20% on all of their income, or the combination of traditional forms of wage income and whatever they might have made in unrealized gains, such than rising stock prices. The administration estimates that the tax would generate about $360 billion in new revenue over the next ten years.

A system that taxes wealth in addition to income would help reduce the concentration of wealth among the very wealthy and make our economy fairer and fairer. Too many policy makers have unfortunately internalized the belief that all citizens are fiercely opposed to any form of taxation. But public opinion data and citizen referendums show that Americans have become much more positive about raising taxes over the past decade, as long as those increases are distributed fairly. Over the past decade, “Voters approved half of the 62 tax increase measures that appeared on state ballots.” Rather than constantly worrying about the anti-tax sentiment of their constituents, policymakers should instead defend the opinion of renowned economist Adam Smith statement that “All taxes are for those who pay them a sign, not of slavery, but of freedom.”

Paying taxes is an important part of our collective civic responsibility. We all benefit from the public goods and services that our taxes pay for. But unfortunately, the tax burden ends up falling mostly on those at the lowest rungs of the economic ladder. A fairer tax system would ensure that all Americans, including the wealthiest among us, pay their fair share.

Ryan LaRochelle is a lecturer at the Cohen Institute for Leadership and Public Service at the University of Maine. He is a member of the Maine chapter of the National Strategic Fellowship Network, which brings together scholars from across the country to address public challenges and their policy implications. Member columns appear here monthly. This column reflects his opinions and experience and does not speak for the university.


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Martin Lewis warns workers to check the tax code https://sound-effects-online.com/martin-lewis-warns-workers-to-check-the-tax-code/ Thu, 05 May 2022 08:39:44 +0000 https://sound-effects-online.com/martin-lewis-warns-workers-to-check-the-tax-code/ If your tax code is wrong, you may be able to recover the money you overpaid, says the MoneySavingExpert The finance guru said it’s important to check you’re not being overcharged by the tax office. Register to our Money Savers newsletter If you’ve had a payslip since April 6, you need to make sure you’re […]]]>

If your tax code is wrong, you may be able to recover the money you overpaid, says the MoneySavingExpert

The finance guru said it’s important to check you’re not being overcharged by the tax office.

Register to our Money Savers newsletter

If you’ve had a payslip since April 6, you need to make sure you’re on the correct code, as you may be eligible for a refund.

Why do I need to check my tax code?

If your tax code is wrong, you may be able to recover the money you overpaid, or it could indicate that you are paying less tax.

Your tax code may be wrong if you recently changed jobs or have more than one income.

It can also be affected if part of your salary is made up of benefits, such as medical insurance or a company car.

People who have just started their first job are often put on an emergency tax code and will be wrongly charged a higher rate.

How can I check that I am paying the correct amount of tax?

You can use MoneySavingExpert for free tax code calculator to ensure that you are paying the correct amount.

If you know your tax code, enter it into the calculator to find out how much you should pay to the tax office.

Workers who do not know which code they should be on can consult their payslip, their P45 or P60 form, or ask your human resources department if you do not know where to find them.

If you only have one employer and earn less than £100,000 your code will probably be 1257L.

How can I claim the overpayment of tax?

If you were charged too much tax, you should be able to get a refund, but the method of refund depends on when the extra tax was paid and your current work situation.

For example, if you owe a rebate on your current job from April 6, 2022, you will get the money back on your pay when your tax code has been corrected.

You can call HMRC (HM Revenue and Customs) on 0300 200 3300 to change your tax code.

If the overpayment occurred between April 2021 and 2022, HMRC will send you a P800 tax calculation, explaining how to get a refund.

If the overpayment was made before April 2018, you will not be able to recover the money.


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Martin Lewis warns workers to check their tax code to avoid losing money https://sound-effects-online.com/martin-lewis-warns-workers-to-check-their-tax-code-to-avoid-losing-money/ Thu, 05 May 2022 08:37:00 +0000 https://sound-effects-online.com/martin-lewis-warns-workers-to-check-their-tax-code-to-avoid-losing-money/ Martin Lewis is urging all workers to check their tax code after the first pay packet of the new fiscal year. The finance guru said it’s important to check you’re not being overcharged by the tax office. If you’ve had a payslip since April 6, you need to make sure you’re on the correct code, […]]]>

Martin Lewis is urging all workers to check their tax code after the first pay packet of the new fiscal year.

The finance guru said it’s important to check you’re not being overcharged by the tax office.

If you’ve had a payslip since April 6, you need to make sure you’re on the correct code, as you may be eligible for a refund.

Register to our daily newsletter

Why do I need to check my tax code?

If your tax code is wrong, you may be able to recover the money you overpaid, or it could indicate that you are paying less tax.

Your tax code may be wrong if you recently changed jobs or have more than one income.

It can also be affected if part of your salary is made up of benefits, such as medical insurance or a company car.

People who have just started their first job are often put on an emergency tax code and will be wrongly charged a higher rate.

How can I check that I am paying the correct amount of tax?

You can use MoneySavingExpert for free tax code calculator to ensure that you are paying the correct amount.

If you know your tax code, enter it into the calculator to find out how much you should pay to the tax office.

Workers who do not know which code they should be on can consult their payslip, their P45 or P60 form, or ask your human resources department if you do not know where to find them.

If you only have one employer and earn less than £100,000 your code will probably be 1257L.

How can I claim the overpayment of tax?

If you’ve been charged too much tax, you should be able to get a refund, but the method of refund depends on when the extra tax was paid and your current work situation.

For example, if you owe a rebate on your current job from April 6, 2022, you will get the money back on your pay when your tax code has been corrected.

You can call HMRC (HM Revenue and Customs) on 0300 200 3300 to change your tax code.

If the overpayment occurred between April 2021 and 2022, HMRC will send you a P800 tax calculation, explaining how to get a refund.

If the overpayment was made before April 2018, you will not be able to recover the money.


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Martin Lewis urges all workers to check their tax code after first payroll of new tax year https://sound-effects-online.com/martin-lewis-urges-all-workers-to-check-their-tax-code-after-first-payroll-of-new-tax-year/ Wed, 04 May 2022 09:47:00 +0000 https://sound-effects-online.com/martin-lewis-urges-all-workers-to-check-their-tax-code-after-first-payroll-of-new-tax-year/ MARTIN Lewis urged all workers to check their tax code after the first payday of the new fiscal year. The personal finance guru says it’s important to make sure you’re not overcharged by the tax office. 1 Martin Lewis urged workers to check their tax code if they’ve been paid recentlyCredit: Ken McKay/ITV/REX If you […]]]>

MARTIN Lewis urged all workers to check their tax code after the first payday of the new fiscal year.

The personal finance guru says it’s important to make sure you’re not overcharged by the tax office.

1

Martin Lewis urged workers to check their tax code if they’ve been paid recentlyCredit: Ken McKay/ITV/REX

If you have received a pay packet since April 6, you should check to see if you are on the correct tax code.

If it’s wrong, you may be able to get the money you overpaid back.

It could also show if you’re paying less tax, to help “avoid a future nightmare,” Martin said.

You can use MoneySavingExpert for free tax code calculator to ensure that you are paying the correct amount.

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If you know your tax code, you can simply insert it into the calculator to find out how much you should pay to the tax office.

Workers who do not know which code they should appear on can consult their payslip, their P45 or P60 form.

Ask your human resources department if you don’t know where to find them.

But if you only have one employer and earn less than £100,000 your code will probably be 1257L.

Your tax code may be wrong if you recently changed jobs or have more than one income.

It can also be affected if part of your salary is made up of benefits, such as medical insurance or a company car.

People who have just started their first job are often placed under an emergency tax code and will be wrongly charged a higher rate.

How can I claim the overpayment of tax?

If you were charged too much tax, you should be able to get a refund.

However, the method of reimbursement depends on when the supplement was paid and your current work situation.

For example, if you are entitled to a discount from your current job from April 6, 2022, you will get the money back from your salary when your tax code has been corrected.

Call HMRC on 0300 200 3300 to change your tax code.

If the overpayment occurred between April 2021 and 2022, HMRC will send you a P800 tax calculation, explaining how to get a refund.

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Workers who paid additional tax between April 2018 and 2021 will have to request a discount online.

But if the overpayment was made before April 2018, you won’t be able to get the money back.

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Tax code error sees worker face £400,000 tax bill – have you checked yours? | Personal finance | Finance https://sound-effects-online.com/tax-code-error-sees-worker-face-400000-tax-bill-have-you-checked-yours-personal-finance-finance/ Sat, 30 Apr 2022 06:01:00 +0000 https://sound-effects-online.com/tax-code-error-sees-worker-face-400000-tax-bill-have-you-checked-yours-personal-finance-finance/ Social media user Throw_back_come_back took to the social media platform for advice on how to remedy their potentially costly situation. They understood that the new job might increase their tax bill due to higher pay, but having an estimated six-figure bill was a shock to the system. Soon they began to investigate and realized that […]]]>

Social media user Throw_back_come_back took to the social media platform for advice on how to remedy their potentially costly situation. They understood that the new job might increase their tax bill due to higher pay, but having an estimated six-figure bill was a shock to the system.

Soon they began to investigate and realized that their new employer had mistakenly entered the wrong salary.

They shared on the Reddit forum r/UKPersonalFinance“I have just started a new job and received a notification from HMRC that I have a new tax code. I logged into my account to check, and it appears that my employer has submitted my income estimate this year at around £900,000.

“It’s, you might be surprised to hear, not correct, unless I got promoted to CEO or something and nobody told me.”

Until now, they had yet to receive a paycheck, so the situation was not entirely clear.

READ MORE: Martin Lewis details ‘only people’ who should save in a cash ISA as he warns to ‘ditch them’

They polled the community asking, “Is it easy to solve this problem?

“I guess my actual tax bill at the end of the year will be based on my actual earnings, and nothing to do with that estimate, but does anyone know if I should be worried about that?”

Tax codes are used by employers or pension providers to determine the amount of income tax owed on their income or pension.

HMRC assigns tax codes and tells suppliers which ones to use, but there is always a risk of error which Britons are advised to check.

DO NOT MISS :

The majority of the working population will likely have tax code 1257L.

Typically, employees in the £12,570 and £50,271 band with one job and no tax deductions or benefits that may affect their tax liability will be given tax code 1257L.

The figures indicate the personal abatement threshold provided for income tax, which is currently £12,570.

Income below this threshold is not taxed and in June the National Insurance threshold will also increase to this amount.

The current National Insurance threshold is £9,880 a year.

The £12,570 threshold for income tax has been frozen until 2026, providing some stability for future planning but also possibly reducing future pay cheques.

As wages generally increase each year, some people may find themselves approaching or even crossing this threshold before it is unfrozen.

This will then result in a higher tax bill.

Once workers’ wages exceed the threshold, they are taxed at a rate of 20% for earnings between £12,571 and £50,270.

If their income increases even further, they will pay 40% income tax on income between £50,271 and £150,000.

Any income above this amount is taxed at the highest rate of 45%.

The 2021/2022 tax year ended earlier this month, making now the perfect time for Brits to check their tax codes.

HMRC usually alerts Brits if their tax code changes, as they did for the social media user.


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April is a reminder that a racially fair tax code is possible https://sound-effects-online.com/april-is-a-reminder-that-a-racially-fair-tax-code-is-possible/ Wed, 27 Apr 2022 20:00:00 +0000 https://sound-effects-online.com/april-is-a-reminder-that-a-racially-fair-tax-code-is-possible/ This month, millions of Americans filed taxes. For many, tax season is little more than a burden or an annoyance – just one more thing to cross off the to-do list. But as leaders of organizations who fight for marginalized communities every day, we see our country’s notoriously complicated tax system as the main driver […]]]>

This month, millions of Americans filed taxes. For many, tax season is little more than a burden or an annoyance – just one more thing to cross off the to-do list.

But as leaders of organizations who fight for marginalized communities every day, we see our country’s notoriously complicated tax system as the main driver of racial inequality. It doesn’t have to be that way. The US tax system can be one of our most powerful tools to advance racial equity and create opportunity for all, but only if we are bold enough to reform it.

First, we need to restore the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC). In 2021, the US bailout gave millions of families access to these transformative programs for the first time. The results were immediate and amazing, especially for communities of color.

Before the expansion, nearly half of all black and Latino children had been excluded from full benefits because their families did not earn enough to qualify. The expansion of the child tax credit doubled the number of black and Hispanic families eligible for full support, and 26 million children across the United States began to fully benefit from the credit for the first time. But in January, 3.7 million the children fell back into poverty when Congress failed to renew the program. It was an unacceptable error.

To create a more racially equitable tax code and rebuild for justice, Congress must permanently expand the Child Tax Credit and the Earned Income Tax Credit – two of the most powerful policy levers we have. we have to expand opportunity and advance racial equity.

Second, we need to ensure that families who qualify for expanded tax credits can actually access them. Our country’s tax policy, safety net programs and benefits are extremely complicated, forcing the most vulnerable among us to jump through hoops and red tape every time they file a return. That’s why our organizations are proud to support the Volunteer Income Tax Assistance (VITA) program, which helps low-income families file their taxes and access tax credits. essential tax.

Each year, tens of thousands of IRS-certified volunteers trained by VITA nonprofits — working at sites in every state — ensure low-income households can claim and keep the benefits they’ve earned. In 2021, more than 2,800 VITA sites prepared nearly one million declarations, generating more than $1.7 billion in reimbursements to low-income families and maintaining an accuracy rate of 96% – the highest in the industry. While the work of organizations like VITA is critical, we should make it a national priority to overhaul our nation’s tax system and make it easier for families to get the help they need.

Third, we need a Fully Funded Tax Service to make the system work for everyone. This year, we know that many filers can expect delays in receiving their refunds, which can offset an important part of a family’s annual income. These delays will disproportionate impact low-income taxpayers, many of whom are households of color. With appropriate funding levels, however, the IRS would be able to avoid these safeguards and ensure that American families receive the refunds they rely on.

Limited IRS funding also means that EITC recipients are more likely to be audited than wealthier Americans, even though wealthier individuals and corporations are responsible for a higher percentage of uncollected taxes. The IRS itself has admitted that it is simply simpler and cheaper than verifying wealthier households with more complex tax returns. The result is a disproportionate audit of communities of color – many of the counties with the highest audit rates are predominantly Black, Latinx or Native American. Fully funding the IRS not only ensures timely payment of benefits, but is also an essential step in ensuring fairness and equal treatment under the law.

The US tax code can be a powerful force for economic opportunity and racial equity, but only if we fight for it. This tax season, national policymakers must do more to extend tax credit eligibility to families who need them most, make it easier for families to access these benefits, and ensure tax rules are applied fairly. and fair. Only then can we build a racially fair tax code and an economy that works for all Americans.

Gary Cunningham is President and CEO of Prosperity Now and Angela F. Williams is President and CEO of United Way Worldwide.


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Polis Signs Bill to Simplify Colorado’s Tax Code | Colorado https://sound-effects-online.com/polis-signs-bill-to-simplify-colorados-tax-code-colorado/ Fri, 22 Apr 2022 18:51:00 +0000 https://sound-effects-online.com/polis-signs-bill-to-simplify-colorados-tax-code-colorado/ (The Center Square) — Gov. Jared Polis signed a bill Thursday that makes several changes to Colorado’s tax code. The bill, Senate Bill 22-032, prohibits local jurisdictions from charging fees for general business licenses to retailers who already hold a standard license and requires the Department of Revenue to consult with business owners to address […]]]>

(The Center Square) — Gov. Jared Polis signed a bill Thursday that makes several changes to Colorado’s tax code.

The bill, Senate Bill 22-032, prohibits local jurisdictions from charging fees for general business licenses to retailers who already hold a standard license and requires the Department of Revenue to consult with business owners to address any “reasonable concerns” they may have regarding taxes. , according to the text of the bill.

SB22-032 was sponsored by a bipartisan coalition of Sens. Jeff Bridges, D-Greenwood Village, and Rob Woodward, R-Loveland, and Reps. Cathy Kipp, D-Fort Collins and Kevin Van Winkle, R-Highlands Ranch.

“It’s just common sense to reduce the burden on small businesses, preventing local jurisdictions from charging fees that allow businesses that don’t have a physical presence in their jurisdiction,” Polis said at the event. signing of the bill. “This bill will help people save money. This is truly a win for our state, a win for our small businesses, a win for consumers.

A coalition of small business owners and commercial organizations applauded Polis for signing the bill. Paul Archer, president of the Simplify Colorado Sales Tax group which supported the effort, said the legislation would create a “simple, fair and predictable system” without reducing overall state revenue.

The coalition said Colorado has a patchwork of more than 750 areas with different tax rates and 275 separate tax jurisdictions. This can be a heavy burden for small business owners, according to Archer.

This system is just one reason Colorado ranked 39th out of 50 states in the Tax Foundation’s Business Tax Climate Index in 2017.

“We’ve come a long way, and SB22-032 is a milestone on that journey,” Archer said.


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Biden’s proposals would fix a tax code that coddles billionaires – ITEP https://sound-effects-online.com/bidens-proposals-would-fix-a-tax-code-that-coddles-billionaires-itep/ Thu, 21 Apr 2022 20:58:32 +0000 https://sound-effects-online.com/bidens-proposals-would-fix-a-tax-code-that-coddles-billionaires-itep/ Billionaires can afford to pay more of their income in taxes than teachers, nurses and firefighters. But our tax code often allows them to pay less, as evidenced by the last talk ProPublica reporters using IRS data. According to their calculations, Betsy DeVos, Education Secretary under former President Donald Trump, received an average of $112 […]]]>

Billionaires can afford to pay more of their income in taxes than teachers, nurses and firefighters. But our tax code often allows them to pay less, as evidenced by the last talk ProPublica reporters using IRS data.

According to their calculations, Betsy DeVos, Education Secretary under former President Donald Trump, received an average of $112 million in earnings each year from 2013 to 2018 and only paid 10.6% of that amount in federal income taxes. Facebook CEO Mark Zuckerberg raked in an average of $652 million a year during that time and paid just 13.7% of that in federal income taxes. Republican megadonor Charles Koch earned an average of $213 million and paid 16.5%.

Middle-income earners often pay more than that when you consider both federal income tax and federal payroll taxes that barely affect the wealthy. ProPublica reporters found that in recent years, a typical single person earning $45,000 a year would pay 21% of their income in federal income and payroll taxes, while the comparable effective tax rate for 15 The wealthiest Americans was lower, at just 20%. In other words, the federal tax code contributes to inequality by allowing the wealthy to keep more of their income than everyone else.

It’s getting worse. A previous The ProPublica study found that the effective federal tax rates paid by those at the top are much lower when you use a more realistic definition of income. For example, Jeff Bezos’ net worth increased by $99 billion during the time period reviewed by ProPublica reporters because his stock’s value increased so much. But his income as defined by the tax code was only $4.2 billion. Economists consider Bezos’ $99 billion in asset appreciation (also known as unrealized capital gains) as income, but our current tax rules don’t, so it’s not taxed. When you include those unrealized capital gains, the 25 Americans with the highest net worth paid just 3.4% of their income in federal taxes from 2014 to 2018 according to ProPublica reporters. Using the tax code definition of income, those same 25 Americans paid only 16% of their income in federal taxes.

The first problem Congress needs to address is that so much of the wealthy’s income is unrealized capital gains that are not taxed at all. President Biden, Senator Ron Wyden of Oregon and Rep. Jamaal Bowman of New York have all offered plans that would fix this problem by taxing at least some of the unrealized gains of the wealthiest Americans. The proposals differ in detail, but all would point us towards a tax system that forces the wealthiest to pay taxes on their income every year like the rest of us.

The second problem is that even when the rich pay taxes, US tax laws allow them to pay lower rates on their capital gains and stock dividends. According to ProPublica’s analysis, that includes many tech titans and heirs to the Walton and DeVos fortunes, whose income comes from selling stocks and receiving dividends rather than from work. President Biden is proposing that taxable income over $1 million be subject to the same rate as any other income, even if it includes capital gains and dividends which are subject to the lowest rates today.

Congress should take up these proposals, but some lawmakers want to go in the opposite direction. Senator Rick Scott, chairman of the National Republican Senate Committee (NRSC), released a GOP platform in February suggesting that the federal tax code is not collecting enough from the bottom 60% of Americans, especially bottom 40%who earn about $45,000.

While this notion rightly strikes most Americans as bizarre, Senator Scott suggests that millions of low- and middle-income people don’t have “skin in the game” because they don’t pay taxes. on income, even if they are working and paying federal payroll taxes or are retired and have paid income and payroll taxes during their working lives. Senator Scott’s proposed agenda for the next Congress would eliminate much of the earned income tax credit and child tax credit going to the bottom 60% of Americans.

Of course, a few wealthy people who could afford to pay federal income tax manage to avoid it, such as donald trump for many years, but it is not clear whether Senator Scott would include it in this category.

Rather, Senator Scott’s concern seems to be that the non-wealthy are not paying enough federal income taxes. The reality is that other taxes, such as federal payroll taxes and many state and local taxes, take a biggest bite low- and middle-income budgets than the wealthy.

Members of Congress have a choice. They can decide that Senator Scott is right and that the real problem with our tax system is that the bottom 60% of earners get off too easily. Or they may decide that people like Betsy DeVos, Mark Zuckerberg and Charles Koch should pay at least as much as middle-income workers. For most Americans, the answer seems obvious.




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