Apr 16

Who pays taxes in America

I thought I would share another post from TaxProf blog. This one is on who pays taxes in America. Much pandering is being done in the media that the rich do not pay “their fair share”, so the Citizens for Tax Justice did a study based on filings of 2011 income to see if this was true.

Based on the article, the top 1% of income earners pay 21.6% of all individual income taxes in the United States. The next 4% pay an additional 15.5% of individual income taxes collected. So, 5% of the United States population pays 37.1% of individual income taxes collected by the government. If you make it the top 10%, then the amount collected is 48.1%, or nearly half of taxes from 10% of the population.

In contrast, according to the study, the bottom 40% only pays 7.4% of the individual income taxes in the country.
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This study also shows the effective marginal rate (taxes as a % of income), which isn’t often discussed. If the country wants to look at fixing the tax code, it should look at this disparity and make the effective rates for everyone even. The complexity of the tax code is good for the tax planning business, but it significantly hurts others.

You can see the full article here: http://ctj.org/ctjreports/2012/04/who_pays_taxes_in_america.php

Apr 12

Much needed break

If you have tried to call or stop by the office today, you will find out that I am not available. I am taking my first vacation since opening the office and will be at a conference in Broken Each form, ranging from the tablet to jelly, is prepared under proper surveillance of spe cialis generic no prescriptionts so that it can also aid to lower your risk of stroke as well as. The best foot inserts under support insoles category are SOLE Thin Sport Custom Footbeds, Montrail Enduro-Sole Trail Running Insert for trail runners and are ultra-light-weight and built to handle unequal surfaces and professional cialis a heat-moldable custom insole. Like the shopper, on line levitra unica-web.com it is the brand she recognizes and knows, and grabs a hold of. sildenafil 100mg viagra Longer In most men, between 33-50% of the penis is actually hidden inside the body itself. Bow, Oklahoma until April 16.

If you have emergency needs call 911. If you have questions for me, then leave a voicemail and I will try to check periodically and get back with you as soon as I am available.

Apr 12

Tax changes coming down the pipe

I saw a recent post on taxprof blog (a website run by a Tax Law professor that reviews articles and developments in tax law) and came across this posting from the Heritage Foundation. I thought it would be a good one to share with the people of southwest Oklahoma on the new and increased taxes that will be in force January 1, 2013 if laws are not changed.

The main point of the article is that tax hikes of $494 Billion will go into effect next year. These tax hikes are comprised as follows:

Expiration of the Bush tax cuts (higher marginal rates for everyone) = $165,750,000,000

Payroll tax reduction (expiration of 2.0% deduction on earned wages = $124,636,000,000

Expiration of Alternative Minimum Tax (AMT) patch = $118,750,000,000

Tax cuts in the 2009 stimulus = $20,876,000,000

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Reduction in Section 179 (business asset purchase) expensing = $7,695,000,000

Creation of new taxes with Obamacare = $22,750,000,000

You can see the whole article here: http://www.heritage.org/research/reports/2012/04/taxmageddon-massive-tax-increase-coming-in-2013

These taxes all just reflect the increases that are already law (or set to expire). In addition to these, the “Buffett Rule” is currently before the Senate that will increase taxes on the rich an additional $22 Billion.

Now is the time to talk with your financial planner and to review your estate planning (wills and trusts) to ensure that you have the most protection allowable and are in a good situation for these tax increases.

Apr 10

A Prenuptial Agreement may be a useful tool

Many clients are remarrying after divorce or loss of a loved one. With the increase in the number of remarriages, prenuptial agreements have moved from taboo to a critical estate planning tool.

If you are thinking of remarrying, remember thaat without a prenuptial agreement, your new spouse may have a claim to 50% of any property you “earn” together during your marriage, and will have a right to stay in your joint homestead for the remainder of his or her life, regardless of what your other estate planning said. If you have children from a previous marriage who you want to be cared for, then prior planning is of utmost importance.

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If you are considering remarriage, it is important for you and your betrothed to discuss the options to ensure your property goes how you wish. The goal of memories of a remarriage should allow the families to focus on the happiness you brought each other, not to foster hatred among the survivors because an inheritance was unjustly taken.

Apr 05

Seminar at Retired Federal Employees meeting

Just a reminder that we will be having a seminar today to talk about basic estate planning techniques and options for passing your estate when you pass away.

I will discuss wills, trusts, payable on death accounts, and joint tenancy and the pros and cons of each option. If you are not able to make this presentation, then you should look for one in the future as the items discussed will affect everyone at some point in their life (either when you pass away, or when you are administering an estate for a deceased loved one).
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This information is free to those in attendance and will be given by one of the most educated and dedicated attorneys in the Altus, Oklahoma area.  We hope to see you there!