I’ll let you go to the post at the TaxProf blog to see what words I’m talking about.
As my friend Ed says: in any legal matter that involves math, lawyers who aren’t afraid of math have an advantage over those who are. Most legal matters involve at least some math.
You figure it out.
Today brings yet another example of politicians thinking they can solve a market problem by fixing the price of a service.
If you need reasonably-priced credit, try a credit union. Their prices are almost always lower than the banks’ prices, and they are owned by their members, not mean, nasty Wall Street.
In California, natch, several new laws have been proposed to protect us soda gluttons from ourselves, including one that would ban an “unsealed beverage container” capable of holding more than 16 fluid ounces. No more supersize for you!
The message of a post on the Cato blog is that the reporting on how people responded to a poll question about financial preparedness is misleading. Read the post for the whole story, but the upshot is this: the assertion that 40% of Americans can’t handle a $400 emergency expense is not supported by the evidence.
As I predicted, there has not been a peep from its proponent on how “mark-to-market” capital gains taxation would be implemented. It’s a stupid idea that deserves to be not just ignored, but outed as the idiocy that it is. I wonder what political advantage its proponent thought would be gained from its announcement.
You think the federal income tax is unfair? This is not how to fix that.
Just a friendly reminder that your Arizona property taxes for the second half of 2018 must be paid before 5 p.m. on Wednesday, May 1, to avoid being delinquent.
If your taxes become delinquent, you will also owe interest at the rate of 16% per annum.
You can get more information from the Pima County Treasurer’s web site.
MY APRIL NEWSLETTER COVERS THIS TIMELY TOPIC: IF I DIDN’T FILE MY TAX RETURN ON TIME, WHAT EXCUSES WILL BE GOOD ENOUGH TO GET ME OUT OF PAYING PENALTIES AND INTEREST?
AS I PREDICTED, WE’RE STILL WAITING FOR ITS PROPONENT TO EXPLAIN HOW MARK-TO-MARKET TAXATION OF CAPITAL GAINS WOULD BE IMPLEMENTED
One argument that I have seen that supposedly supports this nutty idea is that gains can be compounded if they’re not taxed, which will increase the concentration of wealth among those with large holdings. The obvious fallacy in that argument is that the only way gains can be compounded is if they are reinvested. Reinvestment requires either liquidation or reinvestment of dividends. Liquidation and payment of dividends are taxable events. Nothing in this stupid proposal would change those fundamental principles.
A recent news item reports on a supposed trend of parents cutting back on their retirement savings to fund their grown childrens’ lifestyles. I’m always skeptical of this kind of report, but if this is in fact a trend, it dovetails with advice I have been giving for a long time about estate planning: if your children (or grandchildren) don’t have their act together by the time they are about 30, they probably never will, so there’s no point in delaying the distribution of their share of your estate past that age. If you don’t think they can be trusted with their share of your estate at age 30, then assume they won’t ever achieve that status, and plan accordingly.
YOU WANT SOME EXAMPLES OF WHAT A STUPID IDEA IT IS TO IMPOSE ANNUAL “MARK-TO-MARKET” TAXATION ON CAPITAL GAINS ?
An opinion column in the Knox News goes over just a few of the most obvious reasons why taxing capital gains annually based on the market value of capital assets would create tremendous problems. The columnist dismisses the idea as a class warfare scheme that will go nowhere. I hope the columnist is right.
I note that the announcement has received little attention since it was made earlier this month (just in time for tax day). I predict that the promised explanation of how the idea would actually work will not be forthcoming, or if it is provided, will be ignored.
The contents of this blog, this web site, and any writings by me that are linked here, are all my personal commentary. None of it is intended to be legal advice for your situation.