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☆ Fact check: Trump makes false claims in New Hampshire victory speech
▼ + stars: | 2024-01-23 | by ( Daniel Dale | ) edition.cnn.com time to read: +5 min

CNN —Former President Donald Trump made several false claims in a speech Tuesday night after CNN and other media outlets projected that he would win the Republican presidential primary in New Hampshire. CNN also watched rival candidate Nikki Haley’s Tuesday night speech in New Hampshire; Haley’s claims were either accurate or too general to fact check. He lost the 2020 election fair and square to Joe Biden, by a 306 to 232 margin in the Electoral College, and also lost New Hampshire in that election. Chris Sununu, a supporter of Haley, Trump said that because of Sununu’s incompetence, “in the Republican primary, they accepted Democrats to vote. In fact, I think they had 4,000 Democrats – Democrats before October 6 – they already voted.

Persons: Donald Trump, Nikki Haley’s, Haley’s, dismissively, Joe Biden, “, Biden, ” Howard Gleckman, ‘, ” Gleckman, ” Trump, Hillary Clinton, Chris Sununu, Haley, Trump, –, it’s, Sununu, can’t Organizations: CNN, Republican, Trump, Electoral College, New Hampshire, Brookings Tax, Urban Institute, New Hampshire Trump, Democratic, Republican New Hampshire Gov, – Democrats, GOP, New Hampshire Bulletin Locations: New Hampshire, “, New, Trump’s, Florida, Hampshire

☆ Trump’s avalanche of dishonesty: Fact-checking 102 of his false claims from this fall
▼ + stars: | 2023-12-01 | by ( Daniel Dale | ) edition.cnn.com time to read: +111 min

Below is a fact check of 102 of Trump’s false claims from the 12 speeches. But contrary to Trump’s claim, it’s not true that people had been attempting for decades to create such an initiative. Trump’s aid to farmersIn speech after speech, Trump claimed that he had given US farmers $28 billion from China. Even if the poll result is off, it’s clear that Trump’s claim that “nobody wants them” is not true. He said he was an airline pilot.”Facts First: Trump made a false claim while mocking Biden for making false claims.

Persons: Donald Trump, –, Trump, Joe Biden, Biden, Ron DeSantis, Nikki Haley, “, ”, Mexico’s, ‘ Trump, Defense Department –, ” Theresa Cardinal Brown, CNN’s Priscilla Alvarez, ” Trump, I’ve, Todd Harrison, Harrison, It’s, Trump’s, ” Ben Cahill, Nobody, Jimmy Carter’s, Barack Obama, isn’t, El Salvador –, Obama, we’d, Obama’s, Webster, Covid, Wuhan ”, They’d, they’d, you’d, Scott Gottlieb, ” Gottlieb, Trump Trump, it’s, Abraham, Aaron David Miller, Miller, Dana El Kurd, Qasem Soleimani, they’ve, we’re, We’re, ’, Iran haven’t, ” Matt Smith, Biden’s, Smith, Ali Vaez, Kpler, Biden Trump, Iran “, Democrats ”, that’s, Jimmy Carter, Carter “, Carter, ‘, Hillary Clinton, Kari Lake, Bill Gates, Gates, ” Chris Wallace, Chris Wallace, Hunter Biden, “ Chris Wallace, ‘ He’s, ‘ ” Trump, Wallace, “ you’re, “ Biden, ‘ You’re, Wallace interjected, Rather, you’ve, ’ ” Pavel Molchanov, Raymond James &, ” Molchanov, Tim Woody, Woody, autoworkers, CNN’s Ella Nilsen, Joe Biden’s, Erin Mellon, Gavin Newsom, Mellon, ” Vonette Fontaine, Biden “, CNN’s Matt Egan, Egan, ” Biden, Europe Trump, United Kingdom “, Brent, Pavel Molchanov, Raymond James, Patrick De Haan, GasBuddy, De Haan, Matt Smith, Matt Egan, Afghanistan Trump, we’ve, Krista Wiegand, Wiegand, ” Netanyahu, Benjamin Netanyahu, Israel, Qasem, Bibi, Netanyahu, Soleimani, Asad, Mark Milley, Hezbollah Trump, Steven Cheung, John Kirby, Cheung, Kirby, Iran’s, ” Ali Vaez, Joseph Amon, Washington –, Faiq Zidan, Zidan’s, Zidan, Abu Mahdi al, China Trump, Ukraine Trump, Letitia James, James, Attorney Alvin Bragg, Matthew Colangelo, You’re, Bragg, Colangelo, Tanya Chutkan, I’m, Jack Smith, Bill Clinton, That’s, everybody’s, Letitia James –, Al Capone’s, Al Capone, Capone, Brad Schwartz, CNN couldn’t, Schwartz, Eliot Ness, MAGA, “ MAGA, …, White, CNN’s Fareed Zakaria, Inflation Trump, Bacon, Joe, PolitiFact, Trump . Howard Gleckman Organizations: Washington CNN —, CNN, Republican, Trump Trump, Republican Jewish Coalition, Department, ISIS, Trump’s, Democratic, Congress, Defense Department, former Defense Department, Center, US Customs, Trump, American Enterprise Institute, Air Force, Army, Navy, Marine Corps, Strategic Petroleum Reserve, Energy Security, Center for Strategic, International Studies, US, IHS, Islamic, The State Department, Customs Enforcement, Policy Institute, ICE, El Salvador, ”, Merriam, The New York Times, Food and Drug Administration, FDA, Abraham Accords, United Arab Emirates, West Bank, Hezbollah, State Department, Carnegie Endowment, International, Arab Center Washington DC, Islamic Revolutionary Guards Corps Quds Force, Obama, US International Trade Commission, Washington Post, U.S . International Trade Commission, New England lobstermen, England lobstermen, Americas, Crisis, government’s Energy, Administration, Washington Free Beacon, Energy Information Administration, Democrats, Biden, Electoral, Georgia, Michigan, Carter, Democrats can’t, Republicans, Alabama, Arizona, Fox News, ” Energy, Oceanic, Atmospheric Administration, NOAA, Wildlife, Alaska Industrial Development, Export Authority, Raymond James & Associates, Wilderness Society, Cox Automotive, Pew Research Center, New York Times, National Oceanic, California Gov, California, American Petroleum Institute, Union, West, Energy, American Automobile Association, AAA, GasBuddy, New Hampshire, Houston, Keystone XL, Obama administration’s State Department, –, Foreign, Military, DoD, Afghan, Defense, Policy, Taiwan News, “, University of Tennessee’s Center for National Security, Foreign Affairs, Israeli, NBC, Jerusalem Post, Yahoo, Pentagon, ” CNN, Joint Chiefs, Staff, Post, National Security, Group, US government’s Defense Intelligence Agency, Narcotics Bureau, Global Health, Drexel University Dornsife School of Public Health, Justice Department, Washington, Judicial, Popular Mobilization Forces, Customs and, Middle East, Customs, Protection, CBP, Border Protection, Kiel Institute, European Union, New York, New, ExxonMobil, Trump University, Trump Foundation, Manhattan, Attorney, federal Justice Department, Department of Justice, Washington DC, Presidential Records, Presidential, Mar, Biden White, MAGA Republicans, Inflation, Heritage Foundation, Trump ., Brookings Tax, Urban Institute Locations: New Hampshire, New York City, Saudi, Florida, al Qaeda, New York, Texas, Iowa, Mexico, “, U.S, Houston, Iraq, Israel, Tel Aviv, Jerusalem, Nord, Germany, Russian, Trump’s, Russia, Ukraine, Europe, Guatemala, Honduras, El Salvador, El, Washington, ”, ” In Texas, Covid, China, Wuhan, Italy, France, Abraham, Bahrain, Morocco, Sudan, Gaza, Lebanon, Syria, Iran, Yemen, Libya, Palestine, Afghanistan, Somalia, Pakistan, New England, England, Kpler, Malaysia, Oregon, Alabama, Maricopa County, Arizona, Arizona’s, Moscow, Alaska, East, South Carolina, California, “ California, West Virginia, Virginia, United Kingdom, West Texas, “ U.S, Los Angeles, Venezuela, Mississippi , Louisiana, Canada, United States, Paris, Taiwan, “ China, Iranian, that’s, –, Singapore, Iraqi, San Diego, Kiel, York, Manhattan, York’s, Chicago, Philadelphia, Georgia, Qaeda

WASHINGTON (AP) — Charles and Kathleen Moore are about to have their day in the Supreme Court over a $15,000 tax bill they contend is unconstitutional. "If you haven’t received any income, how can you be required to pay income taxes?” Charles Moore asks in a video posted by the Competitive Enterprise Institute. But far from being a passive investor with no influence over the company, Moore, who worked at Microsoft during his career in software development, served on KisanKraft's board of directors for five years. One other inconsistency is that while the Moores say they jointly invested the money, only Charles Moore's name appears in company documents. Rosenthal said that “the ugly facts matter” and that the justices could return the Moores' case to a lower court without ruling on it.

Persons: — Charles, Kathleen Moore, Charles Moore, Moores, Paul Clement said, Donald Trump, haven’t, ” Charles Moore, Moore, Charles, KisanKraft, ” Mindy Herzfeld, Charles Moore's, ”, Reuven Avi, Yonah, Andrew Grossman, Steven Rosenthal, Rosenthal, John Roberts, Clarence Thomas, Ginni, Ravindra “ Ravi ” Kumar Agrawal, “, ” Moore, Samuel Alito, David Rivkin, Alito, Rivkin, Fatima Hussein Organizations: WASHINGTON, Enterprise Institute, Foundation, Republican, U.S . Chamber of Commerce, Competitive Enterprise Institute, Microsoft, University of Florida, KisanKraft, University of Michigan, Associated Press, Urban, Brookings Tax, Center, Moores, ___ Associated Locations: Redmond , Washington, India, county Limerick, Ireland, Nebraska, Colorado, Washington, ___

☆ Here are 3 costly financial surprises for first-time homebuyers — and how to prepare for them
▼ + stars: | 2023-09-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Jonathan Ernst | ReutersWith record-high home prices and soaring mortgage interest rates, homeownership has become increasingly unaffordable — and hidden costs can surprise first-time buyers, experts say. Here are three of the most common surprise homeownership expenses and how to prepare for each one, according to experts. Property taxesAs a first-time homebuyer, it's easy to overlook property taxes since you've never paid those levies directly. Home maintenanceThe cost of home repairs and maintenance can also be a hidden expense for first-time homebuyers. As a first-time homebuyer, you need to make sure you have a sufficient cushion for surprises — I'd argue 5% of the home's purchase price at least.

Persons: Jonathan Ernst, homeownership, Vince Darling, you've, Richard Auxier, Kevin Brady, — I'd, Nicole Sullivan Organizations: Reuters, Stonebridge, Urban, Brookings Tax, Wealthspire Advisors, Prism Planning Locations: Alexandria , Virginia, Zillow, Forest Lake , Minnesota, New York

☆ 5 cities with the highest property tax rates. Here's why rates can vary so much from place to place
▼ + stars: | 2023-08-22 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Property tax is "really instrumental" as a local revenue source, but stressed that every community has different priorities and budgeting goals. Property taxes have 'so many variables'"With property taxes, it's pretty simple stuff," said Richard Auxier, senior policy associate at the Urban-Brookings Tax Policy Center. watch nowThis is why your next-door neighbor's property tax bill can be so different from yours, Auxier explained. Generally, cities tend to have more expensive property tax rates if there's high property tax reliance, low property values, or more robust local government spending, the report concludes. 5 highest effective property tax rates in 2022Detroit skyline Reese Lassman | EyeEm | Getty Images

Persons: Katherine Loughead, Loughead, Richard Auxier, Auxier, Reese Lassman Organizations: Istock, Getty, Lincoln Institute of Land Policy, Minnesota Center, Fiscal, Center for State Tax, Tax, Urban, Brookings Tax, Reese, EyeEm Locations: Detroit

☆ The Next Tax Battle: 'Gig tax' targets payment app users
▼ + stars: | 2023-08-11 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe Next Tax Battle: 'Gig tax' targets payment app usersSteve Rosenthal, Urban-Brookings Tax Policy Center senior fellow, and Erica York, Tax Foundation senior economist, join 'Squawk Box' to discuss the battle over the so-called 'gig tax', which requires third-party payment apps like PayPal and Venmo to send 1099 forms to anyone reporting business income over a certain threshold.

Persons: Steve Rosenthal, Erica York Organizations: Urban, Brookings Tax, Center, Tax Foundation, PayPal

☆ Mega Millions jackpot hits $1.25 billion. Here’s how it benefits the government
▼ + stars: | 2023-08-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

The Mega Millions jackpot grew to $1.25 billion on August 3, 2023. Justin Sullivan | Getty ImagesAfter months of no winners, the Mega Millions jackpot has grown to an estimated $1.25 billion this week, the fourth-largest prize in the game's history. The next Mega Millions drawing is Friday at 11 p.m. Lottery revenue isn't as consistent as income tax revenue, which may cause program funding shortfalls. Federal tax bill on a $1.25B Mega Millions jackpotThe federal government receives a sizable chunk of revenue after the lottery announces a winner because there's a mandatory 24% federal withholding.

Persons: Justin Sullivan, there's, Aravind Boddupalli, Boddupalli Organizations: Mega, Brookings Tax, North American Association of State, Provincial, Tax, Tax Foundation Locations: Federal

☆ Tax prep companies shared private taxpayer data with Google and Meta for years, congressional probe finds
▼ + stars: | 2023-07-12 | by ( Brian Fung | ) edition.cnn.com time to read: +10 min

Some of the tax-prep companies still do not know whether the data they shared continues to be held by the tech platforms, the report said. The Warren aide told CNN it was unclear whether Meta knew it was inappropriately using taxpayer data at the time. The investigation found that all three tax-prep companies had discontinued their use of Meta’s pixel after The Markup’s report last November. “The scope of ‘taxpayer information’ is broad by design,” Rosenthal said, adding that tax-prep companies can be sued for “knowingly” or “recklessly” leaking that information. Depending on the strength of the allegations, the tax-prep companies could quickly be forced into a binding settlement, said a former FTC official who requested anonymity in order to speak more freely.

Persons: “, ”, David Vladeck, Vladeck, Democratic Sen, Elizabeth Warren, Meta, Warren, ‘, Sens, Ron Wyden, Richard Blumenthal, Tammy Duckworth, Sheldon Whitehouse, Sen, Bernie Sanders, Katie Porter, TIGTA didn’t, Block, TaxSlayer didn’t, TaxAct, TaxSlayer, TurboTax, Steven Rosenthal, ” Rosenthal Organizations: CNN, Meta, Google, Georgetown University, Federal Trade Commission, Democratic, FTC, Internal Revenue Service, Justice Department, Tax Administration, Intuit, IRS, Urban, Brookings Tax Locations: United States, Google’s

☆ Bearer of rare 'One Ring' card from 'Lord of the Rings' lore could fetch $2 million and face hefty tax bill
▼ + stars: | 2023-07-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

And the ring bearer — if they choose to sell the "precious" — may owe a hefty tax bill on the profits. Marta Iwanek | Toronto Star | Getty ImagesThe Canadian who acquired The One Ring card would most likely pay tax on half their profits. If The One Ring card were sold for 2 million euros — which appears to be the current top bid — then 1 million euros (about CA$1.46 million) would be taxable. Total Canadian tax bill is 'subjective'But what's Canada's tax rate on the profits? (In reality, the effective tax rate would be slightly lower since Canada's income tax system is progressive, as in the U.S., experts said.

Persons: Elijah Wood, Frodo, Misty, Sauron, Mount Doom, —, Roger Perzan, Marta Iwanek, Plaskett, Howard Gleckman, it's, Scott Plaskett, John Oakey, Oakey, Sir Ian McKellen, Gandalf Organizations: Coast LLC, Canadian, Toronto Star, Getty, Urban, Brookings Tax Policy Center, Total Canadian, Chartered Professional Accountants Canada, Canada Revenue Agency Locations: Rivendell, Toronto, Canada, U.S, Ontario, Scott Plaskett Toronto

☆ Analysis: US debt-ceiling deal dooms Biden's revolutionary tax plans
▼ + stars: | 2023-06-01 | by ( David Lawder | ) www.reuters.com time to read: +6 min

Barring an unlikely Democratic sweep of the White House and both chambers of Congress in 2024, major changes to the U.S. tax code are now seen as largely off the table until the end of 2025, when the 2017 individual tax cuts expire. TAX CHANGES ARE TOUGHBiden's unrealized campaign tax pledges illustrate the political difficulty of changing the U.S. tax code, barring a commanding majority in Congress. "House Republicans have successfully blocked every penny of President Biden’s tax hikes on families, farmers, and small businesses in the debt ceiling deal and protected the 2017 Tax Cuts and Jobs Act from repeal," said U.S. House Ways and Means Chairman Jason Smith. The Missouri Republican added that Americans want Congress to build on the Trump tax cuts "with more tax relief." Republicans will argue for making the 2017 individual tax cuts permanent, said John Gimigliano, KPMG's head of federal tax legislative and regulatory services.

Persons: Joe Biden's, Biden, That's, William McBride, Joe Manchin, Kyrsten Sinema, Jason Smith, Michael Kikukawa, Kikukawa, John Gimigliano, Gimigliano, Steve Rosenthal, Rosenthal, David Lawder, Heather Timmons, Matthew Lewis Organizations: Saturday, Revenue Service, Trump, White, Tax Foundation, Democratic, Republican, Republicans, IRS, House, The, The Missouri Republican, Economic Co, Congressional, Brookings Tax, Center, Thomson Locations: Washington, The Missouri

☆ As retirement age change sparks protests in France, here's what could happen in the U.S.
▼ + stars: | 2023-05-07 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Damien Meyer | Afp | Getty ImagesAn increase in pension retirement age to 64 from 62 in France has sparked ongoing protests. The U.S. could be poised for a similar change with the Social Security retirement age. Today, that higher retirement age is still getting phased in. People born in 1960 and later now must wait until 67 to receive their full "retirement age" benefits. For example, if you are eligible for a $1,000 monthly benefit at full retirement age, you would get just $700 per month if you started at age 62.

☆ The $787.5 million settlement Fox has to pay is a big nut. But Fox's net cost for that will be much less.
▼ + stars: | 2023-04-20 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

Here’s why:Settlement payments are tax deductible if the company pays out of pocket. The corporate income tax is also about dollars and cents, not about judging behavior that led to the business expense in the first place. “Our income tax measures income, not probity,” said business tax expert Steven Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center. In addition, “Fox also may deduct their settlement payments for state and local income tax purposes,” Rosenthal noted. If Fox pays for an insurance policy that it expects will reimburse it for its settlement costs, then it may not deduct the cost of the settlement payment.

☆ Here's why IRS tax audits have declined over the past decade
▼ + stars: | 2023-04-01 | by ( Charlotte Morabito | In Charlottemorabito | ) www.cnbc.com time to read: +2 min

Tax season is upon us, and along with it comes the ensuing bout of paranoia about the dreaded IRS audit. In 2022, the IRS audited 3.8 out of every 1,000 income tax returns. The GAO report concludes that a drop in IRS funding was a main contributor to the decline in audits. Janet Holtzblatt senior fellow at the Urban-Brookings Tax Policy CenterAbout 70% of the IRS's overall budget is spent on labor. "Someone who's three years out of college isn't going to be doing the technical work on the ExxonMobil tax return.

☆ Why the IRS says to hold off filing your tax return if you received a relief check in 2022
▼ + stars: | 2023-02-08 | by ( Mike Winters | ) www.cnbc.com time to read: +2 min

The agency is clarifying whether these special state tax rebates should be taxed federally, an IRS spokesperson tells CNBC Make It. The IRS recommends that tax filers who qualified for relief checks wait until "additional guidance is available or consult with a reputable tax professional." The IRS also recommended that those who have already filed a 2022 tax return not file an amendment. Each state relief program is run differently, too, which adds to the confusion. However, the site also says that the "department cannot comment on any federal tax consequences of the rebates and relief payments."

☆ Biden pushed a billionaire minimum tax – here's what Elon Musk would pay
▼ + stars: | 2023-02-08 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

"Pass my proposal for a billionaire minimum tax," Biden told Congress. Biden's billionaire tax, however, also hits top millionaires. Under the plan, households would calculate their effective tax rate for the minimum tax. The Biden administration says that aside from restoring "fairness" to the tax code, the billionaire minimum tax would raise $360 billion in added revenue over 10 years. Opponents say that aside from potentially being unconstitutional, the billionaire minimum tax would be difficult to administer – especially for an IRS already understaffed.

☆ Biden to revisit 'billionaire minimum tax' in State of the Union address
▼ + stars: | 2023-02-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Win Mcnamee | Getty ImagesPresident Joe Biden will again call for a "billionaire minimum tax" during his State of the Union address on Tuesday. However, Biden's original billionaire minimum tax didn't gain traction in Congress and it's even less likely to happen with a Republican-controlled House now, experts say. I view this billionaire minimum income tax as a messaging bill to highlight some of the problems with our tax code. "I don't see a lot of support for Biden's billionaire minimum tax on the Hill," Rosenthal said. Problems with the billionaire minimum taxEven with more support, Biden's billionaire minimum tax may face other hurdles, experts say.

☆ Tax credits vs. tax deductions: How they differ, and what to know before you file
▼ + stars: | 2023-01-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Tax credits offer a dollar-for-dollar reduction in liabilityA tax credit offers a dollar-for-dollar reduction of your taxes. For example, let's say you get a $1,000 tax credit and have a $5,000 tax liability. It's therefore a more indirect way of cutting your taxes relative to tax credits, which directly lower your actual tax liability. On the other hand, a $1,000 tax credit would shave $1,000 off their actual tax bill total. Tax deductions are a lot more valuable [for people] in the 37% tax bracket than someone in the 10% tax bracket.

☆ New retirement account rules make it easier to tap savings early for emergencies
▼ + stars: | 2022-12-27 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

But they said the rules also amount to another source of so-called "leakage" that run contrary to the overall goal of retirement savings: to build a nest egg for the future. Participants can also access 401(k) savings via loans or non-hardship withdrawals. Non-hardship distributions also hit an all-time high in October — almost 0.9% of participants took one that month, according to Vanguard. And the share of workers taking 401(k) loans rose to 0.9% in October from 0.8% at the beginning of 2022. Beyond the apparent acute financial need among households, hardship withdrawals carry negative repercussions like tax penalties.

☆ Families can make a tax-free rollover from 529 plans to Roth individual retirement accounts starting in 2024
▼ + stars: | 2022-12-23 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Maskot | Maskot | Getty ImagesMillions of 529 accounts hold billions in savingsThere were nearly 15 million 529 accounts at the end of last year, holding a total $480 billion, according to the Investment Company Institute. watch nowHowever, that investment growth is generally subject to income tax and a 10% tax penalty if used for an ineligible expense. A transfer would skirt income tax and penalties; investments would keep growing tax-free in a Roth account, and future retirement withdrawals would also be tax-free. The rollover can only be made to the beneficiary's Roth IRA — not that of the account owner. Some education savings experts think 529 accounts have adequate flexibility so as not to deter families from using them.

House Democrats are scrutinizing why the Internal Revenue Service failed to fully audit Donald Trump's tax returns when he was in the White House, despite an agency policy mandating such a review. Some insight into the lapse came in a report Tuesday from the Joint Committee on Taxation (JCT), a bipartisan congressional panel that examined Trump's tax returns from 2015-20. The JCT report was issued Tuesday, after the House Ways and Means Committee voted to make Trump's 2015-20 tax returns public. Trump was the first president not to make his tax returns public since the 1970s. Neal is pressing for legislation that would require the IRS to publish and audit presidential tax returns.

☆ Massachusetts voters approve 'millionaire tax.' What it means for the wealthy
▼ + stars: | 2022-11-10 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

If you make more than $1 million a year in Massachusetts, you may soon be subject to a "millionaire tax" approved by voters this week through a ballot initiative. The new law creates a 4% tax on annual income above $1 million, on top of the state's current 5% flat income tax, aiming to fund public education, roads, bridges and public transportation. It's expected the levy will affect roughly 0.6% of Massachusetts households, according to an analysis from the Center for State Policy Analysis at Tufts University. However, California voters rejected a similar tax, aiming to pay for zero-emissions vehicle programs and wildfire response and prevention. "It's very state-specific," Auxier said, explaining how the tax ballot initiatives may hinge on funding priorities, current state tax structure and other factors.

☆ 'Millionaire tax' plans are on the ballot in California and Massachusetts. Here's what that means for taxpayers
▼ + stars: | 2022-10-29 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

Whether voters support higher income taxes or not, revenue plans often affect the results on Election Day, experts say. "And we've seen them embrace income tax changes that would affect many." "Massachusetts has been talking about creating a progressive tax rate for a long time," said Richard Auxier, senior policy associate at the Urban-Brookings Tax Policy Center, noting the current flat income tax is 5% regardless of income. "Part of this is they want that ability to shift some of the overall state's tax burden up the ladder," he said. By contrast, California has a graduated state income tax system, with a top rate of 13.3% for individuals making over $1 million per year.

☆ More than 40% of U.S. households will owe no federal income tax, down from last year, according to a new analysis
▼ + stars: | 2022-10-28 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

More than 72 million American households will pay no federal income taxes this year, marking a large decline from last year, according to a new analysis. An estimated 72.5 million households -- or 40% of total households -- will pay no federal income taxes for tax year 2022, according to an analysis from the Tax Policy Center. The number of Americans who pay no federal income taxes remains a hot political issue, with many Republicans arguing that more Americans should pay federal income taxes and Democrats often arguing that many of the rich don't pay taxes. Yet the real drivers of so-called "non-payers" — or those who owe no federal income taxes — are tax credits and employment. "For the most part, people don't pay income tax because they have little income," he said.

☆ Which Charitable Contributions Are Tax Deductible?
▼ + stars: | 2022-10-18 | by ( ) www.wsj.com time to read: +11 min

As a result, the number of people who can claim charitable donations fell from about 1 in 3 before the law to 1 in 10 today. The upshot is that charitable donations are still a valuable potential deduction—but only for the right kind of taxpayer. Who qualifies for charitable tax deductionsEvery taxpayer has a choice between itemizing their deductions and claiming the standard deduction. Note that for tax years 2020 and 2021, the IRS let people claim a $300 charitable deduction even if they didn’t itemize, but that allowance has expiredWhat kind of giving qualifies for the charitable tax deductionContributions to officially registered charities, which are designated with a special tax code like 501(c) (3), may be deductible on your federal tax return (and possibly your state tax return). But in typical IRS fashion, there are special rules that determine whether and how much of your charitable donations are deductible.

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