The Democrat Plan to Raise the National Sales Tax to 42%

Written by adminOctober 29, 2019
Taxes

Regardless of what side you’re on, Democrat, Republican, or somewhere in the middle, there’s one truth we’ve seen during this campaign season. That truth is that the Democrats plan on spending A LOT of money. They don’t seem really good at really talking about the issues. They just promise to throw a ton of money at it.

And when they’re asked about who will pay for said program, they all say the same thing, “the rich will be taxes their fair share!” Most of them promise to wipe out the $1.53 trillion student loan debt and make college free. That’s massively expensive. Again, their response is, “tax the rich!” But then we get to healthcare.

Most of the Democrat candidates support some type of Medicare-for-All plan. It’s a bold plan they believe Americans deserve. We all deserve great healthcare, but what is the cost of providing it 100% free for all citizens? Well, we’ve already published a story on that. In case you missed it, here’s the dish. Warren’s plan alone would cost an ADDITIONAL $3 trillion in tax revenue. That’s the amount of tax revenue the government currently brings in, so you’d have to double it.

So, someone needs to say it. Are we fine bankrupting thousands of businesses? If not, then we’re saying we would have to double the federal tax rate. You could accuse this writer (and many economists) of sticking up for the rich, but the math simply doesn’t add up. You could tax every single earner who makes more than $408,000 per year 100% and STILL fall well short.

What New Democrat Taxes Would Do

So, obviously, demanding the rich to pay their fair share would not work. You would be stealing way more than what is fair. Not only would such a tax bankrupt businesses and whole industries, it would force companies to leave the country. If they couldn’t leave, they would ultimately shut down and stop working. Who would work if you taxed them so much? Who would want to do business in America at that point?

This is exactly why Warren nor Sanders have any answers for how to pay for their promises. They refuse to admit that new taxes would have to be placed on the middle and lower classes. Of course, they then say the increased taxes would offset not having to pay for health insurance. That’s not a fair trade off either, nor is it a good explanation.

In order to raise $3 trillion to pay for Medicare-for-All, the national sales tax would have to be raised to 42%. If that happens, you won’t be bringing in the revenue you hoped. Why? Because it would utterly destroy consumer spending and the U.S. economy. It would create a 42% inflation of prices, impacting everyone.

If you don’t like this option, we could cut government spending by 80% to focus on healthcare. Even our annual defense budget couldn’t touch it. We could keep borrowing the money and quadruple the deficit. We could add a 25% income surtax on everyone. Either way you look at it, there’s absolutely NO WAY Medicare-for-All would work. It’s time to stop falling for the free stuff they throw out to win votes and demand more answers.

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Do the Rich Actually Pay their Fair Share of Income Taxes?

Written by adminAugust 29, 2019
Taxes

If you’ve listened to any of the 2020 Democratic candidates, you’d think the rich are skating by and not paying their fair share of taxes. You’d assume they were fully taking care of loopholes so they don’t have to pay a dime, when the poor and middle class are carrying the brunt of the taxes. Well, according to new data from the IRS, the rich do pay well more than their fair share.

The top 1%, the ire of so many Democrats who believe they skate by, actually pay 39.5% of all federal income taxes. That’s a rate 20.6% higher than the income they actually bring in. The lower 50% of the rest of earners in this country only pay 2.7%. In comparison, it’s not even close. The rich do pay way more than their fair share.

So, the question remains why the Democrats keep acting as if this isn’t the case. Why do Bernie Sanders and Elizabeth Warrant continue to go with the narrative that the rich are skating by and taxing them even more will bring out a bit of financial equality? Together, the bottom 90% of all income earners only pay 29.1% of all federal income taxes.

When you really look at it, it makes sense. Most Americans on the bottom end of the scale actually pay very little in taxes and often take more in benefits. Their net contribution is a negative number. The top 1% pay more than the entire middle class combined. Where the Democrats are getting their information is confusing.

Making Investments

Capital investment is how the system works. If you want to create more jobs and improve wages, then investment is key. As businesses grow, there will be an increased need for labor, so they hire more workers. As they expand and invest more money into their business, suddenly thousands of people have jobs and a business can really become a town’s lifeline.

Also, capital investments require business owners to purchase equipment and make other buys in other industries that creates other jobs to make that equipment and others to sell it and marketers to promote it. This is what makes America great and rich people with capital to spend make the entire system go and prosper.

Without rich people, you don’t have a job. If we start cutting in business profits, then that starts to downgrade the whole system. While Democrats decry a tax cut for the wealthy, they propose increasing taxes many, many times over to pay for their socialist agenda programs they know will garner votes. To get it done, they stoke the flames of anger towards the rich who have all the things and money they want. They espouse class warfare talk about wealth inequality.

But they hate the very people who help them keep the lights on and put food on their tables. Another Democrat lie is that cutting taxes and trickle-down economics has never worked. Both President Kennedy and Ronald Reagan cuts taxes, even for the 1%, and saw a major economic boom. They won’t get the economy better than it is by heavily taxing the rich who already contribute way more than their fair share.

This discrepancy might also be why President Trump won in 2016. The Democrats lost a lot of support from the unions and white-collar workers.

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How Often Do Americans Cheat on their Taxes?

Written by adminMay 30, 2019
Taxes

It can sure be tempting, right?

It wasn’t but a few years ago that an article came out claiming that Americans spend more on their taxes than they do housing, clothing, and food combined.

Of course, it depends on your income bracket. If 35% of your budget goes towards food, rent, and clothing, but you’re under the poverty line, you’re not paying another 35% in taxes. But, on the flip side, there are a lot of Americans paying more than that, especially the more they make.

The tax rate in the United States was at 39.6% before the recent tax reform law was passed this winter. Paying 40% of your income to the government isn’t exactly ideal for anyone, but it gets worse.

Our 7-bracket system is a nightmare to navigate. If you happen to make a little extra, receive a large gift, or have a quick side job, it can push you from the top of one bracket into the bottom of the next, increasing the rate you pay.

Do Americans Cheat?

Does this mean Americans are more likely to push the envelope by fibbing on the amount of money they made?

According to a survey conducted by Credit Karma Tax, despite heavy complaints about high tax rates and the complicated system, the vast majority of Americans do their due diligence and pay their taxes honestly.

94% of those surveyed said they never cheated on their taxes knowingly, with 6% admitting to small fibs in areas where they didn’t think it mattered much.

The survey, as a means of measuring the honesty of those surveyed, asked if they ever cheated on a significant other, their diet, or on tests. The fact that 20% admitted to cheating on a spouse, 25% on tests, and 56% on a diet reveals a lot about us, but only 6% on taxes reveals a lot about us.

“Americans overwhelmingly value honesty when it comes to filing their income taxes, even if we’re willing to cheat on our diets and other aspects of our lives,” said Credit Karma Tax spokesman Rick Chen, in an interview with Fox Business.

How did the 6% respond when asked how they cheated? Here’s what they said:

-3% of them claim they didn’t report any gambling wins.

-5% paid an employee under the table.

-5% didn’t report gifts.

-7% exaggerated on the number of dependents they had.

-7% didn’t report the income they made under the table.

As much as we hate paying taxes, there seems to come with it a sense of civic pride. We enjoy the good things that come with being an American, like having good roads, the best military in the world, great schools, and beautiful communities.

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Did You Miss the Tax Deadline? Don’t Panic!

Written by adminApril 17, 2019
Taxes

Monday, April 15th was the 2019 tax deadline for most Americans. If you owe money to the government, that was your last day to cut a check to the IRS. This day is full of stress for a lot of people, especially procrastinators. Yet, the IRS shared on Friday the previous week that 50 million Americans still hadn’t filed.

So, if you’re one of the many Americans who miss the tax deadline, you don’t have to panic! The IRS provides options for you to look at. Here are several things you can do:

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1) File an Extension to Push Tax Deadline

If you’re going to miss the tax deadline, you can simply file an extension. That will give you an extra six months to get your money in. Therefore, needing to file an extension isn’t always the problem of the filer. There are a variety of circumstances that lead people to miss the tax deadline. You should file the 4868 form for the extension.

“There are a variety of reasons people might need to file an extension, whether they don’t have all their sources of income and expenses identified or they need assistance,” Tim Speiss, partner at EisnerAmper Wealth Planning LLC.

“To have a valid extension generally—you need to pay in 90 percent of the tax due at the time of the filing … If you can’t do that, pay in as much as you possibly can to avoid further potential late-filing and interest charges,” Speiss said.

It’s not without its problems. If you file late and owe money, you will get extra time, but a late fee might be added. The fee is usually 5% of the amount of unpaid taxes you owe. That’s not overall, but 5% for every month you’re late.

Don’t Just Sit Around and Wait

You might have some good reasons for being late. The IRS might understand! For example, if you have a hardship, they might be understanding of what you’re going through. But, you can’t just sit on your hands and wait! Don’t waste time by waiting to contact the IRS with your problem.

“If a person is late with filing and late paying taxes, if they’re diligent and proactive with the tax authorities, that’s the best way to position yourself for best possible outcome,” Speiss said.

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So, don’t sit on your hands and wait for something to happen. Don’t ignore the problem. Still, the faster you address it, the easier it will be for you. The tax deadline has passed, but you don’t need to panic. Hopefully, the extension and become proactive and you should be fine.

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How Alleviate Tax Helped Me Fight Back Against the IRS

Written by adminMay 21, 2018
Taxes

Hi, my name is Sharon and I want to tell you about my experience with the IRS. It was so scary and disheartening that I don’t want anyone else to have to go through what I did.

We all know that life comes at us fast. One day, we’re on top of the world. My husband was doing great at work, my kids make me proud every single day. We owned a nice house in the country. You start to feel safe and comfortable, as if nothing can touch you.

Then one day, it all changed. Storm clouds started to build over our sunny lives. We went from living the American Dream to surviving a brutal nightmare that never seemed to end.

My husband got into a car accident and couldn’t work. He severely injured his back and while he was recovering, they held his job for some time, but eventually had no choice but to replace him.

Medical bills started piling up and our savings began to dwindle. It wasn’t long before my meager income could no longer support us. Our friends and family helped as much as they could, but it wasn’t enough. I had to take out a loan to help us get through this time.

The doctors said my husband should make a full recovery, but they weren’t sure when. He was going to physical therapy and I had to take time off work to take care of him and the kids.

Then, out of left field came another blow: tax time.

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800-295-6026

We always know tax season is coming, but in the chaos of these unexpected events, it had totally slipped our mind. We owed the IRS thousands, but we couldn’t afford to pay a cent.

Do you think the IRS cared about our situation? At first, maybe a little. We filed an extension and they said they understood, but when the deadline came and went and we still couldn’t pay, they didn’t hesitate to treat us like we were nothing more than criminal scum.

It started with relentless phone calls. Debt collectors can be ruthless and cold-hearted. I tried to explain my situation, but they felt as if I should pay my debt before putting food in my children’s mouths or clothes on their backs. There was no decency in the way they came after my family.

When the calls didn’t work, they actually showed up at the house. One day, they came to my work and tried to harass me in front of my co-workers. By the following week, they were garnishing my wages. What little bit I was able to earn on the days I could come in was being siphoned off.

The situation only got worse from there.

On my way home from work, I stopped by the grocery store to grab a few items for the rest of the week. When I got to the register, my card was declined! I knew I had money in there, so I went back to my car and called the bank.

The IRS shut down my account! The teller told me the IRS put a levy on my account and there was nothing they could do. At this point, I was furious! Now they were preventing me from being able to get the essentials we all need to survive, all because they wanted their money.

I couldn’t take it anymore. I had to find a way to fight back.

After a quick Google search, I found Alleviate Tax. They said they would fight the IRS on my behalf. At first, I was skeptical. People make all sorts of claims online all the time. I mean, who can win against the government? They had all the power and held all the cards.

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800-295-6026

In the end, I had nothing to lose. I gave Alleviate Tax a call and they immediately went to work!

The first thing they gave me was peace of mind. They told me that my story isn’t all that unique. In fact, it’s a lot more common than people realize. Life gets tough for everyone at some point. It doesn’t matter how much money you make or what your class status is, life catches up to us all.

Knowing that I wasn’t alone and that they’ve helped thousands of people like me find relief, I was able to take a deep breath. I could focus on taking better care of my family while they fought off the wolves. My tax debt was no longer going to be another burden on my shoulders.

Within a few days, Alleviate Tax contacted me. It was good news! They were able to get the IRS to stop my wage garnishment, take the lien off my bank account, and negotiate a much more manageable settlement considering my hardship.

Words can’t describe how happy I was. Finally, after months of pain and despair, there was a break in the clouds.

I’m telling this story because this can happen to any one of us. Next time, it can be you in my shoes, desperate for help but struggling to keep your head above water. But you don’t have to fight alone.

Alleviate Tax is there for you. I’m so thankful I called.

My husband is feeling better and looking forward to getting back to work. His old job said they’d love to have him back when he’s able, so we know we’re going to be okay. If it wasn’t for Alleviate Tax, I don’t know where we’d be.

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800-295-6026
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Not Going to Make the Tax Deadline? Here’s What You Should Know.

Written by adminApril 17, 2018
Taxes

Today is the day. Tax Day. The bane of every American’s existence.

Every year, 80% of the population manages to get their returns in on time to receive their refund. It’s such a complicated and frustrating experience that most Americans wait until the deadline to get it done.

According to Ted Kurlowicz, tax professor at The American College of Financial Services, the best plan of action is to pay your taxes right away. People often miss the deadline because they didn’t have the money to pay by the deadline or they just ran out of time, an error that can get quite expensive.

“You should do the least harm and file as soon as possible and pay the tax as soon as possible,” said Kurlowicz during an interview with Fox Business. “The late-filing penalty could actually be higher than the late-tax-payment penalty so you should file as soon as possible to do the least harm to your personal finances.”

The amount you can pay if you’re late is 5% of what you owe each month, up to about 25% of the total. Moral of the story: if you don’t want to pay more than what you owe, don’t procrastinate!

What about the 20% of people who don’t file on time? Will the IRS come pounding on your door and threaten to haul you off to tax prison?

The simple answer is no. It’s okay to miss the deadline, but there are a few things you must do to stay compliant.

1) File an Extension.

If you need more time to get your taxes in, the government understands. Not everything works perfectly, even if you were 100% prepared to have your taxes prepared by the 17th. Maybe there was a problem with filing and they’re waiting for assistance. Sometimes it takes a little longer to get all your sources of income identified so you can complete your taxes on time.

Either way, the IRS has graciously offered an extension, giving you until October 15th. To take advantage of this, you must submit Form 4868 the moment you realize you might miss the due date.

While you have until October to send in your proofs, that doesn’t mean you have that long to pay what you owe. The due date to pay is still April 17th and they will expect you to pay at least 90% in order qualify for the extension or you will probably get hit with nasty interest and late fee charges.

2) Take the Situation Seriously

If you know you’re going to be late, the best thing you can do is be proactive. You know the tax man is going to come. They will not just forget you owe them money and leave you alone. They WILL come for you, but if you want to lessen the penalties/burden of paying late, then do everything you can to show you’re trying your hardest to remedy the problem.

Again, the IRS understands the things happen. Hardships come and go. As long as your open and honest about what’s going on, pay as much as you can, file an extension as early as possible, you can usually negotiate a settlement.

3) Get Help

Tax time is stressful for everyone, but it’s especially true if you’re unsure about whether you can pay on time. You might even have April 17th with skull and crossbones marked on your calendar drawn with a black Sharpie. If there’s any question or stress over filing (especially if you’re working a new job or started your own business and just aren’t sure), get help!

Yes, it will cost you a little bit, but not paying on time will cost you a lot more in the long run. There are thousands of amazing tax advisors out there, along with new software that makes filing easier than ever.

Happy Deadline!

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How to Handle IRS or State Back Tax Issues

Written by adminJanuary 4, 2017
Taxes

You know what they say about death and taxes. How long can you delay the inevitable and hold off paying the IRS what they are due without serious repercussions? It is time to request IRS tax relief when the burden of late payments and owed back tax becomes unmanageable. The IRS is not the enemy and needs its fair share of compensation. Partner with them to address outstanding IRS issues like back taxes and get the tax relief necessary to begin planning for your future again.

Options for Taxpayers

The IRS has a number of options available for tax relief. Select the one that best suits your specific situation. Choices include:

  • The IRS Installment Agreement. This may be the best option for a number of reasons. The IRS views the taxpayer as compliant, lowers the number and frequency of IRS letters and phone calls, and reflect the good intent of the taxpayer. It can be used as a solution in the short-term, while still considering other possible methods. This solution is flexible and is available at all times, appeasing the IRS. Taxpayers will continue to have to track payments, accrue interest, and it can take longer to pay off the full amount.
  • Filing of an amended tax return or one after the deadline. When no returns were filed, it is possible to file a return after the deadline. An amended tax return can potentially reduce taxpayer liability, as when liabilities were originally overstated. If for some reason, the taxpayer were not able to file a return, the IRS could file a substitute for the return with the minimal deductions and exemptions necessary for compliance. This is another way to reduce a direct reduction in liability. Filing later can work to your benefit when a tax refund is received after being withheld. A 3 year limitation law applies to any refund claim and can be applied to any owed balance. This option decreases tax liability and reduces possible penalties and interest. It does acquire tax code information and has an issued statute of limitations.
  • The Offer in Compromise (OIC). This is that “pennies on the dollar” much touted in advertisements. The taxpayer’s expenses, income, equity and assets are weighed against their outstanding debt to come to an agreement. Candidates best suited are those with higher liability and lower paying ability. Potential candidates for the program should have no felonious returns, have prepared every estimated tax deposit and payments, and cannot be bankrupt. The OIC program allows taxpayers to retain certain assets, suspends the majority of collection actions, and reduces the debt through settlement. In this program, the taxpayer must deposit higher payments initially, follows strict measures against noncompliance, even 5 years after the program, may be required to liquidate assets, may take years to complete.

The IRS can take steps to initiate actions against taxpayers with substantial amounts in back taxes that take no measures to pay on the amount owed. Within a ten year window, the IRS can potentially:

  • File a Notice of Federal Tax Lien on property.
  • Serve a Notice of Levy on the property.
  • Use a levy for the purposes of collecting back taxes.

Work with credit counselors to review your situation with you and come to a decision on the best approach for IRS tax relief.

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