tax rates – Eshcinsel http://eshcinsel.net/ Sun, 17 Apr 2022 16:06:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://eshcinsel.net/wp-content/uploads/2021/10/icon-41-120x120.png tax rates – Eshcinsel http://eshcinsel.net/ 32 32 15 Michigan Counties With The Highest Average Property Taxes https://eshcinsel.net/15-michigan-counties-with-the-highest-average-property-taxes/ Mon, 07 Mar 2022 14:40:11 +0000 https://eshcinsel.net/15-michigan-counties-with-the-highest-average-property-taxes/ These 15 counties in Michigan have the highest average property tax per year. Paying taxes is probably one of the most hated things in life. There is a tax for everything. Sales tax, income tax and the list goes on and on. Of course, anyone who owns a home or land knows that property taxes […]]]>

These 15 counties in Michigan have the highest average property tax per year.

Paying taxes is probably one of the most hated things in life. There is a tax for everything. Sales tax, income tax and the list goes on and on. Of course, anyone who owns a home or land knows that property taxes are just another issue we have to deal with. Of Michigan’s 83 counties, these 15 counties get the most out of your property tax bank account.

On average across the state, Michigan residents pay about $2,145 a year in property taxes. This figure is based on a home worth approximately $132,200. In most cases, you will pay around 1.62% of the market value of your home in taxes.

Of the 50 states, Michigan is ranked 18th in average amount raised. Depending on where you live, you might end up paying more than others. Living in Washtenaw County is going to cost you because it has the highest property tax in Michigan, residents paying an average of about $3,900 a year.

When it comes to the highest average property taxes per year, the 15 listed below top the list. Many of them are located around the Detroit area and several more are located near Grand Rapids, Kalamazoo and Lansing. There are also a couple in the northern part of the state near Traverse City.

As I prepare to buy my first home soon, I can say that I have already crossed Washtenaw County off the list for a number of reasons, mostly because I just don’t want to live there.

Source: Tax-Rates.org

15 Michigan Counties With The Highest Average Property Taxes

These 15 Michigan counties have the highest average property tax per year, with the highest being just under $4,000.

The 10 Michigan Counties With The Lowest Average Property Taxes

These 10 counties in Michigan have property taxes that average less than $1,000 per year.

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Holcomb agrees to cut income tax | Indiana https://eshcinsel.net/holcomb-agrees-to-cut-income-tax-indiana/ Thu, 03 Mar 2022 23:14:00 +0000 https://eshcinsel.net/holcomb-agrees-to-cut-income-tax-indiana/ (The Center Square) – Indiana Gov. Eric Holcomb said Thursday he agreed to lower the state income tax rate to 2.9%, making tax Indiana’s personal income tax one of the lowest in the nation among states that tax residents. Holcomb made the announcement in a statement sent to the media, citing the state’s increasingly strong […]]]>

(The Center Square) – Indiana Gov. Eric Holcomb said Thursday he agreed to lower the state income tax rate to 2.9%, making tax Indiana’s personal income tax one of the lowest in the nation among states that tax residents.

Holcomb made the announcement in a statement sent to the media, citing the state’s increasingly strong financial position and surplus revenue.

“Indiana is financially strong and continues to grow at a rapid pace,” Holcomb said in the statement. “As our revenues beat forecast month after month, it has become clear that now is the time to act on a tax plan that gives back to our growing business community and hard-working Hoosiers.”

The tax plan outlined by Holcomb includes reducing state income tax from 3.23% to 2.9% over time and the previously announced automatic taxpayer refund that will bring in a total of $545 million. dollars to 4.3 million taxpayers, as required by state law when the state has a surplus.

The Indiana General Assembly passed a bill saying that even those who don’t owe income tax this year will get the refund.

Governor’s plan includes paying out $2.6 billion from Indiana state’s pre-96 teachers’ retirement fund at the end of this fiscal year and eliminating the tax on service receipts and the 30% business personal property tax floor for new equipment – ​​something the National Federation of Independent Business lobbied the legislature to do this year.

Personal income taxes make up nearly 36% of total state revenue in Indiana, with sales tax contributing another 53% — the bulk.

Indiana is one of 43 states that have a state income tax, although only 41 states tax wages and salary income.

California has a rate of 13.3% and New York is at 10.9%, according to the Tax Foundation. If lowered to 2.9%, Indiana’s top state tax rate would be tied for the lowest with North Dakota, which already has a 2.9% rate.

Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Wyoming.

Until this week, Indiana seemed unlikely to cut taxes this year.

The Indiana House had passed a bill in January providing more than $1 billion in tax cuts and reducing the state income tax rate to 3%.

The Indiana Senate, however, removed the tax cut provisions from the bill, and Senator Rodric Bray, R-Martinsville, the leader of the Senate, said the Senate did not want to pass a tax cut. tax in a year without a budget.

The Indiana General Assembly passes a two-year state budget every two years. The budget bill that was passed last year, which forecasts state revenues and includes all expenditures, was passed while the state was still in a period of economic recovery after the measures taken during the COVID-19 pandemic.

Holcomb said he was confident the tax cut plan he agreed to “could be done responsibly” while balancing state priorities and “maintaining prudent levels of fiscal reserves.”

“The sooner we execute this plan, the sooner we can: make Indiana a state on par with the states with the lowest personal income tax rates among taxing states; help businesses of the city in their primary areas of concern – energy costs and the closing of new capital investments over time; significantly improving the state’s pension fund rankings; and maintaining Indiana’s low-debt status reads the governor’s statement.

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Home Rich, Money Poor: How Utahns Cope With Rising Values ​​and Property Taxes https://eshcinsel.net/home-rich-money-poor-how-utahns-cope-with-rising-values-%e2%80%8b%e2%80%8band-property-taxes/ Mon, 28 Feb 2022 05:00:00 +0000 https://eshcinsel.net/home-rich-money-poor-how-utahns-cope-with-rising-values-%e2%80%8b%e2%80%8band-property-taxes/ Cheryl Johnson has lived in the same house for 60 years. The original stucco structure sits directly on the ground without the benefit of a concrete foundation, and the property draws water from a well in the backyard. In contrast to the old-fashioned charm of the home, Johnson has seen its surroundings transform from a […]]]>

Cheryl Johnson has lived in the same house for 60 years. The original stucco structure sits directly on the ground without the benefit of a concrete foundation, and the property draws water from a well in the backyard.

In contrast to the old-fashioned charm of the home, Johnson has seen its surroundings transform from a once-bucolic pasture into the budding modern town of South Salt Lake.

“When we moved into this house, there were only fields and horses, pheasants running around. Now we have apartments all around us,” Johnson said.

The rural character of the area isn’t the only thing that changed during Johnson’s time here – property prices also transformed from when the Johnsons in 1959 bought their home for a colossal sum of $10,000 – a world far from Price of $455,000 for an average home in his neighborhood today.

Despite the inherent benefits of property appreciation, it simultaneously puts some homeowners in a pinch, as creeping tax rates have made the cost of living harder to bear, and it puts Johnson among a growing contingent of Utahns “rich in house, poor in money” who see an increase in part of their fixed income swallowed up by the annual levy.

According to a new Tax modernization report of the Kem C. Gardner Policy Institute published this month.

Untapped tax breaks

The good news is that state and county relief programs exist, including the Circuit Breaker program, which allows for the reduction or abatement of property taxes on certain Utahns’ primary residences. However, the low enrollment in the program — currently less than 20% of those who qualify — raises questions about its usefulness and implementation, while leaving some wondering if leaders have done enough to help Utah seniors struggling to stay in their homes.

“We know there are many more who are eligible for help but don’t know it. That’s one of my biggest frustrations in the office is that the word didn’t get out despite our efforts,” said Salt Lake County Treasurer Wayne Cushing. His office oversees the county portion of the program that distributes breaks on a sliding scale to those earning between $12,174 and $35,807.

“Additional annual expenses of $1,000 to $2,000 make a big difference for someone on such a low income,” he said. “It helps them afford other necessities like prescriptions and food.”

The county’s efforts to spread the word include presentations at charitable and religious institutions and marketing campaigns. Yet for a relief program that’s been available for more than 30 years, the modest turnout raises questions about what the growing number of indigent older people are sacrificing to stay put.

“Obviously the goal is never to tax someone out of a house, so that’s what we’re trying to prevent,” Cushing said.

Cheryl Johnson talks about her home, where she has lived for nearly 60 years, in South Salt Lake on Thursday, Feb. 24, 2022. Her late husband and stepfather, both masonry workers, built the wall around the fireplace behind it in lava stone. Johnson is grateful for the Circuit Breaker property tax relief program, which helps her stay in her home as property taxes rise.

Kristin Murphy, Deseret News

The program is a godsend

Those like Johnson who discovered the program say circuit breaker relief is a boon during a phase of life when memories and closeness to a settled community have an outsized impact on quality of life, which is why selling, even for a handsome profit, is still a last resort.

“I wouldn’t trade my house for anything in the world. I wouldn’t trade it for a brand new house. I have too many memories in this house,” said Johnson, 80, who explained that the intangible value of his residence is irreplaceable after a lifetime of memories, including raising three children and running ad hoc businesses from the living room for win more. money, including daycare, a homemade wig service, and laundry facilities.

Johnson began to struggle with paying property taxes when her husband died of leukemia nine years ago. Medical expenses depleted her savings and, without a life insurance policy, she saw a growing portion of her fixed income gobbled up by property taxes, a problem faced by many Utah retirees.

“The death of my husband really hit me hard. I was struggling. I don’t know what I would have done if I hadn’t found this program,” she said.

An interconnected problem

Johnson provides an example of how property, retirement and health care issues are often intertwined, and highlights the need for smart property tax policy in a state with an aging population and persistent housing problems, which the Gardner Institute hopes to promote with its new report. .

“Property taxes and tax systems are complex and can be difficult to navigate. That’s why we’re doing these reports — to help inform,” said Phil Dean, author of the Tax Modernization report. He pointed out that “just because house prices go up doesn’t necessarily mean homeowners’ taxes go up because of how our truth-in-taxation process works.”

Utah’s Truth in Taxation Act requires taxing entities to undertake a rigorous public hearing process before increasing rates while monitoring the impact of rising property values ​​using a “certified rate which adjusts tax percentages downward as market values ​​rise to conserve owner revenue. coherent.

Yet rates are rising, and part of what makes the system confusing is because a myriad of entities have property taxing authority — including cities, counties, school districts, police, and districts. special services like waste and recycling – which undertake different rate increases independently.

Over time, these independent rate hikes have brought older Utahns like Johnson closer to the margins, and that’s why economists at the Gardner Institute are eager to educate leaders and the public about the multifaceted implications of the tax, in the hope to enable homeownership for Utahns from young adulthood. throughout their twilight years.

“Until I got married, I never lived in a house, I always lived in apartments, so it was a beautiful thing to move into that house. Back then, we were paying $75 per months for it,” Johnson said. “My house is everything to me. It’s old, but I wouldn’t trade it for anything in the world.

merlin_2910324.jpg

Cheryl Johnson poses for a portrait at her home, where she has lived for nearly 60 years, in South Salt Lake on Thursday, Feb. 24, 2022. Johnson is grateful for the Circuit Breaker property tax relief program, which helps her to stay in his house as property taxes rise.

Kristin Murphy, Deseret News

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Pennsylvania lawmaker introduces property tax elimination plan that would raise retirement, sales and income taxes https://eshcinsel.net/pennsylvania-lawmaker-introduces-property-tax-elimination-plan-that-would-raise-retirement-sales-and-income-taxes/ Thu, 24 Feb 2022 23:48:00 +0000 https://eshcinsel.net/pennsylvania-lawmaker-introduces-property-tax-elimination-plan-that-would-raise-retirement-sales-and-income-taxes/ A state lawmaker has proposed a revised version of a plan he first introduced three years ago that would not only eliminate school property taxes, but make it illegal for a Pennsylvania school district to impose one. Of course, the plan includes some tax transfer to generate the $16 billion needed to replace lost property […]]]>

A state lawmaker has proposed a revised version of a plan he first introduced three years ago that would not only eliminate school property taxes, but make it illegal for a Pennsylvania school district to impose one.

Of course, the plan includes some tax transfer to generate the $16 billion needed to replace lost property tax revenue for schools. It also includes new taxes on certain retirement income and on food and clothing.

R-Lebanon County Rep. Frank Ryan unveiled his 314-page House Bill 13 it is the product of five years of work and draws on the expertise of a bipartisan task force of property tax elimination advocates.

“Everyone wants to get rid of property taxes as long as the other person is the one who’s going to pay the replacement tax,” Ryan said at a Capitol press conference flanked by members of his task force. “It is clear that any solution will require sacrifices from all Pennsylvanians.”

His plan tries to distribute this burden. It would be :

  • Raise personal income tax from the state’s 3.07% to 1.85%, with the additional revenue going to the local school district.
  • Apply the 4.92% income tax to certain types of retirement income tax. Social security benefits, employee contributions to defined contribution plans, and military pensions or survivor benefits would be exempt. Contributions made to retirement plans by working people would be deductible from state income tax.
  • Increase sales tax by 2% and only impose additional sales tax on clothing and food, excluding WIC/SNAP purchases. (Only the local 2% rate would be applied to clothing and food.) These revenues would be paid to counties, which would distribute them to school districts based on the number of public school students residing in their districts.

Ryan acknowledges that applying the retirement income tax makes his plan’s sales pitch a hard pill to swallow, but said he thinks Pennsylvanians will face this eventuality anyway.

“Pennsylvania is not a growth state. We are attracting seniors,” he said. “Do you know why? We don’t tax retirement income. We’re one of six states in the United States that don’t.

He pointed out that three years ago, when he launched a similar version of this plan, 11 states imposed no tax on retirement income.

“I will guarantee you this, the next recession we will have to start taxing retirement and you will still have property taxes. You can see the handwriting on the wall,” Ryan said.

His bill would also require landlords to reduce rent by the amount of property tax they save over the term of the current lease. This would remove caps on how much school districts can keep in their rainy day fund to help them better manage their budgets. And it would create a $500 million emergency fund that school districts could tap into if they can’t balance their budgets and force them to undergo financial restructuring.

Recognizing the complexity of his plan, Ryan Pertusio, one of Ryan’s task force members, created a calculator that allows homeowners to calculate the impact the plan would have on their tax bill at NoProp.Tax/calc.

Representative Barb Gleim of R-Cumberland County, along with Republican Representatives Dan Moul of Adams County and Mike Jones of York County, attended the press conference to learn more about the plan.

“People tell us, who we represent, that something has to change,” Gleim said. “They can’t find accommodation. Why is that? This is because landlords pay high taxes and pass them on to rents.

Hearing Ryan say that school property tax rates should double in 17 years and triple in 30 years is a consideration that cannot be overlooked, and it’s something Moul said at least that House Republicans understand as a call to action on this issue.

Gleim said: “We have to get out of the right here and now [mentality] and look at the bigger picture over the next few years and understand that something has to change.

Jan Murphy can be reached at jmurphy@pennlive.com. Follow her on Twitter at @JanMurphy.

Continued:

Corman campaign calls for investigation into campaign finance records of GOP governor’s opponent

PHEAA will reduce its workforce by 43 employees

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Income tax phase-out debated in long-poor Mississippi https://eshcinsel.net/income-tax-phase-out-debated-in-long-poor-mississippi/ Sat, 19 Feb 2022 14:12:50 +0000 https://eshcinsel.net/income-tax-phase-out-debated-in-long-poor-mississippi/ JACKSON, Miss. (AP) – Mississippi has a history of being first in the worst: It’s one of the poorest and unhealthiest states in the country, with chronically underfunded public schools. Some Republican leaders say a good way to increase the fortunes of the state would be to phase out its income tax. “There’s no downside […]]]>

JACKSON, Miss. (AP) – Mississippi has a history of being first in the worst: It’s one of the poorest and unhealthiest states in the country, with chronically underfunded public schools. Some Republican leaders say a good way to increase the fortunes of the state would be to phase out its income tax.

“There’s no downside to putting money back in the pockets of Mississippians,” said Republican House Speaker Philip Gunn, one of the main sponsors of a tax cut bill introduced in the Legislative Assembly.

Opponents say cutting the income tax is a terrible idea because it would mean even less money for schools, health care, roads and other services, especially for poor residents and working class. Mississippi’s income tax accounts for 34% of state revenue. Wealthy people would see the biggest financial boost from the elimination of income tax, because they are the ones paying the most now.

Democratic state senator Hob Bryan said people choose where to live not because of tax policy, but because of family ties and quality of life. He said people live in New York, where taxes are high, for example, because the city provides opportunity.


“The idea that if the people of Manhattan only found out that Mississippi had no income tax, they would all get on a bus to Mississippi and move here — that’s just laughable on the face of it,” Bryan said.

Mississippi’s population has shrunk over the past decade, even as other Sun Belt states are teeming with new residents. The tax cut proposals are a direct effort to compete with states that don’t tax income, including Texas, Florida and Tennessee — places where many young Mississippians are moving for bigger paychecks.

Married couple Les and Amanda Jordan live near the town of Summit in southern Mississippi. He is a retired public school administrator and she is a retired nurse practitioner. Both worked for the state. Amanda Jordan said tax rates could influence young people’s decisions about where to live. The couple have a grandson in Texas, one of the states with no income tax.

Les Jordan said he was torn.

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What to choose in 2022? https://eshcinsel.net/what-to-choose-in-2022/ Sun, 13 Feb 2022 01:38:42 +0000 https://eshcinsel.net/what-to-choose-in-2022/ How to choose between the new and the old tax system? The new tax system differs from the old one in two respects. First, it has more slabs with lower tax rates. And second, all major exemptions and deductions available to taxpayers under the existing old tax system are disallowed if the new tax system […]]]>

How to choose between the new and the old tax system?

The new tax system differs from the old one in two respects. First, it has more slabs with lower tax rates. And second, all major exemptions and deductions available to taxpayers under the existing old tax system are disallowed if the new tax system is elected. “Therefore, if the benefit of lower rates in the new tax regime exceeds the benefit of exemptions and deductions available under the old tax regime, then the taxpayer can choose the new tax regime,” said Archit Gupta, Founder and CEO of Clear.

The main difference between the old and the new tax regime is the difference in slab rates. Taxpayers in India have to pay income tax based on the slab system under which they fall. The tax slab is designed by considering the average income of individuals. Thus, taxpayers with higher incomes will be likely to pay more taxes.

The possibility of reducing the tax is also an important difference between the old and the new tax system. No deductions are allowed under the new tax system, but a taxpayer has many options under the old tax system.

“While the new tax system provides the taxpayer with zero deduction or exemption options, the old tax system provides about 70 deductions and exemptions to reduce their taxable income. The deductions allow taxpayers to reduce the amount of tax by saving, investing or spending on specific items,” said Amit Gupta, MD, SAG Infotech.

Which tax regime is the best?

Archit Gupta, Founder and CEO – Clear said that in order to know which tax regime is best, the taxpayer must calculate the income tax to be paid at the applicable normal tax rates, i.e. at the old rates tax slab, after taking advantage of all eligible exemptions and deductions from their income. For example, salaried persons can claim exemption for LTA, HRA, standard deduction of 50,000. In addition, individuals are permitted to claim a deduction under Section 80C up to 1.5 lakh, home loan interest deduction, NPS contribution, etc.

In addition, the taxpayer must calculate the income tax to be paid according to the rates of the tax slab of the new tax regime. Now they can compare and choose the tax regime that suits them best, he added.

Choosing an old or new tax regime is entirely up to you and will depend on your income structure, available deductions and circumstances.

“If you want to choose the new tax system, you will have to forget all the tax deductions and exemptions that the old tax system provides,” said Amit Gupta,

Who should opt for the new and who should opt for the old?

The choice between tax regimes may depend on various factors such as current income level, income composition i.e. sources of income, investment appetite and savings habits, among other factors. Individuals will need to determine their tax liability under the old and new tax regimes before deciding which is more advantageous.

“The Income Tax Department has also developed an easy-to-use calculator that shows which scheme would benefit based on tax output. While deciding to choose between the old and the new tax regime, one should consider the pros and cons of both regimes in order to make a wise decision,” said Akash Kumar, Director and Co-founder of Fincorpit Consulting Private limited.

The decision to opt for a new tax regime or an old tax regime depends on the taxpayer.

“We have observed that most taxpayers benefit from the old regime when they maximize Section 80C and opt for the tax deductions and benefits available in their salary structure, such as applying for HRA, receiving part from the CTC in the form of reimbursement, etc. Only 10% of the total of the filers on Cleartax benefited from the old regime and opted for this one,” said Archit Gupta.

We also observe that the younger population, which has few tax investments, opts for the new tax system.

“Many taxpayers are opting for the new regime because they want to avoid locking in funds under Section 80C investments, which has a lock-in period. These taxpayers are choosing to invest in FDs rather than locking their assets into tax-saving options for 3-5 years,” said Amit Gupta.

Is it allowed to switch several times between the old and the new tax regime?

If you are an individual employee, you can make this choice each year. “People with income under ‘Salary’, ‘Home ownership’, ‘Capital gains’ and ‘Other sources’ can choose each year to switch between the old or the new tax regime. But people who have business or professional income have only one chance to return to the old regime after opting for the new tax regime. They can only choose the new tax regime once in their lifetime,” explained Archit Gupta.

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Need for progressive property tax and strong tax administration https://eshcinsel.net/need-for-progressive-property-tax-and-strong-tax-administration/ Thu, 10 Feb 2022 11:52:43 +0000 https://eshcinsel.net/need-for-progressive-property-tax-and-strong-tax-administration/ In the second lecture in the series, ‘Inequality Conversations’, organized by the Center for Public Policy at IIM Bangalore, former RBI Deputy Governor NS Vishwanathan said that tax policies can alter the distribution of income and wealth for the benefit of people belonging to the lower economic strata. . In his lecture this evening, on […]]]>

In the second lecture in the series, ‘Inequality Conversations’, organized by the Center for Public Policy at IIM Bangalore, former RBI Deputy Governor NS Vishwanathan said that tax policies can alter the distribution of income and wealth for the benefit of people belonging to the lower economic strata. .

In his lecture this evening, on “Tax Policy Review”, delivered as part of the Center for Public Policy’s “Inequality Conversations”, Professor NS Vishwanathan, former Deputy Governor of RBI and Senior Fellow at IIM Bangalore, stressed that it is important to understand the different dimensions of inequality in order to appreciate the effectiveness of fiscal policies followed in different parts of the world.

He explained that among the measures used to assess inequality are the ratio of the income share of the richest 10% of the population to that of the poorest 50% of the population, as well as the ratio of the wealth held by the top 10% of the population versus those held by the bottom 50% of the population. Analysis of how these measures play out globally, between different regions of the world and different nations, shows that while at the global level inequality is undoubtedly very significant, it varies from one country to country and region to region, with several countries and regions showing greater inequality than the world. medium. It should also be understood, Prof Vishwanathan explained, that where inequality is severe in the poorest countries, this translates into sub-subsistence living standards for large parts of the population.

Globally, however, corporate tax rates are moving south. The lower corporate tax rate compared to personal income tax leads individuals to transform their business into a company to benefit from it. In addition, today’s competitive global corporate taxation allows large corporations to shift their profits to low-tax jurisdictions. “There is therefore a move towards a global minimum tax implying that the country of origin of a multinational can tax the profits of another jurisdiction up to the difference between the corporate tax applied by the jurisdiction of home and the agreed minimum tax rate. The effectiveness of such an arrangement is, to some extent, a function of the agreed minimum aggregate tax,” he explained, adding that, for example, at a minimum tax rate of 15 %, India might get extra tax. revenues of 0.5 billion euros, which would increase to 1.4 billion euros if the minimum tax rate were 25%.

Turning to the summary of the 2022 budget, Prof Vishwanathan said that work needs to be done on increasing the tax-to-GDP ratio and increasing the share of direct taxes. The regressive impact of a higher share of indirect taxes is mitigated by directing public spending towards activities that result in better socio-economic well-being for people in lower economic strata.

Among long-term policy actions, he suggested:

  • Convergence towards a global minimum corporate tax to avoid a race to the bottom
  • Progressive property taxes
  • Target a specified change in after-tax income distribution through fiscal policy
  • A strong tax administration.
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Opinion: Fundamental reform of property taxation: If not now, when? https://eshcinsel.net/opinion-fundamental-reform-of-property-taxation-if-not-now-when/ Mon, 07 Feb 2022 05:01:00 +0000 https://eshcinsel.net/opinion-fundamental-reform-of-property-taxation-if-not-now-when/ Ideas for cutting Connecticut’s rising budget surplus are flowing faster than the waters of the Long Island Sound after a Northeast: Lower the sales tax. Abolish pension income tax. Increase the property tax credit. Reimburse the retirement pension debt of state employees and teachers. Cancel the restaurant food surcharge. Strengthen the unemployment insurance fund. Modify […]]]>

Ideas for cutting Connecticut’s rising budget surplus are flowing faster than the waters of the Long Island Sound after a Northeast: Lower the sales tax. Abolish pension income tax. Increase the property tax credit. Reimburse the retirement pension debt of state employees and teachers. Cancel the restaurant food surcharge. Strengthen the unemployment insurance fund. Modify the property tax on vehicles. Increase the earned income tax credit.

The outpouring of proposals is dizzying but not surprising. This is an election year, when the offices of the governor and all 187 state legislators will be on the ballot. And what better way to entice voters to fill in the circle next to their name than to put some quick cash in their pockets.

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GUEST TIP: Governor’s Income Tax Proposals Need Further Consideration | Waverly Logs https://eshcinsel.net/guest-tip-governors-income-tax-proposals-need-further-consideration-waverly-logs/ Tue, 01 Feb 2022 15:15:00 +0000 https://eshcinsel.net/guest-tip-governors-income-tax-proposals-need-further-consideration-waverly-logs/ Governor Reynolds’ dramatic income tax proposals should cause all Iowans to reflect on their relationship and responsibility to one another, our communities, and our state. Any discussion of Iowa taxes should begin with two basic principles. First, we pay all our taxes with our income. Iowa’s current system of paying for state and local government […]]]>

Governor Reynolds’ dramatic income tax proposals should cause all Iowans to reflect on their relationship and responsibility to one another, our communities, and our state. Any discussion of Iowa taxes should begin with two basic principles.

First, we pay all our taxes with our income. Iowa’s current system of paying for state and local government services with a combination of income, sales, and property taxes is reasonably balanced across a broad income range, other factors being equal. . Low-income Iowans pay a higher percentage of their income in sales and property taxes; higher income Iowans pay a higher percentage of their income in state income tax. Second, any special interest tax relief simply shifts the responsibilities of the beneficiaries to their neighbours.

Iowa’s current exclusions from all Social Security benefits and the first $6,000 of other retirement plan distributions per person are very generous. My wife and I have been retired since 2015. We are in the top 30% of households in Iowa by income. Current exclusions from retirement income take more than half of our income out of the tax calculation. Because of these special tax breaks combined with other exclusions and deductions, we did not have to pay Iowa income tax until one year after our retirement.

These special tax breaks are by no means fair to our young neighbours. Increasing these special breaks would be a step in the wrong direction. (It’s true that tax laws have been a factor in some people’s decision to move to other states – often states with warmer winters. It’s also true that tax laws are a factor in decisions to move. buying new machinery, investing in stocks instead of bonds or certificates of deposit, buying a house instead of rent, or making charitable donations. So what else is new?)

The injustice of these special interest tax breaks for retirement income becomes clearer when we look at Iowa traditions. My wife and I are among the oldest members of the baby boom generation. We and our classmates sparked a school building boom in Iowa that was supported by generations of our parents and grandparents. We were both members of the first graduating classes to attend the four years in the new high school buildings in our respective districts.

When we went to the state of Iowa in the late 1960s, we didn’t pay tuition; we paid a registration fee of $345 per year. Strong intergenerational support continued for our children as well. In fiscal year 2000, Iowa taxpayers, through state appropriations, covered 64% of the costs of Iowa State Universities. Students and families paid 30% of tuition fees. In FY2020, this had reversed, with state appropriations covering only 34%, while tuition had increased to cover 60%.

A simpler and fairer Iowa income tax code is a worthy goal. The logical starting point would be to clear the jungle of exclusions, exemptions, deductions and special interest credits. Then enact federal standard deductions that would protect truly vulnerable seniors and others. We could then apply lower tax rates to all taxpayers. A flatter rate schedule combined with higher standard deductions might just make sense.

In 2010, 63% of Iowa voters supported approving the constitutional amendment to create the Natural Resources and Outdoor Recreation Trust Fund. A very useful use of some of the funds currently available for tax reform would be to redirect 3/8 of a cent of the sales tax we currently collect towards this critical priority without increasing the sales tax rate (or diverting revenue from sales tax on local options in our communities).

We hear a lot of talk about the importance of keeping Iowa’s young people here and attracting other working-age people and their families to the state. When we were a young couple with kids at home, jumping on a plane to Hawaii was out of the question. But we were able to enjoy the state parks and recreation areas of Iowa.

Al Charlson is a lifelong Iowan, graduate of Belmond High School and Iowa State University, and a retired bank trust officer. He is also a former chairman of the Bremer County Democratic Party.

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Income tax pads and other personal tax expectations https://eshcinsel.net/income-tax-pads-and-other-personal-tax-expectations/ Fri, 28 Jan 2022 09:13:11 +0000 https://eshcinsel.net/income-tax-pads-and-other-personal-tax-expectations/ Like every year, the Union Finance Minister has the difficult task of balancing public expectations and presenting a budget that would put India back on the path to growth, especially after the long disruption caused by the pandemic. of ongoing Covid-19 which has affected the whole country. nation in more ways than one. Although significant […]]]>

Like every year, the Union Finance Minister has the difficult task of balancing public expectations and presenting a budget that would put India back on the path to growth, especially after the long disruption caused by the pandemic. of ongoing Covid-19 which has affected the whole country. nation in more ways than one.

Although significant relief measures have been taken by the government to keep the situation under control, the Union budget for 2022-2023 offers citizens and taxpayers the hope of additional relief measures to continue to fight against the pandemic.

Direct tax proposals form an important part of the budget since the revenue from these direct tax collections contributes a significant share to the government’s total revenue. In turn, both corporate and non-corporate taxpayers eagerly await the proposals presented in the budget in hopes of lower taxes and more cash.

Due to the unprecedented circumstances and expectations of the salaried class; the upcoming budget could soften the ongoing blow from the pandemic through an increase in the threshold for deductions, the introduction of a deduction for a work-from-home setup, and several other relief measures.

While the introduction of a new tax regime appears to be a welcome move, taxpayers must forego certain deductions and exemptions to take advantage of the reduced tax rates. However, a large portion of taxpayers are more inclined to invest in tax-deductible schemes because of the dual benefit, i.e. savings for the future and a reduction in the current tax burden. Therefore, opting for the new tax regime does not seem particularly advantageous for this category of taxpayers.

Furthermore, the top tax rate in both regimes (i.e. old and new) ranges from 31% to 43% after including education tax and surcharge which is burdensome for taxpayers. The government should reduce tax rates to provide more cash to taxpayers.

As the Finance Minister’s unveiling of the 2022 Union budget approaches, let’s take a look at some of the expectations of the employed taxpayer.

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