California Faces Battle Over Budget

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A budgetary showdown is looming in California over taxes 2010 as a constitutional deadline approaches. California which is the eighth largest economy in the world, faces running out of money if no budget is approved by the first of July. This would force California to issue IOUs as was done in 2009. The California constitution requires any tax increase to be approved by two thirds of the legislators. At the present time the Democrats need four more votes to pass the budget but the Republicans are vowing they will block its passage.

Top ranked Republican Jim Neilsen of the Assembly Budget Committee says there is nothing in the framework of the current budget that deserves his support.

Brown who is now 73, took over the position of governor of California in January of this year. He had pledged to repair fiscal problems in California that give it the worst credit rating of all the states according to Standar & Poor’s. At the beginning of the year California had a deficit of $26 billion. Recent government spending cuts and increased revenue have lowered the gap to $10 billion.

The plan for taxes 2010 that Brown is proposing includes keeping a one percent boost in retail sales tax to 8 and a quarter percent. There is also a proposal to raise the fee to register a car to 1.15 percent of the value of the vehicle. The plan extends the reduction of the annual child tax credit to $99 from the previous amount of $309.

Congress Urged By A Group Of Millionaires To Increase Their Taxes

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On June 6, a day before the 10th anniversary when Bush tax cuts in 2001 were enacted, a group of rich Americans recommended that taxes be raised on individuals who earn beyond $1 million.

A conference call to House Speaker Boehner (R-OH) was made by a group of patriotic millionaires suggesting that the Bush tax cuts should be terminated for those who earn more than $1 million. With this, tax rates would increase. These tax cuts were extended in 2010 and to expire within two years.

The group further argued that revenues generated from this tax cuts expiration could then … Read the rest

TaxAct

On June 6, a day before the 10th anniversary when Bush tax cuts in 2001 were enacted, a group of rich Americans recommended that taxes be raised on individuals who earn beyond $1 million.

A conference call to House Speaker Boehner (R-OH) was made by a group of patriotic millionaires suggesting that the Bush tax cuts should be terminated for those who earn more than $1 million. With this, tax rates would increase. These tax cuts were extended in 2010 and to expire within two years.

The group further argued that revenues generated from this tax cuts expiration could then be used for paying down government debt and for investing in modern infrastructures. Paul Egerman, eScription, Inc. founder, said that helping the country by cutting expenses as suggested by House Speaker Boehner and other Republicans is such a crazy idea. According to him, if the country is really broke, then how could it continue giving tax breaks to wealthy Americans?

Addressing the country’s budget deficits has been the subject of debate in the congress. Most Democrats favor revenue increases, while Republicans contended that spending cuts alone are enough. The group, however, foresees that the fiscal problems of the government will not be alleviated by spending cuts, which is a limiting action.

“Sometimes, I think John Boehner and the Republicans have a hard time doing the arithmetic,” according to Egerman. He further added that to understand the idea that a deficit is composed of expenses and revenues does not require a major in mathematics. Eliminating Bush tax cuts to increase revenue is one plausible way of solving the problem, he concluded.

Political Revenge? GOP donors reap the benefits from the biggest tax breaks.

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Political Revenge? GOP donors reap the benefits from the biggest tax breaks.

The largest tax break introduced by Gov. Rick Scott and the Republican-controlled legislature will allow many homeowners in Palm Beach County to save money by cutting $28 from property taxes 2010 owed in the coming year.

For many of the biggest companies in the state to include those who were big contributors to GOP election campaigns last year, the tax reduction will save these companies a lot of money. Most are expected to save well into the hundreds of thousands in terms of dollars and some may even … Read the rest

TaxAct

Political Revenge? GOP donors reap the benefits from the biggest tax breaks.

The largest tax break introduced by Gov. Rick Scott and the Republican-controlled legislature will allow many homeowners in Palm Beach County to save money by cutting $28 from property taxes 2010 owed in the coming year.

For many of the biggest companies in the state to include those who were big contributors to GOP election campaigns last year, the tax reduction will save these companies a lot of money. Most are expected to save well into the hundreds of thousands in terms of dollars and some may even save over $1 million.

Leading Republicans say the tax cut is part of an on-going effort to boost Florida’s weak economy, but some environmentalists agree that the decrease in government tax income will wreak havoc on protection programs for water, land, and floods.

In agreement with many Democrats, conservationists view this tax cut mostly from a political point of view, interpreting it as a show of gratitude from Republicans to many of their big campaign contributors.

For most homeowners, this tax cut is a small savings. The average homeowner in Palm Beach County will only save roughly $28. For big corporate giants like Walt Disney, Florida Power & Light, BellSouth, and Universal, these companies will save well into the millions of dollars.

Republicans Repeal Tanning Business Tax

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Legislation was recently introduced by a committee of House Republicans to repeal the ten percent tax on companies that provide tanning services. The tax, which was introduced under the President’s measures to reform health care, has been widely regarded as being unfair to small businesses.

Michael Grimm, a New York Republican pointed out that middle class Americans and small business owners should not have to pay the bills for Obama’s reform of health care. Grimm went on to say that the tanning tax is just one of several unfair taxes that affect both business owners and customers and ultimately the … Read the rest

TaxAct

Legislation was recently introduced by a committee of House Republicans to repeal the ten percent tax on companies that provide tanning services. The tax, which was introduced under the President’s measures to reform health care, has been widely regarded as being unfair to small businesses.

Michael Grimm, a New York Republican pointed out that middle class Americans and small business owners should not have to pay the bills for Obama’s reform of health care. Grimm went on to say that the tanning tax is just one of several unfair taxes that affect both business owners and customers and ultimately the overall economy.

The tanning tax could adversely affect up to 120,000 people employed by around 18,000 small businesses, points out Phil Roe, a Tennessee Republican. To make his point, Roe stated that just over 3,000 tanning businesses have closed since 2009, because of this tax – a number that represents 15 percent of the overall industry and accounts for 24,000 jobs.

The tax was introduced in July and since then has caused a dispute during debates on health care when discussing both taxes 2010 and 2009. President Obama signed the Act for Affordable Care and Patient Protection (PPACA)in 2010 and supporters of the tanning tax argue that filing business tax such as this helps pay for care under this act.

Repealing the tanning tax is encouraged by the Federation of Independent Business and the organization claims that the PPACA could get rid of 1.6 million jobs by 2014, around 30 percent of which are in small businesses.