by: Jeffrey Quinn
What a surprise.
That's the conclusion expressed by those recently surveyed by the Tax Foundation--at least 56% of 'em. And 85% think the Internal Revenue Code is too complex.
Also no surprise that most U.S. adults think the maximum percentage of their income which should roll into Obama's coffers is just a little under 16%. In other words, the present capital gains tax rate is just about right.
"This average is significantly lower than the Tax Foundation's estimates of the nation's actual average total tax burden: 28.2%" quoth Matt Moon, Tax Foundation Manager of Media Relations.
And guess which political persuasion is more likely to opine that their taxes are too high? You guessed it: Republicans at 62%, compared to only 51% of Democrats. But how does this square with the finding that Republicans are willing to pay an average of $9,985 for all services provided by government, compared to $7,616 for Democrats?
Sounds to us like a little of the notion that government services are nice as long as they're paid for with other people's money.
And you've got to hand it to the poorer folk among us--the Tax Foundation notes that when asked whether it's fair or unfair that some pay zero federal income tax while others pay large amounts, two thirds of adults believe that everyone should be required to pay some minimum amount of tax to keep Uncle Sam in business, while only 19% think that it is fair that some do not pay taxes at all.
Now there's a notion for Barack to pursue.
And here comes a bit of sensible, good news from the California Franchise Tax Board. Recall that the California tax blokes recently declared that it's no longer good enough for taxpayers to send in their dough by check. No--those who are among the higher-paying among us will be required, now, to start paying electronically (read: immediate cash flow to the State, as opposed to the usual float time while checks clear the banks, etc.)
The law currently states that all payments made on or after January 1, 2009 must be remitted electronically for an individual who either has:
1. Made a single estimated tax or extension payment greater than $20,000 for a taxable year beginning on or after January 1, 2009; or
2. Filed an original return with a tax liability greater than $80,000 for a taxable year beginning on or after January 1, 2009.
But reason does prevail--FTB will not impose penalties, they say, for those who can't get it together
sufficiently to enable them to follow these e-payment guidelines.
Thank goodness for small blessing.
CONSULT YOUR TAX ADVISOR - This article contains general information about various tax matters. You should consult your CPA regarding the implications to your own particular situation.
Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno. He is also a contributor to the recently published twelfth edition of Tax Savvy for Small Business, published by Nolo. He can be reached at 831-7288, and welcomes comments at jquinn@ashleyquinncpas.com
