Thanks to Republicans.
Recall that nary a few weeks back, the Nevada legislature approved a budget based on $1.4 billion of new and extended taxes for the next two year cycle. The plans call for an increase in the annual corporation business fee, expansion of the payroll tax, increase in the cigarette tax and creation of yet a new tax: the so-called “commerce tax” on the gross receipts of businesses with at least $4 million in Nevada revenue.
And all of this starts hammering we and thee on July 1 – just around the corner.
The centerpiece of the legislation is the new “commerce tax,” which divides producers into 26 business categories, each of which has an assigned gross receipts tax rate which range from 0.051 percent (mining) to 0.331 percent (rail transportation).
The “commerce tax” is, of course, reminiscent of the teacher espoused gross receipts tax initiative which was soundly defeated in last November’s election. As the Tax Foundation points out, such taxes have fallen out of favor since their peak in the 1930s because of the “pyramiding” inherent in their structure. Pyramiding occurs when taxes are imposed at each stage of production, resulting in multiple layers of taxation on the same goods.
And as folks with foreign financial accounts stare down the upcoming June 30 deadline for 2014 reporting, IRS has announced an unusual bit of leniency for blokes who may not have observed these reporting requirements in years past. Indeed, if you have not filed a required Report of Foreign Bank and Financial Accounts (FBAR), are not under any civil examination or criminal investigation by IRS, and have not already been contacted by IRS about your delinquent FBAR(s), you can get caught up – penalty free – if you properly reported on your income tax returns and paid all tax on the income arising from the foreign accounts!
If this is you, grab this opportunity. IRS penalties for noncompliance in this area are otherwise draconian!
And from our tax reform department comes word, this week from Presidential candidate Rand Paul that he proposes a “fair and flat tax” that would “blow up” the Internal Revenue Code, and cut taxes by $2 trillion over the next decade.
Paul proposes a 14.5 income tax rate on all individuals and businesses.
“Basically my conclusion is that the tax code can’t be fixed and should be scrapped,” says Paul. “We should start over.”
Has some merit.
CONSULT YOUR TAX ADVISOR – This article contains general information about
various tax matters. You should consult your CPA regarding the implications to your own
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 can be reached at 831-7288, and welcomes comments at [email protected]
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