Posted on 11/09/2008 4:42:26 PM PST by epow
November 9, 2008
Not everyone is waiting eagerly to hear the details of President-elect Obama's economic stimulus package. Upper-income individuals are seeking shelter from what are likely to be hefty tax increases. Many financial advisors are urging haste -- suggesting their clients make tax-saving moves before the year end, according to Michael Gray, CPA.
“The details of tax changes will be negotiated by Congress next year,” says Gray. “According to a summary by the Tax Policy Center, Obama has proposed to restore the 39.6% maximum bracket in 2009 that we had under Clinton for single taxpayers with income exceeding $200,000 and married taxpayers who file joint returns with income exceeding $250,000. The maximum rate for long-term capital gains and qualified dividends for those taxpayers would also increase from 15% to 20%.”
Ray said upper-income taxpayers who want to avoid those increases can take the following steps:
1. Accelerate ordinary income to 2008. Service businesses can get billings out quickly for 2008 services, and collect advance payments and retainers. Consider exercising stock options during 2008 instead of later.
2. Take capital gains in 2008. With the stock market down, this may not be as beneficial as it otherwise might be.
(Excerpt) Read more at consumeraffairs.com ...
Ha Ha Ha ... look at that flock of chickens on the horizon. Here they come. We are so screwed.
Between the (on-going) democrat party sub-prime thievery and the coming of the Obama, the democrat party has not only destroyed the US economy, but also the world economy.
The worst thing about McCain was in his inability to educate the American sheeple about these facts.
Neoliberal with a “Human Face”
There is no indication that Obama
will break his ties to his Wall Street sponsors, who largely
funded his election campaign.
Goldman Sachs, J. P. Morgan Chase,
Citigroup, Bill Gates’ Microsoft are among his main campaign contributors.
Warren Buffett, among the the world’s richest individuals, not
only supported Barak Obama’s
election campaign, he is a member of his transition team, which
plays a key role deciding the composition of Obama’s cabinet.
Warren Buffett
Unless there is a major upheaval
in the system of political appointments to key positions, an
alternative Obama economic agenda geared towards poverty alleviation
and employment creation is highly unlikely.
Barack Obama. November 7 Press Conference.
Joe Biden (far left), newly appointed chief of staff Rahm Emanuel (far right). Photo: Charles Dharapak
What we are witnessing is continuity.
Obama provides a “ human face” to the status quo. This human face serves to mislead Americans on the nature of the economic and political process.
The neoliberal economic reforms remain intact.
The substance of these reforms including the “bailout” of
America’s largest financial
institutions ultimately destroys the real economy, while spearheading entire areas of manufacturing and the services economy into bankruptcy.
The Dow is going to drop another 2000 before the end of the year as everyone cashes before 2009.
They have means for getting around the taxes - like tax-free municipals (Obama's solution for himself), off-shore bank accounts (Bill Clinton's solution)...It's interesting what happened in France when Mitterand was elected President. He had all sorts of plans to tax the rich, tax businesses and/or take them over. So billions of francs a day were going out of the country as the businesses transferred their assets and operations abroad; and Mitterand had to revise his whole program to try to entice the businesses back.
Next time Obama’s supporters are out looking for a job, they’ll be well-advised to interview with someone whose company is deep in the red. A practical lesson in the supposed benefits of socialism. As for the rest of us, while Obama is soaking the “rich” oil companies, we’ll be paying the higher gas prices they pass along; while he’s sticking it to those who grow and distribute foodstuffs, we’ll be getting it in the neck at the supermarket. These people just don’t get it - what goes around comes around.
I tried to post an article about this but my source is not allowed here at Free Republic
Yet many of these morons voted for Lord Obama. It’s like the Obama voters at gun shows asking what should they buy before confiscation. IDIOTS!!
Bull! My life’s goal since the bailout is to cheat the government in any way I can. obammy just re-enforces my life’s goal...
“The worst thing about McCain was in his inability to educate the American sheeple about these facts.”
That’s what we get for running a limp liberal against a hard core Marxist.
Time to start investing in home safes. Just put your money where the feds can’t get it.
I say that in jest.
These plans had so many nuggets that made the tax code flatter.
For instance will they get rid of the generous child deductions?
The part of the 2001 bill that allowed folks on SSI disability to actually save?
Or the pariaty in the 2003 plan that took small business deductibility of Medical Insurance to a pariaty of 100% up from 50%.
So many middle of the road Americans have no clue what they did to themselves IF the entire tax plans of 2001 and 2003 are repealed....
Thou shalt not steal — the government hates competition.
The filthy rich should flee to Dubai and take their capital with them. That’s what I would do if I had that much money.
Under Obama’s term,he will eliminate some non-profit organization tax exemptions,such as churches and volunteer groups.Insane!
And SCOTUS said that was just fine.....
L
Here comes the bill, Yuppie Obama voter.
It looks like my wife and I will miss the mark by about $25k. Of course, that’s assuming a lot.
"Nah Nah Nah NOT God bless America! Barak TAX America!"
It's like one of those scenes from a movie where the locusts look like a dark cloud from a distance then as they get closer you run for cover as they swarm in and leave everything stripped and then fly off.
I guess reparations for slavery will be paid after all, just not the way we expected it.
“The Dow is going to drop another 2000 before the end of the year as everyone cashes before 2009.”
Good ... I hope your right. There will be a lot of Whos crying down in Whoville this Christmas.
this might be a really dumb question, but maybe a Freeper can educate me. Is O going to tax the gross or the net income over $250K???
It will never see the light of day, at least in the next 4 years.
A middle-of-the-roader like McShame attracted similar, i.e., mediocre people to his campaign. Having for a while wondered about while he cannot articulate well-known facts, I came to conclude that there was nothing strategic about it: the issue was above his and his staffers’ heads.
yeah, that’s what I don’t understand
Do you have a reliable source for that statement, or is it just speculation?
Sell Mortimer Sell!!!!!!!
People are buying safes...stores can’t keep safes in stock....amazing ...some probably voted for him and then the kool aid wore off and thought holy ghit!
Great. The last thing this country needs right now is for all of the capital to flee. But I don’t blame them one bit.
offshore accounts are a cute idea, but there are multiple problems with them.
First, if you do not declare your income from overseas you are literally looking at jailtime. Remember all those 9/11 bank cooperatives that were established by the gov’t for terrorism? Don’t think for a minute that they can’t use them for IRS audits.
I personally am looking at possibly collecting a bundle of licensing fees from a company in Hong Kong in 2009. I threw the idea at my CPA of hiding the income in a Hong Kong shell until I a) need it or b) feel the tax laws are friendly here. At either point, the shell would pay my US corp for consulting/licensing.
Guess what? The US tax law takes care of loopholes like that. You are breaking the law in an obvious way, assuming they can find the linkage between you and the shell or the offshore bank.
The fact is, the only way around US tax law is to renounce your citizenship. At that point, they don’t have their hooks in you anymore.
Personally, I would rather pay 5-10% extra and not worry about confiscatory tax penalties and possible jail time.
IF they change the s-corp law to apply FICA/Medicare to dividends, my opinion may change.
It’s like the Obama voters at gun shows asking what should they buy before confiscation. IDIOTS!!
Are you serious??
I read somewhere here on FR about YAHOO taking its assets offshore to avoid corp tax rates here (40%) ..... and evidently other corporations do this.....
I’m fully expecting a change in our currency. That will eliminate all possibility of people ‘hiding’ money from them.
God I hope I’m over re-acting
But it will not be a currency of coins or pieces of paper. You'll have a chip planted under your skin with all that financial information contained on it. No way to hide anything!
And I'll be quitting one of my jobs in January.
But it will not be a currency of coins or pieces of paper. You’ll have a chip planted under your skin with all that financial information contained on it. No way to hide anything!
You are absolutely right....and we are screwed. I will never allow a ‘chip’.
You are forgetting about the exit fee. If you renounce your citizenship and move your assets, you must pay an exit tax. I suppose the IRS will have to collect the tax somehow. If you intend to return to the US, the IRS could probaly catch up with you.
Perhaps a larger impact on the anti investor policies (tax, labor laws, environment regulations, litigation encouragement, energy, ...) is foreign investment and trade wars. Foreign investors are smarting from the mortgage crisis. They will reduce investment even more if these anti investor policies are implemented. I also see trade wars brewing. The US has complained for many years about subsidies to Airbus. The subsidies that are now being thrown to the auto industry dwarfs the European subsidies. Obama is also promising punishment of companies that do not employ sufficient numbers of Americans and subsidies for companies that increase domestic hiring. I see retaliation and trade wars.
The difference is that they have many shareholders and is a public company. US tax law has some clever ways of identifying shell corps. The way I remember it, if a privately held corp is majority owned by US citizens and there are less than X (dunno the number) shareholders, you better declare any income. — something like that anyway.
thanks...I get it...the little guys are screwed.
Then how will you buy food? Pay your rent or mortgage? Fly on a plane? Pay your taxes? Drive more than a certain distance beyond your home? Do your banking?
The lack of a chip indicates that you are not "of the people".
I agree. We can tell that his staffers were ‘moderates’ (code for pretending to be conservative) because they acted like liberals when they lost by spreading BS about Governor Palin. True conservatives would not behave that way.
Does his “hiring Americans” include forcing employers to kick out illegals and hire citizens?
We heard "The One" incorrectly... It was NOT Hope & Change! What he actually said was NOPE & CHAINS!
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