In the summer of 2008, William Pfeil made a startling discovery: Hundreds of foreign companies that operated in the U.S. weren’t paying U.S. taxes, and his employer, the Internal Revenue Service, had no idea. Under U.S. law, companies that do business in the Gulf of Mexico owe the American government a piece of what they make drilling for oil there or helping those that do. But the vast majority of the foreign companies weren’t paying anything, and taxpaying American companies were upset, arguing that it unfairly allowed the foreign rivals to underbid for contracts.Pfeil and the IRS started pursuing the non-U.S. entities. Ultimately, he figures he brought in more than $50 million in previously unpaid taxes over the course of about five years. It was an example of how the tax-collecting agency is supposed to work.But then Congress began regularly reducing the IRS budget. After 43 years with the agency, Pfeil—who had hoped to reach his 50th anniversary—was angry … [Read more...] about The Golden Age of Rich People Not Paying Their Taxes
Indiana pay taxes
ASHEVILLE – The tax reform bill that passed Congress last week reduces two significant incentives for giving to nonprofit organizations, and local charities are waiting anxiously to see whether it affects donations. Millions of Americans who get a tax break in return for giving to nonprofits, churches and other religious organizations will see the value of that deduction disappear when the new law goes into effect Jan. 1. Their tax bill will be lower if they take the new, higher standard deduction on their tax return instead of itemizing deductions like charitable contributions. Another change, which will probably have less of an effect, eliminates a reason for a much, much smaller number of people to reduce the amount of estate taxes levied on their assets when they die by willing money to charity. Those moves have leaders of some nonprofits nervous, although some are more optimistic about future giving than others. The new law "really … [Read more...] about New tax law scales back reward for giving, local charities concerned
The Supreme Court ruled in June that states can charge sales tax on online purchases, a decision that settled a longtime dispute and created a lineup of new ones. The case was South Dakota v. Wayfair, and it reversed a 1992 court decision, Quill Corp. v. North Dakota, that said a business couldn’t be forced by a state to collect sales taxes unless the business had a physical presence within the state. The in-state presence was called a "nexus.” It could include everything from a brick-and-mortar site to a one-time craft fair. If a business had a nexus it could plan on the state expecting its sales tax cut. Over time it became clear that some online businesses were quite literally, if unintentionally, being assigned a competitive advantage from the standpoint of not having to charge a sales tax as well as being incentivized to avoid establishing a physical presence in a state. As Justice Anthony Kennedy wrote in Wayfair, “Remote sellers can avoid the regulatory … [Read more...] about Jimmy Rodefer: Online sales taxes in the state’s court
Facebook Twitter Google+ LinkedIn Hoosier legislative session kicks off Fullscreen Posted! A link has been posted to your Facebook feed. Brian Bosma, walks the aisle after being introduced as Speaker of the House on the day of the start to the legislative session, Indiana Statehouse, Indianapolis, Tuesday, Nov. 20, 2018. Robert Scheer/IndyStar Fullscreen J. D. Ford, a new state senator, is sworn in on the first day of the legislative session, Indiana Statehouse, Indianapolis, Tuesday, Nov. 20, 2018. Robert Scheer/IndyStar Fullscreen Rep. Chris Chyung, on the day of the start to the legislative session, Indiana Statehouse, Indianapolis, Tuesday, Nov. 20, 2018. Robert Scheer/IndyStar Fullscreen Rep. Cherrish Pryor on the day of the start to the legislative session, Indiana Statehouse, Indianapolis, Tuesday, Nov. 20, 2018. Robert Scheer/IndyStar Fullscreen Brian Bosma is sworn in as Speaker of the House at the start … [Read more...] about Meet Rep. Chris Chyung, Indiana’s first Asian-American state lawmaker
As the famous saying asserts, taxes, along with death, are one of the only certainties in life. Though most people resent paying taxes, these payments are necessary to facilitate civilization. Taxes fund roads, schools, and the military -- among many other services -- while also ensuring the government continues to function. Everyone is affected by taxes in some way, but not everyone is taxed equally. Local governments can levy taxes on their citizens through property taxes, sales taxes, income taxes, and other means — however, the government thinks it can best obtain the funding it needs. These decisions can lead to large differences in the tax burden of residents in different areas. There is a wide range in the percentage of each county’s income that goes to taxes. Putnam County, New York, has a relatively low median annual household income of about $33,000, but the average annual tax bill in the county exceeds $12,624, meaning that more than 38 percent of residents' … [Read more...] about Which county in your state has the highest tax rate burden?