Walloch & Associates
A firm specializing in taxation in Redlands, California
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Proposed Legislation: American Jobs & Closing Tax Loopholes Act
Oh boy! More new taxes and more new tax bills are on their way in 2010 just for you the American taxpayer.
Congress is struggling with what to do about the Federal Estate Tax, the Alternative Minimum Tax and the extension of expiring tax provisions.
Proposed tax legislation currently being considered by Congress is entitled the “American Jobs & Closing Tax Loopholes Act of 2010”.
Both the House of Representatives as well as the Senate have slightly differing versions of this proposed legislation.
The Health Care Act - A Direct Assault on Seniors
The new Health Care Act is a direct assault on seniors. Barack Obama stated that “The chronically ill and those toward the end of their lives are accounting for potentially 80 percent of the total health- care bill out here.”
The problem is his perception of “those toward the end of their lives”. It seems that seniors and “baby boomers” are included in his “end of their lives” targets. One is reminded of the movie “Logan’s Run” in which those reaching age 30 were deemed to be at “the end of their lives”.
Tax Day April 15: Just Around the Corner!
The deadline looms for filing your 2009 Federal and California income tax returns. They are due on Thursday, April 15, 2010, along with any balance due.
If you are unable to file your 2009 federal income tax return by April 15 you can now request an automatic six-month extension of time to file your tax return until October 15, 2010 by filing Form 4868. You do not need a reason for the extension nor a signature on Form 4868 which must be filed on or before April 15.
Let’s Take Grandma Bungee Jumping or the Estate Tax Conundrum
The Federal Estate Tax is a mess. Congress was on the verge of passing an estate tax “patch” which would have continued the 2009 rules of a $3.5 million exclusion and a top tax rate of 45% into 2010. Congress failed to do so. A local estate planning attorney dubbed this failure Congressional malpractice.
Technically speaking, so far in 2010, there is no Federal Estate Tax. We have a temporary repeal of the estate tax for one year. Thus, it appears that anyone dying in 2010 will not be subject to any federal estate tax.
The Health Care Bill from Hell
The Senate has passed the Health Care bill from Hell. It is filled with new taxes both direct and indirect.
The Wall Street Journal recently reported: “The best and most rigorous cost analysis was recently released by the insurer WellPoint, which mined its actuarial data in various regional markets to model the Senate bill. WellPoint found that a healthy 25-year-old in Milwaukee buying coverage on the individual market will see his costs rise by 178%. A small business based in Richmond with eight employees in average health will see a 23% increase. Insurance costs for a 40-year-old family with two kids living in Indianapolis will pay 106% more”.
Taxes, Taxes and More Taxes
Oh my goodness, we have taxes, taxes and more taxes on the way. The President recently signed two additional tax acts in November and at least two additional tax proposals may pass in the last few weeks of 2009.
The Worker, Homeownership, and Business Assistance Act of 2009 passed on November 6, 2009.
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