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Posts Tagged ‘wsj’

Seminal moment in the Nitti household this weekend. I found a $5 bill shoved between the couch cushions. Oh, and my 3-year old boy learned to ride a bike. But how ’bout that fiver, huh?

The VP debate gets the SNL treatment.

S corporation sells substantially all of its assets on the installment method with contingent earn-out payments; IRS grants seller right to use special method to allocate basis to payments received when it is clear a portion of the earn-out payments will not be received.

The WSJ reminds us that the employee’s share of payroll taxes will return to 6.2% from 4.2% on January 1, 2013, and is kind enough to provide a calculator you can use to determine how much cash will be missing from your paychecks next year.

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Boy, that Tebow trade has really added a dynamic new element to the Jets’ offense, no?

A few pictures from a Sunday spent in and around Leadville, CO, the highest (think altitude, not reefer) incorporated city in the U.S.

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So this is why my college years were so lonely. All the chicks with loose morals were economic majors.

If everyone’s so fired up about the 47% of Americans who don’t pay income tax, perhaps we should tax them. Howard Gleckman has five ways you could do it. His most novel suggestion: fix the economy and get people working again.

Hey, maybe Romney’s plan to cut rates while keeping tax revenue level is possible. After all, it worked for Reagan.

From the WSJ: Is your political contribution tax-deductible?

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I pulled into the driveway Saturday night to find a bear munching on crab apples in my front yard. I believe this clip from The Simpsons accuratley reflects my cool, composed reaction:

The bears have been everywhere this fall, having been forced by a dry spring and summer to leave the highcountry and venture into human populations in search of the berries necessary to fatten them up for a winter’s rest. This, naturally, has led to numerous bear-human interactions, some of which have ended badly. A few of us concerned citizens implored City Hall to do something about the situation, but our catchy slogans were to no avail:

On to the tax stuff:

An interesting read on the tax obligation of those Facebook  employees who received restricted stock units pursuant to the recent IPO.

The WSJ has the first of what is likely to be many discussions on this topic: what should investors do with stock holdings given the uncertainty surrounding 2013 capital gains tax rates?

Also from the WSJ: Here’s more information that you’d ever care to know about the evolution of the personal income tax rates from 1945 to today. Most interesting tidbit: the average tax rate for the top 0.1% of taxpayers has plummeted from 55% in 1945 to approximately 26% today.

Albert Hunt at Bloomberg questions the political feasibility of Mitt Romney’s proposed base broadening.

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My father-in-law came to visit this week, and over Friday night pizza, the conversation turned to politics; specifically, Mitt Romney’s much-ballyhooed 13.9% effective tax rate in 2010.

Being a tax guy, I wanted my father-in-law to understand exactly why Romney’s rate was so low given his $21,000,000 of AGI, which required a primer on the taxation of carried interest. [For your own primer, click here.]

As the discussion advanced, my father-in-law understandably struggled to understand why the profits received by private equity fund managers on their carried interest were taxed any differently than, say, the wages he earned over his 40-year career working for an insurance carrier.

Even after I advanced the standard arguments for a 15% rate on carried interest — the equity fund manager’s risk, the uncertainty of the profit stream, the “sweat equity” element, etc… — my father-in-law’s opinion remained blissfully simple:

“It still sounds like compensation to me.”

Now, my father-in-law is a staunch Republican in every way, shape and form. But yet, he failed to see how a 15% tax rate is justified on the income received by fund managers to do what they do: manage funds. Of course, my father-in-law is not the final arbitrator on such matters: after all, this is the same man who once advised me to buy a house located squarely within the Delaware River’s floodplain.

So perhaps you should decide for yourself. To facilitate your decision-making process, the Wall Street Journal has published this point/counterpoint on the carried interest tax issue, with Michael Graetz, a professor of tax law at Columbia Law School, arguing for carried interest to be taxed as ordinary income, while David Tuerck, executive director of the Beacon Hill Institute and a professor and chairman of the economics department at Suffolk University in Boston, argues that the preferential capital gains rates should be preserved.

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