Paul Ferraresi

Congress is on the hunt for revenue raisers. Watch your wallet. Call your lobbyist

Comments by Paul Ferraresi:

In all my teaching seminars I ask the class if they think tax rates in the future will be higher, lower, or the same. An overwhelming majority always say higher why? They answer… the war on terror will continue for 25-30 years, present budget deficits, baby boomers beginning to extract from Social Security and Medicare and so forth. In addition, the cycle of taxes goes from high (Carter years) to low (Reagan years) to high (Clinton years) to low (Bush Jr. Years). What’s the next cycle?

Here is an excerpt from a recent Forbes article. See the slight of hand starting. I expect over 200 more moves like this will come in the next year. Hold on to your wallets. Remember, you asked for it last November with your vote (or not voting). Read the rest of this entry »

It’s no joke: Cutting taxes for the rich actually raised them

What’s the best way to raise taxes on the rich? Cut their tax rates. It sounds like a joke, but it’s the most sensible way to read the results of the past six years of U.S. tax policy. After the Bush administration and Congress reduced the top marginal rates, the people with the highest incomes shouldered a larger share of the tax burden.

It’s quite a burden, by the way: Fiscal 2006, which ended on Sept. 30, was the first year that the individual income tax took in more that a trillion dollars-$1,043,908,000, according to the latest report of the U.S. Treasury’s Financial Management Service. Read the rest of this entry »

Here are some tax ideas that can save you a bundle. The laws are always changing.

Junk Isn’t Deductible

Think twice before trying to deduct that rusty old bike or the tattered clothes you gave to charity. Under the new rules, any household items or clothing you gave away after August 16, 2006, must be in good condition to be deductible.

The rule does not defined good condition. “To be safe, when you give to a charity have them identify on your receipt that the stuff was in good condition,” says Lisa Osofsky, an accountant at Weiser in New York. Read the rest of this entry »

Everyone hates paying taxes but no one does anything about it. Why do you and most other people wait until April 15th to do tax planning? That is like planning a cruise vacation after the ship has sailed. Get started now with your tax planning before the year end holiday parties consume your time. Remember a tax dollar you save is “yours to keep”.

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