Two big, related stories today:
- Taxing overseas profits will come up $50 billion short.
- A new health care bill will require $600 billion in new taxes.
The IRS has announced an overhaul of their tax preparer regulations. This comes at a time when a tough economy makes scams more attractive. At the same time, the possibility of a safe income from preparing taxes has encouraged less qualified people to join the industry. The IRS’s attention to this issue makes sense, but there are more questions about their actual plan.
States are facing unprecedented budget deficits, as sales, real estate, and income tax revenue evaporate. From California to New Jersey are raising taxes, cutting benefits, and scrambling to borrow the money they need to pay the bills.
As CNN reports on tax hikes:
Already, 16 states have taken this unpopular step this fiscal year, and another 17 have proposed tax hikes for the coming year, according to the Center on Budget and Policy Priorities, a policy group. In many cases, they are making small increases in specific taxes, rather than imposing a broad rate hike.