Tag Archives: tax code

Millions of People Face Stimulus Check Delays for a Strange Reason: They Are Poor

The IRS has had trouble getting money to people quickly because millions of Americans pay for their tax preparation through a baroque system of middlemen.

By Paul KielJustin Elliott and Will Young. Published 4-24-2020 by ProPublica

Image: Jernej Furman/flickr/CC

Last week, a group of angry and desperate Citi Tax Financial customers gathered outside the company’s storefront in Augusta, Georgia. Millions of Americans had received a big deposit from the IRS in their bank accounts, but they had not. The IRS website told them their coronavirus stimulus checks were deposited in an account they didn’t recognize.

With an officer from the Richmond County Sheriff’s Office beside him and another officer shouting for people to be quiet, the tax preparation company’s owner told the crowd of about 60, only a few of whom wore masks, that he didn’t have their money. Continue reading

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Trump Call for Permanent Payroll Tax Cut Is “Code for Gutting Social Security’s Dedicated Funding,” Say Critics

“Nothing to do with helping workers and everything to do with undermining Social Security.”

By Jake Johnson, staff writer for Common Dreams. Published 4-8-2020

Treasury Secretary Steven Mnuchin and President Donald Trump at a Tax reform press briefing October 31, 2017. Screenshot: YouTube

President Donald Trump on Tuesday once again voiced his support for slashing the payroll tax—the primary funding mechanism for Social Security and Medicare—and said he would be calling for such a cut even if the U.S. were not currently in the midst of a nationwide public health and economic emergency.

“I would love to see a payroll tax cut,” Trump, who has repeatedly vowed to “save” Social Security, said at the end of the Coronavirus Task Force briefing Tuesday evening. “I think on behalf of the people it would be quick… There are many people who would like to see it as a permanent tax cut.” Continue reading

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Trump, Granting Lobbyist Demands, Quietly Handed Billions More in Tax Breaks to Huge Corporations: Report

“Trump is the most corrupt president in history, and here’s the latest example of how that corruption helps giant corporations.”

By Jake Johnson, staff writer for Common Dreams. Published 12-30-2019

Treasury Secretary Steven Mnuchin and President Donald Trump at a Tax reform press briefing October 31, 2017. Screenshot: YouTube

A “disturbing” New York Times story published Monday detailed how President Donald Trump’s Treasury Department, led by former Goldman Sachs banker Steve Mnuchin, has quietly weakened elements of the 2017 tax law in recent months to make it even friendlier to wealthy

individuals and massive corporations.

Lobbyists representing some of the largest corporations in the world, the Times reported, targeted two provisions in the original 2017 law designed to bring in hundreds of billions of dollars in revenue from companies that had been dodging U.S. taxes by stashing profits overseas. Continue reading

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IRS: Sorry, But It’s Just Easier and Cheaper to Audit the Poor

Congress asked the IRS to report on why it audits the poor more than the affluent. Its response is that it doesn’t have enough money and people to audit the wealthy properly. So it’s not going to.

By Paul Kiel. Published 10-2-2019 by ProPublica

Charles Rettig testifying at his confirmation hearing on June 28, 2018. Screenshot: C-SPAN

The IRS audits the working poor at about the same rate as the wealthiest 1%. Now, in response to questions from a U.S. senator, the IRS has acknowledged that’s true but professes it can’t change anything unless it is given more money.

ProPublica reported the disproportionate audit focus on lower-income families in April. Lawmakers confronted IRS Commissioner Charles Rettig about the emphasis, citing our stories, and Sen. Ron Wyden, D-Ore., asked Rettig for a plan to fix the imbalance. Rettig readily agreed. Continue reading

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Bolstered by Trump Tax Scam, Number of US Corporations Paying ‘Not a Dime’ in Federal Taxes Doubled in 2018

“Corporations zeroing out their tax bills or paying single-digit federal tax rates mean a substantial loss in federal revenue. Calls to cut critical programs and services in the wake of these corporate tax cuts are absolutely connected.”

By Eoin Higgins, staff writer for Common Dreams. Published 4-11-2019

Steve Mnuchin, Mike Pence and Gary Cohn watching the Senate vote on the 2017 tax bill. Photo: White House

A new analysis out Thursday shows that tax policy under the Trump administration is benefitting large corporations to such a degree that twice as many large companies will pay nothing in federal taxes for 2018 compared to previous years.

The report by the Institute on Taxation and Economic Policy, which comes less than a week before tax day in the United States on April 15, found that 60 companies—including Amazon, Netflix, Activision Blizzard, General Motors, and IBM—used “a diverse array of legal tax breaks” to bring their federal tax liability to zero. Continue reading

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A Year After ‘One of the Greatest Heists in US History,’ Survey Confirms Corporate Tax Cuts Didn’t Lead to Hiring and Raises for Workers

“The GOP Tax Scam was always about making the wealthy and big corporations richer while leaving millions of working families behind.”

By Julia Conley, staff writer for Common Dreams. Published 1-28-2019

A poll released Monday confirmed that corporations’ financial windfall following the passage of the Republican tax plan in 2017 did not lead to corporate investment in jobs and raises. (Photo: @zacjanderson/Twitter)

The release of a new survey on Monday confirmed that corporations used the $1.5 trillion giveaway in the Republicans’ 2017 tax plan for their shareholders and top executives—not their workers or reinvesting in their businesses.

The National Association of Business Economics’ (NABE) quarterly poll found that 84 percent of companies were not ramping up spending in the form of hiring, raises, and other capital investments. Continue reading

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States are on the front lines of fighting inequality

 

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Rally in support of raising the minimum wage in University City, Mo. AP Photo/Jeff Roberson

Christopher Witko, Pennsylvania State University

When Democrats regained control of the U.S. House of Representatives, Alexandria Ocasio-Cortez, D-N.Y., almost immediately took aim at America’s growing income inequality by recommending a 70 percent tax rate on income over US$10 million.

Income inequality refers to the unequal distribution of income between the rich and poor.

Inequality in the U.S. has dramatically increased since the 1970s, under both liberal and conservative administrations in Washington. And the kind of policy Ocasio-Cortez is proposing will be impossible to pass with the polarized politics in Washington D.C. Continue reading

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‘A Staggeringly Bad Idea’: Outrage as Pelosi Pushes Tax Rule That Would ‘Kneecap the Progressive Agenda’

“This is a very bad idea, House Democrats. It makes no sense whatsoever to give Republicans veto power over progressive legislation.”

By Jake Johnson, staff writer for Common Dreams. Published 11-16-2018

Nancy Pelosi. Photo: Gage Skidmore/flickr

Nearly three-quarters of the American public and a historic number of Democratic lawmakers support Medicare for All, but the House Democratic leadership is considering using its newly won majority to impose a rule that would “recklessly betray” the grassroots forces that put them in power by making single-payer and other progressive priorities impossible to enact.

According to a list of Democratic proposals obtained by the Washington Post, House Minority Leader Nancy Pelosi (D-Calif.)—who is currently fighting back against efforts to prevent her from becoming House Speaker—is pushing for a rule that would “require a three-fifths supermajority to raise individual income taxes on the lowest-earning 80 percent of taxpayers.” Continue reading

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“You Can’t Eat GDP”: Reminder That Most Workers Are Struggling as Trump and Corporate Media Tout Economic Growth

“Any administration would tout a strong GDP report like today’s, but if it’s not reaching workers’ paychecks, which it isn’t, then cease the applause.”

By Jake Johnson, staff writer for Common Dreams. Published 7-27-2018

Photo: SEIU/Twitter

As President Donald Trump and corporate media outlets on Friday enthusiastically touted new GDP figures showing that the U.S. economy grew by 4.1 percent in the second quarter of 2018, many economists and progressive commentators were quick to counter the glowing headlines by pointing out that corporations and the rich are feasting on most of the growth while workers see their wages fall.

“What the president won’t talk about is that there is slow—and even negative—growth in real wages adjusted for inflation. So if GDP is rising, but wages [are] falling, the money is going to the top,” Timothy McBride, a health economist at Washington University in St. Louis, noted in response to Trump’s celebratory speech on the White House lawn on Friday. Continue reading

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Trump’s Company Is Suing Towns Across the Country to Get Breaks on Taxes — “Trump, Inc.” Podcast

 

Why is Trump’s business arguing its properties are worth just a fraction of what Trump has claimed they are on his own financial disclosures? To save on taxes.

By Katherine Sullivan. Published 4-11-2018 by ProPublica

Find “Trump, Inc.” wherever you get your podcasts.

President Donald Trump is famous for bragging about his net worth. Publicly, he claims he’s worth more than $10 billion. He even sued an author over the issue and lobbied the editors of Forbes about his ranking on their billionaires list.

Yet quietly in another setting, the Trump Organization says the president’s holdings are worth far less than he has proclaimed. Across the country, the Trump Organization is suing local governments, claiming it owes much less in property taxes than government assessors say because its properties are worth much less than they’ve been valued at. In just one example, the company has asserted that its gleaming waterfront skyscraper in Chicago is worth less than than its assessed value, in part because its retail space is failing and worth less than nothing. Continue reading

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