Tag Archives: taxes

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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Washington’s recession-fighting toolbox is nearly empty as US economy braces for possible coronavirus outbreak

A wrench may not be enough. mipan/Shutterstock.com

Bill Ferguson, Grinnell College

Investors, policymakers, businesses and the general public are increasingly concerned the coronavirus’ rapid spread will lead to a recession. While this outcome is hard for economists like me to predict, we do know one thing: The U.S. is not prepared to fight a deep recession.

Policymakers basically have two methods for reversing a downturn: monetary stimulus, primarily through reduced borrowing costs; and fiscal stimulus, when the government spends more or cuts taxes.

Unfortunately, the U.S. currently has dim prospects for success with either option. 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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‘Like Nominating Dr. Phil to Run CDC’: Alarm Bells as Trump Nominates Right-Wing Sycophant Stephen Moore to Federal Reserve

Concerned economic and political commentators decried Moore as “a famous idiot” who “has proved deeply impervious to facts.”

By Jessica Corbett, staff writer for Common Dreams. Published 3-22-2019

President Donald Trump said Friday he will nominate right-wing commentator Stephen Moore to the Federal Reserve board. (Photo: CBN)

Economists and progressive experts responded with exasperation and unease on Friday after President Donald Trump said he will nominate right-wing commentator Stephen Moore to the Federal Reserve, the gatekeeper of the nation’s economy.

“I will be nominating Mr. Moore for the Fed. You know who I’m talking about,” Trump told reporters while arriving in Florida for the weekend. “He’s going to be great on the Fed.” 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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More Than a Thousand Arrested as Yellow Vests Protests Over Economic Frustration Rage on Across France

“The Gilets Jaunes that you see in the streets,” said one organizer, “they’re being bled dry financially. The wealth gap is getting wider, and we’ve reached a point where there are the very rich and the very poor.”

By Jessica Corbett, staff writer for Common Dreams. Published 12-9-2018

Some 1,220 people were arrested in France on Saturday as more than a hundred thousand took to the streets—leading to a lockdown and armored vehicles pouring into Paris—as part of the “Yellow Vests” or “Gilets Jaunes” movement that initially came as a response to French President Emmanuel Macron’s attempt to raise taxes on gasoline and diesel, which critics warn would primarily impact the working- and middle-class.

The movement’s name comes from many supporters wearing the yellow high-visibility vests that all drivers in France are required to keep in their vehicles. Although Macron’s centrist administration announced last week that it was suspending fuel and electricity hikes for six months, outrage over growing inequality across the country has continued to produce massive protests. 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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Analysis: Major Corporations Have Spent Just 6% of Tax Cut Windfall on Workers. Guess Where the Other 94% Went.

“You mean corporations aren’t using the bulk of their tax cuts to create jobs and boost workers’ wages like Trump promised? Weird…”

By Jake Johnson, staff writer  for CommonDreams. Published 2-28-2018

White House National Economic Council Director Gary Cohn and Treasury Secretary Steve Mnuchin. Screenshot: YouTube

Almost everyone—nonpartisan commentatorseconomists, and even President Donald Trump’s chief economic adviser—predicted that corporate shareholders and CEOs, not workers, would be the primary beneficiaries of the Republican tax law, and several recent analyses have shown that prediction to be right on the money.

While many corporations immediately launched aggressive PR campaigns crediting the tax plan Trump signed in December with new “investments” in employees, a study by the nonprofit group JUST Capital published on Wednesday found that the sensational headlines touting worker bonuses obscured the fact that the vast majority of the law’s benefits have gone straight to the pockets of wealthy shareholders. Continue reading

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