Category Archives: Dollar

Income Tax: Why 70 Million Americans Don’t Pay Uncle Sam a Dime — Politics Daily

By midnight Thursday, about 150 million Americans will have buckled down and filed their annual federal income tax returns, and the IRS will begin collecting nearly $1 trillion in revenue from these individuals.

While you struggle to meet your deadline, consider that although the law requires you to file a tax return, more than 70 million of your fellow filers will not owe a single penny to Uncle Sam. As the latest news from the non-partisan Tax Policy Center shows, a record 47 percent of tax filers will have no federal income tax liability this year.

You may wonder, how is this possible? And, more importantly, how can I join this group?

There are many legal ways to reduce your income tax liability to zero. Of course, there are many illegal ways as well, but there’s no sense in breaking the law. Not filing a tax return can get you into big trouble. Two years ago, the actor Wesley Snipes was sentenced to three years in jail and required to pay up to $17 million in back taxes plus penalties and interest because he didn’t file his tax return for three years.

via Income Tax: Why 70 Million Americans Don’t Pay Uncle Sam a Dime — Politics Daily.

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Moneynews – Professor: Huge Deficit Will Cause Dollar to Collapse

The federal deficit may soon cause a “collapse” of the dollar, Stanford University economics professor Scott S. Powell writes. In an opinion piece in The New York Post, Powell notes that the ratings agency Fitch just cut Portugals bond rating to AA negative — a clear sign that the insolvency crisis that began in Greece is far from over. “And dont think its merely a problem for the European Union. In fact, a debt-driven collapse of the dollar may be closer than most Americans realize,” he writes. Before the government bank bailouts, gross federal debt was 70 percent of gross domestic product GDP. “Its now estimated at about 90 percent of GDP. Add in the $1.6 trillion debt liability of Fannie Mae and Freddie Mac, and were already at that 100 percent debt-to-GDP tipping point,” writes Powell. “No, the United States isnt Greece: For a host of reasons, we can probably get away with higher debt. But our problem is about to grow worse.”Right now, low interest rates make federal borrowing seem cheaper than it actually is — because those interest rates wont stay at zero forever.“And when rates head back to normal, Uncle Sams borrowing costs could easily double. We spend 11 percent of the current budget — $382 billion — on debt service; that could rise two- or three-fold to more than $800 billion, warns the CBO,” says Powell. Adding to the pressure on the dollar — inflation related to new job creation once the economy really starts to expand, reports CNNMoney.© Moneynews. All rights reserved.

via Moneynews – Professor: Huge Deficit Will Cause Dollar to Collapse.

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The Tax Foundation – Basic Facts on Redistribution and the Impact of Obama’s Policies

Introduction

The debate over taxing high-income families to fund the expansion of health care coverage in America has renewed the broader question of government’s role in redistributing income through tax and spending policies. What is missing from this debate is some hard numbers on how much current tax and spending policies redistribute income from some Americans to others and how much the policies advocated by the Obama Administration will change the overall amount of redistribution.

The Tax Foundation’s “Fiscal Incidence” project has filled this void by first calculating how much current tax and spending policies are redistributing, then estimating how much President Obama’s policies—from taxes to health care to climate change—will alter that redistribution. Simply put, the Fiscal Incidence Model[1] compares the total amount of federal taxes families pay (such as income taxes, excise taxes, payroll taxes, etc.) to the total amount of government spending they receive (such as entitlement benefits, defense spending, public works, etc.).

How the Money Comes and Goes

We divide American families into ten equal groups by income level, and at the top end of the spectrum, we are able to break that 10 percent down into smaller groups. In general, as anyone would expect, families who earn more pay more in taxes than they receive in benefits while families who earn less receive more in federal spending than they pay in federal taxes. These individual results are then summed up into a national picture of how much tax and spending policies redistribute income from some American families to others.

READ THE REST OF THIS ARTICLE HERE:  The Tax Foundation – Basic Facts on Redistribution and the Impact of Obama’s Policies.

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Is America’s AAA Rating in Trouble?

America’s current predicament is that it borrows money from countries or individuals to finance many of its expensive obligations, including financing the $862 billion stimulus bill as well as the wars in Iraq and Afghanistan. But what would happen if America had to pay higher interest rates on all future borrowing? This is the question that some people in the federal government have to ponder, as influential rating agencies such as Standard & Poor’s and Moody’shave both recently voiced their view that America’s AAA rating is not guaranteed or in fact even assured. The massive and growing debt obligation makes some professionals question whether this country’s rating may soon be lowered.

Read the rest here: Is America’s AAA Rating in Trouble? | The Foundry: Conservative Policy News..

FOR MORE ON THIS TOPIC SEE:

Obama Pays More than Buffet as US Risks AAA Rating

Growing Debt Could Cost US it’s AAA Rating

Moody’s Puts US, UK on Chopping Block

US Likely to lose its AAA Rating: Prechter

US Ratings fears surface on UK negative outlook

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