“Every time I thought I'd got it made it seemed the taste was not so sweet.” How will the bottom line change for some taxpayers in Kansas? Beginning July 1, some will see changes in their paychecks. The legislature passed the largest tax increase in state history last week, retroactive to January 1. An estimated 330,000 Kansas businesses that were not paying taxes under the plan enacted in 2012 at the urging of Governor Sam Brownback will start paying next month. Limited liability corporations, sole proprietorships and S corporations will no longer be exempt from the state’s individual income tax.
“Don’t want to be a richer man. Just going to have to be a different man.” Apple and Pfizer would enjoy an accounting windfall under one of President Trump’s tax ideas. In contrast to firms such as Microsoft or Exxon-Mobil, both companies created “deferred tax liabilities” on their balance sheets. The line item reflects the 35 percent tax rate they expect to pay on accumulated offshore income. If Congress cuts the rate to 10 percent on US companies’ earnings held overseas, Apple and Pfizer will shine up their financial statements.
“I watch the ripples change their size but never leave the stream.” Is the soda tax hurting Philadelphia? The city began to levy a 1.5-cent-per-ounce tax on sweet drinks on January 1. Critics warned that the tax could drive industry-related jobs out of the city. But wage tax collections from beverage-related businesses grew in the first quarter of the year compared to the same period in 2016. Taxable wages rose 10 percent or more in take-out restaurants and even at soda and ice manufacturers.
“Where's your shame? You’ve left us up to our necks in it.” The troubled California Board of Equalization faces changes after an audit revealed it misallocated tens of millions of dollars of tax revenue. Governor Jerry Brown and Democratic legislative leadership support a new office of administrative law judges to hold tax appeal hearings. They’d also reduce the power of the BoE by shifting its involvement in day-to-day oversight of tax collections to a new Department of Tax and Fee Administration.
“So the days float through my eyes, but still the days seem the same.” Another way to see President Trump’s tax returns? Maryland and the District of Columbia have sued the president for violating the Constitutional ban against using the White House to make money from foreigners. As part of discovery in their suit, expect them to try to gain access to Trump’s returns.
“Time may change me, but you can't trace time.” Deadline reminder to US expats: The IRS reminds taxpayers living and working abroad that they must file their 2016 federal income tax return by Thursday, June 15. This deadline applies to both U.S. citizens and resident aliens abroad, including those with dual citizenship. The new deadline applies to anyone with a foreign bank or financial account who files an annual report for these accounts, often referred to as an FBAR.
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