Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Miller who wrote (1176)	7/23/1998 1:06:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Well for him to sign it our Congressmen had to write it! I think it's all a political ploy. The I.R.S. (or something similar) is not going away. . The result IMO is that will may be eventually be getting a V.A.T., in addition to the FICA/Medicare tax, the Federal Income Tax, The State Income Tax, The Property Tax, the Estate/Death/Gift Taxes (State & Federal), the Road & Transportation Taxes, Gasoline Taxes, Telephone and other Communication Taxes, the Excise and Sin taxes, the Import taxes and the Export taxes. . Wait and see...

To: Bob Miller who wrote (1176)	7/23/1998 1:35:00 AM
From: Shawn Donahue	Respond to of 5810

Bob, If you read the official announcement...you will see that Clintoon had to with elections coming up for Congress this fall, and we should thank the Republican Congress for their IRS Hearings and the reduced time to wait for the lower capital gains tax rate! :) I never heard about any IRS Hearings or reform talk...when The Democrats controlled the House and Senate for 40 years...let's hope that the Republicans pick up some more seats..so we can force Clinton to give us that middle tax cut that he promised and promised.....! Regards and good investing, Shawn Here is the official announcement: Clinton Signs IRS Reform Bill By Laurence McQuillan Reuters WASHINGTON (Reuters) - President Clinton Wednesday signed into law politically popular reforms of the Internal Revenue Service, but warned Congress that any major tax cuts now would be ''the wrong course for America.'' Clinton, who opposed the IRS bill when it first surfaced in Congress last year but changed sides as public support grew, hailed the measure at a White House ceremony as something that ''will give the American people an IRS that they deserve.'' The law creates a nine-member board drawn mostly from the private sector to oversee the IRS and expands taxpayer rights by shifting the burden of proof to the IRS in disputes over tax liabilities and reduces penalties for people who pay their tax bills by installment. To improve service, the bill also expands and improves the IRS's electronic filing procedures. The changes are expected to cost the federal govern- ment an estimated $13 billion over the next ten years. During a White House ceremony that attracted mostly Democrats, Clinton chided Republican proposals for large tax cuts based on predictions that the fiscal year that ends in September will show the first budget surplus in decades. Clinton reiterated his call to reserve any budget surpluses until steps have been taken to insure the fiscal sound- ness of the Social Security retirement system. ''I think it's the wrong course for America, in no small measure because we haven't fixed the price tag for saving Social Security and because as we all know we can't really predict with any absolute certainty what will happen 10 or 15 years from now,'' he said. ''After 29 years, it seems to me it's worth taking one year to address the challenge of fixing the Social Security System before we start spending the surplus on tax cuts or new spending programs, however worthy they might be,'' he said. Republicans have shown renewed interest in pressing for tax cuts, with House Budget Committee Chairman John Kasich on Wednesday saying his new budget proposal would include $167 billion in tax cuts. Rep. Bill Archer, the Republican chairman of the House Ways and Means Committee, said the signing of the IRS bill made it ''a good day for the taxpayers'' and said Clinton ''deserves credit for changing course and joining the Congress'' on the issue. The White House, at the urging of Treasury Secretary Robert Rubin who oversees the IRS, opposed the legislation when it was being crafted last year following Senate hearings that exposed abuses by agency workers trying to meet quotas set by bosses. Their claims that reforms could be achieved through administrative changes at the IRS were overwhelmed by a public outcry heard by Democrats as well as Republicans in Congress, particularly as the November mid-term elections near. Under the new law: -- A nine-member oversight would be created, with six of the members appointed by the president from the private sector. The other members include the treasury secretary, the IRS commissioner and an employee representative of the IRS. -- Interest and certain penalties would be suspended if the IRS failed to notify a taxpayer within 18 months that taxes were owed. Starting in 2004, the IRS would be required to notify the taxpayer within 12 months. -- The tax collection agency would be prohibited from seizing a home if the amount of the taxes owed was less than $5,000. -- The IRS would be required to fire any employee who falsified or destroyed documents to cover up mistakes, or assaulted a taxpayer or another IRS employee. -- At Republican insistence, the law shortens the length of time an investor must hold onto such assets as stocks and bonds in order to be eligible for the lowest capital gains tax rate of 20 percent. The 18 month period was cut to one year. -- An ''innocent spouse'' provision allows people who were divorced or separated, usually women, to owe taxes only on their portion of joint income. The IRS can no longer go after someone for what their spouse owed.