All Articles Tagged "taxes"
Customers definitely aren’t having it their way over at Burger King. In fact, fans of the fast food chain are upset that the U.S.-based company may be packing up and heading to Canada.
It’s all part of a plan by BK to avoid U.S. taxes through a merger deal with Canadian coffee and doughnut chain Tim Hortons. The new company would be headquartered across the border and BK would save a ton of money in taxes. “The corporate tax rate in the U.S. is 35 percent, the highest in the world. Canada’s is about 15 percent,” reports The Huffington Post. This process of American companies buying smaller international firms and relocating is called a “tax inversion” and is more than frowned upon by the U.S. government as even President Obama recently vowed to stop tax inversions. Burger King would still pay U.S. taxes on domestic sales.
People are taking to BK’s Facebook page to voice their outrage and have even threatened a boycott. “Thousands of Burger King’s seven-million-plus Facebook fans have described the fast-food restaurant with words like ‘traitor’ and ‘un-American’,” reports Business Insider.
Buying Tim Hortons will also help BK compete with rivals McDonald’s and Taco Bell in the fast-food war over breakfast.
But a boycott could stop the BK-TimHortons merger. When consumers vowed to boycott Walgreen recently, the chain axed its plan to re-incorporate in low-tax Switzerland. More than 300,000 signed a petition to boycott the chain. The same pressure is being planned for BK. According to Roger Hickey, the co-director of the Campaign for America’s Future, which spearheaded the Walgreen petition, the group will launch a similar public plea within the next few days.
There is another petition being organized on. And leftist Occupy Democrats group is calling for a boycott as well. Politicians have even gotten into the act. Sen. Sherrod Brown (D-Ohio) has urged customers to eat at Wendy’s or White Castle and to skip Burger King.
“Burger King’s decision to abandon the United States means consumers should turn to Wendy’s Old Fashioned Hamburgers or White Castle sliders,” the Ohio Democrat said in a statement. “Burger King has always said ‘Have it Your Way’; well my way is to support two Ohio companies that haven’t abandoned their country or customers.”
Shareholders however seem to like the relocation idea. The company’s stock price jumped nearly 20 percent to $32.40 on Monday.
Last month, we reported the state of California placed Brian McKnight on the Top 500 Delinquent Tax Payer list. Prior to this, McKnight sued his accounting firm, Vernon Brown and Company because he believed their actions — or inaction – ruined his credit. Today, The Jasmine Brand in an exclusive update, reports Brian McKnight’s legal woes are over.
McKnight claimed he worked with Vernon Brown and Company for several years but their relationship ended in 2010 when he realized his finances were in bad shape. He says his taxes hadn’t been paid in a decade, which lead to penalties, a lien on his home, a suspended driver’s license and frozen royalties. The accounting company reported the “Anytime” singer was solely responsible for his finances. They also stated that the company tried to help McKnight out of his financial rut, but he was in a predicament before he hired them.
With this behind him, maybe we’ll get some new music. Let’s just hope there’s no more of this.
Earlier this year, we reported R&B crooner Brian McKnight sued Vernon Brown and Company, an accounting firm for allegedly ruining his credit. Today, the “Back At One” singer opens up about his $1 million dollar debt. While interviewing with Huffington Post Live, McKnight shared the risks he took by having other people manage his finances.
“When you have business managers, when you have folks managing your money, it’s very important that you know where every single penny of yours, not just the dollars, is going. And that those people are doing their diligence to make sure that you’re on time with the things that you need to be on time with. Because we basically all work just to pay taxes, let’s be real about that. Practically in my tax bracket. And when those things lapse, there can be some bad things that happen.”
Despite his remorse for his financial woes, McKnight landed on California’s Top 500 Delinquent Taxpayers list.
Watch more of McKnight’s segment on HuffPo and learn more about the singer’s upcoming album, below!
If you haven’t by now, please read Ta-neshi Coates’ phenomenon piece entitled The Case for Reparations, on why it is a scam that black people in America pay taxes.
In fact, go read the article first and then come back and read this because seriously without the context, this entire conversation will likely confuse you. And I am not saying this to be snarky. But rather acknowledging the depth of information and valuable perspective, which is covered within this 17 page cover story.
I know this sort of dedication might be too much for the TL, DR clan (okay that was a bit of snark), so I will try to capture the gist as best I can: basically Coates wants us to consider Mr. Clyde Ross of Chicago, whose lifetime of enduring systemic racism and discrimination policies, specifically as it relates to housing, has left him and his family as permanent second class citizens, unable to build wealth. And worse, many of these discrimination practices were co-signed by the government including redlining, and the denial of low-interest home loans through the government sponsored G.I. Bill (which ultimately led blacks to seek out homeownership through predatory lenders), the state-sanctioned air-bombing of “Black Wall Street” in Tulsa, Oklahoma and the denial of blacks into the newly formed suburbs, etc…
He also goes to great strides to dispel myths that the failures of our communities in America are due to African Americans not trying hard enough, being lazy and criminal or lacking moral integrity. In one of the more compelling passages, he writes:
“From the White House on down, the myth holds that fatherhood is the great antidote to all that ails black people. But Billy Brooks Jr. had a father. Trayvon Martin had a father. Jordan Davis had a father. Adhering to middle-class norms has never shielded black people from plunder. Adhering to middle-class norms is what made Ethel Weatherspoon a lucrative target for rapacious speculators. Contract sellers did not target the very poor. They targeted black people who had worked hard enough to save a down payment and dreamed of the emblem of American citizenship—homeownership. It was not a tangle of pathology that put a target on Clyde Ross’s back. It was not a culture of poverty that singled out Mattie Lewis for “the thrill of the chase and the kill.” Some black people always will be twice as good. But they generally find white predation to be thrice as fast.”
I should preface my thoughts by noting that this is not the definite case for reparations; just a really good one. As someone, who has been championing the cause of reparations for a while (And by that I mean I made a White House.gov petition on the issue not too long ago, but nobody gave a damn so…), I feel like this is our only grievance politically. Not high crime or low graduation rates. Not single mothers or deadbeat dads. Not littering in Harlem, rolled eyes or sagging pants. Not unemployment, underemployment and not have the right job skill training. All of those issues, as far as I see it, are only symptoms to the largely issue of black subjugation in this country – if they are issues at all. Sometimes what we perceive as “issues” are just diversions to derail the conversation we need to be having: and that is how America plans on really addressing past and current injustices against black people.
However it would appear that even among us black folks, there is an inability to even consider the possibilities And I mostly get it: “what’s the point? It’s not going to happen anyway. Plus what does reparations look like and how will it be paid anyway? And to whom are we to pay considering there is no way to know who is descendant from slavery?” These are just some of questions, which have come up lots in the last few days since the article was published. Although I believe these questions to be defeatist, I do believe they are legitimate. And while there are more studied and brilliant minds around, I would like to take a stab at answering them.
What should reparations looks like?
Good question. Here is one of my ideas: Black people should not have to pay taxes. No income taxes. No sales taxes. No wage taxes. No business privilege taxes. No property taxes. No gas or utility taxes. No Exise taxes. No telecommunication taxes. Not a single iota of money, which is collected by the United States government should come from the pockets of black people. It is just unconscionable at this point to ask people, who are descendants of slaves to foot the bill for any maintenance of this country. And the way I see it, the lack of tax burden will provide incentive and space enough for black folks to acquire and more importantly maintain wealth in this country. It certainly would serve as an incentive for global corporations to seek out partnerships with black owned businesses, who too would benefit from not having to be held down by a whole bunch of business-related taxes
This is an important point considering many black folks, with newly acquired wealth find themselves indebted to the government for failure to pay taxes including Lauryn Hill and Wesley Snipes, who both went to prison for failure to pay back taxes. So did Ron Isley too. And then there was Lil Kim, Nas, Kelis, Chris Tucker, Toni Braxton, Doug E. Fresh, Lil’ Jon…the list is honestly way too long to just be a coincidence. And according to at least one study, targeting blacks in particular is actually quite common.
So are you saying that white people (and other non-blacks) should take care of black people?
No. I’m saying the tax burden of this country should no longer be placed on the backs of black people. Everything cost more in poor, particularly for black neighborhoods. Some call it a poverty tax, but it often results in mostly poor African Americans and Latinos paying in upwards of thousands of dollars extra in fees because they live in economically disenfranchised communities.
But for how long?
Well how long was slavery? Around 250 years. At least that long plus time incurred through Jim Crow and American apartheid to present installations of subjugation and inequality. Monied white folks certainly were able to benefit from all that free labor we gave them. So around 350 years should be long enough for black folks to play catchup.
But how do we determine, who should receive reparation by way of the tax exclusion?
Ah yes, the ole’ but everyone is mixed up argument. It would be a legitimate concern if not for the fact that throughout history, local and state governments, sanctioned and often co-signed by the federal government, put into place certain structures, which already help us determine such colorful issues. And I’m talking about the “purity” laws, which were mostly enacted to deter the miscegenation of the white race. Not only were interracial marriages and families banned, but places like Louisiana, as well as other places down South, often established freedoms based upon how much “black blood” you had.
Such was the case of Alexina (Jane) Morrison, who in 1850s sued her slaveholder on three separate occasions for freedom, claiming that her blonde hair and blue eyes meant that she “been born free and of white parentage.” She eventually won, due to a forged bill of sale provided by the owner. However if not for the fraudulent piece of paper, it was likely that Morrison, who for all intents and purposes was a white woman, would have to spend the remainder of her life as a black slave.
The point is that this system of color coding people has longed been used to help the government determine who could be kept for enslavement and who could be disenfranchised legally. And I don’t see how we can’t use the same system as a way to properly award restitution.
But Charing won’t that result in white folks today being hurt financially and economically based upon past injustices, which they had nothing to do with?
Yup but that’s the point. A transfer of power so that it is no longer held by a select group of people based upon race. And to put it crudely – some folks are truly going to have to ante up. And while some non-black folks might see their wealth decline, black owned enterprises and industries in particular will now have opportunities to rise in their places. And without justice, there is no equality. The real question to ask is how fair is it that America should continue to reap the benefits of inequality?
No seriously, how is that fair though? Not every white person held slaves.
True. However it is safe to say that the majority of white folks benefitted from slave labor and American apartheid. And it doesn’t matter when they arrived in this country and by what aim; they too benefitted from the spoils of slavery. After all great grandfather Johann from Poland likely couldn’t have bootstrapped his family up through society, based upon his own merits, if not for the total exclusion and denial of access from those same merit-based opportunities. From colleges and universities, to country clubs to neighborhoods and parks and trails and museums, etc and so on, Your ancestors got access to places where mine could only enter by holding a broom and a mop.
But where will the government get the money?
Where did the government get the money for two damn wars at the same time? And black folks are around 12 percent of the population, so I imagine that it would cost lots less than what we are led to believe. Besides, the government should consider suing or even taxing corporations, who have ties to the trans-atlantic slave trade.
But Charing, the Republicans are never going to take it serious though. I mean it’s not really realistic to think of that.
Again another truism, but the obstructionists in Congress also has to be the dumbest reason not to pursue our just cause. I mean, if that is the case, why do I bother to go vote considering the Republicans are just going to block and hinder progress. Just like every cause we have fault, it will be up to us to make reparations a political issue. We must not only speak on it but be infatuated in our claims. Likewise we have to hold our politicians and civil and human organizations accountable for their lack of leadership in getting reparations into the national conversation.If gay rights and immigration are national platforms, why can’t the cause for black reparations be treated with the same dignity and respect?
So that is my plan for helping to right the wrongs of the past. And just like Coates, this is not the definite idea of what reparations looks like; just one (and a damn good one I think). I’m curious as to what are some ideas folks have about what black reparations should look like. Remember at this moment, there is no right or wrong answer; just as long as we are talking and thinking actively on the issue.
One would think that government workers would be up on their taxes. But according to recently released Internal Revenue Service data, federal employees owe a whopping $3.3 billion in back taxes to the federal government.
As of last September, 318,462 federal employees owed back taxes, an increase of 2.6 percent from the previous year. When calculating the average tax bill, it comes to $10,391 per person, according to IRS data obtained by USA Today under the Freedom of Information Act.
While this may seem a bit outrageous, it also turns out that federal workers are really better at paying their taxes than the average taxpayer. They only have a delinquency rate of 3.19 percent while the population at large has a rate of 8.7 percent.
But it does depend on the arm of government they work in. “The non-payment rate for employees of the House of Representatives is 4.87 percent. In the Senate, it’s 3.24 percent. That’s 714 tax delinquents on Capitol Hill owing a total of $8.6 million — more than one for each representative or senator. Thirty-six employees in the Executive Office of the President are delinquent on their taxes, for a rate of 2.06 percent,” reports USAT.
And on Capitol Hill tax delinquencies are four times more common than at the Treasury Department. Recently the Treasury Department came under congressional scrutiny regarding bonuses paid to IRS employees who owed taxes. The IRS issued more than $1 million in bonuses to employees who didn’t pay their federal taxes. Despite this the Treasury Department has the best rate of tax compliance in the federal government with only a 1.2 percent delinquency rate.
Oddly, the highest rates of tax delinquency are at small federal agencies that deal with civil rights and the disabled, such as The National Council on Disability (11.54 percent), the Committee for Purchase from People Who Are Blind (10 percent) and the Civil Rights Commission (9.52 percent).
It’s about time! Tax season is coming to an end and Uncle Sam can finally get off our backs — unless you’re Terrell Owens and you’ve been slapped with a $244,000 tax lien, but I digress.
April 15th has arrived and I think it’s about time we delve into this year’s tax season — by the numbers, shall we?
Americans are pretty irritated by the amount they must pay in federal income taxes, according to a Gallup poll. Fifty-two percent say that it’s just “too high” — that’s a six-point increase from 2012’s 46 percent. Breaking it down by income levels, 49 percent of Americans who earned less than $30,000 also believe it’s too high; 60 percent of Americans raking in more than $75,000 say the same.
Now the upper-income Americans, specifically, felt the pinch this tax season — federal income taxes have indeed increased for them this year.
“The top 1 percent of earners will pay an average tax bill of $525,231, up more than $36,000 from last year, according to the nonpartisan Tax Policy Center. It will surge to $670,000 for 2014 taxes,” CNBC wrote. The tax rate for nation’s elite has jumped from 35 percent in 2012 to the current 39.6 percent.
The Obamas, whose tax rate was at 20.4 percent, were actually exempt from the higher tax rates because their taxable income is lower than $450,000, according to Bloomberg. Both Michelle and Barack reported adjusted gross income of $481,098 in 2013. POTUS and FLOTUS both paid $98,169 in taxes — this includes $2,310 for Obamacare.
Now let’s talk about the fun part — refunds, baby! About three quarters of Americans get refunds, which is why, in many ways, the April 15 deadline isn’t so huge. Penalties only apply to those who owe.
As of March 28, the IRS has an issued an average of $2,381 in refunds, CNN Money reports; this is a 1.5 percent increase compared to last year. According to Hipmunk Survey (via Mashable), 45 percent of Americans will save their refund. When asked what they wish they could do with the money, 54 percent said they would go on vacation.
“While saving money may be more responsible, it isn’t very fun. This explains the discrepancy between what people want to do and what they feel obliged to do,” Mashable adds.
For those who do want to splurge, about 25 percent of Americans will blow their refund on a new car, according to GOBankingRates. “The average tax refund is equivalent to a 20 percent down payment on a $15,000 auto loan; combined with today’s very low interest rates, it is a great time to buy a car,” said GOBankingRates Managing Editor Casey Bond, Cars.com reports.
Groups that are most likely to purchase a car are taxpayers under the age of 35 (29 percent), parents (26 percent), and residents of the South (22 percent).
Surprisingly enough, the IRS still has $760 million sitting in the treasury for 918,600 people who failed to file their 2010 tax return. If no one steps up to claim this money by midnight of April 15th, the cash will become property of the federal government. Retired taxpayers and low-income earners make a large percentage of those owed money — many do not know they’re eligible for Earned Income Tax Credit.
“The Earned Income Tax Credit could be worth as much as $5,000 to a taxpayer, depending on their situation,” Fox News reports. Students who worked jobs, but didn’t meet the income level required to file, are also a population that might not have claimed part of that $760 million — they had taxes withheld and could get that money back.
California has the highest number of people owed money — 85,000 residents. New York and Texas follow with 80,600 and 57,400 respectively.
Meanwhile, as many Americans who are truly deserving of a tax refund have no idea that they’re missing out on a large chunk of cash, scam artists cashed in on $4 billion in fraudulent tax returns last year — this a 66 percent jump from the year prior. Criminals have been using other people’s personal information to file, USA Today reports.
“Thieves steal Social Security numbers in any number of ways, including from publicly available sources or workplaces. Victims include school children, prisoners, Medicaid beneficiaries and the deceased. Criminals use the information to file false returns and then pocket the refund checks, often before the legitimate taxpayers have had a chance to submit their own returns,” the paper adds.
On a lighter note, there is one thing that will ease your stress through tax season — Tax Day! This means free dinner, free cookies, and even free massages at the Hard Rock Cafe, European American Bakery Café, and Hydromassage locations, respectively. There’s plenty more where that came from! Check out News-Press’ list of generous locations and see to it that you get your much needed R&R this Tax Day Tuesday.
After a report from RadarOnline that Lauryn Hill was hit with seven tax liens spread like wildfire last week, the singer’s publicist, Kathryn Frazier of Biz3 Publicity, put out a statement to Pitchfork denying the news, saying:
“Contrary to media gossip (fact checking seems to be a dying art-form) there are no changes in Ms. Hill’s legal status. Ms. Hill has finished her sentence, has been fulfilling her agreement with the IRS, and is taking care of all outstanding matters in regards to this situation. She is not in jeopardy of any further charges. The press is reporting on paperwork that had recently been filed, and has now become public record.”
It looks like Lauryn Hill may be in the hot seat with Uncle Sam again. According to Radar Online, the IRS has filed seven additional tax liens against the 90s singer.
The documents, which accuse Lauryn of bailing on her taxes between the years of 2005 and 2011, were filed on Jan. 14 and collectively sum up to a whopping $866,868.05. According to the six-year breakdown, the mother of six owes $422,008.26. For 2006, she owes $19,838.75; 2007, $61,158.50; 2008, $58,405.71; 2009, $30370.91; 2010, $13,247.73; and 2011, $261,838.19.
This of course, is major news since Lauryn was convicted last May of failing to pay nearly $1 million in taxes. She actually just completed a three-month prison sentence in relation to the previously filed tax evasion charges last fall.
“To me, it is obvious that the accumulation of generational trauma and abuse have created the very behaviors the system tries to punish, by providing no sufficient outlets for the victims of institutional terror,” she wrote in a Tumblr post following her 2013 conviction. “Clearly, the institution tries to hide its own criminal history at the expense and wholeness of the abused, who ‘acting out’ from years of abuse and mistreatment, reflect the very aggression that they were exposed to.”
At this point it’s unclear what Lauryn plans to do about her tax woes or if she has already been actively working to get these issues resolved, but we’re hoping that she can get a handle on the situation and pay off her debt.
I remember about eight years ago when I first started working my first professional job and was actually looking forward to tax season. Up until then from what I had witnessed with my parents and other relatives, tax season to adults was like what Christmas is to a toddler. That was the “real” most wonderful time of the year. I didn’t understand much about taxes, but quickly learned that because I didn’t have kids, was no longer in school, not paying student loans, barely had any deductions and was a tax bracket above broke that I qualified for a little something in return but definitely would not be doing the dougie to “This Is How We Do It” like the dude in the Jackson Hewitt commercial.
I drove home in tears crying to my friend on the phone, “What am I doing wrong?” But once I started to understand a little more about taxes, I learned I wasn’t really doing anything wrong. When I figured out tax season wasn’t meant for the single working woman, I was a lot less emotional during tax time. Now admittedly I’m a still a little bitter, but I am better prepared and I realize that without many deductibles I’ll end up owing every tax season because of my writing hustle, and that’s OK now that I know what to expect. But for all of you who are lucky enough to come into a little extra sometime soon, I need to you to spend responsibly for all of us who have to actually budget for big items and can’t lose our mind for 3 months out the year. Here are 12 ways I’m sure some people will waste their tax returns this year:
Tried calling the IRS lately? I have. If you want a live agent, you’ll be on hold for 30 minutes and upward. Or you could get caught in a maze of automated requests.
In fact, 39 percent of people who called the IRS last year gave up before their call was answered, according to a revealing report by the IRS Taxpayer Advocate. And don’t look for the IRS to fix this anytime soon. “Given our very limited resources, phone lines will be very busy, and there will frequently be extensive wait times,” IRS Commissioner John Koskinen said on the IRS’s YouTube video about the 2013 tax year.
IRS inefficiency is hurting taxpayers. Since they can’t get answers they need from the agency to do their own taxes, more people are paying outside sources to prepare them. And for those who go it on their own, basic mistakes in filing may become fines, penalties, or liens.
The agency’s inability to meet customer demands for the past three years are due to Congressional cuts to the budget. President Obama requested $340 million due to the Affordable Care Act, but Congress has failed to come through.
The IRS Taxpayer Advocate says the agency allotted $172 million for customer service training in 2012, but now only has $22 million to train those same people. The IRS also lost 8,000 employees between 2010 and 2012, according to Edward Jenkins, tax director at accounting firm CBIZ MHM. And in the government’s fiscal year 2017, a whopping 70 percent of IRS executives and half of non-executives will be set to retire, he says.
“The online system is better than it used to be,” Koskinen says. “But you’re still going to end up with 15 to 20 million calls unanswered this year.”
The IRS is even backlogged in dealing with notices they have sent out to taxpayers. “The IRS sends you a notice about an issue on your tax return, you respond, and they send a letter saying they will respond in 45 days,” Jeffrey Porter, chairman of the American Institute of Certified Public Accountants’ tax executive committee, tells USA Today.
Jenkins says the agency needs to update its systems so its 22 departments can communicate. Some parts of the IRS still use the antiquated DOS system.
And the agency just isn’t making money. It collects $255 for every $1 it gets in its budget. Voluntary compliance rate is around 83 percent; 17 percent of tax revenue is uncollected. In 2006, this equaled $450 billion.
With a complicated tax code that changes every year, what’s a confused taxpayer to do?
There is a saying in the Bible: “For the love of money is the root of all kinds of evil.” (1 Timothy 6:10)
You may have heard your mom, dad, or grandma reprimand or educate you with it from time to time, but did you ever think to apply the quote to advance your business sense and financial wealth? Financial pundit Sean Hyman has, for example, taking what he has deemed as the Biblical Money Code revealed in the Bible’s scriptures as a foundation for his investment success and education. Hyman is one of many who are enlightening others about how we can get out of debt and build wealth by way of the Word.
Read on for nine ways that we can all learn to invest and spend more wisely through the Bible, whether you are religious or not.