Archive for the ‘Tax Freedom’ Category

With Payroll Tax Cut Done, Is It Do-Nothing Congress Time? It Depends

Enlarge Carolyn Kaster/AP

Expect the rest of 2012 to bring more political symbolism like Thursday's House hearing on birth control and religious freedom than actual passage of major legislation that solves Americans' problems.

Carolyn Kaster/AP

Expect the rest of 2012 to bring more political symbolism like Thursday's House hearing on birth control and religious freedom than actual passage of major legislation that solves Americans' problems.

Now that Congress has passed the extension of the payroll tax cut and jobless insurance benefits for the long-term uninsured, as well as a fix that prevents cuts in Medicare reimbursements to doctors, there's the sense that not much else will get done on Capitol Hill, it being a general-election year and all.

And that sense, captured in a recent Politico article, may be true in so far as major legislation goes. In Washington's superpolarized political atmosphere, it's hard enough to get such bills passed in a year when the White House isn't up for grabs, let alone a year like 2012 when it is.

But whether a Congress can be defined as do-something or do-nothing is really in the eye of the beholder.

If you judge Congress by its ability to pass landmark legislation or bills that address the real needs of the U.S. population, then you likely won't be giving Congress over the next year high marks for accomplishing much.

 

But if you judge Congress by the standard of whether lawmakers make numerous symbolic statements with their legislative maneuvering, then you're likely to view the coming months as very productive indeed.

James Thurber, an American University professor and director of the school's Center for Congressional and Presidential Studies, is in the first camp, defining an effective Congress as one that produces "outcomes that solve problems."

By that standard, he doesn't have high hopes for the rest of the year. "There'll be a lot of wedge issues and agony and angst," said Thurber. "There'll be lots of oversight that will go a long way to try and point out what the parties believe in, instead of legislation that's likely to pass."

For instance, you'll probably see quite a few more sessions like Thursday's humdinger of a hearing by the House Oversight and Investigations Committee focusing on the question of whether the Obama administration's new birth-control rule threatens religious freedom.

Not surprisingly, Republicans stacked the deck, as is the majority's prerogative, with witnesses who agreed that the regulation is such a threat, while some Democrats walked out of the hearing because the first panel had no women on it.

Even with it being an election year, it would seem that Congress has some "musts" on its to-do list. For instance, deep cuts in the defense budget are scheduled to start taking effect in 2013 and beyond if Congress does nothing to head them off.

Norm Ornstein, of the American Enterprise Institute, an expert on Congress, isn't so sure that even that sword of Damocles is enough to get Republicans and Democrats to agree on averting cuts.

"There's not much incentive of Democrats to negotiate if there's no broader deal that includes revenue (or new tax increases). And given how on the Republican side, the politics are driven by the presidential race, any deal that included higher revenues would be greeted with blowback from the Republican base."

Also, Ornstein added, the just approved payroll tax cut agreement is a fly in the ointment going forward for GOP leaders.

Many rank-and-file House Republicans and some in the Senate were unhappy with it because they didn't want to extend the cut in the first place and certainly didn't want to do so without offsetting it with spending cuts.

"Overall, the deal was seen as caving," Ornstein said, which means when it comes to future negotiations that might include some form of higher taxes, Republican leaders aren't "going to have the troops behind them."

So it could very well shape up to be a do-nothing Congress in terms of legislative achievement from here on out, though as Ornstein reminds us, circumstances often have a way of making Congress act.

"The world may force Congress to do something because of economic circumstances or foreign policy," he said.

If Congress essentially runs the clock out the rest of the year, that wouldn't necessarily make everyone unhappy. Hundreds of Washington lobbyists spend their working hours trying to make sure that the federal policies that benefit their clients stay exactly the way they are.

"The big winner on the Hill is the status quo," Thurber said. "It's great to lobby for the status quo because you usually win and you get paid a lot of money for it."

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With Payroll Tax Cut Done, Is It Do-Nothing Congress Time? It Depends

Freedom fighter Bhaskar Pandurang Ayre passes away

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Thane, Feb 15 : Freedom fighter Bhaskar Pandurang Ayre died here tonight after a brief illness.

Ayre, 80, is survived by his wife, a daughter and two sons.

His funeral will be held at Jawhar tomorrow at 1030 hrs.

Ayre, who belonged to the Thane district, had participated in the Goa freedom struggle.

He was actively participating in all activities of the Jawhar princely state, predominantly tribal region, which was later converted into a Taluka in Thane districts.

He was part of the batch from Thane district which under the leadership of late Vasudeo Karandikar took part in the Satyagraha at Daman on August 15, 1955.

Ayre served as a driver with the State Transport Corporation of Maharashtra for some time.

Meanwhile, a well-known social worker Ravindra Vaidya condoled his death, saying it was an irreparable loss to people of Jawhar.

A number of prominent people from Jawhar and from all walks of life visited his house and condoled his death. (UNI)

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Freedom fighter Bhaskar Pandurang Ayre passes away

Best college savings plans

2/15/2012 5:33 PM ET

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By Liz Weston, MSN Money

These tax-free programs, run by states, can be a good option for those who want to build up a college-savings account. But you need to know which ones are worth considering.

State-run 529 college savings plans are getting better.

They're reducing fees, improving investment options and reporting better performance. These programs, which allow parents and others to invest in tax-free accounts to pay for college, are benefiting from closer supervision by many of the states, which are negotiating better terms with the investment companies that administer them. For the first time, no plan wound up in Morningstar's "bottom" rank in the research company's most recent review.

"The days of really stinky investments embedded in 529s are over," said Laura Pavlenko Lutton, the editorial director for Morningstar. "The industry's really improving."

That said, there remain big differences among the plans, particularly when it comes to fees. The most expensive plans (Kansas' adviser-sold version of LearningQuest, New Jersey's Franklin Templeton 529 College Savings Plan and Alaska's John Hancock Freedom 529) cost investors seven times more than the cheapest plans (the Utah Educational Savings Plan and New York's 529 College Savings Program).

Costs matter -- a lot. The more expensive an investment is, the less likely it is to outperform over the long run, Morningstar analysis has shown. In the 529 world, high fees were often coupled with poor performance, as some high-cost program administrators larded their plans with "weak sister" funds that trailed their peers.

Liz Weston

Residents of states that offered tax breaks for 529 contributions once had to hold their noses and invest in bad plans. That's because a state tax break was assumed to be big enough to offset a plan's downsides. That's because the tax break was usually assumed to be big enough to offset the plan's downsides.

Today, everyone has better options available, but you have to know what they are if you want to take advantage. Here's what you need to know.

Start with your tax situation

Whether or not you get a tax incentive helps determine where you should invest:

Most states that tax incomes offer some kind of tax incentive for investing in a 529 plan. (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming have no state income taxes and therefore no tax break.) The exceptions to the rule are California, Delaware, Hawaii, Kentucky, Massachusetts, Minnesota, New Hampshire, New Jersey and Tennessee, all of which have a state income tax but none of which offer a tax break. (New Hampshire and Tennessee tax only dividend and interest income.) Residents of three states -- Kansas, Missouri and Pennsylvania -- get a tax break if they invest in any state's plan. The other states with tax breaks require residents to stick with their in-state plans. Most states with tax breaks allow residents to deduct their contributions, up to certain limits, from their taxable income. (You can see details of each state's tax break here.) Three states -- Indiana, Utah and Vermont -- offer tax credits, which directly reduce tax bills. Indiana's is the most generous tax benefit by far: Residents get an annual credit worth 20% of the first $5,000 of 529 contributions, which allows them to subtract up to $1,000 from their state tax bills. No reason to stay put? Go for the best

If your state doesn't give you a tax incentive or doesn't require you to invest in your own state's plan to get it, then you might as well invest in one of Morningstar's top-rated plans that are sold directly to investors (rather than through an adviser). These include:

Alaska's T. Rowe Price College Savings Plan and the Maryland College Investment Plan. These are good choices for investors who want active management and are willing to be more aggressive. Both of these T. Rowe plans "are built upon a chassis of well-executed funds," Morningstar says, but it notes that expense ratios are higher and that the aged-based options' asset allocations are heavier on equities than are other direct-sold plans, which rely more on index funds. Ohio's CollegeAdvantage 529 Savings Plan. Morningstar says "there's something for everyone" in a plan that offers managers Vanguard, Pimco, Oppenheimer and General Electric. You can find such variety elsewhere, but this plan distinguishes itself with low fees. Nevada's Vanguard 529 College Savings Plan. This is the go-to plan for those of us who eschew active management in favor of index funds at low, low cost. The plan requires a $3,000 initial contribution; if you don't have that handy, consider Utah's plan.

The Utah Educational Savings Plan. Again, Vanguard index funds, and now with new, lower prices. Plus, there's more control as an investor, if you want it: "The plan's new set-it-once asset-allocation tool allows savers to dictate a mix of investments to change every year as a child nears college," Morningstar notes. "Not every saver needs that extra capability, however, and the plan's other options are solid."

Another plan made Morningstar's list of top programs: Virginia's CollegeAmerica 529 Savings Plan. This fund is sold only through advisers and is the country's largest plan, with nearly $30 billion in assets. I think most investors are better off in direct-sold plans, but if you're using a financial adviser, you'll probably do best in this low-cost plan that "features high-quality investments run by risk-aware, proven investors," according to Morningstar.

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Best college savings plans

Oregon falls mostly in middle of the pack in national tax rankings

When it comes to taxes, personal and corporate, where does Oregon rank nationally? About middlin' according to a new report by the Tax Foundation, which tracks such matters.

Oregon's "tax freedom day" -- the date by which average wage-earners have made enough to pay their tax bills -- falls on April 8, ranking it 23rd earliest among the 50 states. As for overall state and local tax burden, Oregon falls smack dab in the middle at 25th.

For obvious reasons, Oregon ranks highest on personal income taxes and lowest on sales taxes. It ranks relatively low for corporate taxes. In overall "business climate" rankings, Oregon comes in 13th, according to the report.

The report has a pretty complete breakdown of taxes around the nation, from gas, to cigarette to the usual suspects of income, property and sales. How those statistics end up being used -- well, we'll wait to see.

– Harry Esteve

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Oregon falls mostly in middle of the pack in national tax rankings

Boards give public works building tax exemption

SILVER CREEK — Hanover Town Board members on Monday approved a tax exemption for the Silver Creek Department of Public Works building.

At the regular board meeting, members unanimously approved the request with the condition that the village will have to pay water, sewer and any special district taxes, including lighting district taxes.

The Silver Creek School Board approved the same type of agreement. In both cases, the tax exemption will apply only while the building is used for the Public Works Department.

The department is located in the former George Bentges warehouse on Routes 5 & 20, outside the village limits. The department has been housed there since the August 2009 flood that ruined the village barns on North Main Street.

In other matters:

• The board will petition the county for a reduced speed limit on Bennett State Road for about 1,890 feet from the village limits in Forestville and northward. The board will also seek parking restrictions in the same area, due to increased truck traffic at the Bailey Manufacturing facility and a new medical office in that location.

• Two public hearings will be held at the Feb. 27 board meeting. Council members will hear comments on a proposed tax reduction for disabled people and for increasing the income limits from $19,000 to $20,000 for senior citizens who qualify for an exemption. The hearings will begin at 7:35 p.m.

• At the request of Town Highway Superintendent Steve D’Angelo, the following roads will be posted for a weight limit: Alleghany, Beebe, Blanding, Bradigan, Christy, Cottage, Empire, Freedom, Gibbs, Hanford, Holmes, Hopper, Hurlburg, King, Mackinaw, Mixer, Overheiser, Quarry, Rider, Spears and Waterman.

• The board appointed Kevin Waterman chairman of the Zoning Board of Appeals. His switch to the zoning board will be contingent on his resignation from the assessment review board.

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Boards give public works building tax exemption