Tax Guru-Ker$tetter Letter

Tuesday, June 10, 2003

Small Businesses Reap Benefits Of White House Tax Package - As the DemonRats feared, quadrupling the Section 179 expensing allowance to $100,000 per year, and allowing additional extra depreciation in the first year, is encouraging a lot of small businesses to make new purchases, giving the economy a healthy boost.

Secret Tax Hike - As I've explained on several occasions, our rulers have been very sneaky in adding much higher effective income tax rates than you can find in any of the official tax rate schedules. By phasing out several deductions and credits for people considered by our rulers to be evil rich, the effective marginal tax rates can be much higher than the normal top rates. They like to call it "means testing," indicating that those with increased means of support (income) shouldn't receive the same tax breaks as the little people. I prefer to call it "mean testing," indicating the practice of penalizing success. This new tax law is no exception to that concept, with several new phase-out rules. Class warfare is still a very real part of our tax system.

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 6/10/2003 11:42:00 AM Send this post: