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Microsoft Money Investment Recordkeeping Tricks
Microsoft Money provides powerful investment record-keeping tools for individual investors. Unfortunately, once you step beyond investments like stocks, bonds, and mutual funds, the mechanics can get a little tricky. Here are some tips for handling common ...
Return on Investment Guidelines
Return On Investment GuidelinesBy William CateJuly 2004[http://home.earthlink.net/~beowulfinvestments/][http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]Investment reward should be a function of speculation risk. The ...
The Big Secret The Mutual Funds Don’T Want You To Know: Indexing!
Non-indexed mutual funds try to keep it secret that actively managed mutual very funds rarely do better stock market indexes. The higher fees of the managed funds really make it hard for these funds to out compete indexed funds. Smart financial ...
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First, I would institute a simple two-tiered tax on earnings and passive income (interest, dividends, capital gains, etc.) that are not in a tax-sheltered account. They would be treated equally and no distinction would be made between long-term and short-term capital gains. Individuals (whether married or not) who have taxable earnings and passive income of less than $30,000 would pay no federal taxes. Amounts equal to or greater than $30,000 but less than $200,000 would be taxed at 25%. Amounts equal to or greater than $200,000 would be taxed at 30%.
Second, I would get rid of the quarterly estimated tax requirements and associated penalties for everyone except those who are habitually late (after April 15) filing their return and/or paying their taxes. Few things in our tax system are more complicated than trying to figure whether or not you paid enough estimated taxes, whether they were paid on time, and/or the penalty for not doing so. Even the IRS acknowledges how complicated it is to figure out this penalty, as they offer to calculate it for you.
Third, I would eliminate the annual limits on capital losses as well as those special “wash sale” rules, which further restrict the writing off of capital losses. The reporting of capital gains has never been limited and neither should capital losses. “Wash sale” rules restrict the writing off of capital losses for stocks and mutual funds sold at loss but bought back again within 30 days. As I mentioned in a previous writing, these rules can get very complicated, with those for figuring the estimated tax penalty being the only ones that are more difficult to understand.
Fourth, I would keep personal exemptions and child tax credits intact but eliminate
all deductions except for charitable contributions and mortgage interest on one’s primary dwelling. There would be no standard deduction or Earned Income Tax Credit.
Fifth, I would eliminate the Alternative Minimum Tax (AMT). This is probably the third most complicated item in the tax law. It was designed to make sure the rich pay at least some taxes, but the elimination of most deductions would accomplish this goal now by taking away most of their shelters.
Sixth, I would make some adjustments to inheritance and gift taxes. For the most part, they would not be treated any differently than ordinary income. However, there would be some exceptions. Inheritances and gifts passed from one spouse to another would be exempt from federal taxes. Inheritances of family farms and other legitimate businesses by any family member from another would not be taxable.
These changes would benefit individuals by making the tax system less complicated for everyone and taking a smaller percentage of income from most taxpayers (especially the middle class). The government would benefit from collecting more taxes because more people would be working and receiving higher incomes (as this system would encourage more investment in infrastructure). Also, more people would be encouraged to make more taxable passive income. The current system discourages taxable passive income. In addition, the extremely wealthy would have fewer options for sheltering their income.
About The Author
Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.
terrymitchell@verizon.net
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Self-directed IRA adds investment optionsAZ Central.comFraud and the possibility of loss also can happen with stocks, mutual funds and other mainstream investments. But there's often an intermediary, such as a broker or financial planner monitoring things, and many financial companies restrict investors to ...and more » |
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