Derek Jeter has received many gifts from opposing teams on his farewell tour this year, but it's going to cost him in taxes when all is said and done. According to the Chicago Tribune, the New York Yankees shortstop has received an estimated $33,000 worth of farewell gifts. The newspaper calculated that number by asking teams for figures, consulting experts and searching websites. Only the Tampa Bay Rays—who spent more than $6,000 on a custom kayak—revealed what they spent on their farewell gift for the Yankees captain.
One of the most hilarious talking points coming from far-right Republicans and the Tea Party is that when “red states” like Mississippi, Alabama and Louisiana are asked to bail out California or Massachusetts, that’s when they will finally become “fed up with socialism” and secede from the Union once and for all. The problem with that meme is that it has no basis in reality: the more prosperous and Democrat-leaning areas of the United States are likely to be subsidizing dysfunctional “red states,” many of which are suffering from insufficient tax revenue and an abundance of low-wage workers who don’t have much to tax.
When Tom Clancy died in 2013, he left behind an estate worth $83 million. Lawyers for his widow are arguing in court that she shouldn't have to pay $6 million in taxes, the Wall Street Journal reports.
U.S. stocks rose on Thursday, a day after the U.S. Federal Reserve kept intact its pledge to keep interest rates low, providing a backstop for investors that helped lift both the Dow and S&P to record highs. The Fed said Wednesday at the conclusion of a two-day policy meeting it would keep interest rates near zero for a "considerable time," language supportive of equities which some had expected to be dropped from the statement. The central bank's outlook on Wednesday included forecasts for higher-than-expected rates in 2015 and 2016, which helped financial stocks .SPSY rise 1.1 percent, leading the day's gains on Wall Street. Goldman Sachs (GS.N) rose 1.7 percent to $187.89, the biggest boost to the Dow.
It keeps getting less taxing to die rich. Based on inflation data released today by the Department of Labor, Wolters Kluwer , CCH has projected inflation-adjustments to various tax figures that affect financial planning for the well-off: the federal and gift tax exemption amount, the annual gift tax exclusion amount and the kiddie tax threshold. The federal estate tax exemption—that’s the amount an individual can leave to heirs without having to pay federal estate tax—is projected to be $5.43 million, up from $5.34 million for 2014. That’s another $90,000 that can be passed on tax-free. The top federal estate tax rate is 40%. Talk about tax savings.
Who hasn’t introduced a kill the death tax bill in New Jersey?
A two-word change in the Federal Reserve's post-meeting statement on Wednesday could drive speculation that the Fed will raise interest rates sooner in 2015 than investors expect. Some economists predict policymakers will remove from its statement a long-standing assurance that a key short-term rate will likely stay near zero for a "considerable time" after a bond-buying program ends. And that could roil financial markets.
A newspaper investigation has identified 13 people who have claimed prizes from Ohio’s state lottery more than 100 times each, including a Cleveland man who claimed more than 300 prizes totaling $800,000 since 2008.
The Texas Lottery closed out a record-breaking fiscal year 2014, by making its largest contributions to public education and Texas veterans’ programs in the agency’s 22-year history.
The founders of our country declared their independence from what they viewed as a tyrannical aristocracy in England. More than two centuries later, today's tyrannical aristocracy is no longer a foreign power. It's an American billionaire class which has unprecedented economic and political influence over all of our lives.
Burger King may have taken a lot of flack in the past week for a deal that should curb its U.S. tax bill but in many ways it is consistent with the burger chain’s aggressive tax-reduction strategies in recent years. Some U.S. lawmakers and other critics attacked the company that is the home of the Whopper for deciding to move its tax base to Canada from the U.S. through its proposed purchase of Oakville, Ontario-based coffee and doughnut chain Tim Hortons (THI.TO). They say it will allow Burger King (BKW.N) to avoid paying some U.S. taxes.
Buurger King’s proposed move to Canada is just the latest in a series of “inversion” transactions designed to enable American corporations to reduce the taxes they pay to the United States. These increasingly common transactions have led some observers to question whether we need to tax corporations at all. For example, Greg Mankiw, President George W. Bush’s economic adviser, argues in The New York Times that the United States should abolish the corporate tax and replace it with a tax on consumption. Even liberal pundits like Matthew Yglesias have toyed with the idea, arguing that the current system only encourages businesses to try to game the political system. This view, though fashionable, couldn’t be more misguided.
Americans are rightly angry that Burger King plans to use its merger with the Canadian doughnut and coffee chain Tim Hortons to claim Canadian citizenship, probably as a way to avoid paying U.S. taxes -- which the burger chain denies. But Burger King is the latest company to undergo an inversion, which happens when an American company uses a merger to reincorporate as a foreign one. Some have suggested boycotting the fast food chain, while others have directed their anger toward the billionaire investor Warren Buffett, whose company Berkshire Hathaway is partly financing the deal.
Federal Reserve Chair Janet Yellen called for a "pragmatic" approach to U.S. monetary policy on Friday, amid calls by hawkish members of the central bank's policy committee for a quick rise in interest rates due to tightening labor markets and inflationary risks. In a speech at the Fed's annual central banking conference, Yellen laid out in detail why she feels the unemployment rate alone was inadequate to evaluate the strength of the jobs market and why the central bank needed to move cautiously on raising rates.
Establishing a tax domicile abroad to avoid U.S. taxes is a hot strategy in corporate America, but many companies that have done such "inversion" deals have failed to produce above-average returns for investors, a Reuters analysis has found. Looking back three decades at 52 completed transactions, the review showed 19 of the companies have subsequently outperformed the Standard & Poor's 500 index, while 19 have underperformed. Another 10 have been bought by rivals, three have gone out of business and one has reincorporated back in the United States.
There is not as much that pro-free market governments can learn from the United States as there used to be. It is no longer a particularly low-tax country – indeed, American companies are taking over British ones to get their tax bills down. Under Barack Obama, it has largely given up on deregulation, and allowed bureaucrats to grow their empires. The Federal Reserve is as keen on blowing up inflationary bubbles as any central bank in the world, and perhaps keener. But there is still one important lesson, although it comes from individual states rather than the whole country. Lower income taxes are one of the most powerful engines of job creation and rising prosperity.
A last-ditch effort to deliver aid to Israel during its war with Hamas died on the Senate floor, as Republicans blocked the proposal over concerns that it would increase the debt.
Comedy Central's top late-night hosts took corporate "inversions" to task on Wednesday night, devoting entire segments of their shows to slam the controversial practice of firms relocating their headquarters overseas for lower tax rates.
Sen. Dick Durbin today decried U.S. firms that renounce their corporate citizenship to avoid taxes and said he was introducing a measure to put them at a disadvantage for federal contracts. “When it comes to a competition between companies, if we have, on one hand, an American company paying its fair share of American taxes, competing with an inverted corporation that has decided to go overseas, we believe, advantage America,” the Illinois Democrat said.
DIESEL car drivers face "simply unacceptable" extra charges and a road tax hike in a bid to comply with European Union rules on air pollution.