WILL DROPPING TAX RATES ACTUALLY INCREASE GOVERNMENT REVENUES

If you have been following my blog you know that I am a fan of decreasing taxes. By working with clients I know that as tax rates go up they lose the incentive to invest. Here is an example of what I have witnessed during my career.

A few weeks ago I was talking to a client. He told me that he was working really hard (70 to 80 hours per week) all summer to create a new line for his business. If this goes the way he wants in the next year he would have to build or rent a new warehouse and hire another 6 people. As we worked through the numbers, it looked like there was potential for another $40,000 in annual revenue.

Later in our conversation we started talking about the uncertainty of tax rates. He said "You know if tax rates went to 70% (Federal, State and Social Security), I would not have sacrificed my time or the financial sacrifices that I went through this summer." See what I am talking about?

Here is a very good article from the National Review that better summarizes my thoughts along with historical examples.

http://www.nationalreview.com/articles/250954/brass-oldies-thomas-sowell

GOVERNMENT MAKES A $22,250,000.00 MISTAKE

As part of the Obama administration’s stimulus plan, Social Security mistakenly sent 89,000 checks for $250 each to people who were either dead or in jail. About half the checks have been returned, but most of the prisoners will get to keep theirs. Source The Washington Post

HAPPY THANKSGIVING TO YOU

May your stuffing be tasty
May your turkey plump,
May your potatoes and gravy
Have never a lump.
May your yams be delicious
And your pies take the prize,
And may your Thanksgiving dinner
Stay off your thighs!

From our office to yours, we wish you a blessed Thanksgiving!
Kopsa Otte Staff

UPDATE ON TONY

For those of you who are interested on an update about Tony, please click on the link below:

http://www.omaha.com/article/20101121/NEWS01/711219923/-1#drunken-drivers-wasted-lives

IS THERE GOING TO BE A 1% TRANSACTION TAX?

Question: I heard that the government is going to impose a 1% transaction tax. Is this true?

Response: There are a lot of proposals to reduce the deficit. There has been a bill introduced in Congress, but the chances of being passed are slim. See the information in Snopes.

http://www.snopes.com/politics/taxes/debtfree.asp


Larry Kopsa CPA

NEWS ON BRAZILIAN BLOWOUT

You may have heard a lot of news lately about the Brazilian Blowout product. Here is the latest I have run across. Fact or marketing... you have to decide for yourself.

http://www.brazilianblowout.com/new-press-extra

NO 2011 WITHHOLDING RATES UNTIL DECEMBER

IRS has stated during its Nov. 10 payroll industry conference call that it is unlikely that any 2011 withholding tables will be issued this month. The percentage method withholding tables are usually issued in November to give payroll professionals sufficient time to get the tables into their computer systems before the new rates go into effect in January.

However, this year the tables will not be issued until Congress decides whether to adjust the tax rates.