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Buffett Rule: A procedural vote in the Senate on the so-called Buffett Rule is set for monday. The measure, which imposes a minimum tax on people earning over 41 million annually, is expected to fail. But Democrats are looking to put Senate Republicans on record voting against the tax.
Source: The Wall Street Journal & Daily Herald Sunday April 15, 2012. Daily Herald Section 3 - Front Page Investor's Calendar, This Week
Topic 556 - Alternative Minimum Tax
The tax law provides exclusions for certain kinds of income and deductions and credits for certain expenses. The alternative minimum tax (AMT) attempts to ensure that an individual who benefits from certain exclusions, deductions, or credits pays at least a minimum amount of tax.
The AMT is a separately figured tax that eliminates or reduces many exclusions and deductions. In addition, certain credits (generally, business-related credits) cannot be used to offset the AMT. Thus the AMT increases the tax liability of an individual who would otherwise pay less tax. The AMT tax rates on ordinary income are percentages set by law. For capital gains and certain dividends, the rates in effect for the regular tax are used.
You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount. The exemption amounts are set by law for each filing status and are listed in the Form 6251 Instructions.
To find out if you may be subject to the AMT, refer to the Form 1040 Instructions and the Form 1040A Instructions. If you are filing the Form 1040 you may use the AMT Assistant for Individuals, which is an electronic version of the AMT worksheet available on the IRS web page at www.irs.gov. The AMT worksheet may tell you that you do not owe the AMT or it may direct you to Form 6251, Alternative Minimum Tax - Individuals. If you are directed to Form 6251, you will have to complete that form to determine whether you owe the AMT. Form 6251 (PDF), Alternative Minimum Tax - Individuals, is available in a PDF format on the IRS web page.
If you are not liable for AMT this year, but you paid AMT in one or more previous years, you may be eligible to take a special minimum tax credit against your regular tax this year. If eligible, you should complete and attach Form 8801 (PDF), Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts.
So right now government salaries are much larger than in the private sector.
Originally posted by schuyler
Why should corporations pay taxes at all? Really. Think about it. All companies have expenses. Taxes are an expense to the corporation. When they sell something in the marketplace they must make a profit. Why? Because if they don't, they go out of business. They're stagnant. They cannot grow. Taxes are a disincentive to productivity, simply a drag on the company. Let's say a company pays 35% in corporate taxes. That's the high end. IT'S THE HIGHEST IN THE WORLD!. How do you think a company PAYS its taxes? It prices its widgets to include the cost of the taxes it is levied. So that means what? That you, the consumer, are the one who pays the corporation's taxes. This is in ADDITION to the personal income taxes you pay, but it's hidden from your view. You don't see it. You just think the cost of goods is high and you typically blame the corporations.
Let's put it another way. The government is stealing from you with the help of corporations. And you go right along with it and have this attitude that corporations aren't paying taxes? That's bad!! We neet a Buffet Rule because millionaires aren't paying enough taxes. That's bad!