Last year a large number of U.S. families who have adopted a child were met with a surprise adoption credit and this year that credit is back, allowing anyone who has adopted a child in the last six years to claim a $13,360 tax credit, an increase of $190 compared to last year.

While the adoption credit has been available since 1997 it was originally a non-refundable credit which in turn meant it would offset any taxes owed and the rest would carry over until the next year with no extra credit given.

As part of President Obama’s Affordable Care Act of 2010 that credit became refundable with money going directly into a taxpayer’s pocket.

The credit has been largely seen as a “godsend” for families who have adopted special needs children. While some families who adopt special needs children are able to receive a refund for adoption expenses the $13,360 refund ensures that money is available to help with a child’s care.

In the meantime tax experts warn that claiming the credit will likely mean an IRS audit since the refund is so large and could be abused by non-child adopting taxpayers.  In fact the Government Accountability Office found that “considerable” delays have been witnessed because of the high level of audits surrounding adoption refund requests. The agency says 68% of nearly 100,000 returns featuring the credit were audited but only 17% required that taxpayers make larger payments then originally anticipated.

In the meantime IRS officials have updated the information on its website this year to make sure all required forms are completed and sent in.

The Adoption Tax Credit is only valid for parents who adopted a baby that is already a U.S. citizen. Looks like Angelina Jolie and Brad Pitt are out of luck.

$13,000 Adoption Tax Credit Still Available, Offers Even Bigger Return For Parents is a post from: The Inquisitr

Mark Zuckerberg will face taxes of around $1.67 billion when he inevitably exercises options to buy 120 million shares in Facebook. What’s a mere multi-millionnaire to do?

Well, many pundits expect the 27-year-old CEO to sell back about $1.67 billion of Facebook Inc. stock in the company’s initial public offering to cover his tax liabilities. And even then, such a figure will be a drop in the ocean compared to the value of Zuckerberg’s overall stake in the social network, which could be worth as much as $28.4 billion.

Facebook’s IPO filing, first made on February 1, proposes a valuation of $75 billion to $100 billion, though the company attracted a valuation of at least $94 billion (about $40 a share) when it auctioned its shares on the private market this week.

The IPO filing goes on to address Zuckerberg’s tasty tax bill:

“We expect that substantially all of the net proceeds Mr. Zuckerberg will receive upon such sale will be used to satisfy taxes that he will incur upon his exercise of an outstanding stock option to purchase 120,000,000 shares.”

Incidentally, as tax rates are a hot topic right now, Zuckerberg’s tax rate will be 35 percent, according to Victor Fleischer, associate professor of law at the University of Colorado.

Businessweek got a ‘no comment’ when it approached Larry Yu, a spokesman for Facebook, yesterday.

[Via Businessweek]

Mark Zuckerberg May Cover Taxes By Selling $1.67 Billion in Facebook Stock is a post from: The Inquisitr

Having been in this tech industry for 20 plus years I am no longer surprised when I read about lawmakers who, with little or no knowledge of what they are seeking legislate try to control video games but one would think that since the US Supreme Court provided video games with 1st Amendment rights lawmakers would call it quits.

Needless to say lawmakers continue to try and return to the well as we can see by this latest attempt from Oklahoma Democrat Will Fourkiller who wants to levy a special tax that is focus specifically against the sale of ‘violent’ video games. The problem is that his proposition is that he wants to use the ESRB rating system as the bases around which to levy the tax.

The one percent excise tax would be applied against all games that get an Entertainment Software Rating Board (ESRB) of “Teen, Mature, or Adult’ which might be fine on the surface until you start looking at all the games out there with those ratings.

Games like Ultimate Card Games for the Nintendo DS or the Wii’s Robocalypse: Beaver Defense would fall directly under this plan as would probably the majority of the most popular games on the market right now.

The bill is being proposed under “emergency” rules because it is “immediately necessary for the preservation of the public peace, health and safety,” according to the text. After being read on the House floor next week, the bill will need majority votes in both the Oklahoma House of Representatives and Senate before being sent to the governor. After that, if it doesn’t receive a three-fourths majority in both houses, it will be put on a November ballot to be approved or rejected by Oklahoma voters

via Ars Technica

If this passes the countdown to the first court challenge would start within seconds.

Oklahoma lawmakers wants to tax any games with an ESRB of ‘Teen’ or above is a post from: The Inquisitr

GOP Presidential hopeful Mitt Romney released his tax returns following the first of two GOP debates in Florida and as suspected his tax rate is lower than that of many poor and middle class Americans.

In 2011 Mitt Romney collected $20.9 million in income and in 2010 that number was higher at $21.7 million, however because all of those profits were paid in dividends and interest from investments Romney wasn’t charged any wages. That mean his estimated tax payment of $3.2 million in 2011 is just 15.4% while his $3 million payment in 2010 was just 13.9%, that would be a lower tax bracket them a poverty earning American making $15,000 in the same time period.

The Romney family did manage to be slightly more generous with their money when it came to charities, giving away $7 million of which $4.1 million was paid to the Mormon church.

During the Florida debate Romney repeated that his tax bill is “entirely legal and fair” while adding “I’m proud of the fact that I pay a lot of taxes.”

In actuality he paid far less in taxes then even Newt Gingrich who’s recently tax return shows almost $1 million paid on just over $3 million earned (more than 30% paid).

Joking during the debate about Romney’s tax payments Newt Gingrich said he would love to bring Americans’ tax rate “down” to Romney’s level. At the same time Mitt Romney points out that Gingrich supports a 0% tax on capital gains which would have left Romney paying “no taxes”

It should be noted that Mitt Romney only released his 550 pages of tax documents for his three family trusts and his foundation after coming under fire regarding his $250 million fortune.

With such a small percentage of his gross earnings afforded to taxes it’s likely the trouncing he felt in South Carolina will continue if he doesn’t come up with a better stance then being “proud” about his “legal payments” when many American’s and even some of the countries most wealthy citizens are asking for higher taxes on the rich.

In the meantime Romney has attempted to shift the focus away from his low tax bracket by noting that Newt Gingrich’s consulting firm accepted $1.8 million from Freddie Mac ahead of the 2008 housing collapse. Gingrich has repeatedly claims that none of that money was used for lobbying purposes. One thing is for certain, at least Newt paid more than 30% of those earnings into taxes, Romney would have pocketed an extra $200,000 had he been the one consulting the company.

In the meantime I just wish I can one day collect $20 million and claim it as non-wages. Are you appalled with Mitt Romney’s low tax bracket on millions of dollars earned?

Mitt Romney Tax Return Released: He Pays In A Lower Tax Bracket Than Poor People is a post from: The Inquisitr

Lest you think Warren Buffett is a self-hating Richie Rich, the sympathetic billionaire- who has long decried that he himself pays a far lower tax rate than many of his employees- has actually stepped in to defend the often-seemingly-indefensible Mitt Romney.

Buffett has not been shy in criticizing many in his cohort that enjoy a lower tax rate- the difference essentially boils down to whether you make money with your skills or labor, or whether your money makes money. If you yourself make the money, you pay a higher tax rate. Income from investments is taxed a bit lower, and Romney has come in for hotter heat when the topic of loopholes like offshore tax shelters are discussed.

But, Buffett says, don’t hate the player- hate the game. He sat down with Bloomberg earlier this week to talk about tax issues and Mitt Romney after Mittens was excoriated in the press for not wanting to release his enviable tax returns to the American public, probably for fear the torches and pitchforks were about to come out. Buffett explains it’s not really Mitt Romney’s fault he gets to keep such a greater percentage of his money than you do- it’s Congress to blame for the situation:

“It’s the wrong policy to have. He’s not going to pay more than the law requires, and I don’t fault him for that in the least. But I do fault a law that allows him and me earning enormous sums to pay overall federal taxes at a rate that’s about half what the average person in my office pays.”

Buffett has long been campaigning for a fairer tax rate that will ensure everyone carries the tax burden equally in the US. He continues:

“[Romney] makes his money the same way I make my money. He makes money by moving around big bucks, not by straining his back or going to work and cleaning toilets or whatever it may be. He makes it shoving around money.”

Well, Warren, when you say it like that, it doesn’t really make Mittens any friends, does it? Do you think “vulture capitalists” like Mitt Romney should be taxed like a janitor or schoolteacher?

Warren Buffett Says Congress, Not Romney is to Blame For Tax Rate, Defends GOP Contender is a post from: The Inquisitr

Just minutes before the televised Republican presidential debate began on Thursday night GOP presidential hopeful Newt Gingrich released his tax returns, showing that he paid $994,708 in federal taxes in 2010.

The tax return shows that Gingrich paid those taxes on an earned income of $3.1 million, making his effective tax rate 31.6 percent of his adjusted income.

The move comes less than a week after Mitt Romney revealed that he only pays 15 percent of his annual income into the tax system. Romney is estimated to be worth more than $250 million compared to Newt Gingrich’s $6.5 million personal worth, part of which is earned from his Gingrich Productions company which produces his various books and films and claimed $500,000 in annual sales in 2010.

Newt also provided to charity, donating 2.6 percent of his income in 2010 for a total of $81,133 in cash and checks. While nearly $100,000 in charitable donations may sound like a decent chunk of his money the Center on Philanthropy at Indiana University says the average charitable donations made by a household earning over $2 million per year is $259,692.

The tax issue is likely to be a pushing point for Newt Gingrich moving forward as many American feel that the super-rich in America pay too little in taxes and use loopholes to pay in the same tax bracket as some of American’s poorest citizens.

Do you believe that Newt Gingrich’s plan to release his 2010 tax return will work in his favor or do American’s want a proven business leader running the country during an extended period of economic failure?

Newt Gingrich Paid Nearly $1 Million In Taxes During 2010 is a post from: The Inquisitr

The Internal Revenue Service (IRS) announced on Wednesday that they have extended the traditional last day for filing taxes.

According to the agency tax filers now have until April 17 to file before the tax deadline ends. The traditional IRS tax deadline is April 15.

The IRS granted the extension simply because April 15 falls on a Sunday in 2010 and Monday is then Emancipation Day, a day in which Washington D.C. residents celebrate the freeing of slaves in the district.

You may recall that Tax Day was extended last year until April 18 because of Emancipation day.

In the meantime anyone looking to file early can begin submitting their tax forms to the IRS using the agency’s e-filing system starting on January 17. The IRS calls their e-filing system the most accurate filing option for taxpayers.

In terms of an extension the IRS is offering Oct. 15 as the absolute best day to file your return.

According to the IRS workers will submitt 144 million individual tax returns before the IRS tax deadline ends on April 17. Most of those tax returns are expected to be filed before the April 17 deadline.

The IRS has been full of good news lately, recently they raised the amount of money an employee could contribute to their company sponsored 401k plan.

Are you relived to have a few more days to file your returns this year or like me do you try to file your tax return as soon as possible?

[Image via ShutterStock.com]

IRS Extends Tax Deadline, Gives Filers Slightly More Time is a post from: The Inquisitr

WASHINGTON, DC – House Republicans on Tuesday rejected a payroll tax deal that would have extended the payroll tax holiday for two months, saving money for more than 160 million Americans heading into 2012. Instead House Reps. calls for a conference committee to work out differences between House and Senate leaders.

The final partisan vote failed with an outcome of 229-193 after days of squabbling over how to extend the tax cuts and save unemployment for millions of out-of-work employees.

House Republicans are hoping that a Senate conference committee can work to extend a full one-year agreement on the cuts however Senate Majority Leader Harry Reid has said no further negotiations will be accepted until a two-month extension is offered.

Appearing in the White House briefing room President Obama says the Senate plan was the “only viable way to prevent a tax hike on Jan. 1.”

If a deal can not be brokered the end of the tax extension is likely to cost the average American home up to $1,500 per year.

In a letter to President Obama House Speaker John Boehner (R-Ohio) told President Obama that their is still sufficient time for policymakers to negotiate a compromise before the tax cut expires. In his letter he wrote:

“There are still 11 days before the end of the year, and with so many Americans struggling, there is no reason they should be wasted,” while adding, “You have said many times that Congress must do its work before taking vacation. Because we agree, our negotiators and the House stand ready to work through the holidays.”

After the House vote Harry Reid released a statement of his own:

“I have been trying to negotiate a yearlong extension with Republicans for weeks, and I am happy to continue doing so as soon as the House of Representatives passes the bipartisan compromise to protect middle-class families, but not before then.”

In the meantime it’s politics as usual on both sides of the political fence as Republicans and Democrats have spent what appears to be more time with name calling then policy building, throwing around such words as “radical agenda” and “hypocrisy.”

The two month measure set forth by Democrats passes easily through the Senate with a surprising 89-10 partisan vote.

Do you think the 2-month plan should be instituted to give more time for further agreements or should other measures such as ending the Bush Era tax cuts for the wealthy be instituted.

House Says No Thanks To Senate Payroll Tax Deal is a post from: The Inquisitr

Are you missing your tax refund? If you are, you aren’t the only one. The IRS still has more than $150 million in tax refunds that it hasn’t been able to deliver to taxpayers.

CNN reports that 99,123 taxpayers are still owed tax refunds this year. The IRS says that it hasn’t been able to deliver their tax refunds due to issues like incorrect mailing addresses. According to the IRS, the $153 million in tax refunds makes up for just .01% of the total that it has already delivered. Still, on an individual basis, 99,000 people are missing a check worth an average of $1,500.

If you’re missing your tax refund, you can use the IRS’ “Where’s My Refund” tool. 

The IRS says on its website:

“Where’s My Refund? will usually have information about your refund 72 hours after IRS acknowledges receipt of your e-filed return, or three to four weeks after mailing a paper return. Check back weekly, on Wednesdays, for any updates to your refund information.”

To use the tool you simply enter your social security number, your filing status, and the amount of your tax refund.

The IRS recommends that taxpayers opt for direct deposit when they file their taxes so that it’s impossible for the check to get lost in the mail. According to Fox10, 78.4 million taxpayers chose to receive their refund through direct deposit last year.

The IRS also warns taxpayers not to give out any information about their taxes over the phone or through email. The IRS does not contact taxpayers by phone or email so if you’ve received an email about your tax refunds, someone is probably trying to scam you.

Have you had any problem with your tax refunds this year?

Where’s My Tax Refund? 100,000 Taxpayers Still Owed $153 Million in Tax Refunds is a post from: The Inquisitr

A group of millionaires banned together on Wednesday to ask Congressional leaders to tax them more.

Two dozen wealthy Americans approached members of the deficit “Supercommittee” and begged to have their taxes increased.

Testifying at a congressional hearing in front of 13 members of Congress the millionaires expressed concern over the country’s fiscal health. Entrepreneur Charlie Fink, a resident of Washington, D.C. said that if the Bush tax cuts do not expire America “is digging itself a big hole by foregoing revenue.” Fink goes on to note:

“Without revenue, we will never solve the problem by giving tax cuts to the wealthy while supporting two foreign wars.”

After hearing from the group Rep. Clyburn told ABC News:

“It was a very refreshing conversation that restored my faith that there are people who, in spite of their financial successes, have not lost their compassion and sense of fair play.”

Speaking about the current state of the fiscal system millionaire Robert Johnson, a former chief economist of the U.S. Senate banking committee said the system isn’t “broken” but is  ”working on behalf of those who designed it in their favor.”

During a press conference Johnson said:

“America is no longer based on markets and capitalism, instead our economy is designed as ‘socialism for the rich’ – it is designed to ensure that the wealthiest people take all of the gains, while regular Americans cover any losses.”

Further explaining the system Johnson revealed:

“It’s a Las Vegas economy where regular Americans put their money on the table and the richest 1 percent own the house. And if the 1 percent happen to lose money, the 99 percent bails them out – covers their losses and then stands by watching while the house does it all over again.”

The members who attended the meeting were all part of the Patriotic Millionaires, a group that formed last November with 45 members who asked President Obama to let the Bush-era tax cuts to the rich expire.

In an open-letter on the groups website they state:

“For the fiscal health of our nation and the well-being of our fellow citizens, we ask that you allow tax cuts on incomes over $1,000,000 to expire at the end of this year as scheduled,” and “We make this request as loyal citizens who now or in the past earned an income of $1,000,000 per year or more.”

In the meantime the Bush-era tax cuts remain in effect, even as billionaires including Warren Buffett have repeatedly said the rich need to be taxed and loopholes in the tax code need to be closed.

Here’s a video of the group addressing the Congressional Committee:

Do you think taxes should be increased for America’s richest citizens?

Millionaires Take To Capitol Hill, Beg Congress To Tax Them More [Video] is a post from: The Inquisitr

Ai Weiwei, a famous and outspoken Chinese artist, has just been ordered to pay the government $2.4 million in back taxes. Weiwei, who was detained for nearly three months earlier this year, said that he doesn’t plan on paying the taxes unless the Chinese government explains why he owes such an exuberant amount of money.

Weiwei said:

“We can pay this money, but we need to know why we have to. We cannot just unwittingly hand over a sum of money. This would be irresponsible toward the country.”

The CS Monitor reports that Weiwei was given a similar notice this Summer for a smaller amount. The new notice says that he has 10 days to pay but does not specify what will happen if he misses his payment.

Reuters reports that Weiwei was detained for 81 days earlier this year for tax evasion. During that time police raided his studio and confiscated his account books. Supporters of Weiwei say that the government is using the false tax evasion charge to punish Weiwei for speaking out against the government.

Weiwei said:

“Accounts for tax purposes should be investigated by the tax bureau, not the police. Police should not be taking me away to a place that no one knows for 81 days to investigate taxes.”

Weiwei says that he fears the Chinese government is misusing the law to punish him. Weiwei said:

“If you want to hurt one person, to hurt me, that’s all right… when you hurt the law, it hurts the country and everybody in it.”

Do you think Ai Weiwei will be detained again by the Chinese government?

Ai Weiwei Will Fight $2 Million Tax Charge is a post from: The Inquisitr

Billionaire investor Warren Buffet recently argued that rich people are not paying enough taxes and in that spirit President Obama on Monday is expected to roll out the “Buffett Rule” a new tax plan that will create a higher minimum tax rate for American’s who earn more than $1 million.

The plan will like target the “alternative minimum tax” rule which was formed decades ago to ensure that the most wealthy American’s pay a certain tax bracket despite loopholes and deductions, a level that was placed at a measly 15%. The AMT as it is commonly referred to eventually carried over to upper-middle-class Americans.

The President is also expected to target the low 15% tax rate on capital gains, dividends and “carried interest” that has been collected by wealthy investors.

According to President Obama, ending tax breaks for the .03% richest American’s would help pass on lower rates to middle and lower class workers.

The plan is highly unlikely to pass through the Republican controlled Congress but that isn’t the point of the proposal, Obama’s plan is merely a way to show voters that Republican’s don’t have their best interests in mind during a time of unprecedented wealth loss among the middle class in America.

Do you think taxes need to be raised for America’s richest citizens? I’m going to take Buffett’s word on this one as he is a much smarter man than me when it comes to financial accumenship.

Obama To Unveil “Buffett Rule” On Monday, Target Higher Taxes For Rich People is a post from: The Inquisitr

Maybe China needs its own Tea Party- many of the country’s citizens are getting a bit steamed over a proposed new tax on Mooncakes- a traditional gift from employers to workers for a yearly festival.

While Tea Parties may be whargarbling in the streets about how our taxes are going to fund gay marriage and teaching actual science in schools- which like, makes Jesus mad or something and it’s in the bible- Chinese workers actually do seem to have a legitimate grievance over the cake-jacking.

The traditional Chinese Mid-Autumn Festival falls on September 12th, and employees are given the sweet, stuffed pastries as celebratory gifts by employers. But the Mooncake tax is a new proposal, and some workers are pushed into a higher tax bracket due to the gifted Mooncakes. Chinese worker Li Jingyuan explains why the populace is so frustrated by the Mooncake tax proposal:

“I actually earned 6,800 yuan in August, meaning I should pay 720 yuan in tax. But the mooncakes took my total income to above 7,000 yuan and I was taxed 1,020 yuan… As the western saying goes, nothing is certain but death and taxes. I feel very uncomfortable about the ‘mooncake tax.”

The tax of in-kind income is not new, but with the internet, awareness of the obligation to claim the gifts gave rise to the Mooncake tax complaints. Huffed one worker online:

“If I have to pay taxes on the mooncakes I eat, I’d rather not eat them,” quipped one Weibo user writing under the name Little Fuxing Summer. “Better to just give me the money so I can buy mooncakes myself that actually taste good.”

A poll of nearly 20,000 workers on the Chinese equivalent to Twitter, Weibo, revealed a 92% rate of opposition to the Mooncake tax.

Mooncake Tax Proposal Rocks Chinese Citizens is a post from: The Inquisitr

President Obama took his motorcade through the Central part of London recently and now London Mayor Boris Johnson wants him to pay fines totaling £120 ($195) after the President failed to pay a £10 ($16) congestion levy.

The congestion levy was put in place as a “congestion charge” on Central London drivers from 7:00 am to 6:00 pm as a way to stop congestion which hinders all drivers and poses a risk to pedestrians in the area.

The U.S. isn’t the only embassy to have fines levied against them for driving on the cities streets, all together $81.5 million in congestion fees have been placed against leaders from all over the world.

The Obama administration however has fought paying the fines, citing the 1960 Vienna Convention on Diplomatic Relations which prohibits imposing any taxes on foreign embassies. The Obama administration claims that the “levy” is nothing more than a tax and therefore they shouldn’t have to pay the fines.

Obama Motorcade Fined In London, US Embassy Now Owes $8 Million In Fines is a post from: The Inquisitr

Research conducted at George Mason University’s Mercatus Center has found New York to be the ”least free state in the Union” according to a set of criteria that weighs factors including individual freedoms and obligations to government, like taxes.

The study looked at “discal policy, regulatory policy, economic freedom and personal freedom” to determine average freedom by state, and New York- also known for its oppressive income gap (1% of New York City, for instance, controls a staggering 44% of Gotham’s wealth)- came in dead last. Gun laws in New York are strict, there is currently no medical marijuana legality, gay marriage is currently struggling to pass the State’s Senate and spending on public services like welfare and infrastructure is “high above” national norms.

Given the sad statistics, it’s probably no surprise that migration to other states is at an all-time high. The Mercatus Center, a “libertarian think-tank,” offers the following suggestions to bring New York up to speed with other, freer states:

1. The most liberal state in the country can surely find the political will to legalize same-sex partnerships of some kind.
2. Cut spending in all the areas mentioned above, privatize (and rate-regulate) transit systems, and cut taxes across the board.
3. Reduce the burdensome testing, notification, and recordkeeping requirements on homeschoolers.

Freest state in the union according to the study? New Hampshire, whose motto is “Live Free or Die.”

[Study]

Least Free State in the US is New York, According to Study is a post from: The Inquisitr

Don’t recognize the name of that person who just friended, or followed, you on Facebook, Twitter or MySpace? Well rather than just blindly accepting and returning the favor you may want to do some serious checking because that could be your local taxman knocking on your cyber front door.

Increasingly IRS agents are turning to social media networks in order to find those people they believe owe the government some money. In a post at the Wall Street Journal, Laura Saunders tells about how state revenue agents as well as IRS agents are beginning to mine the social media world for those people who think they can hide and not pay their taxes.

While their typical online searches might include bank, tax, motor vehicle, and employment records they are starting to include Google, Facebook and MySpace as part of their investigations. There are limits though as revenue agents, state and federal, are only allowed to use information that is publically available online. this means that more ‘public’ oriented sites like MySpace are searched than say Facebook where the default setting is private.

As much as the title of this post might be humorous the fact is that revenue agents are not allowed to ‘friend’ someone using false information. That hasn’t stopped the agents from chalking up more than a few profitable successes when it comes to collecting on delinquent taxes.

In Minnesota, authorities were able to levy back taxes on the wages of a long-sought tax evader after he announced on MySpace that he would be returning to his home town to work as a real-estate broker and gave his employer’s name. The state collected several thousand dollars, the full amount due.

[….]

One [Nebraska] agent collected $30,000 of unpaid tax from a resident after a Google search found him listed as a high-ranking local marketing rep for a national firm. If a Google online search isn’t productive, agents use the social sites or chat rooms in a last-chance hunt for their quarries.

As popular as this method of finding tax evaders might be with some states not all of them are jumping on the bandwagon yet. Some like Massachusetts and Oregon are still in the exploratory stage of see how using the Web can help them.

That person you friended just might be your friendly taxman is a post from: The Inquisitr

According to Boris Veldhuijzen van Zanten at TheNextWeb.com blog the Dutch government recently formed a special committee to come up with a course of action to save the Dutch newspaper industry. The main recommendation of the Brinkman committee was to place a special tax on all Internet access.

The idea being that the 2 Euros yearly tax all Dutch families would be required to pay, resulting in and extra 12 million per year, would be used on ‘innovative’ projects. These so-called innovative projects the committee suggested might help find a solution to the increasing decline in the newspaper industry.

Needless to say said Boris the blowback to this idea has been strong and swift

As you would expect there are thousands of angry comments on the online articles who reported on the issue this morning. They compare it to paying a ‘car tax’ to save the Horse-Drawn Carriage Industry. Or taxing email to fund the post office because people are sending less paper around.

It appears though that this response has been successful if the update from Boris is any indication

UPDATED: Dutch parliament will ignore the commission’s advice and has decided against an Internet tax. I’m sure that is a huge relief for a LOT of people.

Wow … a government that actually seems to listen to the people who elected them – how unusual.

Dutch government ignores its own Internet tax study – listens to the people is a post from: The Inquisitr

Sure it’s hard to close a $15.4 billion budget gap but New York Governor Patterson seems to think that it’s time for digital downloaders to start paying their fair share of taxes. As part of his slash and burn budget Patterson wants to start taxing the sale of downloaded music and other digitally delivered entertainment services. This iPod tax is among the many small tax increases being proposed as a way to fill the shortage in budget money.

Among the other proposals are the following

Movie tickets, taxi rides, soda, beer, wine, cigars and massages would be taxed under Paterson’s proposal. It also extends sales taxes to cable and satellite TV services and removes the tax exemption for clothes costing less than $110.

This follows on the footsteps of the recent move to collect sales taxes from online retailers in New York; which went over like a lead balloon. I realize that New York has to find some way to make up their short falls but I don’t see how nickel and diming residents by taxing all their entertainment downloads is going to help.

If anything I figure we will see more lawsuits like the one Amazon launched against the sales tax move by the state. Not to mention the fact that people will just shift their buying to sites that don’t tax their purchase on behalf of a state government.

New Yorker’s to be left bleeding by nickel & dime tax plan is a post from: The Inquisitr

The net retailer is being investigated in Texas because even though its headquarters are in Seattle, it operates a distribution center in the city of Irving.

The whole thing comes down to a 1992 Supreme Court ruling that gives states the power to collect taxes from businesses with any type of “physical presence.” That can include anything as small as a store or delivery center. Texas has said it’s lost as much as $541 million in unpaid taxes from internet- and mail-based sales in past years.

Amazon told the Dallas Morning News it’s done nothing wrong and is in “full compliance” with state regulations. A representative cited the fact that the Irving distribution center is owned by a subsidiary, Amazon.com.kydc, not by the main company. Yet, the Morning News discovered government records showing Amazon.com as the center’s owner in 2006 and 2007.

The fight is all too familiar for Amazon. The company just recently sued the state of New York over a similar dispute.

It’s a tricky line, and lawmakers know it. Right now, Congress is looking at redefining internet sales taxes. They may end up creating a set of standardized rules across the entire U.S. They’re also looking at building in exemptions for smaller net-based businesses.

Online Sales Stir Up Tax Debate is a post from: The Inquisitr