The results are in; Whats the big deal; Personal Savings Plans are popular.
1. The Surplus Numbers are BIG!
The latest Surplus for the nine months ending June 30 are in and they are big The real numbers to look at are the gross receipts and expenditures; they are running over $2T annual. What will they be in ten years. If they stayed at $2T that is $20T, which more likely will be $25T++++. A $750B tax cut over ten years would be 3% or less.
2. Marriage Penalty Reform will be VETOED!
The votes are in and the Marriage Penalty Reform, double income for 15% Bracket if you are married. That benefits the ones who are married but only one bread winner, says the President. Has he heard of Community Property, he might if he moves to California.
3. Pension Reform is very popular and will make it.
The articles are already being written on the Pension Reform Act, and the changes will be very dramatic if it passes [the Senate Bill, already passed, is even more generous].
The Home-Based Business for Dummies by Paul and Sarah Edwards and Peter Economy at page 187 talks about the corporation form of doing business. They suggest that tax benefits may be little or nil [S Corp. vs. C Corp.?]. Is it possible to have a C Corp. with a fiscal year-end of January 31st and defer close to one years income for ever or at least until the maximum benefits of the Pension Reform kick in January 2004? Are C Corps. audited more often then S Corps. or Schedule C with the Home Office Deduction?
If this Pension Reform Bill makes it, then incorporating may be given a big boost, especially if you want to elect fiscal year- ends.
Jim Schneider, LL.M.
The Taxman86 Speaks... is copyright 1998-2010 by James E. Schneider, LL.M. Inc.