In his 2011 State of the Union Address, President Obama stated that American taxpayers would be able to use an online tool to see how their federal tax dollars are spent. The receipt tool allows you to enter your federal tax burden or select an income estimate, and then it shows exactly how much of your federal tax dollars are spent on different expenditures.
Tax Foundation’s MyTaxBurden estimates your federal income tax burden under a variety of scenarios. Scenario 1 is the full expiration of all Bush-era and Obama tax cuts. Scenario 2 is the full extension of these tax cuts. Scenario 3 is President Obama’s plan to partially extend these tax cuts for families earning under $250,000 per year and single filers earning under $200,000 per year. This calculator will give you an estimate of your 2013 federal income tax burden.
Many Americans wish they could not only be as wealthy as Mitt Romney, but also use the tax planning strategies he has utilized to have such a low effective tax rate. Citizens for Tax Justice published a report with tax planning ideas taken from reviewing Mitt Romney’s previous tax returns. These tax planning ideas are:
- Don’t work for a living
- If you do work, disguise your compensation as capital gains
- Give to charity – but not cash
- Give to charity – but not now
- Give to charity – your own
- Use offshore investment vehicles
- Invest in sexier financial instruments
- Borrow money only to invest
- Be aggressive in your tax planning
- But don’t do anything illegal
For the complete report see this link
The Joint Committee on Taxation reported that the “Buffett Rule” would generate less than $5 billion per year for a total of less than $47 billion over the next eleven years. From these numbers, the “Buffett Rule” would barely put a dent into the $7 trillion projected federal budget deficit during that period.
More “Buffett Rule” Coverage