taxes

The progressivity of the U.S. tax system has dramatically declined over the past seven decades. The upshot is that for most income levels, the U.S. tax system now resembles a flat tax that becomes regressive at the very top end, meaning the super-rich pay proportionately less. Today, virtually all income groups pay roughly 28 percent of their income in taxes--– except for the 400 richest Americans.

Clinton knows full well the perils ahead. The biggest threat is the Congress that she’ll have to go to with her big spending package. A GOP-controlled Congress will be as hostile to her big budget and tax increases as it was to Obama’s. With a big White House win, Clinton is on far more solid ground when she tries to follow through with the pledge. This will give her the breathing space needed to get parts of her jobs, education, healthcare, and infrastructure overhaul programs through.

Bitcoin’s origins are murky. Some speculate it was created in response to the 2008 recession, promising anonymity and escape from regulation, monetary policy and central banking authorities. These promises made it particularly alluring to Silicon Valley libertarians - as well as drug dealers, Ponzi schemers, and other unscrupulous types. The virtual currency is stored on individual users’ computers and devices or on online repositories, in “digital wallets,” and like cash, can be transferred directly to other users.

There was a fairly recent time when the word most associated with the chairmanship of a major committee in the House of Representatives was powerful.  Retiring Representatives Dingell and Waxman enjoyed the aura that came with the gavel.That was then.  Confirmation of how things have changed came this week when the chairman of the Ways and Means Committee unveil a tax reform plan that everyone agrees is both credible and going nowhere.

A report is out that the Internal Revenue Service of the US is, after all, running after Manny Pacquiao for unpaid taxes to the tune of $18.3 million (over P770 million) covering the period 2006 to 2010. TMZ, a popular TV show in the US covering the lives and saga of Hollywood celebrities and political personalities, said it has obtained documents to prove that Pacquiao’s camp failed to settle Pacquiao’s tax obligations in the US despite lucrative purses he got from fighting as a marquee fighter and a top pay per view (PPV) attraction during the period covered by the IRS levy.

Reaffirming his commitment to protect current and future generations who depend on Social Security, President Obama declared in Tuesday’s State of the Union address, “Our government shouldn’t make promises we cannot keep -- but we must keep the promises we’ve already made.”  Indeed, we must keep the promise of old-age security that Americans have earned through hard work. The nation’s politicians should be held accountable to keep their word that they will not cut the Social Security benefits of older workers, retirees, people with disabilities and the children of deceased and disabled parents.

Ah, Washington. The good news is that our national leaders saved our butts (for the moment) from bottoming out off the “fiscal cliff.” The bad news is: Watch your head—it’ll soon come crunching up against another unnecessary “debt ceiling” crisis. The most important Good vs. Bad News about the New Year’s Day cliff dive is that the Ugly—the prospect that Congress’ failure to raise the debt ceiling could actually cause the United States to default on its international debts with genuine economic consequences—is now put off, but only until March.

In the highly charged, relentlessly partisan political climate of today, one only worsened by the ongoing presidential campaign, it is sometimes easy to forget that Romney isn’t exactly the Republican base’s favorite son.  Indeed, in their fervent desire to defeat President Obama, the dislike and distinct distrust that many on the far right have for Governor Romney has been effectively swept under the proverbial rug. If, however, Romney is successful in his quest for the presidency, this unity on the right will likely prove transient.