Relevant and even prescient commentary on news, politics and the economy.

More on Private Equity, Carried Interest, Wealth, and Romney

by Linda Beale More on Private Equity, Carried Interest, Wealth, and Romney Those who’ve read much of this blog are aware of the various arguments against the notion that private equity firms are “do-gooders” that we should encourage and even subsidize (through the carried interest provision). On the whole, I believe they are part of […]

Senate Dems unveil their tax cut proposal

by Linda Beale Senate Dems unveil their tax cut proposal Senate Democrats, led by majority leader Harry Reid, unveiled a $26 billion tax-cut bill on March 26, 2012. See, e.g., Richard Rubin, Senate Democrats Said to Prepare $26 Billion Tax Cut Measure, San Francisco Chronicle (Mar. 26, 2012). The proposal revives the lapsed 100% expensing […]

Is Congress drinking Grover Norquist koolaid? (or will it fund IRS appropriately

by Linda Beale Is Congress drinking Grover Norquist koolaid? (or will it fund IRS appropriately) IRS Commissioner Doug Shulman testified before the House Appropriations Financial Services and General Government Subcommittee on President Obama’s proposed 2013 budget for the IRS. Shulman wants Congress to provide adequate funding to the IRS to support its enforcement function. The […]

Still haven’t filed your FBAR? Don’t wait till you get hit with forfeiture

by Linda Beale Still haven’t filed your FBAR? Don’t wait till you get hit with forfeiture like this Alaska Plastic Surgeon It looks like the leads from the various voluntary disclosures are beginning to pay off, as the U.S. is beginning to develop high stakes cases related to Americans who have tried to maintain secret […]

More on Greg Mankiw’s weak arguments for the Bain capital gains preference

by Linda Beale More on Greg Mankiw’s weak arguments for the Bain capital gains preference A few days ago, I commented on the weak arguments Greg Mankiw had put forth in his op-ed to support the preferential treatment of compensation for private equity and real estate partnership “profits” partners. He points out the categorization problem–that […]

Graphs Show It Clearly–the richest are much richer and most of us are poorer

by Linda Beale Graphs Show It Clearly–the richest are much richer and most of us are poorer David Cay Johnston has employed a couple of key graphic images that tell a significant story about the way that US laws have favored the rich–including tax administrative procedures that have reduced real audits of the rich and […]

Public Transit Benefit was down, is now up again (in Senate)

by Linda Beale Public Transit Benefit was down, is now up again (in Senate) One of the tax provisions that lapsed last year was a very popular tax expenditure supporting public transportation–a tax credit for commuters using mass transit was allowed to lapse back to a $125 monthly benefit from the stimulus level of $230 […]

Illinois’s Tim Johnson (Rep.) Squirms under Norquist No-Tax-Increase Pledge

by Linda Beale Illinois’s Tim Johnson (Rep.) Squirms under Norquist No-Tax-Increase Pledge Back in 2002, Tim Johnson represented a safely red district in Illinois and the radical right was pressing on his back with its reaganomics-inspired program to cut-taxes-to-shrink-(nonmilitary)-government-and-eliminate-public-infrastructure-and-social-justice-programs; de-regulate-to-free-up-big-business; privatize-wherever-you-can-especially-schools-bridges-and-other-essential-services.  Not to be outdone, Tim Johnson signed the no-tax-increase pledge on the dotted line, […]

Hey, didn’t the GOP say it cared about deficits?

by Linda Beale  Hey, didn’t the GOP say it cared about deficits? Just when you think those on the radical right had gone about as far as they could go without recognizing their own zaniness, those in Congress have revived their version of a tax “reform” for businesses.  It was first proposed in 2009–as an […]

Greg Mankiw attempting to justify carried interest

by Linda Beale Greg Mankiw attempting to justify carried interest Greg Mankiw wrote an op-ed in the Sunday Times Money section: Capital Gains, Ordinary Income and Shades of Gray, New York Times (Mar. 4, 2012). Mankiw notes the historical trend in the US to differentiate between capital gains and ordinary income regarding tax rates (though […]