If you are a resident of Illinois, you are probably aware that the General Assembly passed a 32% state income tax increase and a 38% corporate income tax increase. What you probably don’t know is this legislation also took the first step towards instituting a graduated income tax in the state of Illinois.
I have lived in Illinois my entire life. My business is here in Illinois and it is very likely my children will spend their lives as Illinois residents. Consequently, Illinois' current budget difficulties have me very concerned. I am especially disturbed that the Illinois Senate is currently contemplating a budget fix that would raise the income tax rate to 4.99%.
My clients frequently ask me if they should invest in gold. Since the financial crisis in 2008, advertisements for gold have blanketed the television and radio airwaves. Many major radio and television personalities have become gold advocates (of course they're being well-paid to do so). Gold is often pitched as an inflation hedge and a defensive move against possible economic downturns.
A recent Tax Court case (Powell, TC Memo. 2016-111) reinforces the importance of keeping a detailed mileage log to support your business deductions. In this case, a taxpayer used his personal vehicle in his marketing business. He kept a detailed log with the exact miles driven, destination and purpose for some activities.
Tax policy is an important part of this Presidential campaign. Here is some information that might help you decide which candidate's tax policy is best for the United States economy:
• During President Obama's two terms, taxes have been increased significantly with the promise that these tax increases would reduce the deficit and increase economic growth.
Anyone who knows me understands that I cannot stand hypocrites. After I read this story my blood was boiling. Buffett has been in the news a lot over the last several years pushing his "Buffett Rule". Meanwhile, he has cleverly structured his tax situation to avoid paying taxes.