Programming note: The Tax Roundup will take tomorrow, September 8, off. See you Friday!
Picking your pocket, for your safety. The long Labor Day drive to visit the family always has the annoying experience of long, slow treks through “construction safety zones” on interstate highways. The speed limit is reduced to well below normal. The speed zones are “photo enforced” with a minimum fine of $375.
The zones are supposed to be there to protect construction workers — a noble cause. But on the weekend you could traverse the whole “construction zone” without seeing a single worker. During the week, there might be activity on 1/2 mile of the 20-mile construction zone. Having grown up in Illinois, that leads me to the thought that there might be more to these “safety zones” than safety.
AutoBlog agrees with my cynicism: Is modern traffic enforcement all about dollars instead of safety? We’re going with a strong yes (link via Instapundit):
I see this today nearly everywhere I drive, some places more than others. And even where posted limits tend toward fair and appropriate, questionable enforcement activities, unreasonably high fines and purposely-limited opportunity for drivers to defend themselves against traffic citations are routinely utilized to maximize revenue.
Piled on top of all that are revenue-generating speed- and red-light cameras, the latter often with shortened yellow-light timing to enhance the ticket take. Studies have shown that shorter yellows actually increase the number of rear-end wrecks as drivers, hoping to avoiding automated tickets, jam on the brakes when the light suddenly turns red. Also consider doubled fines in school and construction zones, which make safety sense when there are children or workers present, but not when there are not.
Public outrage has driven the revenue cameras out of Clive, but Des Moines is actually expanding this cynical use of law enforcement. It’s short-sighted. When policing is about revenue instead of public safety, it erodes respect for and trust in law enforcement. It makes the lives of police officers more risky so politicians can buy more votes.
Hank Stern, Precision Cannon Fire (Insureblog). Hank notes a problem for residents of Pinal County, Arizona, where there is no ACA exchange insurer:
And that most likely means you’ll be faced with plans that are unaffordable. No problem: the ObamaTax makes provision for such circumstances, and offers an exemption for folks who can’t afford premiums.
Except there’s a pretty significant, but under-the-radar, catch: this exemption won’t be available to the folks in Pinal County.
That can’t be right! I was told that if you like your plan, you can keep your plan.
TaxGrrrl, Back To School: What You Need To Know About Taxes When Your Kids Play Sports. “Most expenses associated with after school and extracurricular sports are not tax deductible – even if the programs are affiliated with a school.” But Iowans may be able to get a 25% credit on some sports costs on their state returns.
Russ Fox says The Time for Procrastination Is Over. “I can guarantee you that if you drop off your paperwork on October 14th, your tax professional will, at best, charge you an arm and a leg; at worst, your return won’t get done by the 17th. Make a tax professional happy: Get started now, and turn in your information soon.” Amen, brother Russ.
Tony Nitti, Governor Christie Nixes NJ-PA Tax Deal; Large Increases Looming For PA Residents
Robert D. Flach supplements his weekly buzz with ONE MORE TIMELY PIECE OF BUZZ. “Hopefully employers will property withhold state taxes for 2017 – they certainly have enough time to change their systems.”
Kristine Tidgren, Iowa Court of Appeals Says Common-Law Marriage Established (Ag Docket). As state law controls whether you are married for tax purposes, this can affect filing status and, at death, the availability of the unlimited marriage deduction for estate taxes.
Jack Townsend, Court Denies Petition to Quash IRS Summons Issued Pursuant to Russian Request Under Double Tax Treaty. It seems unwise to use our law enforcement apparatus to help the notoriously political Russian tax authorities.
Robert Wood, Taxing Mark Zuckerberg’s Non-Charity Charity. “It may be devoted to good works, to so-called impact investing, but that does not qualify it for a free ride on taxes.”
Stephen Olsen, Grab Bag – OICs: Dissipation and, not of, Weed (Procedurally Taxing). “In an internal SBSE memorandum regarding collections, the Service has instructed its employees not to reject OICs simply on public policy grounds where their actions are legal under state law.”
Lew Taishoff, “WHAT COULD HAVE HAPPENED – DID”. A taxpayer was one day late in filing his appeal, and the court ruled the IRS didn’t have to entertain it. “Still, says Judge Gerber ‘It seems curious that respondent [IRS] would not consider petitioner’s evidence because it could have saved the Government and parties time, effort, and expense if petitioner had been able to easily show that he was not liable for the TFRP liabilities.'”
Scott Greenberg, Emily Potosky, Comparing Congressional Tax Reform Proposals (Tax Policy Blog). “To help policymakers and voters compare these plans, we’ve developed an interactive toolthat summarizes the major provisions in each proposal.”
Roberton Williams, Most Americans Pay More Payroll Tax Than Income Tax. “The Tax Policy Center estimates that 44 percent of households will pay no federal income tax this year (down from the 47 percent famously cited by Mitt Romney in 2012). But 60 percent of those households have members who work and will thus pay Social Security and Medicare payroll taxes.”
Philip Hackney, Trump Pays $2,500 Excise Tax: Is that Enough?. “While most folks are focused on whether the payment was a bribe, I still see signs of a mismanaged charitable organization.”
TaxProf, The IRS Scandal, Day 1217. Links to a Washington Post editorial opposing Koskinen’s impeachment. I agree; he should resign on his own.
Kay Bell, House Republicans say, ‘Impeach IRS commissioner.’
Tax professors say, ‘No.’ GOP House Speaker says … “While Ryan has expressed his support for efforts by Chaffetz’s committee to ensure that the IRS does its job of fair and effective tax law enforcement and collection, he is not so sure about the impeachment effort.”
Jim Maule, The Perils of Tax Politics.
Chopped liver again! Accounting Today has released its list of the 100 Most Influential People in Tax and Accounting. I’m not listed. Must be a typo.
