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Unintended Consequences of High Taxes on the Rich

Two types of tax increases are being promoted by several presidential candidates and members of Congress. The less common idea, which I wrote about recently, is a wealth tax on net worth. The more common proposal is a significant increase in income taxes. Presidential candidate Bernie Sanders favors a progressive income tax that tops out […]

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Tax Avoidance and Tax Evasion Not the Same

Is a carefully executed plan to minimize income or estate taxes also a tax dodge, scheme, avoidance trick, or scam? It depends. I have seen all those words used by the media to describe both tax fraud and legitimate tax-reducing strategies. A case in point is an October 2 story in The New York Times, […]

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To Reduce Taxes, Bunch Deductions Into Alternate Years

Want to save a bunch under the new federal income tax laws? Try bunching your deductions. The new tax law doubles the standard deduction and eliminates most miscellaneous deductions. It takes a lot more of the limited allowable deductions left to reach the threshold for itemizing deductions instead of using the standard amount. This means […]

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Best Use for Tax Refund May be Wrong Question

Whether a check shows up in your mailbox or a deposit appears in your bank account, getting an income tax refund may feel like “found money.” Unfortunately, at least part of that tax refund is more like “lost money.” The last thing you want is to consistently get a sizeable tax refund. It may feel […]

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