
Month: November 2012
Rates Or Reform? Part One
What is it gonna be? That my friends is the magical question………my grandfather use to say, “why write a book when a paragraph will do?”
Unfortunately this subject cannot be adequately explain in a paragraph……..so I tapped into the Russian writer in me (that means using more words than necessary to explain the situation)………
This subject needs a series to properly access the situation……
We are hearing a lot about this possible new found path to bi-partisanship……that tax reform could be that new awakening…..to that I say…..you are delusional! Why so?
Dems want a change in rates…that is a continuing lower rate for us mere mortals and a higher rate for those people making $250,000 a year….we all know this has about as much chance of a compromise as me getting a shot at Megan Fox…….
And then there is the clap from the Repubs….that is that we need to reform the tax code and that will increase our revenue to the point that we should be solvent……there are some Dems that gives this approach a nod or that it is worth some discussion……
Okay, let us say that this is the road that the elected parasites want to travel…….now the question is……where will the reform of the tax code come from……from individuals? Or maybe from business would be where to start? A couple of excellent questions…..so let’s look at the things that would be inclusive……..
Let us begin this series with the individual………..
1. Mortgage interest and property taxes.
You can deduct the mortgage interest (not the principal) that you pay on a loan secured by your primary residence or a second home. To claim the deduction, you must be obligated to pay the debt and you must actually make the payments. You can also deduct any taxes you pay on real estate you own that is not used for business. If you have a mortgage on the property, the annual mortgage statement (Form 1098) you receive from the bank should includeboth the amount you paid in real estate taxes for the year and the interest and points you paid for the year (your mortgage interest deduction).
2. Charitable donations.
You can deduct any cash or noncash contributions you make to a qualified nonprofit organization. You are supposed to have documentation for any cash contribution, including contributions under $250. For all noncash (property) contributions and cash contributions over $250, you must have a receipt or acknowledgement from the nonprofit organization. For noncash (property) contributions over $500, you have to file an extra form with your tax return, Form 8283, Noncash Charitable Contributions.
3. Medical expenses and health savings accounts.
You can deduct the amount of your medical and dental expenses that exceed a certain percentage of your adjusted gross income. For many years, the percentage was 7.5%. However, starting in 2013, this percentage goes up to 10% (except for people over 65 years old who are exempt from the increase until 2017). So starting in 2013, if your AGI is $100,000, you can deduct your medical expenses only if and to the extent they exceed $10,000. Eligible expenses include both health insurance premiums and out-of-pocket expenses not covered by insurance for both you and your dependents. Unless your medical expenses are substantial, however, your medical expenses will probably fall below the AGI percentage limitation, meaning you won’t be able to deduct anything.
If you have a qualified Health Savings Account (HSA), you can deduct your contributions to the account, and you don’t have to pay tax on any interest you earn from the account. To establish an HSA account, you must have a high-deductible health plan that qualifies under the HSA rules. You can use money in your HSA account to pay almost any kind of health-related expense.
4. Child and dependent care.
If you have to pay someone to care for your child (under 13) or a dependent needing care so that you can work or look for work, you may be able toclaim a tax credit for those expenses. The credit is a percentage of your eligible work-related child or dependent care expenses, ranging from 20% to 35%, depending on your income.There is a dollar limit on the amount of expenses for which you can claim the credit. The limit is $3,000 of the expenses paid in a year for one person, or $6,000 for two or more. You must reduce these dollar limits by the amount of any dependent care benefits provided by your employer that you exclude from your income.
5. 401(k) and IRA contributions.
If your employer offers a 401(k), it pays to maximize your contributions, especially if your employer matches them. For the 2012 tax year, the maximum contribution is $17,000. If you are 50 or older, you can contribute an extra $5,500 per year.
For IRAs, you can contribute $5,000 in 2012, and deduct that amount from your income. If you are 50 or older, you can contribute an extra $1,000.
6. Student loan interest.
You can deduct up to $2,500 in student loan interest payment per year, for the lifetime of the loan. There are income limits — you can’t take this deduction if you make more than $70,000 as a single person or $145,000 as a married couple.
7. Education expenses.
You can deduct $4,000 for tuition-related expenses, or you may qualify for the American Opportunity Tax Credit (AOTC; formerly the Hope and Lifetime Learning credits), which are also for education.
In addition, you can set up a Coverdell education savings account and contribute up to $2,000 per year. The amount you contribute isn’t deductible, but distributions from the account for payment of tuition are tax-free. You can also set up a state-sponsored college savings plan, known as a Section 529 plan, which allow tax-free withdrawals for qualifed college expenses.
8. Job expenses.
You can deduct education and training costs for your job if your employer doesn’t reimburse you for them (and if the education is for your current job, not to get a better job later). Job-hunting expenses, including mileage, are also deductible. If you’re a teacher, don’t forget to include teaching-related expenses for a small tax break.
9. Home office tax deduction.
If you use a portion of your home exclusively for business purposes, you may be able to deduct home costs related to that portion, such as a percentage of your insurance and repair costs, your mortgage or rent, and depreciation.
Of these deductions….can you see any of them being eliminated? Can you really envision any of these deductions being eliminated from the tax code?
These are not going to be eliminated! Why? Dems will not want to involve the middle class in these solutions.
Then where will the reform come from and who will it effect?
Part 2 tomorrow. Tune in to the continuing story of who gets the shaft and why.
The “Homeless” Planet
It could be the title of a really poor SyFy movie…..or it could be an idea of how to handle the growing homeless population……or ……….
(Newser) – Astronomers have identified a “homeless” planet for the first time and given it a rather un-catchy label: CFBDSIR2149. This young and very cold planet is drifting about 100 light-years away with a group of roughly 30 stars, but isn’t orbiting any of them—which makes its blue light stand out well against the black backdrop of the universe. Astronomers have spotted other homeless-planet candidates but weren’t sure if they were really brown dwarfs, the smallest kind of star, the Smithsonian’s Surprising Science blog reports.
Theorists have speculated that such drifting planets exist and may even be as common as ordinary stars—but seeing them is the problem. “Looking for planets around their stars is akin to studying a firefly sitting one centimeter away from a distant, powerful car headlight,” says the lead author in the study. “This nearby free-floating object offered the opportunity to study the firefly in detail without the dazzling lights of the car messing everything up.”
After I read this I thought of a Star Trek (I believe) episode where the Enterprise encountered a wandering planet and it was actually a very large ship that the inhabitants did not know they lived in a star ship…..other than that a pretty cool discovery……..
Til Death Do Us Part
I cannot even imagine this type of thinking….well there are a lot of people I cannot imagine where their thoughts come from….but this is just f*cking sick……
(Newser) – Here’s a macabre tale: A woman in central Russia kept her husband’s dead body for three years and told her kids to talk to him and feed him, AFP reports. When her husband, a Pentecostal missionary, died in 2009, she simply left him on a bed in their apartment. She ordered their five home-schooled children to “‘talk’ to their father and ‘feed’ him with a broth she made,” said investigators. “The children, who were worried for their mother and realized their father was dead, would tell her that he talked to them and ate the food.”
They even covered the scent of his decomposing corpse with air fresheners, but finally had to dispose of him when the family moved to another town. So two of the kids, girls aged nine and 14, put him in bags and left him in the bushes—but his right hand and head broke off, so they dumped them in a garbage bin. Police later investigated but determined that the mother posed no danger to anyone, even though she was mentally unstable. Amazingly, an examination of the kids determined that they were still mentally healthy.
KInda made me think of the TV ad with all the pine air fresheners on the ceiling to cover the littler box smell……
Prisoner Of The Family
I was going to save this for Women’s History Month in 2013…..but it is such a piece of work I had to do it as soon as possible……
Most of us know how badly women are treated in Saudi Arabia……the whole world is in a rage at the treatment but none of it ever makes it to the royal family…..why? OIL! No one wants to bite the hand that feeds them…….
(Newser) – It’s the only country in the world where women can’t drive—and now, if they leave it, their male guardians are electronically notified. When Saudi Arabian women cross the border, said guardians get a text message. The texts arrive even when couples are traveling together, AFP reports. Women can’t leave the country unless their guardians sign them out at an airport or the border.
News of the electronic tracking was spread by women’s driving activist Manal al-Sherif on Twitter, where it sparked a backlash. “Hello Taliban, herewith some tips from the Saudi e-government!” posted one user. “This is technology used to serve backwardness in order to keep women imprisoned,” wrote columnist Badriya al-Bashir, slamming the “state of slavery under which women are held.”
But what we do or say that could help women have a better life in Saudi?


On Thanksgiving
Today is a day of rest….a day to spend with family and friends…..a day to give thanks for the things in our lives……I want to thank my regulars for their support and participation and I want to especially thank all my new friends and followers……without you guys this site would be a boring and uninteresting lump……I try to keep Opus Libertas a place of information and discussion and you guys have helped in so many ways….thank you.
Just kick back today and enjoy football, family, fun and food…….and next week I will get back to being a pain in the butt……once again……..THANK YOU!
It’s time for a federal takeover of national elections
It’s time for a federal takeover of national elections.
Since they must have the damn silly electoral college….let’s try something that can be useful……
