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Keep Uncle Sam cranky!

  • It's no wonder Uncle Sam is not very happy here. His vault is empty.
    Don't Mess With Taxes aims to keep him cranky by providing tax and personal finance tips and advice that will put more money in your bank account, not the government treasury.

Great Googly Moogly!

July 2009

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Tax Calendar

  • April 15 has come and gone, but millions now have until Oct. 15 to file their 2008 returns. And millions more have 2009 tax planning to do.
  • There are plenty of year-round tax dates to keep track of, as well as lots of tax-saving moves you can make between Jan. 1 and Dec. 31.
    Find them here each month.


    monthly tax moves
  • July 1: You're halfway through the year. Now's the perfect time to make some midyear tax moves that could cut your 2009 IRS bill. If your life has changed significantly since the beginning of the year, adjust your withholding to more accurately reflect your new life, and tax, situation. Just give your employer a new W-4.

    July 4: Happy Independence Day! Celebrate your independence from future tax hassles. Hire a tax professional now to help get your tax life in shape while there's still plenty of time to plan.

    July 10: Does your job include tips? If so and you received $20 in tips in June, use Form 4070 to report them today to your employer.

    July 17: Are your kids at day camp while you work? You might be able to use that expense to claim the child and dependent care credit to cover some of the costs.

    July 21: It's been summer for month. How's your air conditioner holding up? If you need a new one, make sure it's energy efficient; that way on your 2009 tax return you can claim a tax credit for 30 percent of the cost, up to $1,500. Other energy-saving home improvements also qualify. Get the details at EnergyStar.gov.

    July 31: If you kids are older and working summer jobs, make sure they understand their tax responsibilities. You also can help your youngster get a nest egg head start by helping him or her open a Roth IRA with some of those summer earnings.

    Small Business Tax Calendar -- July: Important filing, deposit and record keeping dates your company needs to know.

Carnival of Taxes

  • Where we party like
    it's 1040 ... Form 1040!


  • Check out the latest
    Carnival of Taxes,
    #55: Tax Fireworks


    Want to be a part of the next one on August 3? Just review the Tax Carnival guidelines
    and then send
    your tax musings, mumblings,
    even music to the
    Tax Carnival submission page
    .
  • Catch up on prevous
    Tax Carnivals in our archives.

Tax Terms

  • Earned income -- It's just like it sounds: Compensation you receive from work, including wages, salaries, commissions, tips and self-employment endeavors. Learn more...
  • Unearned income -- Money that is not gained by work or delivery of a service or product. It's most well-known source is from investments. Learn more...
  • Tax rates/brackets -- The U.S. tax system is a progressive one, in which the greater the earnings, the higher the tax rate. Learn more...
  • See these and other tax terms
    in the perpetually updated
    Tax Glossary.

Cool tax quotes

  • The income tax has made
    more liars out of the American people than golf has.

    -- Will Rogers, humorist
  • I'm proud to pay taxes in the United States; the only thing is,
    I could be just as proud for half the money.
    -- Arthur Godfrey, comedian
  • Intaxication: Euphoria at getting a refund from the IRS, which lasts until you realize it was your money to start with. -- Author unknown, from a Washington Post word contest
  • "Internal Revenue Service: The world's most successful mail order business.” -- Bob Goddard, writer
  • "If you are truly serious about preparing your child for the future, don't teach him to subtract. Teach him to deduct." -- Fran Lebowitz, writer
  • "The United States has a system of taxation by confession." -- Hugo Black, Supreme Court Justice

But wait! There's more!

  • If you'd like to view more than
    the posts shown on this page, Arrow_right click here to go to the Don't Mess With Taxes archives page. There you can browse earlier blog items by the month they were posted or by their category.

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I gotta tell ya ...

  • AKA Disclaimer:
    The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. I strongly suggest that when it comes to filing your taxes, you get additional, professional, paid-for guidance from your accountant and other financial advisers who are familiar with your individual circumstances. In other words, don't blame me!

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« 401(k) Do's and Don'ts | Main | Couples' delayed stimulus rebate checks finally on the way »

Tuesday, October 21, 2008

Misleading Joe the Plumber ad
and other inaccurate tax claims

Joe the Plumber has become a campaign touchstone, evoking a lot of passion from both sides.

After I spent a day blogging about Joe's various tax connections (here, here and here), I got mail from folks who, for the most part, said "Get real, Joe!" or "Leave Joe alone!"

I know that I promised to let the 15-minute fame clock run out on Joe, but Joe himself keeps giving TV interviews.

And now John McCain has decided Joe's famous/infamous man on the street exchange with Barack Obama is worth inclusion in a television ad. 

The problem, says FactCheck.org, is that McCain's ad slamming Obama's tax plan is not quite correct.

In pointing out the ad's errors, the nonpartisan organization says, in its analysis summary, that:

  • The ad characterizes Obama's proposed refundable tax credits as "welfare." But McCain himself proposes refundable tax credits, too, as part of his health care plan, and calls them "reform."

  • The ad also says "hard-working families" and "seniors" would pay higher taxes. But -- need we say this again? -- that would be true only for the affluent few, not for the many.

The full critique raises more issues about the ad.

And thanks to TaxProf for the tip.

Enough tax exaggeration blame to go around: While McCain's ad might be the latest in misleading tax claims, the Tax Foundation says both candidates are guilty of cherry picking provisions to appeal to their respective and potential supporters.

After each debate, the nonpartisan educational organization looked at the tax issues discussed and claims made by both Obama and McCain.

The Oct. 15 face-off was not quite as bad as the previous two debates in terms of abuse of the facts on tax issues, says Gerald Prante, senior economist for the group.

However, he notes that both candidates continued to make many of the same dishonest and misleading statements they made in the previous debates. That trend has continued on the campaign trail. 

"And given that these falsehoods have been debunked countless times not only here but by other organizations like CNN, CQ, and Factcheck.org, the fact that they continue to spout them suggests that they don't really care about the truth and would rather just say what sounds good in front of a camera," adds Prante.

Below are the Tax Foundation's analyses of the mistaken and/or misleading tax statements of the candidates during the debates:

You'll find similar analysis from the Tax Foundation of the Joe Biden-Sarah Palin vice presidential debate.

You also might want to look directly at the candidates' tax plans -- Obama's here; McCain's here -- without the editing of campaign commercial makers.

You've got two weeks to make an informed decision as to which man will provide you and the country with the better tax and economic results. Good luck to us all!

And to borrow Prante's question following the last debate, is it Nov. 5 yet?

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Comments

As I pointed out in the TaxProf comments, the ad doesn't actually make the first characterization. It quotes a news source doing so. So FactCheck could have said something like "John McCain's ads apparently agree with someone who compared Barack Obama's tax credits to 'Welfare', even though John McCain characterizes his different tax cuts as 'reform'". I think it's at least as important as the fact that Joe -- who didn't claim to be licensed, or to make $250,00 -- is merely working for a licensed plumber (as is required by the rules in his state) and hoping to buy a business (as he said in the original video).

Attacking the character of Joe the Plumber is about as weak as it gets. The only thing relevant about this guy is the answer his question elicited from Mr. Obama:

"we need to spread the wealth around."

Why isn't the media focusing on that rather than whether or not Sam Wurzelbacher owes back taxes?

I think I know the answer.

By the way, go here to read about some tax liens we should be talking about.

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