Category Archives: From Washington

IRC Section 529 plans (“529 plans”) permit parents – or anyone else – to establish and fund an account administered by individual states to pay future college expenses. Like a Roth IRA, contributions are not deductible, but neither is investment … Continue reading →

Senators McCain and Obama offer starkly differing tax philosophies. Mr. Obama favors a middle-class tax cut but not “a permanent tax cut for Americans who don’t need them.” Citing the inequity of  hedge fund managers who pay less tax than … Continue reading →

Capital gains tax rates were substantially reduced by the 1997 Tax Act. Capital assets held for 18 months and sold after after July 28, 1997 are eligible for the new 20% tax rate. The old 28% rate continues to apply … Continue reading →

President Clinton’s 1999 budget proposal contains the first balanced budget in thirty years. The proposal recommends $23 billion in tax cuts, which include tax reductions for environmental cleanup, child care, retirement savings and educational incentives. Revenue proposals made by Mr. … Continue reading →

The House, on April 15, voted 238 to 179 approving the Taxpayer Assistance and Simplification Bill of 2008 (HR 5719). One provision would prohibit the use of third-party debt collectors engaged by the IRS to collect unpaid tax liability. Another … Continue reading →

Historically, Congress is amenable to tax proposals of first-term presidents. Senator McCain proposes making permanent all of the lower individual income tax rates under EGTRRA. Senator Obama would retain the lower rates for most taxpayers, but would restore the pre-EGTRRA … Continue reading →

Stating that the nation is mired in “an economic crisis as deep and dire as any since the days of the Great Depression,” President Obama introduced $838 billion legislation that provides more than $350 billion in tax cuts, and spending … Continue reading →