1040.com - Tax News & Articles

Sales Tax Proposed As Alternative to Income Taxes
Jun. 21--Imagine taking home all your pay, save that held out for elected health insurance or other benefits. That's the idea of the proposed "fair tax," with government revenues generated by a broad-based sales tax on products and services instead of a tax on income. It died in the Missouri Senate for lack of a vote at the end of the session.

Highway Fund on the Road to Crisis
Jun. 18--WASHINGTON -- The nation's highway system was built a gallon at a time as pennies from the tax on gas at the pump reliably raised billions of dollars over the past 50 years to build and repair roads, bridges and bike paths in Oregon and every corner of America. But those glory days are fading as cars become more efficient, gas becomes more expensive and people made nervous by a sour economy stay closer to home. "The trust fund under the existing law is not going to be adequate to meet its obligations," said Rep. Peter DeFazio, D-Ore., a senior member of the House Transportation Committee, which must solve the problem.

Recession Brings More Tobacco Taxes
WASHINGTON _ Clipping away at a $590 million deficit, Rhode Island in April raised its taxes on cigarettes by $1 to $3.46 a pack _ the highest rate in the country. With the backing of its governor, a former tobacco lobbyist, Mississippi in May imposed its first tax increase on smokers in more than two decades _ up 50 cents to 68 cents a pack _ and is already considering another increase. But there are growing signs that tobacco, which generated about $19 billion for states in revenues from sales and excise taxes last fiscal year, might not deliver the new money state lawmakers are hoping for.

Supreme Court Strikes Down Valdez Tanker Tax
Jun. 16--WASHINGTON -- The city of Valdez, Alaska, will have to return millions it has collected in taxes since it began in 2000 assessing a tax on oil tankers that on Monday was found to be unconstitutional by the U.S. Supreme Court. An estimated 24 oil tankers and four other vessels were covered by the tax. In February, Valdez City Manager John Hozey said the city anticipated collecting about $8 million this year in revenues from the tanker tax -- or about 20 percent of the annual budget of about $40 million.

A Soda Tax to Fund Health Care? Think Again.
As Congress and the president look to expand government's role in health care, taxpayers are left singing the old Waylon Jennings line, "Your thirst for riches is more than my pockets can stand." To pay for this, the Senate Finance Committee is considering a throng of new taxes, including higher levies on beer and wine, plus a new tax on non-diet soda. In February, President Obama made a simple pledge before Congress, "If your family earns less than $250,000 a year, you will not see your taxes increased a single dime.