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Marvel Comics $16M Super Mutant Tax Trouble

marvel comics

Not even superheroes can save Marvel Entertainment LLC from the IRS who assessed the comic company $16.6 million in tax deficiencies due the company harvesting losses from bankrupt companies. Marvel Entertainment Group Inc and some of its subsidiaries filed for bankruptcy in 1996 and there remained approximately $97 million of net operating losses (“nol’s”) which were then carried forward to the successor company the Marvel Group in 1998. As a result the Marvel group was able to reduce taxable income with these nol’s for the years 1999-2004. According to the IRS their method of doing so was a no-no. Something tells me that his superhero magnate is not down for the count just yet…

http://tiny.cc/wjh50x

 

My Fair Flat Tax – Is It Really Fair?

Would a 14.5% flat tax really be fair? Many Americans are not even sure how much they pay in taxes. With median income at $53,891[1] most American’s would end up paying $7,815 in taxes with a 14.5% flat tax rate which would be more than their  income tax of $7,176 under the current tax code.

Also, Rand Paul’s flat tax would eliminate FICA with a combined tax rate of 7.65% on wages, however, this would have seriously detrimental effects on social security and medicare which are becoming deeply ingrained in the United States as more and more Americans reach retirement age or rely on the medical subsidies of medicare.

Food for thought – the 15% tax bracket stops at $36,900 for single taxpayers and $73,800 for married taxpayers. Who would this flat tax really benefit?

[1] source Sentier Research/CNN.com

The Ups and Downs of Refund Season 2014

wheres my refundRefund Season?  As data shows, the 2014 tax year had less refunds but bigger refunds.

With the aid of government subsidized credits – the premium tax credit for health insurance, earned income credit for low income taxpayers and education credits – refunds increased for low income taxpayers while taxpayers with incomes typically over $50K saw their taxes go up and their refunds go away.

Some will argue that the taxpayer with income over $50K subsidizes the under $50K income taxpayer, but none the less these trends do not seem to be reversing anytime soon and with the 2016 election race underway it will be interesting to see how this plays out.

Chicago: Cloud Tax?

cloud taxThe city of Chicago announced recently that is plans to add a 9% tax on “electronically delivered amusements” such as Netflix and Spotify. Currently several major cities around the U.S. tax the sale of physical goods over the internet, but Chicago will be the first city to tax the streaming of entertainment media.

While this sounds great for Chicago bureaucrats, the 1996 Telecommunications Act and the 1998 Internet Tax Freedom Act may roadblock this “cloud tax”.

 

http://tiny.cc/i2lu0x

 

Greece vs. America – The Average American Could Be Worse Off

Greece is in serious trouble – but what about the average American? credit cardThe average US household carries approximately $16,000 of credit card debt; average mortgage debt $157,000; average student loan $33,000 (source http://tiny.cc/ee3q0x) … that is approximately $10,000 of interest per year :/

However, unlike Greece, if an American claims bankruptcy there is no reprieve from certain types of debt i.e. student loans or taxes which essentially creates a “debt prison”.

 

http://tiny.cc/u32q0x

 

Healthy Workplace Health Family Act of 2015 (AB 1522)

An employee wpaid sick leaveho, on or after July 1, 2015, works in California for 30 or more days within a year from the beginning of employment, is entitled to paid sick leave. Employees, including part-time and temporary employees, will earn at least one hour of paid leave for every 30 hours worked. Accrual begins on the first day of employment or July 1, 2015, whichever is later.

Exceptions: Employees covered by qualifying collective bargaining agreements, In-Home Supportive Services providers, and certain employees of air carriers are not covered by this law.

An employer may limit the amount of paid sick leave an employee can use in one year to 24 hours or three days. Accrued paid sick leave may be carried over to the next year, but it may be capped at 48 hours or six days.

Usage


  • An employee may use accrued paid sick days beginning on the 90th day of employment.
  • An employee may request paid sick days in writing or verbally. An employee cannot be required to find a replacement as a condition for using paid sick days.
  • An employee can take paid leave for employee’s own or a family member for the diagnosis, care or treatment of an existing health condition or preventive care or for specified purposes for an employee who is a victim of domestic violence, sexual assault or stalking.

Employers


Reminder: California Employers Required to Notify Most Employees about Paid Sick Leave

There are several things employers must do to comply with the Healthy Workplace Healthy Family Act of 2014 (AB 1522).

  • Display poster on paid sick leave (Spanish) (Vietnamese) where employees can read it easily.
  • Provide written notice to employees with sick leave rights (Spanish) (Vietnamese) at the time of hire.
  • Provide for accrual of one hour for every 30 hours worked and allow use of at least 24 hours or 3 days or provide at least 24 hours or 3 days at the beginning of a 12 month period of paid sick leave for each eligible employee to use per year.
  • Allow eligible employees to use accrued paid sick leave upon reasonable request.
  • Show how many days of sick leave an employee has available. This must be on a pay stub or a document issued the same day as a paycheck.
  • Keep records showing how many hours have been earned and used for three years.

Retaliation or discrimination against an employee who requests or uses paid sick days is prohibited. An employee may file a complaint with the Labor Commissioner against an employer who retaliates or discriminates against the employee for exercising these rights or other rights protected under the Labor Code. Local offices are listed on our website at http://www.dir.ca.gov/dlse/DistrictOffices.htm.

NEW overtime regulations

New regulations unveiling  this week could mean major change to labor mark for middle class. http://tinyurl.com/o2xuqko

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