When the Senate takes up the extenders package, one of the provisions (found in Section 413 of the amendment language) would for the first time impose the self-employment tax on S-corporation profits earned by firms with three or fewer shareholders, and in which 80 percent or more of the gross income is derived from “personal services” (health, law, lobbying, engineering, architecture, accounting, actuarial science, performance arts, consulting, athletics, investment advice/management, and brokerage services)
Under tax law, a corporation can elect treatment under “Subchapter S,” and become a so-called “S-corporation.” Unlike an ordinary corporation, an S-corporation does not pay taxes on profits at the company level. Rather, the profits flow through to the owners, who pay income taxes on them on their personal 1040 forms. Under current law, no self-employment taxes are owed on S-corporation profits. Those who own more than 2% of the company’s shares and perform services for the company must, however, pay themselves a “reasonable salary.” Like any salary, these earnings face Social Security and Medicare payroll taxation.
Some more cheerful news from New Jersey in the battle over the budget and taxes as Democrats in the Assembly failed to override Governor Chris Christie’s veto of a proposed tax increase on income more than $1 million. The 47 to 33 vote for the bill did not give the Democrats the two-thirds majority needed to override it. Furthermore, because the bill originated and failed in the Assembly, the Senate will not consider it.
The Democratic majority in the U.S. House of Representatives must decide whether to write a budget extending, expiring, or repealing the Bush tax cuts. These tax cuts have provided a convenient scapegoat for the nation’s budget and economic challenges. Despite a 42 percent spending increase in 2001, critics charge that the tax cuts have starved popular programs. Despite surging economic growth and 5 million new jobs since 2003, critics also charge that the tax cuts have not helped the economy. Finally, despite making the income tax code more progressive, critics charge that the tax cuts have widened inequality.
Nearly all of the conventional wisdom about the Bush tax cuts is wrong. In reality:
The tax cuts have not substantially reduced current tax revenues, which were in fact not far from the 2000 pre-tax cut baseline and over the 2003 pre-tax cut baseline in 2006;
The increased child tax credit, 10 percent tax bracket, and fix of the alternative minimum tax (AMT) reduced tax revenues much more than most of the “tax cuts for the rich”;
Economic growth rates have more than doubled since the 2003 tax cuts; and
The tax cuts shifted even more of the income tax burden toward the rich.
By: Robert P. Murphy, Ph.D
I recently spent a week in Haiti helping with reconstruction efforts. I volunteered only as someone with two hands and a lot of Gatorade, but my professional background as an economist allowed me to diagnose some of Haiti’s problems. These go much deeper than the earthquake.
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James Madison once said the Happy Union of these States is a wonder; their constitution a miracle; their example the hope of Liberty throughout the world. (more…)
K-STATE EXPERT CREATING A TOOL TO MEASURE HOW PARKS PROMOTE PHYSICAL ACTIVITY
MANHATTAN — Having a community park nearby can have an impact on whether neighborhood residents are physically active, according to Andrew Kaczynski, an assistant professor of kinesiology at Kansas State University. But Kaczynski says which park characteristics encourage the most activity is not as clear.
This summer Kaczynski is working with Sonja Wilhelm Stanis, a researcher at the University of Missouri, and Gina Besenyi, a K-State master’s student in public health, Holton, to develop a tool to evaluate the potential of neighborhood parks to promote physical activity.
“My interest is in how we can better design neighborhoods and communities to allow people the opportunity to be more active,” Kaczynski said. “Parks are an important environmental resource for physical activity for both adults and youth.”
The idea to create a user-friendly park audit tool grew out of a pilot research project last summer where Kaczynski and Wilhelm Stanis began looking at park features and the behaviors of users in four Kansas City, Mo., area parks.
For the study they surveyed patrons and used systematic observation protocols to record the level of park activity. They found that trails were among the most used features and that more formal and often expensive recreational facilities – like ball diamonds or soccer fields – were used less by the average park-goer, perhaps because they didn’t encourage spontaneous activity.
The researchers also found that about half of park patrons were active, while half were sedentary.
“That showed us that there is definite potential for parks to be better designed to encourage more physical activity,” Kaczynski said. “Building more effective parks would go a long way toward promoting public health in general.”
The new tool will help both community members and park officials measure which features are more likely to encourage activity in parks. Kaczynski said elements like cleanliness, size, safety and accessibility also are being examined.
The project will bring together around 30 participants from the Kansas City community, including representatives from public health, parks and recreation, urban planning, private and nonprofit organizations, and adult and youth park users. The stakeholders will participate in three workshops to develop the tool and will test its feasibility in 55 Kansas City parks near the end of this summer.
“We want to get a wide range of people thinking about how community features influence their activity so they begin considering ways to improve their neighborhoods,” Kaczynski said. “The tool also will provide more hard evidence people can use to advocate for park improvements. Data can lend a lot of credibility to community requests.”
Kaczynski said he hopes creating a way to measure park quality will directly result in health benefits for the public.
“Physical activity obviously has many benefits, from lower rates of obesity to reducing the risk for many types of cancer and diabetes,” he said. “While physical activity is an individual choice for people, there also are a lot of times where the contexts in which people live influence whether they have a choice to be active and how attractive a choice that is.”
The project, which is funded by the Robert Wood Johnson Foundation’s Active Living Research program in San Diego, Calif., should be complete early in 2011.
After the tool is developed, researchers plan to disseminate it widely by presenting it to community groups and at professional conferences.
Immigration Law Enforcement Rally with Kris Kobach and Sheriff Joe Arpaio
Date: Tuesday, July 13, 2010
Time: 7:00pm – 9:00pm
Location: MidAmerica Nazarine University at the Bell Center
Street: 2030 E. College Way
Kris Kobach, candidate for Kansas Secretary of State, welcomes Sheriff Joe Arpaio of Maricopa County, Arizona to Kansas City!
Come join us for an evening of learning from two experts in illegal immigration. Professor Kobach, a nationally recognized litigator and secretary of state candidate in Kansas, has worked successfully for several years defending cities and states against the ACLU on the matter of illegal immigration. He is most noted for his recent co-authorship of Arizona’s SB1070, which has gained much national attention for its strict adherents to the rule of law. He also served in the U.S. Department of Justice as personal counsel to Attorney General John Ashcroft form 2001-03.
Sheriff Joe Arpaio has served 4 terms as Sheriff of Maricopa county and has gained national acclaim for employing unique programs within the county’s jail system. Sheriff Joe has reduced costs and increased effectiveness by using such simple measures as denying prisoners daily delivery of salt and pepper with their meals ,and by ordering all “whites”, such as socks and underwear, to be dyed pink.
To become one of “Sheriff Joe’s Deputies,” meet Sheriff Joe and get a photo with him, the cost is $250. Please contact Ben Davis at 316-210-2450 or email@example.com
Preserving American Liberty is proud to be your host for this fun and highly informative event!