Tag: taxes

Federal Tax Filers Beware: Underpayment Penalty Has More Than Doubled

One of the Internal Revenue Service’s fangs has quietly grown much sharper, as the interest rate charged on the underpayment of federal income taxes has soared from 3% to 8% in less than two years. If you’re not sure if you’re hitting the right pace, it’s time to double-check your situation to make sure you don’t throw any more money into Uncle Sam’s rathole than you must. 

While many taxpayers focus on the annual April deadline, the federal income tax actually works on a “pay as you go” basis, in which the government demands recurring bites out of your income, with those bites rising and and falling in proportion to what you’re earning over the course of the tax year. If the math comes out wrong enough when you file, the IRS will penalize you by demanding you pay interest on money you were supposed to have forked out earlier.

In August, the IRS announced that the interest penalty charged against underpayments was rising to 8% for the calendar quarter that started Oct. 1. The rate isn’t set on a bureaucrat’s whim — per the Internal Revenue Code, it’s calculated each quarter by adding 3% to the “federal short-term rate.” Thus, the higher rate is a reflection of the surge in interest rates. As recently as the first quarter of 2022 — when the Fed’s zero interest rate policy was still in place — the rate was just 3%.  For the first three quarters of 2023, it was 7%.  

Most people whose income is almost entirely derived from regular employment satisfy the pay-as-you-go system through the income tax that employers withhold from each paycheck. Assuming they’ve filled out their IRS W-4 forms correctly, those workers typically don’t run afoul of underpayment penalties. However, regular employees who receive big bonuses or equity compensation might find the regular withholding formula doesn’t cough up enough money to please the IRS. If you want to play with the numbers on your own, you might check out the IRS’s online Tax Withholding Estimator — though ZeroHedge sure isn’t guaranteeing its accuracy. 

For many people, avoiding underpayment penalties requires making quarterly estimated tax payments directly to the IRS, or significantly adjusting their employee withholding. That’s true of anyone with significant income from anything other than regular employment, including the self-employed, gig economy workers, and people with substantial investment income from things like interest, dividends and capital gains. Note: The 2023 surge in yields on money market funds and some bank accounts may cause a surprise underpayment penalty for those who’d grown accustomed to earning near-zero on their cash. 

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Top U.S. defense firm General Dynamics is planning to open weapons plant in Ukraine – an investment that implies taxpayers will continue to dole out dollars to support war that has no end in sight

Top defense firm General Dynamics, a major contractor for the U.S. military, is planning to open a new weapons factory in western Ukraine, DailyMail.com can reveal.

It means that U.S. taxpayers look set to bankroll Ukraine’s weapons supplies via lucrative Pentagon contracts for years to come with no end in sight to the nearly two-year war.

Three sources familiar with the Virginia-based firm’s plans said the company will ramp up domestic production of arms supplies amid concerns about Kyiv‘s flagging counteroffensive to boot out Russia‘s armed forces from its occupied territories.

A proposal was drawn up last month and sent to Ukraine’s government to set up the manufacturing facility in the west of the country, which has been largely unscathed from Vladmir Putin‘s brutal invasion, within the next six months.

The revelations would also appear to cast doubt on recent German media reports that the U.S. and Germany are working on a secret plan to force Ukraine to the negotiating table and end the war.

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Government tyranny comes to Main Street, with the feds more powerful than ever

Americans today have the “freedom” to be fleeced, censored, wiretapped, injected, disarmed, detained, groped and maybe shot by government agents.

Politicians are hell-bent on protecting citizens against everything except Uncle Sam.

“We live in a world in which everything has been criminalized,” warned Supreme Court Justice Neil Gorsuch.

There are now more than 5,200 separate federal criminal offenses and tens of thousands of state and local crimes.

Thanks to the Supreme Court, police can lock up anyone accused of “even a very minor criminal offense,” such as an unbuckled seatbelt.

The Founding Fathers saw property rights as “the guardian of every other right.”

But today’s politicians never lack a pretext for plundering private citizens.

Federal law-enforcement agencies arbitrarily confiscate more property from Americans each year (without criminal convictions) than all the burglars steal nationwide.

The IRS pilfered more cash from private bank accounts because of alleged paperwork errors than the total bank robbers looted nationwide.

Government decrees are blighting more lives than ever before.

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Even Hateful Protests Are Protected, Free Speech Group Reminds Congress

If you know the history of Israel, that the country was created after one-third of the world’s Jewish population was murdered by Nazis (it has yet to fully recover), it’s difficult to stomach protesters who often slip from supporting the Palestinian cause to gloating over Hamas’s terrorism and the prospect of destroying the Jewish state. There’s not a lot of good will in projecting “Glory to Our Martyrs” on buildings or chanting “from the river to the sea“—let alone explicit endorsements of the attack.

But even assholes have speech rights. That’s because all individuals have rights, however they use them, and because free expression only works if it’s available to everybody, not reserved as privilege for the “right” ideas. And, importantly, respecting free speech lets people show us who they are.

Unfortunately, political officials’ natural distaste for dissent can combine with honest revulsion at despicable sentiments to produce a reaction that would violate the right to free expression.

“Today, Congressman Mike Lawler (NY-17) announced that the House passed two amendments he put forward to the House’s appropriations bill for Labor, Health and Human Services, and Education (LHHS) to combat antisemitism on college campuses,” the New York Republican announced November 15. “His second LHHS amendment, rescinding federal funding for college campuses that give a platform to antisemitism hate, was adopted with broad, bipartisan support.”

One reaction to this is that the federal government shouldn’t be funding colleges to begin with. I agree. But so long as it is handing out cash, those funds shouldn’t be used to bypass legal protections for individual rights. And no, just deciding to reject federal money might not be enough; Hillsdale College did that to escape federal regulation and now faces efforts to subject the school to control just because it has tax-exempt status enjoyed by many institutions.

The only way to keep authoritarians from getting a foot in the door is to defend liberty as a principle.

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‘I’m sorry dude… I had to do that’: Horrifying moment cop shoots dead family’s beloved dog before grabbing it by the collar and tossing it on lawn

A New Mexico woman and her family have reached a settlement with the City of Texico after their beloved family dog Pepper was shot dead by the city’s police chief.

Beverly Bentley was at work on November 10, 2021, when Police Chief Douglas Bowman, a 16-year veteran of the force, paid her a visit to tell her that he shot her dog.

‘He said something about shooting my dog, and it took me a minute to figure out what he was talking about because he said he was being aggressive,’ Bentley said. ‘That dog is the least aggressive dog I have ever owned!’

The grim execution was caught on Ring video, where Bowman stood some distance away on the lawn, staring at the dog as it barked from the porch.

The officer glanced over his shoulder in both directions before pulling out his pistol and firing. Afterwards, he walked onto the porch and stood over Pepper’s body.

‘I’m sorry dude, but I had to do that,’ Bowman said.

Grabbing Pepper by the collar, he dragged the dog onto the lawn before retrieving a hose from the property and washing away its blood.

After seeing the footage of the incident, Bowman filed an incident report, writing that a man called the station saying ‘there is a damn dog that almost bit me.’

He arrived on the scene and saw Pepper, who matched the victim’s description, and said the dog began ‘barking and snarling.’

‘The victim then came up to me and told me that was the dog and that it had almost bit him and he was afraid the dog might bite someone else if something wasn’t done about him,’ Bowman wrote.

Pepper took off and Bowman trailed the dog to the home.

As Pepper allegedly continued to bark and snarl, Bowman wrote: ‘At this point, I did not want the dog to run away again and bite or harm someone. I made the decision to shoot the dog for my safety and the safety of anyone else in the community.’

Bentley insists that her beloved dog was not aggressive. 

‘That dog got me through a lot of hard times, and then all of a sudden, he was taken away,’ she said. ‘My mother was bedridden, and she would put her hand down, and he would let her pet him.’

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Biden Admin Pledges Billions to Address Climate Change, Promote ‘Gender Equity’ Overseas

The Biden administration said it is going to spend $3 billion to help less developed economies address the impact of climate change, including more than $400 million to advance “gender equity” in those countries.

The announcement comes as Vice President Kamala Harris, speaking on Saturday at the United Nations’ annual climate summit in Dubai, urged rich countries to “do more” to keep pace with an agenda of preventing the global temperature from rising more than 1.5 degrees Celsius.

“The U.S. is committed to expanding international climate finance,” the vice president said. “I am proud to announce a new $3 billion pledge to the Green Climate Fund to help developing countries access capital to invest in resilience, clean energy, and nature-based solutions.”

The Green Climate Fund was created by the United Nations in 2010 with a goal to finance developing countries’ transition away from burning fossil fuels and building infrastructure to adapt to climate change. About 65 percent of the Fund’s current $13.5 portfolio comes from the public sector.

In 2014, the administration of former President Barack Obama pledged to put $3 billion into the Fund. Citing the unfair economic burden imposed on American taxpayers by climate goals dictated by the Paris Climate Agreement, President Donald Trump in 2017 ceased the implementation of several Obama-era commitments and, as a result, withheld the remaining $2 billion of the $3 billion pledge.

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New York Lawmakers Send Governor Bill To Allow Hemp Seeds In Food For Pets, Horses And Llamas

The New York legislature has sent a pair of bills to the governor that would allow hemp seeds to be included in animal feed for pets, horses and camelids such as llamas and alpacas.

About five months after the Assembly and Senate passed the legislation from Assemblymember Donna Lupardo (D) and Sen. Michelle Hinchey (D), the identical versions from each chamber were transmitted to Gov. Kathy Hochul (D) on Wednesday.

The measures specify that industrial hemp seed that could be added to certain animal feed includes seed hulls and seed meal. Supporters say that the cannabis products could be a nutritious additive that’s high in protein and fiber.

“Industrial hemp produces a wide range of useful materials, including building materials, fibers that can be woven into clothing, chaff for animal bedding, and seeds that are available on grocery store shelves in items [like] granola, snack bars, and cookies,” a justification memo attached to the legislation says. “Industrial hemp is federally approved for each of these uses.”

“Only the seeds of the industrial hemp plant, including shell casings and seed meal resulting from processing hemp hearts for human consumption, would be authorized for use in animal feed,” it continues. “Studies indicate that industrial hemp seed provides a high protein, high fiber ingredient for animal consumption.”

The legislation, which is similar to measures that have been enacted in Montana and Pennsylvania, is backed by the National Hemp Association.

“Protecting industrial hemp production in New York will encourage greater production and research into the myriad uses of this plant, including as a renewable building material,” the text says. “It will also open the door for small, New York-based animal food processors to establish this marketplace before hemp seeds are authorized far use in commercial feed nationally.”

A fiscal note says that the legislation could ultimately increase tax revenue for the state because of “increased sales of New York hemp seed product and commercial feed.”

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Washington State Republican Party Files Formal Ethics Complaint Against WA Secretary of State Hobbs for Using Public Funds to Surveil and Censor Political Opposition

Today the Washington State Republican Party (WSRP) filed a formal ethics complaint with the Washington State Ethics Board against Secretary of State Steve Hobbs. A big thank you to WSRP Chairman Jim Walsh for initiating the complaint and attorney K. Garl Long, Long Law office, for writing and filing the complaint.

After the complaint was filed the WSRP issued a press release here.

Full Complaint, Exhibits, and Footnotes here:

Summary of Complaint: Secretary of State Hobbs (“Secretary Hobbs”) is using public funds to pay an offshore artificial intelligence company to surveil voters. Speech objectionable to Secretary Hobbs is “fact-checked,” reported as a “threat,” and suppressed. It is unethical and illegal to use public funds to aid Secretary Hobbs and/or his political party in suppressing opposition views. Such government censorship is a spreading cancer in our society.1

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Republicans accuse Biden of having ‘no shame’ as he cancels student debt for 813,000 people in ‘re-election ploy’ that will force taxpayers to saddle billions of dollars extra

The leading Republican opponent of student loan forgiveness on Wednesday slammed President Joe Biden‘s plan to cancel student debt for 813,000 people as a clear effort to buy his way to reelection next year.

Hundreds of thousands of former students will receive emails from the president in the coming days telling them that their debt has been forgiven.

Republican Sen. Bill Cassidy posted the president’s message on X, the platform formerly known as Twitter, including a request for beneficiaries to share the good news. 

‘Couldn’t make it any clearer that Biden’s ploy to force taxpayers who didn’t go to college to saddle hundreds of billions of someone else’s student debt is a ploy to gain political support for his reelection,’  wrote.

‘No shame.’

Biden’s move means he has forgiven a total of $127 billion for 3.5 million borrowers, despite the fact that his plan to cancel $400 billion in debt was rejected by the Supreme Court in June.

Aides and supporters see it as nothing but good news, with their social media feeds filling with details. 

Even Republicans who complained that it meant ordinary taxpayers were footing the bill kept largely quiet after the latest announcement. 

The email – making clear that the help has come from Biden – read: ‘Congratulations — your student loan has been forgiven because of actions my administration took to make sure you receive the relief you earned and deserve.’ 

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US Spends Billions On Overseas Wars, But Who Really Benefits?

Fears over incentivizing global conflicts are rising as the Biden administration requests more than $105 billion in supplemental security spending.

The administration says the money, primarily for Israel and Ukraine, will be good for the economy.

President Joe Biden has described the mammoth spending package as “a smart investment” that will “pay dividends” to U.S. security interests.

Likewise, Assistant Secretary of State James O’Brien described the supplemental as “a very good bargain.”

Defense Secretary Lloyd Austin said the money will “flow through our defense industrial base, creating American jobs in more than 30 states.”

Many are skeptical of the administration’s claims, however, and believe that the massive investment in the defense industry will squander the nation’s ability to adequately address social and infrastructure needs.

Presidential hopeful Robert Kennedy Jr. is among them.

“Creating jobs is a poor excuse for a foreign policy that wreaks mayhem around the world,” Mr. Kennedy told The Epoch Times in an email.

“If we want to increase employment in good manufacturing and construction jobs, instead of making weapons we should repair our infrastructure and manufacture products that actually serve human well-being.”

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