“If you want to raise revenue in difficult times, you’re almost invariably going to have to raise taxes on wealthy people because that’s where the money is”, said Mark Zandi, chief economist with Moody’s Economy.com. “In times of financial distress, the rich get hurt also,” Mr. Trump added. Is it unreasonable that the rich should contribute to the public expense?

Well, let’s see.  Tack on an extra percentage point to the income tax rate of someone like Rupert Murdoch, who earned $23.9 million in the last fiscal year from his News Corporation salary and bonus, and the state can make an extra $200,000. That is enough to pay the salaries of about a half-dozen New York Police Department rookies.

The additional tax revenue from former Gov. Eliot Spitzer’s $1.97 million in income in 2006 — earned mostly from rental property along Madison Avenue that he owns with his family — would be nearly $17,000, or about the cost of one unequipped police cruiser.

Add up all the new tax revenue — from the Trumps and Murdochs and Jeters and 26,000 other New Yorkers who earn more than $1 million a year — and the state would be able to make an extra $1.5 billion.

Read whole article here.

Cutting property taxes vs. Reevaluation of property. There are two different views of the problem. Real estate, real property or realty are all terms for the combination of land and improvements. The taxing authority requires and/or performs an appraisal of the monetary value of the property, and tax is assessed in proportion to that value. Forms of property tax used vary between countries and jurisdictions. I want to post here two quotes about the tax which in my opinion are quite interesting.

Jim Turvey  argues “cutting property tax is the best economic stimulus”:

What we need desperately now is a meaningful and workable reform of our property taxes. We need to return our property taxes to 2001-2002 levels and hold firm until a viable property tax fix is in place. Yes, that means managing our local county government within strict budget constraints. Unless we can make it affordable again for our retired senior citizens as well as our winter senior residents, our economy will continue to deteriorate.

Once we resolve the tax problem then the economy will take care of itself. Normal growth will again dictate the need for expansion of county services in a meaningful way and not just at the wishes of those county employees who are trying to build an empire to sustain their worth.

Rob Juteau, however, posts : 

“The system that we have in place in New York is not perfect, but by performing a reevaluation a municipality tries to make it as fair as possible for their taxpayers,” said Quinn. “A reevaluation is a tool to make sure everyone is taxed fairly, and that no one is paying more or less than they should. A reevaluation is a very open process. Taxpayers and residents have ample opportunity throughout the process to provide their input.

“… Taxes will not necessarily increase as a result of a reevaluation. The tax rate may go down or stay the same for some taxpayers… Higher assessments do not necessarily mean higher taxes. Using the 70 percent equalization rate, if your assessment is increased 30 percent, you will not pay more taxes. Some people may pay less in taxes.”

Following my recent article here is one more about useful Internet services of IRS.  Ron Consolino reports:

Though the IRS may be the agency everyone loves to hate, it only manages the tax laws and policies that Congress passes. To its credit, the agency has taken several initiatives to benefit owners and the self-employed by providing much-needed guidance to tax procedures and requirements without those confusing “Gov-speak” terms.

One of the chief improvements is a special Web site, www.irs.gov/smallbiz. This is an authoritative place to give yourself a tax tune-up.

A section called “A-Z Index for Business,” for example, covers a tremendous amount of tax territory and includes much of the site’s most useful information. This is where you’ll find information on online learning and educational products, record keeping, employer ID numbers and selecting a business structure.

There’s also help answering a key tax-related question: Is what you are doing a true business or merely a hobby? If the IRS decides your “business” is really just a hobby, your expenses may not be deductible. Look for its eight-point checklist to see how you stack up.

Also visit the “Industries/Professions” section for specific information about tax regulations that may apply to your type of business.

The advice and information under “Operating a Business” are helpful for just about any type of small business.

If you have employees, you’ll find resources on hiring, employment taxes and wage reporting requirements. You can learn about business tax credits and estimated taxes. The all-important Business Expenses section defines the types of costs you can and cannot deduct from your taxes.

For the self-employed and independent contractors, there’s a full section that covers filing requirements, when a tax identification number is necessary, a listing of special publications and forms, and other valuable information.

The entire article is available here.