Wisconsin has set a tax trap for some who will follow the federal tax laws regarding Roth IRA conversions. Our representatives chose not to accept tax conversions. They chose to penalize those making over $100,000 because the penalty continues each year. It is appalling that they would give up the tax revenue and chose to punish those who use legitimate federal tax laws to plan for the future.
This will only change if we convince our elected officials to do the “right thing” for the residents of Wisconsin.
There are many factors that impact these decisions. The media and many financial representatives do not understand the full impact. The decisions are more accurately based on your tax situation now and later. Bring your questions to a tax professional.
Free Educational ROTH IRA Lunch and Learn
Germantown Tax Accountant Larry Rittberg and Bill Matt, CFP
will help address the important questions and concerns:
What is the Wisconsin ROTH IRA Tax Trap?
How might I be subject to Wisconsin tax penalties Forever?
How can I determine if I should convert an IRA to a Roth IRA in 2010?
What are the advantages and disadvantages of the Roth IRA?
Learn all about the federal and state tax laws?
Learn all about the best tax plan for you?
When: Wednesday December 16, 2009 at 9:30AM, Lunch following
Where: Germantown Library
RSVP: You may bring a guest but please RSVP FOR THIS EVENT!
When: Tuesday December 15, 2009 at 11AM, Lunch following
Where: North Shore Library, N. Port Washington Rd.
RSVP: You may bring a guest but please RSVP FOR THIS EVENT!
Please call 262-255-0494 today!
Tuesday, December 8, 2009
Tuesday, June 30, 2009
How much do you have to earn to rent a car = 4 times the rental fee (Taxed at 75+%)
Arizona has one of the highest taxes and fees on rental cars, approx 28.8%
Wisconsin was approximately 20% and has now added an $18 fee per transaction.
In 2008 a married self employed person of middle income, taxable income of $65,100, is in the 25% tax bracket. This means that his marginal taxable income, "the next dollar earned" will be taxed at a 25% federal tax rate. Since he is self employed, he will pay almost 15% in self employment taxes. The state will tax at 6.5%. If he spends that money locally, it will generally have a 5.6% sales tax. That is a total of 52.1%. He only gets to spend 47.9 cents of a dollar earned.
I am planning a trip to Arizona. A rental car will be $630. The taxes and fees are $182. That is 28.8%.
Lets do the simple math:
federal tax rate 25%
SE Tax 15%
Wisconsin 6.5%
Rental car fees
and taxes 28.8%
Total taxes ===========
and fees 75.3%
Now anothe simple formula.
We need a net of $630.
You need to earn $2520 to net $630
Gross $2520
Tax 75% 1890
========
Left to spend $630
Can we afford any additional taxes or fees on our income.
I would like to hear from any politician on how we will be able to travel. Will this not kill tourism. How much can/will it go up. An increase of 5% means means you must earn $3,150 to pay for the $630 car rental.
Don't believe me, do the research and math. Try to prove this wrong.
I would like to hear from any politician on how the "rich" are being taxed.
I would welcome a comment from
Congressman Jim Sensenbrenner
Governor Jim Doyle
Senator Herb Kohl
Senator Russ Feingold
Wisconsin was approximately 20% and has now added an $18 fee per transaction.
In 2008 a married self employed person of middle income, taxable income of $65,100, is in the 25% tax bracket. This means that his marginal taxable income, "the next dollar earned" will be taxed at a 25% federal tax rate. Since he is self employed, he will pay almost 15% in self employment taxes. The state will tax at 6.5%. If he spends that money locally, it will generally have a 5.6% sales tax. That is a total of 52.1%. He only gets to spend 47.9 cents of a dollar earned.
I am planning a trip to Arizona. A rental car will be $630. The taxes and fees are $182. That is 28.8%.
Lets do the simple math:
federal tax rate 25%
SE Tax 15%
Wisconsin 6.5%
Rental car fees
and taxes 28.8%
Total taxes ===========
and fees 75.3%
Now anothe simple formula.
We need a net of $630.
You need to earn $2520 to net $630
Gross $2520
Tax 75% 1890
========
Left to spend $630
Can we afford any additional taxes or fees on our income.
I would like to hear from any politician on how we will be able to travel. Will this not kill tourism. How much can/will it go up. An increase of 5% means means you must earn $3,150 to pay for the $630 car rental.
Don't believe me, do the research and math. Try to prove this wrong.
I would like to hear from any politician on how the "rich" are being taxed.
I would welcome a comment from
Congressman Jim Sensenbrenner
Governor Jim Doyle
Senator Herb Kohl
Senator Russ Feingold
Sunday, June 28, 2009
Memo to Senators Feingold and Kohl
Please think carefully before voting for energy tax increases (CAP & TRADE) and any single payer healthcare.
There is no question that our health system is broke and there are more and more people without health care with these massive job losses.
A government run, Taxpayer paid system is not the answer. Even when the economy was going great Medicare was on the road to running out of money. With massive job losses, there is less payroll to pay govt funded paid by payroll tax projects.
It is not the rich that is taxed, it is the working class.
Behind all the rhetoric, the next dollar after a single person who earns $42,000 is taxed at 53%
fed 25%
SE 15%
WI 6.5
Milw
Sales 6.6
Total 53% Marginal tax rate that your next earned dollar is taxed.
If you travel it is an additional 5-10%. If you charge a trip for your family for $5,000, and and your next working dollars are taxed at a total of 60%, you have to earn $12,500 to pay it off. Ever wonder why you always feel behind.
Everything we buy and consume now has additional taxes and fees. Our property tax bills have additional fees that we cannot deduct. Our telephone, cell phone and utility bill have many additional taxes and fees. Wisconsin gasoline already contains over 50 cents in taxes.
I am a tax accountant. I have a retired client whose adjusted gross income is $24,000. He reached 70-1/2 and is required to take required minimum distributions. If he takes $1000 from his IRA, it causes more social security to be taxed. That $1000 is taxed at a federal/state rate of 22%. There is too much denial when we look at who is taxed. Can you explain this to these retired taxpayers.
A goverment run, taxpayer paid health care system needs extensive discussion and input, don’t do it behind the scenes. Only 50% of the adult population pays income taxes, these are the people affected by any tax increase, not the rich, not the 50% that do not pay taxes.
I encourage you to get out your last years tax return, add up your total federal, state, social security and property taxes paid.
http://www.larrythetaxguy.com/
Germantown, wi
There is no question that our health system is broke and there are more and more people without health care with these massive job losses.
A government run, Taxpayer paid system is not the answer. Even when the economy was going great Medicare was on the road to running out of money. With massive job losses, there is less payroll to pay govt funded paid by payroll tax projects.
It is not the rich that is taxed, it is the working class.
Behind all the rhetoric, the next dollar after a single person who earns $42,000 is taxed at 53%
fed 25%
SE 15%
WI 6.5
Milw
Sales 6.6
Total 53% Marginal tax rate that your next earned dollar is taxed.
If you travel it is an additional 5-10%. If you charge a trip for your family for $5,000, and and your next working dollars are taxed at a total of 60%, you have to earn $12,500 to pay it off. Ever wonder why you always feel behind.
Everything we buy and consume now has additional taxes and fees. Our property tax bills have additional fees that we cannot deduct. Our telephone, cell phone and utility bill have many additional taxes and fees. Wisconsin gasoline already contains over 50 cents in taxes.
I am a tax accountant. I have a retired client whose adjusted gross income is $24,000. He reached 70-1/2 and is required to take required minimum distributions. If he takes $1000 from his IRA, it causes more social security to be taxed. That $1000 is taxed at a federal/state rate of 22%. There is too much denial when we look at who is taxed. Can you explain this to these retired taxpayers.
A goverment run, taxpayer paid health care system needs extensive discussion and input, don’t do it behind the scenes. Only 50% of the adult population pays income taxes, these are the people affected by any tax increase, not the rich, not the 50% that do not pay taxes.
I encourage you to get out your last years tax return, add up your total federal, state, social security and property taxes paid.
http://www.larrythetaxguy.com/
Germantown, wi
Wednesday, January 21, 2009
About Larry Rittberg
Learn more about Larry the Tax Guy and see why larry can save and make you money this tax season! Click here.
Time to schedule your appointment!
It's that time of year again. 2008 tax season is upon us, so sign up quickly and reserve your appointment today by visiting our schedule page.
Tuesday, January 20, 2009
New website features launched!
Hello everyone! We have recently had a few improvements made to our website. New scheduling services have been added and our Larry's Rants blog has been added to the site. We'd like to thank Prestige Development for their effort in getting these enhancements made prior to tax season!
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