ACCOUNTANT

Another Crisis Looms Right Around the Corner

For the most part - what garbage!!!

However, great comment by verdae. There is so much disinformation running around that it is actually very nice to read a comment from someone that has actually done their homework on what they post.

just saw a thing in USA Today regarding tax rates. US is at bottom of developed world. We could raise taxes by 5% of GDP and still be lower than the vast majority of developed world. In fact, federal revenues in 2009 are estimated at 15.1% of GDP, or 5% below the average for the years 1970-2000. That is the biggest reason for the huge deficit - revenues have just totally dropped off the table.

Combine that with TARP spending and stimulus spending, you have your budget deficit. The last two will go away by themselves, and the first will need to be addressed. What most people don't realize is that the biggest items of Bush's tax cuts were back-ended so they wouldn't look so expensive when the 10-year analysis were done back in 2001. those back-ended provisions started going into effect in 2008.

To illustrate, in 2010, my wife and i could have (in our particular circumstances) a non-earned income of about $102,000 and not pay one nickel of federal taxes - in my opinion, that is ridiculous.

How is this possible? Well, non-earned income implies NO payroll taxes. No income taxes will apply because of standard deduction, 2 exemptions, HSA deduction, $10,000 passive activity loss carryover, and $67,000 of qualifying dividend income or long-term capital gain income, which is only taxable if your marginal tax rate is 25% or higher. Based on this scenario, we would be just below that tax rate - thus - no taxes on that $67,000, and the various deductions above will cover the rest of the income. Thus - no taxes on $102,000 of income - great for me but sheer public policy stupidity!!!!!

Tax rates will not go back to 70% or 90% or anything close - look for a top rate of between 39% and 43%.

Q4 Earnings Performance of S&P 500 Companies

How much does mark-to-market and write-offs of intangibles make up of the 4th quarter losses?

Conoco Phillips alone took at $34 billion write down of its oil reserves when oil plumeted to $37 per barrell - that will show back up as profit in future years.