Comments on: Progressive Tax Reform that Makes Sense: Eliminating DC’s Tax Break for Investing in Other States’ Bonds http://www.dcfpi.org/progressive-tax-reform-that-makes-sense-eliminating-dc%e2%80%99s-tax-break-for-investing-in-other-states%e2%80%99-bonds Sun, 05 Feb 2012 17:24:52 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Small Business Tax Guru http://www.dcfpi.org/progressive-tax-reform-that-makes-sense-eliminating-dc%e2%80%99s-tax-break-for-investing-in-other-states%e2%80%99-bonds/comment-page-1#comment-1161 Small Business Tax Guru Mon, 23 Nov 2009 03:47:46 +0000 http://dcfpi.org/?p=845#comment-1161 I've been involved in taxations for longer then I care to acknowledge, both on the private side (all my employed life story!!) and from a legal stand since satisfying the bar and following tax law. I've furnished a lot of advice and rectified a lot of wrongs, and I must say that what you've put up makes impeccable sense. Please carry on the good work - the more people know the better they'll be armed to handle with the tax man, and that's what it's all about. I’ve been involved in taxations for longer then I care to acknowledge, both on the private side (all my employed life story!!) and from a legal stand since satisfying the bar and following tax law. I’ve furnished a lot of advice and rectified a lot of wrongs, and I must say that what you’ve put up makes impeccable sense. Please carry on the good work – the more people know the better they’ll be armed to handle with the tax man, and that’s what it’s all about.

]]> By: Andres http://www.dcfpi.org/progressive-tax-reform-that-makes-sense-eliminating-dc%e2%80%99s-tax-break-for-investing-in-other-states%e2%80%99-bonds/comment-page-1#comment-782 Andres Fri, 02 Oct 2009 21:40:52 +0000 http://dcfpi.org/?p=845#comment-782 Increasing sales taxes falls on the lower end residents who dont have a way to purchase online or in VA/MD who have lower sales taxes. The shortfall on consumer goods taxes can be addressed if a system was created to receive the sales tax on online purchases that are shipped into the district through UPS/USPS. This can be done through the declared insurance value of the product. The shipping companies would hold the tax until owed, just like retail business's currently do. It would provide the shipping companies with some added cashflow for the thirty days they are holding the thousands of sales tax dollars owed to the district. People are not purchasing less consumer goods, they are buying them online. Increasing the sales tax, parking meters, local fee's only hurts the lower-mid-income-resident who can only depend on higher priced DC taxes and fees. We also suffer based on the high taxes charged to the tourist industry. Fortunately grocery stores are not taxed. Increasing sales taxes falls on the lower end residents who dont have a way to purchase online or in VA/MD who have lower sales taxes.

The shortfall on consumer goods taxes can be addressed if a system was created to receive the sales tax on online purchases that are shipped into the district through UPS/USPS. This can be done through the declared insurance value of the product. The shipping companies would hold the tax until owed, just like retail business’s currently do. It would provide the shipping companies with some added cashflow for the thirty days they are holding the thousands of sales tax dollars owed to the district.

People are not purchasing less consumer goods, they are buying them online. Increasing the sales tax, parking meters, local fee’s only hurts the lower-mid-income-resident who can only depend on higher priced DC taxes and fees. We also suffer based on the high taxes charged to the tourist industry. Fortunately grocery stores are not taxed.

]]> By: Ed Lazere http://www.dcfpi.org/progressive-tax-reform-that-makes-sense-eliminating-dc%e2%80%99s-tax-break-for-investing-in-other-states%e2%80%99-bonds/comment-page-1#comment-407 Ed Lazere Wed, 02 Sep 2009 20:41:04 +0000 http://dcfpi.org/?p=845#comment-407 We would recommend applying it both to existing investments and to future investments, for these reasons. First, when other tax policy is changed -- such as the recent increase in the sales tax or the elimination of inflation adjustments to DC's standard deduction -- it also affects people based on their current income or current consumption. It is normal in tax policy to start taxing something tomorrow more than in was taxed yesterday - such as raising property sales, or income tax rates. Second, many people investing in municipal bonds do that through bond mutual funds, which they can sell and re-invest if they want. They can be fairly liquid investments. Third, people who hold these bonds still get a tax exemption on their federal tax return, so most of the benefit of holding the bonds would stay even if the DC tax exemption disappears. We would recommend applying it both to existing investments and to future investments, for these reasons. First, when other tax policy is changed — such as the recent increase in the sales tax or the elimination of inflation adjustments to DC’s standard deduction — it also affects people based on their current income or current consumption. It is normal in tax policy to start taxing something tomorrow more than in was taxed yesterday – such as raising property sales, or income tax rates. Second, many people investing in municipal bonds do that through bond mutual funds, which they can sell and re-invest if they want. They can be fairly liquid investments. Third, people who hold these bonds still get a tax exemption on their federal tax return, so most of the benefit of holding the bonds would stay even if the DC tax exemption disappears.

]]> By: Ed http://www.dcfpi.org/progressive-tax-reform-that-makes-sense-eliminating-dc%e2%80%99s-tax-break-for-investing-in-other-states%e2%80%99-bonds/comment-page-1#comment-351 Ed Wed, 26 Aug 2009 22:51:41 +0000 http://dcfpi.org/?p=845#comment-351 Fine with me to tax other states' tax-exempt bonds. Nonetheless, I am wondering if you would apply the tax on interest from all new out-of-state bond acquisitions (after the law's effective date), or would you also tax the interest earned from bonds acquired before the effective date of your new tax law? Individual bonds are not totally liquid. Bonds are acquired when they are better than other investment instruments, and a tax changes the desirability of the out of state bond relative to DC bonds. Just wondering your policy on this? Fine with me to tax other states’ tax-exempt bonds. Nonetheless, I am wondering if you would apply the tax on interest from all new out-of-state bond acquisitions (after the law’s effective date), or would you also tax the interest earned from bonds acquired before the effective date of your new tax law?

Individual bonds are not totally liquid. Bonds are acquired when they are better than other investment instruments, and a tax changes the desirability of the out of state bond relative to DC bonds. Just wondering your policy on this?

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