The changes scheduled to take effect next year regarding estate and gift tax laws have many rushing to make changes. For example, an estate totaling $1 million will be subject to an estate tax of fifty-five percent. Even though this seems like a high amount to most people, it is not unheard of in larger cities where the cost of living is much higher than in other parts of the nation. The changes in gift taxes also have many families scrambling to find ways to gift property now to avoid … [Read more...]
Higher taxes on cigarettes could drive consumption down
October 30, 2012 by
Chicago’s cigarette tax is the second highest in the nation. Even though Mayor Rahm Emanuel said he would not raise taxes on most things, he specifically has not ruled out a higher tax on cigarettes. Even though a higher tax should mean more money for the city, higher taxes could result in smokers driving across state lines to get their cigarettes. Revenue from the sale of cigarettes has declined in past years and a higher tax could further this trend. However, a higher tax on cigarettes … [Read more...]
The events leading up to the largest bankruptcy in US History
October 29, 2012 by
Anton Valukas, the bankruptcy examiner assigned to the nations largest bankruptcy tells how it began. He also warns that the county came closer to disaster than most people understand. The most frightening revelation may be his opinion that we have not learned from the lessons taught by the Lehman Brothers bankruptcy. Valukas reported what he found in a 2,200-page report known as the Valukas Report. Now that it appears federal prosecutors will not pursue criminal charges, Valukas has … [Read more...]
Elected officials have created financial hardship for Illinois
October 26, 2012 by
The State Budget Crisis Task Force has finally released its report detailing the financial problems faced byIllinois. In part, the report states that elected officials focused more on “short-term goals over long-term growth and stability.” This focus has created substantial financial hardships for the state. Illinoishas one of the worst credit ratings and faces a budget deficit that numbers in the millions. The task force is recommending reforms to the tax system in addition to overhauling … [Read more...]
Landmark homes in Winnetka may lose tax benefits
October 25, 2012 by
If you own an historical home in Winnetkaand invest 25% of its fair market value to qualify it for ‘landmark’ status, you may be entitled to a tax break. According to the ordinance, homes that are granted landmark status receive a property tax assessment freeze for eight years. Thereafter, the property tax assessment is increased by increments over twelve years to reach its actual market price. This could change as the trustees ofWinnetkacontemplate repealing the ordinance while citing … [Read more...]
Illinois personal income tax hike may finally be felt by taxpayers
October 25, 2012 by
When the state legislature approved the income tax increase in January 2011, many feared they would lose much needed income. However, the federal payroll tax deduction worked to offset much of the hardship people feared from the state income tax increase. Right now, the state income tax increase from 3% to 5% is scheduled to remain through 2014. Unfortunately, the federal payroll tax reduction terminates at the end of this year. Unless it is extended, manyIllinoistaxpayers will see a … [Read more...]
Judge dismisses employees lawsuit in bankruptcy case but leaves door open
October 24, 2012 by
Former employees of MF Global brought a lawsuit in bankruptcy court against the trustees appointed to liquidate the company. The employees alleged that the trustees did not adhere to the requirement of the Worker Adjustment and Retraining Notification (WARN) Act when terminating their employment. The judge dismissed the lawsuit; however, he left the matter open for the former employees to file an amended complaint against the parent company that is currently in a Chapter 11 reorganization … [Read more...]
Video gaming tax could hurt many business owners
October 23, 2012 by
Cook County bar owners were thrilled by the legalized video gaming within the county because this would bring much needed revenue into their businesses. However, Toni Preckwinkle, Cook County Board President, has proposed an $800 tax on each video game as a means of decreasing the county’s budget deficit. Business owners are not happy about the proposed tax. Arguing for the tax, Preckwinkle says that the video games can generate up to $800 per day for the owners while the county is only … [Read more...]
Women get financially smarter as they get older
October 22, 2012 by
A study by Joanne Hsu, a Federal Reserve Board economist, shows that as women age they become more financially proficient. Hsu theorized that as women get older, they have more incentive to become more proficient with finances. The key is that women often outlive their husbands and must take care of their own finances after many years of allowing husbands to be the financial manager in the home. Couples tend to “specialize” certain tasks within the marriage with the husband often being the … [Read more...]
New bankruptcy reform may have huge impact on current code
October 22, 2012 by
A Commission has been formed for the purpose of proposing changes to the Chapter 11 Bankruptcy Code. Twenty-two members will study the code and hope to submit a report to Congress by early 2014 with their suggestions for revisions. It is not entirely out of the question to consider “dumping” the existing bankruptcy code and writing an entirely new set of laws from “scratch.” At least thirteen areas of bankruptcy law will be studied including government supervision, labor issues, employee … [Read more...]
