More On Tax Planningfrom The Advisor's Professional Library
- Charitable Giving Charitable giving can reduce your clients’ tax liabilities. However, the general and verification rules for the deduction of charitable gifts must be understood in order to take full tax advantage of such gifts.
- Taxation of Real Estate Real estate may be used to shelter income and may offer certain tax benefits. However, the type of real estate investment may result in different tax treatment. Learn how to use these investments to help your clients.
It’s “white robes” versus “rambling."
A bit of controversy has arisen from last week's Schwab Impact 2012 conference Chicago, with each side not-so-subtly referring to the other’s mental state.
Following a speech to attendees on Thursday, former Republican Sen. Alan Simpson joined commission co-chair Erskine Bowles for a live interview in the exhibit hall with CNBC. When asked about low-tax evangelist Grover Norquist and his “no tax” pledge taken by many Republicans in Congress, Simpson called the position untenable.
“[What] I've always said about Grover Norquist is he's wandering the earth in his white robes,” Simspon said.
According to CNBC, Simpson “chided his fellow Republican for sticking to his guns on keeping taxes low and questioned Norquist's ability to force Republicans to toe his line.”
"What can he do to you? He can't murder you; he can't burn your house. The only thing he can do to you is defeat you for re-election. And if that means more to you than your country ... you shouldn't even be in Congress."
Norquist didn’t take the insult lightly, responding a day later, "Alan Simpson ranting is not news."
He told the network that the latest tax plan would take taxes as a percentage of gross domestic product from 18.5% in full employment—the average over the past 30 years—to 21%, which equates to a $5 trillion tax increase over the next decade.
Norquist told "Closing Bell" growth, not tax hikes, is the best way to raise revenue for the federal government.
"If you grow at 4% a year instead of 2% a year for one decade, the government raises $5 trillion," Norquist asserted, according to the network.