Angry at country club Democrats for tax cuts for the rich? Write Congress!

If you are for the tax cuts or against them, speak up and write your Congressperson and Senators.  This is a Democracy (supposedly), and you have the right to free speech.  I respect all differences of opinion; and on many occasions, after listening to another’s opinion, was persuaded by their arguments and agreed with them.  I am not proud; I have been humbled by life and its many vicissitudes.

I encourage all of you to speak your minds and hearts.  I have received a number of comments disagreeing with my positions in these blogs.  But I sincerely respect all who have submitted comments in opposition to my views. This is the essence of freedom in America:  free speech and a free press.

If you don’t have the time to draft an email to send to your Congressperson or Senators, by all means, feel free to use mine below, and modify it at will.

Thank you.

Here is my protest email, which took me one minute to compose; any suggestions would be welcomed and appreciated.

“Dear Congressman/Senator So-and-So:

Please vote “no” to any extension of tax cuts to the rich.  And please vote “no” to any increase in the ceiling exempting the rich from estate taxes, and any decrease in the estate tax rate.

Over the past 30 years, we have witnessed a transfer of wealth from the middle class to the upper class.  We are sick and tired of “country club” democrats.  We are democrats because we cannot afford to join country clubs.  But if you or any other democrats are or become country club democrats, we will start voting in protest to get all country club democrats out of office and get middle-class representatives into Congress.

We are furious with Obama and Biden and any democrat involved in this vote.  Harvard’s Larry Sumners, Obama’s former economic advisor, endorsed the tax cuts for the rich.  Is Obama still seeking his counsel?  Is our government a government of the rich, for the rich, and by the rich since it appears that our politicians are paid for by the rich?

Those upper class tax cuts and estate tax cuts will not create any jobs in the USA, but only in China, Cambodia, India, Korea, Mexico, and the Philippines, if there.

We voted for you to fight the good fight for us.  Please get fighting now!  There is a big difference between compromising and surrendering.  Obama surrendered before the battle began.  We voted for a Winston Churchill; and we got a Neville Chamberlain.

We don’t hear you.  Please speak up now!  Now is the time before this tax cut is pushed through by the country club democrats.

Sincerely,

So-and-So

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, LLC

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KPMG commits $1.9 billion gaffe?! Who says bigger is better!?!

A partner at KPMG, Christopher Whittingham, led a team of twenty auditors that signed an unqualified audit report on the financial accounts of Allco Finance Group for the year ended June 30, 2007; however, those financials had misclassified debt of 1.9 billion dollars by presenting them as noncurrent when, in fact, they were current liabilities and, thus, payable within a year’s time.

To make matters more embarrassing for Christopher Whittingham, apparently he was unaware of the error until BusinessDay published a story on February 26, 2008, stating that Allco Finance Group had understated its debt by approximately two billion dollars.  As accountants, we all know that this is a significant error on the part of the auditors, since whether or not Allco Finance Group could have met its current debt payments and remained solvent customarily would have been indicated by the amount of its current liabilities in relation to its current assets.

Allco was one of the high-profile collapses during the global financial crisis. It was placed in liquidation after it was discovered in May that it could not repay more than one billion dollars in loans.  In November, 2008, receivers were appointed after Allco Finance Group became insolvent.

How did Whittingham excuse this error as the partner presumably in charge of this audit?  BusinessDay reports Mr. Whittingham saying that he had relied on managers for aspects of the audit.

Mr. Whittingham received a nine-month suspension from the Australian Securities and Investments Commission, a $10,000 fine, and 10 hours of professional education for this faux pas. The Australian Securities and Investments Commission said it was “concerned” Sydney-based Christopher Neville Whittingham “failed to carry out or adequately and properly perform his duties as an auditor” as well as failed to ensure that the audit was conducted in accordance with Australian Auditing Standards, even though he had a team of twenty auditors working on this audit.

While Mr Whittingham cannot work as an auditor in Australia, he was sent by KPMG to Thailand last year to work as a consultant. He is not expected to return from the assignment until April 2012.

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, LLC

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Republican Senators reject and vote down middle-class tax cuts for incomes not exceeding $1 million!!!

Republican Senators Reject Middle-Class Tax Cuts

The middle-class tax relief bill recently passed in Congress was defeated by Senate Republicans today, falling 7 votes short of the 60 votes required to be enacted.  Senate Republicans were holding out for a continuance of the Bush tax breaks on millionaires and billionaires.

Not one Republican senator voted for the extension of the middle-class tax cuts.  Also senators Lieberman of Connecticut, Feingold of Wisconsin, Nelson of Nebraska, Webb of Virginia, and Manchin of West Virginia crossed party lines and voted against the extension of the middle-class tax cuts.

The tax cuts would have kept the current income tax rates for individuals or couples earning no more than $200,000 or $250,000 annually, respectively.  Even an amendment proposed by Senator Schumer of New York maintaining current income tax rates for those with earnings not exceeding $1 million was rejected in similar fashion by Senate Republicans, again falling 7 votes shy of the 60 required.

When one considers that the average income in the United States is approximately $60,000, it becomes apparent that Senate Republicans are more concerned about protecting from taxes the incomes of individuals making millions and billions of dollars than they are about protecting the incomes of middle-class families while attempting to control the Federal government’s deficit, which is, after all, a hidden, deferred tax.

Accountants CPA Hartford, LLC on Republican SenatorsAnd please don’t fall for that lame Republican line that increasing taxes on those earning millions and billions of dollars every year will put a crimp in our economic recovery.  Those tax cuts were in place before and during all of the mass layoffs in our country.  Any monies from their tax savings over the years have been invested overseas in China, India, Cambodia, Philippines, etc., where labor is paid as low as 22¢ per hour.  Furthermore, since small businesses create 80% of the jobs here in this country and typically do not report more than $1 million in income to each individual owner, those middle class tax cuts are precisely the tax cuts that would enhance job creation in this country, not the tax breaks for that 5% of our population owning 95% of the multinational corporations’ wealth, which is being invested overseas and taking jobs from our shores.

The Republican senators’ short-sightedness fails to see that this continued weakening of the base of our country’s economic pyramid by crumbling the structural blocks of jobs, wages, and incomes of the lower and middle classes ultimately will result in our entire national economic structure collapsing, including bringing down the privileged 5% at its top, too.  Which explains why billionaires like Gates, Buffett, and Turner are begging the government to tax the rich:  they see the collapse coming if the government does not start balancing its budget.  As you all recall, this collapse nearly occurred two years ago, while we, the lower and middle classes, were left with the bill to bail the Wall Streeters out of this mess.  They even had the effrontery to steal billions of dollars in bonuses from our TARP funds, to boot. 

Obviously, these Republican senators are representing the super rich on this issue, rightfully deserving of their characterization as “country club Republicans”.  This bill would have kept in place tax cuts for 98% of Americans; only 2% of our population—the super rich—would have paid more taxes.  In fact, these Republicans have threatened to not ratify aRepublicans refuse to ratify nuclear arms treaty pending nuclear arms treaty with Russia until the 2% are included in the tax breaks.  In other words, they would rather see your hometown reduced to an ashtray than relent on their stance to preserve the tax breaks of the rich and powerful.  By including this tiny minority that has more money than God in the tax breaks, our Federal debt will increase by $140 billion over the next two years and by $700 billion over the next ten years.  Are not the Republicans concerned about our $14 trillion national debt?  These are the same Republicans who defeated an effort to extend unemployment benefits to 2 million struggling Americans. 

It’s partisan politics all over again.  The Republicans versus the Democrats.  The rich upper class versus the lower and middle classes.  It’s a plain and simple class war propelled by greed.  Who will win?  Those with the money always win:  they buy and control the media and can afford to spin anything to the gullible constituency.  That’s the way it’s been for thousands of years.  And so it is today. 

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, LLC

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Video and Transcript of Post-Censure Speech Given by Charles Rangel to Congress

I looked for a transcript of Charles Rangel’s post-censure speech given to Congress yesterday. Since I was unable to find any transcript, I decided to transcribe the speech myself. Why? I wanted to read and study carefully the words of someone whom I had admired and respected over the years. When I first heard his speech on the internet, I was disappointed in not hearing a contrite, humble apology, acknowledging his wrongdoing. Rather, what I heard was an appeal to a higher body—perhaps a heavenly tribunal—to judge his life’s work. How sad, how disappointing, how tragic for our youth, who need to know and learn the consequences of doing wrong. Equally as distressing and appalling was the sound of applause by certain members of Congress, expressing approval of Charlie’s non-contrite, non-apology (Charlie merely apologized for members of Congress being placed in this awkward position presumably of having to vote on his censure: give me a break).

But you be the judge. Perhaps I am being too hard on Charlie Rangel. Here is my transcript of his speech and you have the video, too:

I fully recognize that constitutionally that this body has the full jurisdiction to determine the conduct of one of its members. My predecessor suffered because they did not allow him to be a member before they decided that he should be expelled. But notwithstanding that we do know that we are a political body and even though it is painful to accept this vote, I’m fully aware that this vote reflects, perhaps, the thinking not just of the members but the political tide and the constituency of this body.

Having said that and having my opportunity to do what I wanted to do initially, and that is to make certain that this body and this country would know that at no time has it ever entered my mind to enrich myself or to do violence to the honesty that is expected of all of us in this house.

I think that has been proven and that has been what I’ve been asking for and that’s why I have admitted to mistakes and was prepared to do what I have done. I understand that this is a new criterion, a breakthrough, in order to teach somebody a higher lesson than those that in the past that have done far more harm to the to the reputation of this body than I.

But I just would want all of you to know that in my heart, I truly feel good. It’s not all the commitments that I made to God in 1950. A lot of it has to do with the fact that I know in my heart that I’m not going to be judged by this Congress, but I’m going to be judged by my life, my activities, my contributions to society. And I just apologize for the awkward position that some of you that are in. But at the end of the day, as I started off saying, compared to where I’ve been, I haven’t had a bad day since.  Thank you.

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

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John Boehner, Majority Whip and Leader of Congressional Republicans, calls middle class tax cuts “chicken crap”, even though they would maintain the current tax rates for 98% of Americans!

John Boehner calls middle tax cuts chicken crapVirtually all of us agree that there should be an extension of tax cuts for small businesses and individuals earning less than $250,000.  The question is should we tax the super wealthy or continue giving them a tax holiday?

Since our nation is in hock for $14 trillion dollars, perhaps it’s time to tax the wealthy.  By taxing the wealthy, we will only impose an additional tax of 4.6% on their incomes, increasing the highest marginal tax rate from 35% to 39.6%:  hardly a bankrupting scenario for those making millions of dollars every year.  And perhaps they should pay more in taxes, since are not those multinational corporations—primarily owned by the super wealthy—responsible for exporting all of those jobs to China and laying off millions of American workers?

Maybe a suitable compromise would be to extend the Bush tax cuts to those making less than $500,000 per year….But I do not feel any sympathy for those earning millions of dollars every year.  Did they feel any sympathy for all those Americans laid off over the past few years?  And we all know by now that giving the wealthy a tax break doesn’t create more jobs here in the USA…maybe in China, but not here!

John Boehner, the Majority Whip leading the Republicans in Congress, called the middle class tax cuts for those making $250,000 or less, “chicken crap”, even though the Democratic proposal would maintain the current tax rates for 98% of Americans, while letting the rates of the top 2% return to their pre-Bush rates.  Apparently the Senate Republicans won’t vote for these middle class tax cuts unless the super wealthy, whom Boehner and other Republicans seem to primarily represent, are included in these tax cuts.  But if the wealthy, who certainly can afford to pay their taxes, are included in these tax cuts, it will increase our national debt by $140 billion over the next two years.  Soon our country will be following Ireland and Italy into bankruptcy and receivorship. 

John Boehner, those middle class tax cuts are not chicken crap.  Ask the middle class taxpayers.

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, LLC

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A Little History about Thanksgiving….

Most stories of Thanksgiving history start with the harvest celebration of the pilgrims and the indians that took place in the autumn of 1621. Although they did have a three-day feast in celebration of a good harvest, and the local indians did participate, this “first Thanksgiving” was not a holiday, simply a gathering. There is little evidence that this feast of thanks led directly to our modern Thanksgiving Day holiday. Thanksgiving can, however, be traced back to 1863 when Pres. Lincoln became the first president to proclaim Thanksgiving Day. The holiday has been a fixture of late November ever since.

However, since most school children are taught that the first Thanksgiving was held in 1621 with the pilgrims and indians, let us take a closer look at just what took place leading up to that event, and then what happened in the centuries afterward that finally gave us our modern Thanksgiving.

The Pilgrims who sailed to this country aboard the Mayflower were originally members of the English Separatist Church (a Puritan sect). They had earlier fled their home in England and sailed to Holland (The Netherlands) to escape religious persecution. There, they enjoyed more religious tolerance, but they eventually became disenchanted with the Dutch way of life, thinking it ungodly. Seeking a better life, the Separatists negotiated with a London stock company to finance a pilgrimage to America. Most of those making the trip aboard the Mayflower were non-Separatists, but were hired to protect the company’s interests. Only about one-third of the original colonists were Separatists.

The Pilgrims set ground at Plymouth Rock on December 11, 1620. Their first winter was devastating. At the beginning of the following fall, they had lost 46 of the original 102 who sailed on the Mayflower. But the harvest of 1621 was a bountiful one. And the remaining colonists decided to celebrate with a feast — including 91 Indians who had helped the Pilgrims survive their first year. It is believed that the Pilgrims would not have made it through the year without the help of the natives. The feast was more of a traditional English harvest festival than a true “thanksgiving” observance. It lasted three days.

Governor William Bradford sent “four men fowling” after wild ducks and geese. It is not certain that wild turkey was part of their feast. However, it is certain that they had venison. The term “turkey” was used by the Pilgrims to mean any sort of wild fowl.

Another modern staple at almost every Thanksgiving table is pumpkin pie. But it is unlikely that the first feast included that treat. The supply of flour had been long diminished, so there was no bread or pastries of any kind. However, they did eat boiled pumpkin, and they produced a type of fried bread from their corn crop. There was also no milk, cider, potatoes, or butter. There was no domestic cattle for dairy products, and the newly-discovered potato was still considered by many Europeans to be poisonous. But the feast did include fish, berries, watercress, lobster, dried fruit, clams, venison, and plums.

This “thanksgiving” feast was not repeated the following year. Many years passed before the event was repeated. It wasn’t until June of 1676 that another Day of thanksgiving was proclaimed. On June 20 of that year the governing council of Charlestown, Massachusetts, held a meeting to determine how best to express thanks for the good fortune that had seen their community securely established. By unanimous vote they instructed Edward Rawson, the clerk, to proclaim June 29 as a day of thanksgiving. It is notable that this thanksgiving celebration probably did not include the Indians, as the celebration was meant partly to be in recognition of the colonists’ recent victory over the “heathen natives,” (see the proclamation below).

A hundred years later, in October of 1777 all 13 colonies joined in a thanksgiving celebration. It also commemorated the patriotic victory over the British at Saratoga. But it was a one-time affair.

George Washington proclaimed a National Day of Thanksgiving in 1789, although some were opposed to it. There was discord among the colonies, many feeling the hardships of a few pilgrims did not warrant a national holiday. And later, President Thomas Jefferson opposed the idea of having a day of thanksgiving.

It was Sarah Josepha Hale, a magazine editor, whose efforts eventually led to what we recognize as Thanksgiving. Hale wrote many editorials championing her cause in her Boston Ladies’ Magazine, and later, in Godey’s Lady’s Book. Finally, after a 40-year campaign of writing editorials and letters to governors and presidents, Hale’s obsession became a reality when, in 1863, President Lincoln proclaimed the last Thursday in November as a national day of Thanksgiving.

Thanksgiving was proclaimed by every president after Lincoln. The date was changed a couple of times, most recently by Franklin Roosevelt, who set it up one week to the next-to-last Thursday in order to create a longer Christmas shopping season. Public uproar against this decision caused the president to move Thanksgiving back to its original date two years later. And in 1941, Thanksgiving was finally sanctioned by Congress as a legal holiday, as the fourth Thursday in November.

1676 Thanksgiving Proclamation 

 

“The Holy God having by a long and Continual Series of his Afflictive dispensations in and by the present Warr with the Heathen Natives of this land, written and brought to pass bitter things against his own Covenant people in this wilderness, yet so that we evidently discern that in the midst of his judgements he hath remembered mercy, having remembered his Footstool in the day of his sore displeasure against us for our sins, with many singular Intimations of his Fatherly Compassion, and regard; reserving many of our Towns from Desolation Threatened, and attempted by the Enemy, and giving us especially of late with many of our Confederates many signal Advantages against them, without such Disadvantage to ourselves as formerly we have been sensible of, if it be the Lord’s mercy that we are not consumed, It certainly bespeaks our positive Thankfulness, when our Enemies are in any measure disappointed or destroyed; and fearing the Lord should take notice under so many Intimations of his returning mercy, we should be found an Insensible people, as not standing before Him with Thanksgiving, as well as lading him with our Complaints in the time of pressing Afflictions:The Council has thought meet to appoint and set apart the 29th day of this instant June, as a day of Solemn Thanksgiving and praise to God for such his Goodness and Favour, many Particulars of which mercy might be Instanced, but we doubt not those who are sensible of God’s Afflictions, have been as diligent to espy him returning to us; and that the Lord may behold us as a People offering Praise and thereby glorifying Him; the Council doth commend it to the Respective Ministers, Elders and people of this Jurisdiction; Solemnly and seriously to keep the same Beseeching that being persuaded by the mercies of God we may all, even this whole people offer up our bodies and souls as a living and acceptable Service unto God by Jesus Christ.”

 

Happy Thanksgiving.  Have a wonderful Holiday!  And thank you.

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, LLC

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Contractors: Beware of the Alternative Minimum Tax (AMT) on Long-Term Contracts

William Brighenti and Carole Romatis, Accountants CPA Hartford, LLCAre you aware of the alternative minimum tax on long-term contracts reported on the completed-tax method?  Beware:  it can be significant, even amounting to more than your tax liability resulting from the regular tax rules.

Read the article, Alternative Minimum Tax (AMT) on Long-Term Contracts, and determine how it affects your tax liability.

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Construction Accountants CPA Hartford, LLC

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You May Be Able to Change to the Cash Method of Accounting for the Reporting of Your Tax Returns

William Brighenti and Carole Romatis, Accountants CPA Hartford, LLCNow Revenue Procedures 2001-10 and 2008-28 allow many small businesses previously denied the use of the cash method of accounting on their tax returns to elect this basis as the overall method of reporting.  The change is automatic and requires the filing of Form 3115 along with the filing of one’s tax return in the year of change.

Read the article, Automatic Change to the Cash Method of Accounting from the Accrual Basis for Tax Return Reporting, to determine if you qualify and how to elect this significant tax change in your method of accounting.

Be sure to subscribe to our newsletter for assistance with taxes, QuickBooks, and accounting:  please follow this link, William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor.

Thank you,

Accountants CPA Hartford, LLC

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Do you know how to calculate your deductions for Section 179, bonus depreciation, and MACRS under the Small Business Jobs Act of 2010?

William Brighenti and Carole Romatis, Accountants CPA Hartford, LLCHow to Calculate Section 179 Deduction, 50% Bonus Depreciation, & MACRS Depreciation Under the Small Business Jobs Act of 2010, with Illustrated Examples Provided

by William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Do you know how to compute the total tax deduction for purchases of business assets qualifying for the Section 179 deduction, bonus depreciation, and MACRS depreciation?  For more information, please see the article, Section 179 Deduction, 50% Bonus Depreciation, & MACRS Depreciation Under the Small Business Jobs Act of 2010: How to Calculate Sec. 179 & 50% Bonus Depreciation with Illustrative Examples.

William Brighenti, Certified Public Accountant, Certified QuickBooks ProAdvisor

Accountants CPA Hartford, LLC

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