In an Arcane Tax System, Any Tax Benefit is Welcome

by CCB Today | Thursday, Jan 28, 2016 | 219 views

TaxAmericans have always been voicing their concerns and protests against the current tax system. Their rudimentary knowledge of taxes isn’t entirely cohesive, but they are only right to urge the government for less. Considering that the middle class suffers by paying the “most” taxes, that means that the driving force of America’s economy has less money.

About the rich paying less, it’s technically true. Those who earn more $200,000 and more pays considerably less. With simple math, anyone can determine that a person with a 200k income still pay the same amount of taxes. The difference of “same” is what people don’t get, which is what confuses them. On the other hand, they have the resources to use offshore accounts and pay less. It’s not illegal, but it’s massively frowned upon in the country.

As for businesses, it’s no picnic for them either. They pay a 39.1% corporate tax rate, but the biggest companies in America seem to dodge that rate. The new movement fights for the 12.5% corporate and a flat tax rates of 20% for individuals. But, it’ll be some time before such a proposal becomes actual law.

Giving Them a Break

So, where does this leave average Americans? They still pay inordinate amount of taxes based on what they earn, but there are a few things that relieve them of their national responsibility. From Los Angeles to Charlotte, donating a car is one of the best ways anyone can get tax benefit. No matter what the car’s value is, any deduction of tax is a welcome sight.

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The rules are quite simple to anyone who have 10 minutes to spare. The tax benefit will depend on the car’s fair market value and the individual’s tax bracket. While it’s not a dollar-for-dollar deduction, it’s still helpful. If the car is auctioned after sale, however, that will determine its value. There are certain state-specific rules that would be too broad to discuss.

Nevertheless, this is an opportunity to those who have a spare car to donate. Working or not, it will still be viable for donation. In addition, as a donation, anyone who donates their car will be doing more good than they expect.

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