Latest Tax Law Has Ramifications for Tax Resisters
Congress just passed another bill, which the President is expected to sign
into law. It has a number of tax provisions, some of which may affect those
of us who are using The
DON Method of
Most exciting to me is that the bill permits sole proprietors to deduct their
health insurance premiums as a business expense. Formerly such folks could
take a deduction, but only after calculating business profits. The
significance of this is that now the deduction reduces our
profitability/income and therefore both our income tax and our
SECA (social security & medicare) tax.
The old way, it could reduce our income tax but we still were charged
SECA on the income.
This makes sole proprietors more like employees whose employers provide health
benefits. Those benefits don’t typically count as income and so neither the
employer nor the employee gets charged taxes on them.
Unfortunately, Congress being Congress, it was only willing to enact this new
provision temporarily. It officially applies only to the
tax year. But now that the precedent has
been established, it will probably get rolled into one of the yearly extenders
Other provisions of the new bill:
Raises the §179 depreciation limit from $250,000 to $500,000 and extends
the 50% bonus depreciation option for another year.
Allows new businesses to deduct $10,000 in start-up costs (that otherwise
would have to be depreciated); the limit had been $5,000.
Expands the favored tax treatment of C corporation capital gains.
Allows some small business taxpayers to shift certain tax credits back
into the five previous years and to use them even if the Alternative
Minimum Tax would otherwise apply.
Expands the new “if you pay $600 or more to anyone you have to file a
1099-MISC with the government about it” policy
so that it applies to landlords.
The Women’s Tax Resistance League has decided to hold a protest meeting in
Hyde-park at , to express indignation at the imprisonment of Mrs. Kate
Harvey, who has for conscientious reasons refused to subscribe to the tyranny
of unrepresentative government. The speakers will be Mrs. [Margaret] Kineton
Parkes, Mr. H.W. Nevinson, and others.
we are holding an Indignation
meeting at Caxton Hall, the indignation expressed to be generally against the
Government, non-representation, mis-representation and imprisonment of
voteless women, and particularly against the sentence of two months’
imprisonment in the second division, which Mrs. Harvey is now serving in
Holloway because of her refusal to comply with the regulations of the
Insurance Act passed over the heads of women without consulting women. The
speakers will be Mrs. [Charlotte] Despard, Mrs. Kineton Parkes (of the
Women’s Tax Resistance League), Mrs. Mustard, and Mr. John Scurr. The chair
will be taken by Miss Nina Boyle at . Admission is free, and there will be no reserved seats. This
is the first of a series of political meetings to be held by the Women’s
Freedom League during the Parliamentary recess.…
At a public meeting held in Market-place, Bromley, Kent, on
, the following resolution was put
and carried with one dissentient:— “This meeting expresses deep indignation
at the imprisonment of Mrs. Harvey for non-payment of Imperial taxes, demands
her immediate release, and further demands that the Government act in
accordance with its own principles, and introduce a measure for Votes for
Women without delay.”
Mrs. Kineton Parkes, Secretary of the Women’s Tax Resistance League, reminds
us that Miss [Ethel] Sargant, the first woman to be appointed president of a
section of the British Association, is a keen Suffragist, and has worked for
the National Union for many years, being president of their Tunbridge Wells
Branch. She is also a tax-resister, and had goods seized and sold by public
auction in Cambridge this spring, and is sister to Mrs. [Mary] Sargant
Florence, the well-known decorative artist, one of the founders of the
Women’s Tax Resistance League.
A splendid open-air meeting, to protest against Mrs. Harvey’s imprisonment,
was held on at the Mound. We were
fortunate in having in the chair
Dr. Grace Cadell, who is
herself at this moment a “concrete example” of the form of militancy for
which Mrs. Harvey is suffering.
Dr. Cadell’s inability to
“appear personally” in court, as she is not a person, has been greatly
appreciated locally, but fortunately it does not extend to Suffrage