Capital Corner: Inside the Numbers
Jim Brandenburg, CPA, MST, Shareholder - Tax email | bio
July 2011
Every year at this time we pause to reflect on our independence and the founding of our country. Many numbers come to mind in our reflections, including a holiday with a number in it (the 4th), and these numbers seem ever-ingrained in us. We think of 1776, the 13 colonies, the 56 signers of the Declaration of Independence and the first 10 amendments to our Constitution, also known as the Bill of Rights.
As discussions heat up in Washington to deal with the upcoming need to raise the federal debt ceiling, many numbers are being tossed around. So let’s look inside the following numbers.
$14,449,638,000,000. That’s nearly $14.5 trillion - yes trillion with a “t.” This represents the current U.S. national debt as of June 24 and this number is increasing by approximately $1 million per minute. Please click here to view the U.S. national debt clock and other financial figures. It offers a virtual dashboard of figures; the magnitude of these amounts can be mind-boggling.
$750 million. This amount represents the unpaid taxes owed by 3,700 taxpayers who received federal stimulus funds since 2009. This is detailed in a recently released Government Accounting Office (GAO) report on stimulus recipients who owe back taxes.
3.0 percent. The Statistics of Income (SOI) Bulletin is issued quarterly by the Statistics of Income Division of the Internal Revenue Service. According to the publication, taxpayers filed more than 4.3 million returns with Adjusted Gross Income (AGI) of $200,000 or more for tax year 2008. These 4.3 million tax returns represent 3 percent of all individual returns filed for 2008. The report provides the earliest published annual financial statistics obtained from the various types of tax and information returns filed, as well as other financial information. Many other numbers, charts, and historical tables are available on the IRS website.
100 percent. The flurry of tax legislation enacted at the end of 2010 was a lot for taxpayers to digest. Included in that legislation was an expansion of the bonus depreciation provision to 100 percent for certain qualifying fixed asset additions. This favorable provision is available through December 31, 2011, but it is then scheduled to be scaled back in 2012.
0 percent. Another change made late in 2010 and extended through the entire 2011 tax year is the elimination of capital gains tax on certain qualified small business stock investments made through December 31, 2011, if the stock is held for at least five years. This 0 percent tax rate applies for both the regular tax and the alternative minimum tax (AMT).
Now a few local numbers for Wisconsin…
7.5 percent. A new Wisconsin 7.5 percent tax credit is available for taxpayers on their Wisconsin-based manufacturing income. The credit is part of the new state budget bill, and it is designed to help Wisconsin-based manufacturers and draw others to the state.
93/13/4. Yes, these numbers correlate with the number of jewels in the recently unveiled Green Bay Packer Super Bowl rings. 92 is for the number of seasons of Packer football, 13 is for the number of Green Bay World Championships and 4 is for the Super Bowl victories and Lombardi Trophies. Congratulations again to the Packers! As for this upcoming season, what are the chances of a delay in the season: 50/50? 60/40? Sorry, more numbers. Stay tuned, and hope you enjoyed your 4th!