* In a “15-Minute Tax Tip” at MarketWatch.com Jennifer Openshaw gives a good example of the benefits of what I have been telling clients and readers for some time now.
Here is what Jennifer says in a nutshell - Deposit $4,000 in a ROTH IRA for a graduating high school student, age 18. Deposit $4,000 more when they graduate from college. At 6% the first $4,000 compounds for 47 years (to age 65), becoming $66,647. The second $4,000 compounds for 42 years, becoming $52,450. That's a total of $109,087 from only $8,000! And, if in a ROTH, it is completely tax-free.
* The CCH Tax Newsletter reported that the House of Representatives approved the Alternative Minimum Tax Relief Bill of 2008 (HR 6275) By a vote of 233 to 198 on June 25th. The bill would provide another one-year “patch” of the dreaded AMT.
According to “House Clears AMT Legislation with Revenue Offsets”, the cost of the patch is “offset by provisions that raise taxes on oil companies, hedge fund managers and others“.
As mentioned in an earlier post on this bill, “GOP lawmakers noted that the Senate, as well as the White House, reject the idea of raising taxes to offset the cost of AMT relief. They predicted that a tax-free AMT relief bill will be passed by Congress and signed into law by President Bush in 2008.”
The White House has threatened to veto the bill because it contains tax offsets to pay for it.
* Blog reader Judy Wemhoff, Communications Manager for the National Community Tax Coalition of the Center for Economic Progress, has asked me to tell you that the National Community Tax Coalition is partnering with Frontera Asset Building Network to hold a regional summit for people working in the area of tax preparation for low-income individuals and families in Scottsdale, Arizona on July 23-25. For more information click here.