The Newt Gingrich Tax Plan

Newt Gingrich, like Rick Perry, believes in an optional flat tax plan. However, Gingrich wants to make the corporate tax only 12.5%, compared to Perry’s 20%. Currently, the corporate tax is 35%. Gingrich would like a 15% flat tax on individual taxpayers, as opposed to Perry’s 20%. 15% is the average tax rate for individual taxpayers already. The wealthiest citizens are paying 35%. It is almost as if Rick Perry and Newt Gingrich are contestants on “The Price is Right,” and Gingrich is trying to outbid Perry.

As I discussed in my blog on Rick Perry’s tax plan, huge tax cuts like this will result in adding trillions to the deficit. America’s current deficit is intimidating enough. I could go over the arguments that supporters are probably making that this will create jobs. However, I have a feeling that all of these tax plans are making that very point. Right now, our government is fighting over whether the currently lowered payroll tax cuts should be extended. Those advocating all these tax plans that dramatically lower taxes for the wealthy and businesses are also contending that payroll tax cuts are not creating jobs. They are the exact people that are concerned that cutting payroll taxes hurts Social Security benefits. So, how exactly will this country afford to pay for the dramatic tax cuts that Gingrich wants?

How about this, Congress? Instead of trying to distract us with risky tax cut proposals, you work with taxpayers! Treat them like citizens instead of criminals. Help them file their taxes correctly. Make it easier to get into tax resolutions, and scale back the aggressive collection actions. 

Furthermore, I’m not sure I would take any tax plan seriously from a man who has his own shady history with tax fraud. Gingrich has a way of making big promises, and then running off when things get tough. Just ask his last wife.

Christie Brinkley's $531,000 Tax Lien

I was going to write about Newt Gingrich’s tax plan, but I think we can all agree that Christie Brinkley’s face is one anyone would rather look at. Also, I really don’t think Newt is going anywhere any time soon. Brinkley’s tax lien should be disappearing quite soon, however.

The 57-year-old supermodel and star of Broadway’s “Chicago” recently discovered that she had a $531,000 tax lien placed on her Long Island mansion. Apparently, the tax lien was the result of an error. That’s right folks! Sometimes, the IRS places a lien accidentally. Thankfully, she looked into it and, as of yesterday, she paid the full amount of the tax liability. Since she handled it the correct way, the tax lien should be released soon.

However, her story should make it quite clear that you really can have a whopping tax debt and not know about it. Christie Brinkley stated that she wished she had paid more attention to her accounting matters before, but she has been dealing with the serious health issues her parents are facing. Life can be distracting, but it is a good idea to check up on your situation with the IRS occasionally. Don’t let a tax lien surprise you! Brinkley was lucky in that the tax lien was placed on her in error and she had the money to pay it in full. Not many people have that going for them. Once a tax lien is in place, it is nearly impossible to get rid of it. Prevention is key!

Don't Surrender to a Bank Levy!

I discussed wage garnishments last week. This week I'll discuss another IRS tactics, the bank levy. I can never decide which is worse between the two. A wage garnishment bleeds you dry every paycheck. But, a bank levy can leave you suddenly penniless.


What should you expect from a bank levy?
When a bank levy takes everything out of your account, there is very little you can do to get any of that money back again. Because of this, people often throw up their hands and submit to their dismal fate. I said it last week and I’ll say it again. Do not give up! Get the facts and work toward a resolution, because giving up only makes things worse.

Once the IRS has cleared out your checking account, you may be asking “What else can they do to me?” Well, they can continue to levy you. They can come back to that account after the 21 day freeze is over and take more money. A bank levy can also come after a number of accounts that have your name attached to it. This includes, but isn’t limited to:

- Joint Bank Accounts
- Credit Union Accounts
- Certificate of Deposits
- Savings and Loans
- Retirement Accounts

It's up to you...
Unless you are willing to completely jeopardize your financial future or possibly a joint account holder’s funds, a bank levy should prompt you to take immediate action! As I mentioned last week, there are temporary solutions to IRS collection activities. Proving hardship or appealing may even get you some of the money that has been frozen by a bank levy. However, the only way to prevent the IRS from coming after every account it can find is to get into the best tax resolution for your situation.

To stop a bank levy and make sure you get the greatest results possible, hire a tax debt professional with years of experience solving problems just like yours. My Hit Squad Team has dealt with thousands of different circumstances. Don’t give up! Don’t let the IRS win! Get armed with the best tax defense out there!