tax. the state of california constitutionally prohibits us from taxing certain banks and insurers and other financial corporations. the city has chosen not to tax non-profits. we have also designed a number of exclusions to the payroll tax for clean tech businesses or biotechnology businesses, the mid market payroll tax exclusion from last year is an example of this that reduces the base. we have now an exclusion for the stock base compensation in pre i.p.o. companies and each of these policy measures has served to carve out more and more of the business community from the payroll tax but the biggest reason of 90% that don't pay is simply the sole proprietors and partners whose compensation soowners and woirks is not considered payroll. that's something we would look to address to the payroll tax. the two alternatives we think make progress to a different extent on all three of these issues -- on the jobs front, on the stability side and the equity side. let me talk first about the first alternative that i think we've been doing the bulk of our modeling and analysis on mainly because it's t

help us collect more of the taxes that are owed. but not paid. and let us continue our work to make the tax code more fair and simple. in order to do that, we must work together. i thank our witnesses today, inspector general miller, for while, mr. olson, mr. george, i think all of you for being here and i look forward to the testimony with great anticipation. we need to make certain that people are protected and that is our obligation to and responsibility to do it and i think they're working to the we can do a lot better than what we're doing. this is not a committee here to blame you and you blame us. this is a committee to come up with some solutions. thank you so much, mr. chairman. >> thank the gentleman and would echo your final comment there as well that we're about working with you and all to solve problems, not to play gotcha and all the more we appreciate our witnesses being here with us today. we will keep the record open for seven days for any additional statements or extraneous materials to are submitted for the record

use the data we have. and whether it deals with identity theft, deals with tax gap, i understand that it cost money but if we do it well and act on what you learn it will save money in the long run by helping us to close that tax gap in this case. so that's a concern that jumps out is we're relying on 6-year-old data and the need to make that more current so we can be more effective how we respond to what that data tells us. >> if i may jump in, i do think that the irs is doing what is a rolling research study, so they are going to do three years rolled up at a time, so you would be able, even though you may be a bit behind, when 2006 is done you would do 2007, 2008, 2009 rolled together and then you move one year on as you go along. to the point about how long it really does take, if you have even 2006, some people are filing in october 15th and you may want those people in your random sample because they may be some complex returns so you're waiting for those to go through the processing. then taxpayers have rights so even the 14,000 audits that we have, they may want to go to appeals before they go to t

it would not forestall a massive tax increase on our economy. the bill before uswould do one thing and one thing only, and that is target higher taxes on a small subset of our population in order to serve a political purpose. it is time to end the class warfare of pitting one group of americans against another and instead move forward with ensuring that tax relief is there for all americans. i hope that once the cloture motion fails later today, we can pivot to what most american people want to us do, to enact measures that grow the pie, to expand our shared prosperity rather than the politics of envy and wealth redistribution. the opportunity cost of all these tax the rich proposals offered by our democrat colleagues, whether the millionaire surtax or the buffett tax is they distract us from what should be our focus and that is fundamental tax reform. the former director of the c.b.o., doug holtz-eakin released a study in which he estimated the comprehensive tax reform could raise g.d.p. by .3% tanl anlly. this faster rarity of g.d.p. growth would result in incre

because this is a revenue-neutral proposal, that increase in taxes paid by those industries would be used to reduce the tax rate paid by other industries and as i said, that's one of the reasons why we believe this proposal is a job creator. another aspect that's important part of business tax reform is base broadening. as i said, about 7500 companies paid the tax in 2010. we think that under this gross receipts proposal, about 33,000 businesses in the city would pay tax in some form. i would point out, though, that of those, about 25,000 would pay only in tier one. so it is -- it would be an example of tax reform that would bring more businesses into the tax system but it would also recognize that small businesses generally can't afford to pay the same rates as larger businesses and the vast majority of small businesses would be paying at a significantly lower rate than large businesses. that still leaves about 62,000 businesses not officially paying the tax. the only reason they wouldn't be paying the tax under this proposal is because they have less than $100,000 in gross receipts. it

deficit budget and tax us is the not only ones, and warren buffet is now focusing on healthcare after being diagnosed with early stage prostate cancer. he told share holders about his medical condition adding it is not a life-threatening. he says he feels great and plans on continuing his practice while under medical treatment. >>> and a report on that infamous pepper spraying report. she said she takes full responsible. she is vowing to make sure such an incident never happens again. they blamed a communication breakdown between administrators and other areas that received worldwide attention. >>> time now 47, they are relieved a group of requested aers were are living there for about a year now. they are trying to get the squatters removed and we got a look inside the home at the necessary the squatters left behind. >> these -- at the mess, the squatters left behind. >> they are pigs, they steel utilities, they steel from around the neighborhood... >> we are told five people lived in that home including some children. way point homes says the junk will be cleared out today. >> one s

tax rate from 35% to 25%. we have challenged them to show us how you do that without actually increasing the tax burden on middle income americans. you -- every analysis i've seen, you cannot do that in a revenue-neutral manner without raising the tax burden on middle income taxpayers. because when you drop the top rate from 35% to 25%, according to the tax policy center and the joint tax committee analysis, as i've seen attract this, that's $4.6 trillion in lost revenue. now, if you say you're going to make up $4.6 trillion in lost revenue, through getting rid of tax out the whole mortgage deduction, and you still don't get close to $4.6 million. you can take on top of that and get rid of all of the health -- the health -- employer health exclusion. you don't get -- you add that. you still don't get close. so our view is that in saying that they're going to drop that top tax rate to 25%, they are essentially prescribing an increase in the tax burden for middle income americans. now maybe you can get the taxerate down a little bit. now, again, it depends on what your baseline is, not to get too much in the weeds

trouble at his confirmation hearing a few years back for failing to pay some of its taxes and this came out. good i used. to hear my returns. as your laughter but it was the turbo tax defense a diner god is buying from the i.r.s. waived so with three quarters of individual u.s. tax returns expected to be filed electronically this year should average americans have protection from some kind of turbo tax defense due we'll talk about it let's get to today's capital account. all right it's monday and over the weekend what do we hear well one day nobel prize winning economist joseph stiglitz gave us a warning about global trade surpluses and deficits and now take a listen. it is simply impossible for all countries to have a surplus so you know that's a written letter so he argues the whole powerhouse x. order and massive trade deficit dynamic isn't going to go on working forever and as countries with the major trade deficit realize that's unsustainable and seek to become trade surplus countries if that's not going to happen you just heard it because the map does not work out so enter a competitive currency d

tax us, preexisting condition ban. as long as we e get this law, really, we can cut any deal you want. once they take out the requirement, the 30 million people buy their products, then the deal doesn't look so good. so the government's problem was they couldn't really distinguish why these two provisions went down were in a way material from these other provisions that added to the insurance company's cost. in the other point we kept stressing was look. you rip the heart of the act. the whole point was to, it's called the patient protection and affordable care act. the affordable care, the individual mandate that makes these regulations affordable. if you've done that, then the task on tanning salons and toilet paper may be able to work, but can't in the way congress intended. and i was gratified at the argument that the justices were saying look, sometimes, we'll ask the counterfactual hypothetical if what would congress have done if they had known this part of the law was not in play? but this counterfactual hypothe

that is what we use tax increment for.this oversight board, there were four appointees and three seats. the primary purpose of this board is a fiduciary, a fiscal responsibility to make sure all the former obligations and assets are honored and paid off. two, the sports-the board also confirmed -- there are three major projects. which through an integrated set of master agreements can continue to draw on tax increment hidden we have a contract with private developers that provide for ongoing review contract authority, land use decisions pursuant to its implementation role. the board would have that ongoing land use addition to its fiduciary responsibility. these are enforceable obligations as the state has required and the work is organized in three departments. the non-housing assets and their management are within the city administrator's office. the former redevelopment agency is in the city administrator's office. the housing assets and the port under the non-housing assets. this is adjacent to at&t park and other leas

a group of wealthy professionals called tax us will rally today at san francisco's city hall. they're calling on congress to support president obama's buffett rule which would raise taxes for the wealthiest americans. occupy oakland will also take action today by rallying in solidarity with postal workers facing layoff. >> and you know no doubt the post offices are going to be packed with people. >> slammed. >> protaxinators. >> forget about it. just do it online. it's really, really easy. good morning to you. here, we're in the silicon valley, we should know about that. 54 degrees in oakland, 50 in livermore, 52 in san jose. throughout the morning hours, we are going to see some of that fog out there, especially right by the coast. half moon bay, pacifica, the usual suspects, yeah, expect that patchy fog. and we could see drizzle throughout the morning hours. a few more clouds today even than we saw yesterday afternoon. you saw the clouds increase, same deal today. but hey, we're still talking about the 70s and the 80s are in that forecast. get to that seven-day in a moment. 6

and in exchange you can basically do whatever else you want to us, tax us, preexisting condition ban, that's fine. as long as we get this law it's illegal not to buy my product, we can kind of cut any deal you want. once they take out the requirement that 30 million people buy their products, then the deal doesn't look so good. so the government's problem was they couldn't really distinguish why these two provisions that they agreed went down were in any material way different from all these other provisions that added to the insurance company's cost. and the other point we kept stressing was, look, you've ripped the heart out of the act. the whole point of this act, as i say the -- it's called the patient protection and affordable care act, the patient protection part is the preexisting ban and the affordable part is the individual mandate that makes all of these regulations affordable. if you've done that, the tax on tanning salons and toilet papers and stuff may be able to work but it sure can't work in the way congress intended. i was gratified at the argument that the justices we

talking about into it there are a software developer they create all these you know tax repairing software is that you use on turbo tax and all these other websites so turns out that they spent nine million dollars lobbying since two thousand and eight against programs that could simplify your taxes because that's also one of the things that the president promised when he was still campaigning is that i'm going to make if the you can do your taxes in five minutes i think california tried a program even federally they want to try a program where you just receive this return it's already a calculated for you and you basically sign it and send it away but into it is working against that they're lobbying against it here's an internal investor report that says our consumer tax business faces significant competition from the public sector where we face the risk of federal and state tax now authorities developing software or other systems to facilitate tax return preparation and electronic electronic filing at no charge to taxpayers i mean can you imagine the horror i mean would you say crazy like a story to me

, employment taxes and we have a mandatory 94% requirement for irs. using electronic collection. can you expound the way i understood is your suggestion and recommendation is if we applied that same approach to estimated tax payments, it would not just help the taxpayer be more compliant but ultimately generate more collection if we took that approach? >> with estimated, we were very successful once the irs was given sort of a little nudge to say achieve this goal in employment taxes and getting electronic payments which saves the whole government money obviously because you're not processing checks but it you makes it easier for the taxpayer after they get used to it that we should apply that to estimated taxes. i think that in some areas it's very hard for taxpayers to save up money to pay estimated taxes quarterly. if we can pay it monthly like they pay other bills and they pay lots of bills through their banks, bank accounts just setting up payments. we don't have a good interface. sophie think that if we could get some kind of a nudge from congress tha

tax day is upon us.let's hend the loopholes --, end the loopholes, allow some of the wealthiest to pay less than hard-working americans. so, mr. president, it's simply a matter of fairness. but, again, let's vote yes or no. if you want to vote to protect the millionaires, fine, vote no. if you want to say having it fair, vet yes, but vote. having a filibuster means you vote maybe. none of us got elected or paid to vote maybe. and i ask, mr. president, my statements on vawa and on the buffett rule appear in the record as if in morning business. the presiding officer: without objection. mr. leahy: mr. president, i see the distinguished senior senator from west virginia on the floor and i see his distinguished colleague and i believe we're still in the time reserved -- no. okay. mr. president, i'm sorry. i see the senator from pennsylvania. before i yield the floor, i would ask if there are quorum calls during this hour the time be divided equally. the presiding officer: without objection. mr. leahy: 34r-79

by using tax chat hash tag. >> thanks for joining us everyone.we'll see you back here tonight. captioned by closed captioning services, inc. this is "jeopardy!" introducing today's contestants-- a writer from santa monica, california... an assistant professor of biology from washington, d.c... and our returning champion-- a copy editor from elgin, illinois... whose 1-day cash winnings total...

contribute they want less who that's also good no it's not they point to a problem and say if you only taxed us more then we would be rid of whatever this are you know i can't i can't wouldn't they claim tribute could pay contribute more voluntarily the i.r.s. hold the gun that's a strong as a total straw man argument it's what we're talking about here is you know mitt romney's got you know money stashed in the caymans he's got money stashed in swiss bank accounts he made you know something over twenty million dollars and he paid thirteen point nine percent taxes on that and yet a teacher in wisconsin pays more taxes more a higher rate of income tax and mitt romney made on twenty three million dollars well that's the flaw of the tax system so it's only so but until that point. people that are calling for this should be studied example everyone knows that this tax system is not incriminating voluntarily is not setting an example changing a lot is setting an example. you're going to get a class a point think about this for a second thirty years ago we saw that clip of reagan he's calling for that

taxes. they will take us more in that direction. we do not want to increase the burden on everything we do. we do not want to impose a tax only when a profit is our. host: jim on twitter -- guest: there is a host of reform proposals are far more radical than mine that are pro-growth. a flat tax would be one way. if the rate become very low under a broad based single rate tax, it changes the distribution of the tax burden significantly. in other words, it would move us from a highly progressive tax code to one that is far less progressive. i think what we have seen from bill after bill over the last decade is democrats and republicans want a tax code that is in some way progressive. we can argue how progressive age should be. my issue with a flat tax is it does not seem to be politically viable. host: chris from north carolina. i am going to put you on hold because you have to turn down that television. good morning, carl. carl, are you with us? question or comment for alex brill. everybody has to turn down their televisions. it repub

all during this show we are answering your last minute tax questions. here with usll hour personal finance expert vera give -- gibbons. you have last minute tax tips. >> obviously run time for taxpayers. all of the credits and deductions we tend to miss a lot of these available. the american opportunity credit, numerous other ones. want a to make a last minute contribution to your ira 6,000 if you are age 60 or older you have until the end of the day today. go on-line at e-file it's easy convenie convenient. 1 percent verses 20 percent for paper insurance. you will be done with it. if you absolutely cannot get your paperwork together you have the option of filing for an extension with form 48-68. you have 6 months to get it together. this is an extension to file. you have to pay the government your best estimate of what you owe by the end of the day today patty ann. >> you are not post poening payment because you postpone filing. >> exactly right. >> vera is here the entire show answering your last minute tax questions. send us those questions to friendsfirst@foxnew

i said, i am all for fear taxes. let us look at -- fair taxes. let us look to the most fair person.aid, i want a tie. he did not say if you have come and give me trouble. he did not say if your crops fail, you do not know me anything. there is something fair about proportionality. $10 billion, pay $1 million. $1 -- $10, pay $1. people say it does not hurt the guy who paid $1 billion. that is the kind of thinking that has resulted in 602 banks in the cayman islands. we need to be fair to everybody and everything will work. >> everybody needs to be fair. thank you for coming in. we want to remind everybody, www.carsonscholars.com and " america the beautiful." if you have a question, you can send it in to sundayquestions @wbaltv.com. here is nbc with what is coming up on "meet the press." >> good morning. coming up, the fight for women voters take center stage after a democratic strategist took on a ann romney. any debate over working mothers. we talk about the broader issues surrounding the gender gap and the economy with kirsten gillibrand and michele bachmann. i go one-on-one with t

to get the economy growing and almost 13 million unemployed people back to work, but as tax filing day reminds us, only comprehensive tax reforms demands we meet these and regardless how they're structured. as such we must consider this transforms today's broken code from one that impedes to one that improves prospects for job creation. last year the irs processed 142 million tax returns. also received 10.5 million extension forms at least in part due to the complex costly and time consuming nature of the tax code. with nearly 4,500 changes in the last decade, 579 of them in 2010 alone, the code is far too complex. and this complexity has led to of-increasing costs of complying with the federal tax code. according to the national taxpayer advocate in 2008, taxpayers spent $163 billion complying with the individual and corporate income tax rules. american families are not only spending more money complying with the tax code, they're also spending more time. navigating through the tangled web of tax rules resultsed in taxpayers spending over 6 billion hours annually to comply with the code. whether

taxes. i do not think any of us are completely opposed to taxes. our concern is the tax code was written in 1961, long before the sharing economy existed, the internet, and the new thing we call airbnb. something that was written for corporate hotels and guests should not be applied to something that is entirely new, to permanent residents of san francisco who are occasionally renting out a couch or bedroom to a visitor, with whom the form great lasting friendships quite often. we announced that the entire city family take time to think about whether the existing laws should apply to the new activity or whether we should create new policies and regulations that apply more appropriately to the activity. we look forward to tackling that with the working group going forward. >> how was the turnout? >> it was a pretty huge turnout. we had about 40 hosts from san francisco, probably more than that. many of them testified. it was an incredibly moving experience. i do not think i have seen a city hearing the was that emotional. people are using this incom

what i'm trying to say is clear out the tax shelters which are uniquely and disproportionately used by higher income tax payers so more income is subject to taxation so we can lower rates for economic growth and job creation. i don't see the tax code as a tool that ought to be used of social engineering and picking winners and losers in washington based on what special interest has the most clout. i see the tax code as being a system that should be progressive. we have a two-tier system, we're talking about 10 and 25%, but maximizing economic growth. getting businesses primed to hire people. the best welfare program is a job at the end of the day. now, with respect to welfare, tan i have grows continually under this budget, but tanf used to be called afdc, cash welfare reformed in 1996. the kinds recriticisms you heard then are precisely what we're hearing now. and we believe the welfare reform in 1996 was successful. it helped reduce poverty and help people get back oppose the lives of self-sufficiency. our approach to these issues is get back to a life of upper mobility and opportuni

these taxes upon the consumer are levied upon articles of universal use. they bear most heavily upon the poor and those of moderate means. other countries tax income and inheritance at a progressive rate. the burdens of our people should be equalized. wealth should bear its share." amazingly enough, the republican party of 1912 adopted some elements of that proposal. over the ensuing 100 years, the party seems to have wrestled with the issue a bit and may not have come down in the same place. but i cite the lafolette proposal of 100 years ago to remind people that this is not a new conversation. we are not arriving at this point without a lot of background, a lot of history, and frankly, a lot of frustration. getting fair taxation, getting an idea of an he can quit tabble tax policy is drk equitable tax policy is one of the great challenges of our time. we seem for a variety of reasons to be edging toward a point where that might happen. i give compliments to paul ryan, the house budget committee chair, because he's forced some of these issues and gone to w

job creation is. >> so you'd have no tax for small business. >> yeah, and a flat tax otherwise. >> do you mind giving us also a state tax blitz solution? >> that's what i'm proposing. >> so you're saying not federal level but state level. >> i'd say both. this is what we're doing in our state, flat tax, step one. small business accelerator inside it, take the tax completely off of sub ss and llcs because that's your main growth fledged and then i want to use in our state the growth to ride the income tax right down top zero. so you create a real growth atmosphere in our state and that's the plan we've put forward. war getting into the end of the legislative session. testimony we've gotten a variant of it through both houses and we've got to the see it on through to the end. but on the economic modeling of it for our state, it looks really nice on growth, particularly the growth piece is taking that tax off of small business and really targeting that piece of the growth instrument. >> eddie, i introduced you and neglected to say you're the former chairman of the council of economic advisers. so eddie? >>

tax returns for money. the chairman was gracious enough to indulge me. i'm wondering if you can tell us what the status is of the initiative of the irs to try to help do the bird dogging and oversight of tax preparers and maybe respond to the question of who is being contacted out in the tax prayer world by the irs to follow up. he said he had to go through some courses or programs to test his qualifications and so forth. so if you can give us a quick sense of where things stand. >> sure. similar to what i talked about with the realtime system, it's a big initiative. we had multiple public hearings around the country. vetted it with the report, put out regulations with lots of public comment. we've had a lot of engagement with the prayer community. this is about partnering with the preparer community to make sure they're prepared well. status is we've had 840,000 people apply and receive pee tanks prayer taxpayer identification number. about 60% of those were not already an enrolled agent, a cpa or a lawyer. now, enrolled agents, your prayer and cpas and lawyers who already had higher l

us out of existences and it is a great industry. it is a home grown industry. it is with people that go to work every day and pay their taxesod on the table. amazing people but state governments are trying to ban us out of existences, tax us out of existences. >> sean: have you have to spend all the money to protect the jobs that you have just to stay in business. >> absolutely. and what we he have done is we have spent so much money we could have built more recycling plants which we take garbage and turn it back into plastics and turn it back in products. instead we are spending our time fighting against legislation that is going to take american jobs out of this country. >> sean: i want everyone to tell me where should i invest? any ideas. >> my company. >> housing! >> your company. brownies. >> under your mattress. >> under my mattress? you know where i live, that is why you say that. >> this is the time continue to vest in america. it is like the early '80s. brim time. reform is coming. this country is going to take off. >> sean: america's better days are ahead. >> you bet. >> sean: shining city on the hall. >> if we do

it would not forestall a massive tax increase on our economy. the bill before uswould do one thing and one thing only, and that is target higher taxes on a small subset of our population in order to serve a political purpose. it is time to end the class warfare of pitting one group of americans against another and instead move forward with ensuring that tax relief is there for all americans. i hope that once the cloture motion fails later today, we can pivot to what most american people want to us do, to enact measures that grow the pie, to expand our shared prosperity rather than the politics of envy and wealth redistribution. the opportunity cost of all these tax the rich proposals offered by our democrat colleagues, whether the millionaire surtax or the buffett tax is they distract us from what should be our focus and that is fundamental tax reform. the former director of the c.b.o., doug holtz-eakin released a study in which he estimated the comprehensive tax reform could raise g.d.p. by .3% tanl anlly. this faster rarity of g.d.p. growth would result in incre