Joomla! site syndication http://www.rapidtaxdirect.com 2008-08-28T08:10:49+01:00 http://www.rapidtaxdirect.com http://www.rapidtaxdirect.com/images/M_images/joomla_rss.png text/html 2004-06-12T11:54:06+01:00 http://www.rapidtaxdirect.com http://www.rapidtaxdirect.com/latest/welcome-to-joomla.html Rapid Tax Since its introduction to the western world, tea has grown in rapid tax and is now the second most popular beverage in the world after water. Throughout its history tea demand has grown as a result of its good taste, health and medicinal properties and increasingly efficient channels of production and distribution. Perhaps the most important benefit of tea for tea drinker is that aura of good feeling and stress reduction for those who regularly consume the beverage. Tea growing and distribution became big business throughout the world as enterprising individuals and companies invested in tea plantations and distribution assets to meet the growing demand for tea. As the business grew, national governments saw tea as a valuable source of revenue. Government regulation and taxation often had a detrimental effect on free commerce and customer satisfaction however. The growth in popularity of tea in a country like England, a country whose tea culture is well established, is a good case study on the social and fiscal influences on the consumption of tea. During the sixteenth century in England, tea became a popular beverage mainly for the upper classes. Based upon a unique taste and realization of tea health benefits, more efficient channels of distribution and a growing understanding of the life style benefits of tea, imports grew slowly at first. Nevertheless, this growth accelerated into the 18th century. During this time taxation, smuggling and adulteration of tea became significant factors in the English tea culture. Considering tea a tropical luxury, the English government saw revenue raising opportunities in tea to fund a military buildup that supported expansion of the British Empire. By the eighteenth century, tea was a hugely popular drink in Britain, but, to the ordinary consumer, it was also prohibitively expensive. Smuggling of tea became a growth industry in England as smugglers profited as they met the demand for lower cost tea by ignoring oppressive customs duties. This created a demand among the British population for cheaper tea, and when that demand could not be met by legal means, a great opportunity was presented to those people who were less than concerned about breaking the law. From the beginning of the eighteenth century, the trade in smuggled tea began to flourish. This was tea that was brought in illegally - it was not imported by the East India Company, and it did not pass through customs. Being light and easy to transport, tea was a very profitable smuggling commodity - even more so than alcohol in which there was also a healthy smuggling trade. The State Needs Money Like any state, 18th Century England was no exception to the need to raise revenue. Mercantilism was the English policy and a military presence was required to support the English role in overseas colonies and possessions. Expansion of world interests requires two things: a strong military and funds to support military activities. The state looked to import duties and excise taxes as a way to raise the necessary funds and these taxes soon became excessive. The Government had to legitimize the tax and did so by treating tea initially as a ?luxury? that could support high duties in the eyes of the public. Later, tea was correctly classified as a ?necessity? that would only support lower levels of taxation. Before the Tax Reform Act of 1784 for example, the price of tea was burdened with taxes and duties of over 100% of the pretax price. In addition, although the supply of tea continued to increase as tea plantations became more productive, the price remained high as the East India Company (granted a monopoly on tea imports by the English Government) artificially manipulated supplies to maintain prices. High Taxes and Manipulated Supply Lead to Smuggling as a Growth Industry A pattern developed in English commerce in tea. As taxes were raised on tea imports, smuggling increased in a successful attempt to meet the underlying growth in demand for tea. But smuggling and high taxes had a direct relationship and smuggling produced a negative effect on the English economy and population at large. Although taxation is important for raising revenue, most economists know that high taxation encouraged smuggling, and the quantity of tea being smuggled was directly linked to the level of duty levied on legal tea imports. In England, at the beginning of the eighteenth century, the government?s need to finance a war in Spain led to an increase in taxation on tea, and the price of leaves rose dramatically. The tax was outrageous and fueled the activities of the tea smugglers. Duty was later slashed by Henry Pelham in 1745. This meant that more tea was brought in legally - the quantity passing through customs more than doubled - and the increase of tea imports on which duty was paid actually led to the government?s revenues from tea being increased. But in the 1750s the need to finance another war led to the duty on tea being raised again. This in turn led to a surge in the business of the smugglers, which continued to flourish throughout the third quarter of the eighteenth century. Though illegal, the smugglers had the support of millions of people who could not otherwise afford to buy tea. Much tea was smuggled in from continental Europe, shipped into Britain via the Channel Islands and the Isle of Man. Although smuggling was widespread, in the first decades of the eighteenth century many of the smugglers themselves operated on a very small scale. Many smugglers used their own small boats and the contraband tea was then sold on to personal contacts and local shopkeepers. It was by now widely acknowledged that the only way to tackle the smuggling problem was to make tea cheaper - in effect, to reduce the duty paid on it. So the East India Company, who had powerful allies in the British Parliament, lobbied for the duty to be lowered. The power of the corporate world was thus added to popular demand for permanent change in the tea tax. It was when William Pitt the Younger became Prime Minister in 1783 that the work of the anti-tea duty forces finally achieved their goal. As a former Chancellor of the Exchequer, Pitt was familiar with tax policy and the impact of high taxes on tax revenue. He understood that raising the tax rate often resulted in decreased tax revenue. Pitt slashed the tax on tea, and made up for the revenue lost by hugely increasing the window tax. This was a property tax which was much easier to enforce. The Commutation Act of 1784 reduced the tax on tea from 119 per cent to 12.5 per cent. The smuggling of tea ceased to be profitable, and the smuggling trade vanished virtually overnight. More importantly tea was treated as a necessity rather than a luxury with long term implications for lower tea taxes. The consumption of lower taxed tea rocketed, so much so that even with the reduced rate of tax, the amount of revenue collected from tea was soon restored and eventually exceeded pre-reduction revenue. Equally important, tea became the standard beverage for most of the entire English population. Tea drinkers had the window tax to thank in part for the boost in popularity of their favorite beverage! Marcus Stout is President of the Golden Moon Tea Company. For more information about tea, green tea and wu long tea go to http://www.goldenmoontea.com (http://www.goldenmoontea.com/) text/html 2004-08-09T08:30:34+01:00 http://www.rapidtaxdirect.com http://www.rapidtaxdirect.com/newsflash/newsflash-1.html There are a wealth of tax deduction myths, rumors and plain old wives tales during every tax season. Many opt not to get professional tax preparation help and file their own taxes based on misinformation, only to regret it later when the IRS comes calling. It is sobering of find out they filed using mythical deductions and write offs. Here are 5 big ones to look out for: #1 - My Medical Expenses Are Tax Deductible. If they exceed 7.5% of your adjusted gross income (AGI)Medical expenses may be tax deductible. However there is a catch, which is that you can ONLY deduct the amount of out of pocket expenses that are greater than the 7.5% threshold. A lot of medical expenses will be necessary to make this work. Be advised: If medical expenses are reimbursable, they are not deductible even if you did not get reimbursed. #2 - I must use money from my home sale to buy another residence. In the old days that was partially true but in 1997, home-sale tax law changed. If the home you sold was your principal residence for at least 2 out of the last 5 years, then you can exclude from tax up to $250,000 in gain (and $500,000 on a joint tax return). Consult a tax professional. #3 - My mortgage interest will reduce my tax bill Usually this one is true but not in all cases. To claim a tax deduction for your home loan's interest, you must itemize and come up with a total that exceeds your standard amount. Those at the end of a mortgage loan term are paying more principal than interest thus don't get much, if any break in taxes because the interest paid is so little. #4 - I Have to File a Joint Return Now that I'm Married This is false. You always have the option of filing Married Filing Separately. Just be cognizant that this choice will normally result in you paying more in taxes. But this can be to you and your spouses advantage. An example, if one spouse has considerable medical or miscellaneous deductions, those items might never be used (with a combined income) as a deduction if they do not meet the 7.5% and 2% minimum requirements respectively. Review your individual cases and see if filing separately might allow you to then take advantage of those tax deductions. Ask a tax preparation professional. Incidentally, you can change your filing status annually. #5 - My Diet Program Is Tax Deductible If certain requirements are met a weight loss program may qualify as a tax deductible medical expense. 1) Your physician must have prescribed it! 2) It is intended to treat a particular disease. Obesity IS considered a disease, so it might count if you are legitimately obese. If you're not obese but need to lose weight to lower your blood pressure, that might make the program a tax deductible expense. Word of caution: the overall cost still has to meet the 7.5% requirement as indicated above. Seeking qualified tax preparation help is a wise decision when it involves filing your taxes and the eligible tax deductions you will qualify for. Tax return preparers, CPA's or Tax Attorneys are available online or off to advise you on tax deductions. Use their tax preparation help to seperate fact from fiction. Tax preparation can be confusing and stressful get more information and resources on Tax Write Offs as well as other resources related to tax preparation and tax resolution at Tax Preparation Help here: http://www.Tax.Totalinfoguide.com (http://www.tax.totalinfoguide.com/) text/html 2004-08-09T08:30:34+01:00 http://www.rapidtaxdirect.com http://www.rapidtaxdirect.com/newsflash/newsflash-2.html Tucson, Arizona (PRWeb) January 31, 2007 -- One of seniors' biggest concerns is outliving their assets. On the heels of The Great Generation are Baby Boomers within several years of retirement. Almost all know they must eventually convert their assets into an income stream, but 83% admit to not having a plan. That's where The Estate Preservation Advisor comes in. The new web site and free newsletter lays out planning techniques for increasing retirement income, reducing taxes and preserving assets. Created by Robert D. Cavanaugh, CLU, a 36 year financial and estate planning veteran, many of the topics emanate from case studies of real life clients. In working with professionals, business owners and seniors over the years, the most common denominator is the lack of even knowing that a planning problem exists, said Cavanaugh. Allowing readers to uncover problems is the first goal. Once a problem is identified, the next step is to outline various solutions. One of the unique features of the web site is communicating complicated tax and estate planning strategies using audio-visual media. This makes understanding these concepts much easier than simply reading about them. For an example, readers can get a free copy of the audio-visual presentation, How to Sell Your Life Insurance Policy for More Than the Cash Value and subscribe for free to The Estate Preservation Advisor Newsletter by visiting http://theestatepreservationadvisor.com/freevideo (http://theestatepreservationadvisor.com/freevideo). About The Estate Preservation Advisor Drawing on his 36 year career experience, Robert D. Cavanaugh, CLU created The Estate Preservation Advisor to fill a void in the understanding of planning strategies and to help seniors and soon-to-be-retiring boomers increase income, reduce taxes and preserve assets. Contact: Robert D. 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