neil: and that removes a lofts the game eggs and budgetary gains and tax credits and write offs, and it would not be as low as it appears. guest: an economist a while ago came out with an estimate that said the republican budget would for 2012 would cost 1.7 million jobs in adecision to ending medicare so . neil: why do you decimating and ending medicare? if you provide people with an alternative to asystem that bleeds money and gives them an obligation to choose, and they can stay in medicare why is it the knee-jerk reaction. guest: it is the fact that it would be a transfer of insurance guarantee for medicare. neil: do you know what he is proposing?
jobs. and the economy, too, by the way. all of these things we can talk about. so since we re talking about chapter two right now, what do you think has the inside track at the moment in terms of all those plans that are out there? well, you would assume the white house would lean heavily on its own debt commission. a guy like dick durbin, a progressive democrat from illinois, and a guy like tom coburn, both endorsed it. if you already have the makings of a bipartisan deal and this dealt with tax reform, had a few simplifying the tabs code but also getting rid of some loopholes and some write-offs that some groups would say that s a tax hike, but that was in there, raising the retirement age on social security was in there, deep cuts in the pentagon over long periods of time was in there. and it got rid of $4 trillion over a ten-year period. so that you would assume would be the makings of the, quote, compromise since it already has bipartisan support. wow.
order so they make sure they take advantage and file their extension. something i know you know a lot about is it s been a tough economy and a rough couple of years for lots of folks and many people unemployed. they started up their own business in order to get income from somewhere. what about those folks? starting a business is a great idea. you can protect your assets and save on taxes. buying a company or incorporating an llc. you can save on taxes and decrease the rate of your tax rate. and the risk of audit. so your risk of audit goes down from about 2.7 on average to 0.3% when you re in an incorporated business. if you form a llc or incorporate? an s corporation is common type of entity when most people start a new business. that s got a low risk of audit so it s a phenomenal way to keep yourself from getting audited. that s kind of an added bonus to do that. exactly. can you get more write-offs if you re incorporated?
why not raise taxes on higher income people? why talk about closing loopholes on corporations? i think history has i do believe loopholes should be closed. there has been a big story in the past several days about ge paying no taxes. let s close the loopholes. what happened is those are legal loopholes that the ge, which is part owner of nbc universal, took advantage of the loopholes in the tax law because of write-offs for losses that they incurred. they do need to be closed. but, their ceo is sitting, you know, he works with the obama administration. they did it legally. let s close those loopholes. why don t we lower the corporate tax structure? why not raise rates on individuals. history has proven when we cut taxes and the money goes back to the american people, they reinvest it in their businesses, they create jobs, and the economy rebounds. that s what happened with president reagan. but there are so many things that we can cut
laws mean for us, bottom line. well, the tax changes are all favorable. there were no revenue offsets so every tax change is favorable. they are going to impact 2010 taxes as well as taxes next year and the year after. so what does that mean? if you re getting ready as i am to start thinking about getting all those receipts and making an appointment with my accountant, what do i need to know about filing this year? well, for some taxpayers you re going to have to wait a while too file. the irs says mid to late february, if you claim certain write-offs there were extended under the new tax law. so if you claim the above the line deduction for tuition and fees, the $250 educator expense write-off, if you opt to take state and local sales taxes