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All posts for the day April 10th, 2012

Why the Buffett Rule Matters

Posted by danetteoneal1 on April 10, 2012
Posted in: Economy, Special Interest. Leave a comment

Nearly one-quarter of all millionaires (about 55,000 individuals) pay a lower tax rate than millions of middle-class families. To reform our tax system, which is currently tilted in favor of very high-income households, President Obama has proposed a basic principle of tax fairness called the Buffett Rule.

  • The average tax rate paid by the very highest-income Americans has fallen to nearly the lowest rate in over 50 years. The wealthiest 1-in-1,000 taxpayers pay barely a quarter of their income in Federal income and payroll taxes today—half of what they would have contributed in 1960. And, the top 400 richest Americans—all making over $110 million—paid only 18 percent of their income in income taxes in 2008.
  • Average tax rates for the highest income Americans have plummeted even as their incomes have skyrocketed. Since 1979 the average after-tax income of the very wealthiest Americans – the top 1 percent – has risen nearly four-fold. Over the same period, the middle sixty percent of Americans saw their incomes rise just 40 percent. The typical CEO who used to earn about 30 times more than his or her worker now earns 110 times more.
  • Some of the richest Americans pay extraordinarily low tax rates—as they hire lawyers and accountants to take particular advantage of loopholes and tax expenditures. The average tax rate masks the fact that some high-income Americans pay near their statutory tax rate, while others take advantage of tax expenditures and loopholes to pay extraordinarily low rates—and it is these high-income taxpayers that the Buffett rule is meant to address .
    • Of millionaires in 2009, a full 22,000 households making more than $1 million annually paid less than 15 percent of their income in income taxes — and 1,470 managed to paid no federal income taxes on their million-plus-dollar incomes, according to IRS data.
    • Of the 400 highest income Americans, one out of every three in this group of the most financially fortunate Americans paid less than 15 percent of their income in income taxes in 2008.
  • Many high-income Americans are paying less in taxes than middle class Americans in taxes. Nearly one-quarter of all millionaires (about 55,000 taxpayers) face a tax rate that is lower than more than millions of middle-income taxpayers. This is fundamentally unfair.

Should You Tornado-Proof Your House?

Posted by danetteoneal1 on April 10, 2012
Posted in: Economy, Home Ownership. Leave a comment

Here are six ways to tornado-proof your home. Warning: These aren’t cheap — nor foolproof — methods. But there are other measures you can take to strengthen your house and prevent costly damage. Here are 6 tornado-proofing ideas suggested by our friends at Safer, Stronger Homes.

1. Extra fasteners for roof sheathing: The risk: Winds tear off roof sheathing, exposing the interior of the house to damaging rain and debris.

Fix: Use ring-shank nails or screws to fasten plywood sheathing to roof rafters. Use tighter nail spacing than required by code (typically 6 inches apart). Careful nailing is a must, especially at the edges of sheathing panels. Cost: $450 (average)

2. Seal roof sheathing seams: The risk: Winds lift off underlayment (the protective layer directly below shingles), exposing joints in the roof sheathing. Fix: Seal sheathing joints with bituminous peel-and-stick flashing tape. Cover sheathing with self-adhering membrane roofing underlayment (as opposed to traditional roofing felt). Cost: $800-$1,200 (average)

3. Install wind-resistant roofing– The risk: Winds destroy roofing, your house’s primary defense against water damage. Fix: Install a roofing type that exceeds wind ratings for your region: standing seam metal roofing, heavy clay or concrete tiles, asphalt/composition shingles rate either Class G (120 mph winds) or Class H (150 mph winds). Cost: $1,000-$3,000 (average)

4. Use wind-resistant siding– The risk: Even minor damage to siding can let moisture inside walls, where it can lead to mold and rot. Fix: Use wind-resistant siding products that are nailed directly into wall studs, not simply into the wall sheathing: vinyl siding should be rated to withstand 150 mph winds and feature a double nailing hem, fiber-cement siding is extremely heavy and wind-proof. Cost: $1,000 (upgrade vinyl) to $15,000 (all-new fiber-cement siding)

5. Add impact-resistant windows and doors– The risk: Windows and doors break or blow open, letting in rain and destructive winds that can lift off roofs. Fix: Install impact-resistant windows and doors rated for winds at least 30% stronger than demanded by local building codes. Install out-swinging windows (casements) and exterior doors so that wind pressure tends to compress seals. Avoid double-swinging windows, doors, and sliders unless they are rated for high wind resistance. Cost: 2-3 times more expensive per unit than comparable conventional windows and doors

6. Install wind- and rain-resistant roof vents– The risk: Roof vents are designed to exhaust hot, humid air from attic spaces, but they are weak points during storms with high winds, letting rain water inside your house. Fix: Replace vents with wind- and rain-resistant models. Cost: $1,000 replacement cost (average). (HOUSELOGIC 4/10/12)