From: pettigrew_mi@ripple.enet.dec.com (Mike Pettigrew)
Newsgroups: misc.taxes
Subject: Re: Middle Class Hit Again in 1992 Tax Bill
Date: 21 Aug 92 00:24:55 GMT
Organization: Digital Equipment Corporation


In article <1992Aug20.184904.5842@progress.com>, matth@progress.COM (Matthew J. Harper) writes...
>kd1hz@anomaly.sbs.risc.net (Michael P. Deignan (KD1HZ)) writes:

> 
>  As far as taxing moving expenses, I have a question:
> 
>  The Feds see money a company pays to move you as part of your income.
> 
>  What money can a company give you these days do the Feds *not* look at this 
>  way?  
> 

   Any form of moving expense reimbursement from an employer is treated
   as taxable income to the employee.  Did you set aside 28% of the total
   reimbursement amount for the April 15 tax payment?  Does your employer
   give you an extra "tax adder payment"?  Don't forget!

> 
>  Now, why shouldn't the Feds see money you're given as part of a move as part
>of your income?   It's part of your benefits package and can broken down to 
>a dollar amount, no?
> 


    The problem is that very few companies are paying relocation expense
    anymore.  You are not given anything.  But you pay out very large sums
    to move if you are a homeowner.  You will lose a substantial part of
    your equity.  Taxing that expense adds injury to injury.

    Optimistically, a move should result in increased income, and increased
    tax collection from that income.  At the very worst, a move should
    result in some income other than welfare.  Either outcome improves the
    economy, and provides government with more revenue.  


    That is why moving expenses should be completely tax deductable, up to
    some realistic limit.


    Here is a very cheap move budget for a homeowner:


        $  4,000    Household goods move
        $ 15,000    Real Estate fees and taxes on house sale
        $  1,000    Travel expense to new location
        $  2,000    House Hunting and temporary living
        $  3,000    Fees for new home purchase.
                    (assuming you can still afford one)
        =========
          25,000    Total Moving Expenses (Cheap!)


    The Runzheimer Consultant Group, which keeps track of such things,
    estimates an average corporate-paid relocation expense at:

         $35,000    Total Moving Expenses
         $10,000    Tax adder
        =========
     *** $45,000 *** (Nice if you can get one!)



    By-the-way, did I mention that the House and Senate are changing
    tax laws even as you read this?  HR-11, the "Revenue Act of 1992"
    proposes lower limits on the moving expense deduction, amoung other
    things.  If you are a home-owner, and are moving this year, it
    will cost you more in taxes come April 15, 1993  - unless the Senate
    or the House can be persuaded to change HR-11 in the next four weeks.


    The number for the Senate Finance Committee staff office is:

        (202) 224-4515


    The number for Congressman Ron Chandler's (D-Washington, House Ways
    and Means Committee Member) staff office is:

        (206) 553-0350


    What you could do with this information is up to you.




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| -Mike Pettigrew        pettigrew_mi@ripple.enet.dec.com
|                        (206) 661-3032
|                        Digital Equipment Corporation 
|                        Federal Way, Washington, USA
|___________________________________________________________________________
|These opinions are mine and not necessarily my employer's
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Newsgroups: misc.taxes