Standing at $12.1 trillion, the nation’s current debt ceiling will be pierced yet again. For those who don’t know, the debt ceiling is the cap on how much the country will allow itself to have in debt. You could look at it like a credit limit on a credit card. At the end of August, the national debt had reached $11.8 trillion, just $349 billion short of the current cap.

This debt ceiling is meant to curtail spending and serves as a big warning sign to legislators. It will be a serious undertaking to approve another change in the current ceiling. Yet, the facts are clear: Congressional members really don’t have a choice but to raise the ceiling.

Essentially, if they do nothing, the country would technically go into default on its debt. A ridiculous prospect but serious nonetheless since the ripples from such an event would cascaded through the economy.

In such a scenario, Treasury bonds would become due but the Treasure would be unable to borrow more money to repay the holders of those securities. Of course, the government could find additional funds to head off the default by borrowing money from sources like the federal employee retirement trust fund.

Already, the Treasury Department has been quick to post statements that it will do what it can to preserve the flexibility of national debt management. This may mean cutting back on those funds deposited in the financial rescue reserve so the money could be made available in case the ceiling isn’t raised in time. Still, such measures provide only temporary relief.

Though it is almost certain that legislators will throw support behind an additional increase, it is also clear that the issue itself is going to be a focus for controversy in both the House and the Senate. It is possible that the debate may be mired with the current struggle over health care reform.

Are Dads Getting The Recognition They Deserve? is a post from: Thistle Debt Consolidation

Carper added that “those who fail to pay their fair share… force their fellow Americans who play by the rules to pay more in taxes.” Those who have unpaid taxes from stimulus money represent just 5 percent of the 80,000 entities that received government money. The $819 billion stimulus bill was meant to jolt the economy out of a slump by handing out $275 billion worth of grants, contracts and loans.

Sen. Charles Grassley (R-Iowa) told CBS News he wants to block those companies from receiving new federal dollars or business. “There’s no reason for the government to deal with companies that don’t” pay taxes, Grassley, who requested the report, told CBS. “A government contract is something to be earned, not something to be taken for granted.”

Experts say the numbers could actually be low. The GAO says it discovered 15 cases in which stimulus benefactors had not withheld payroll taxes, totaling $40 million. According to Recovery.gov, during the first quarter of 2011, recipients reported creating 571,383 jobs through contracts, grants and loans with about $265 billion being handed out.

Stimulus Recipients Owe Millions In Back Taxes is a post from: Thistle Debt Consolidation

This account is the financial arm of USAToday.com. It’s a constant flow of links to their articles about finances, business and money. You’ll find stories on companies’ profits, Facebook privacy, and the impact of high gas prices. In case you didn’t know, USA Today competes with The Wall Street Journal for having the highest circulation of any newspaper in the US. Although in recent years they have built up their focus on digital platforms.

With more than 200,000 followers to date, it’s easy to see that people are interested in the articles and news that @USATODAYmoney is putting out. Just don’t expect any chit chat– this account is all business. You won’t find them commenting on your witty tweets or answering any questions you ask them. But if you want a regular update of their latest news this is a great one to follow.

Tuesday’s Twitter To Follow: @USATODAYmoney is a post from: Thistle Debt Consolidation

On the other hand, Best Buy believes that pending online taxation reforms will make it more fair for brick-and-mortar retailers who already collect tax. Best Buy and other retailers like Sears have expressed concerns about the unfair advantage online-only stores like Amazon have when it comes to taxes, according to Reuters. The rules are that the online-only retailers don’t have to collect sales tax in states where they don’t have a corporate presence.

States including Illinois, Texas and California are all considering changing sales tax rules. Last October Texas sent a $269 million bill for uncollected sales tax to Amazon. According to the Chattanooga Times Free Press, Senate Finance Committee members there questioned Amazon officials about a sales-tax exemption agreement that were used in negotiations to build two distribution centers in the southern part of the state.

The Internet retailing giant also came under fire in Nashville from traditional brick-and-mortar retailers who asserted it was unfair to let Amazon avoid charging state sales taxes to its in-state customers while they continue to be required to collect the taxes. “Whether they’re actually something that can be upheld in state court. I don’t know that. But I know they were made in a business context, an inducement for us to want to come to Tennessee.”

Amazon agreed to spend $139 million in Tennessee to build two fulfillment centers which will employ around 1,400 full-time workers and thousands more part-time employees. Tennessee officials plan to make a decision on whether to move forward next week. Meanwhile, according to the Nashville Business Journal, a group of retailers is airing TV ads that protest the state’s sales-tax collection exemption for Amazon. The newspaper says Amazon will cancel its plans if legislation to collect taxes passes.

Online Sales Tax Debate Heats Up In Tennessee is a post from: Thistle Debt Consolidation

During her television career, Hamper deducted clothing she wore on air. Hamper worked as an anchor for WCMH and WBNS in Columbus. Hamper made the decision to deduct her clothing purchases based on the fact that other anchors told her they did it and her accountant thought it was OK. Hamper was careful to keep her work clothes separate from her personal clothes and she kept careful records. But a couple of years ago the IRS asked for documentation of her expenses from 2005. “I knew I had followed their guidelines,” she told the newspaper. Hamper had also written off expenses for contact lenses, makeup, haircuts, magazine subscriptions and more.

But according to the IRS, she hadn’t. They stuck her with a bill for back taxes and ended up auditing other returns as well. “Anietra felt, as well as I felt, that the clothing she purchased would be an ordinary, necessary job expense,” accountant Ron Lykins told the newspaper. “The tax code says you can deduct all expenses ordinary and necessary to maintain your income.”

Tax code lists firefighters, professional athletes and delivery workers as possible employees that could be eligible for deducting clothing expenses– not anchors. The tax code says the clothing must not be suitable for everyday wear. “The general rule is that, where business clothes are suitable for general wear, a deduction for them is not allowable,” the judge wrote, according to The Columbus Dispatch. But Hamper wants to get the word out so others don’t have to go through what she’s gone through. She says to keep in mind that even if your accountant says something is OK, it still may not be to the IRS.

Former News Anchor Receives $20k Tax Bill is a post from: Thistle Debt Consolidation

The newspaper found that households have managed to save a total of $221 billion since the middle of 2005. Some of the money has been put in bank accounts, but some has gone to pay off debts, loans and mortgages. The news isn’t sitting well with some retailers who find themselves in difficult positions. However it’s an opportunity for companies like Harvey Norman which announced plans to launch an online store for shoppers on the  hunt for a good deal.

Experts say this push to save and pay off debt has been seen before. In fact, it’s just a return to more normal savings levels that were typical before the credit binge of the 1990’s and early 2000s. ”For a long time, until the early years of this decade at least, we managed to contain our lust for stuff to within the level of our income,”  economist at the Grattan Institute, Saul Eslake, told the Sydney newspaper.

Statistics show that a decade ago household debt shot up from 70 percent of household disposable income to 150 percent. But now Australians are saving 10 cents on every dollar. Australians seem to be worried after watching the collapse of the US property market. ”Consumers are well aware of what’s happening in America. People have become much less sanguine about the prospect of rising asset prices doing their savings for them,” Eslake told the Sydney Morning Herald.

Australians Saving More And Paying Off Debt is a post from: Thistle Debt Consolidation

Thirty-five-year-old Atkins is from Saddle River, New Jersey. According to paperwork and court documents, Atkins was the sole shareholder of ASJA Inc and Rule Tours Inc. He admitted to not paying taxes between 2004 and 2008 despite receiving music royalty income from ASJA Inc as well as performance-related money from Rule Tours Inc.

The news release says that Atkins pleaded guilty to charges relating to 2004, 2005, and 2006, but two addition years will be taken into account for sentencing. Officials say the total loss to the government was $1,137,912. Atkins says he will now file tax returns and pay all taxes as well as penalties. U.S. Attorney Fishman stated in the news release: “As part of his guilty plea, Atkins has promised to pay the government his outstanding debt of over one million dollars. Each of us must pay our fair share to keep this country moving. We will bring federal charges when necessary to ensure the government gets its due.”

His sentencing is scheduled for June 13, 2011. He could face as much as five years behind bars. “With this year’s April 18th tax deadline just around the corner, it is important for people to have confidence that when they pay their taxes, their neighbors and competitors will do the same. Nobody is above the law,” stated Victor W. Lessoff, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “Today’s guilty plea by Mr. Atkins again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who would attempt to defraud America’s tax system.”

Ja Rule Faces Five Years For Tax Evasion is a post from: Thistle Debt Consolidation

Besides just giving money, many volunteers are giving their time. A disaster management expert from the American Red Cross arrived in Japan on Monday for a week-long trip. The team will be providing advice and support to the Japanese Red Cross.

The Japanese Red Cross has more than two million volunteers. Many of the Japanese Red Cross offices also have trained nuclear decontamination teams as well as equipment. Right now they’re working on distributing relief items, offering hot meals, clear debris and other tasks. They’ve also been handing out more than 65,000 blankets at public shelters. “There is a real concern for the elderly, who are extremely vulnerable to hypothermia,” said Meltzer in a news release. “Japan is a country with a high proportion of seniors, and the Red Cross will be doing all it can to support them through this dreadful experience.”

There are also Red Cross medical teams on hand. More than 100 medical teams of doctors and nurses are staffing mobile clinics. Trained nurses are providing psychosocial support to traumatized survivors. Many are grateful to be alive and it’s investments made into early warning systems that are being credited for helping many people. The Japanese government’s tsunami warning system helped hundreds of thousands of people evacuate before the waves hit. The Red Cross societies in other communities also helped evacuate residents.

This first $10 million donation is expected to the one of several made by the American Red Cross. You can text REDCROSS to 90999 to give $10 to the tsunami and earthquake relief efforts. The donation will be added on to your cell phone bill.

American Red Cross Announces First Major Donation To Japan is a post from: Thistle Debt Consolidation

Here are some of the new changes that should ease the burden on taxpayers:

• Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens: The new dollar amount is in tune with inflationary changes since the last update. Right now liens filed at certain dollar amounts when taxpayers have outstanding tax bills. “Raising the lien threshold keeps pace with inflation and makes sense for the tax system,” Shulman said in a news release. “These changes mean tens of thousands of people won’t be burdened by liens, and this step will take place without significantly increasing the financial risk to the government.”

• Making it easier for taxpayers to obtain lien withdrawals after paying a tax bill: If a full payment of taxes is made, then the lien will be removed.

• Withdrawing liens in most cases where a taxpayer enters into a Direct Debit Installment Agreement: Liens will be removed after a probationary period demonstrating that direct debit payments will be honored. “We are trying to minimize burden on taxpayers while collecting the proper amount of tax,” Shulman said in a news release. “We believe taking away taxpayer burden makes sense when a taxpayer has taken the proactive step of entering a direct debit agreement.”

• Creating easier access to Installment Agreements for more struggling small businesses: The payment program will raise the dollar limit to allow additional small businesses to participate.That means that small business with $25,000 or less in unpaid taxes can take part. That raises the limit from $10,000 in unpaid taxes. “Small businesses are an important part of the nation’s economy, and the IRS should help them when we can,” Shulman said in a news release. “By expanding payment options, we can help small businesses pay their tax bill while freeing up cash flow to keep funding their operations.”

• Expanding a streamlined Offer in Compromise program to cover more taxpayers: OIC is being expanded to allow taxpayers with annual incomes up to $100,000 to participate. In order to qualify, tax liabilities must be less than $50,000 whereas in the past the limit was $25,000.

These are the latest in a series of changes that have been integrated over the last couple of years. “These steps are in the best interest of both taxpayers and the tax system,” Shulman said in a news release. “People will have a better chance to stay current on their taxes and keep their financial house in order. We all benefit if that happens.”

IRS Lightens Up On Taxpayers With Unpaid Bills is a post from: Thistle Debt Consolidation

According to a news release the results are in line with other recent data that shows American consumers tightened their finances during the recession and ended up in better fiscal shape.”A lot of consumers gritted their teeth during the recession, and they’re now breathing a sigh of relief. They’ve clearly been working hard to control their debt levels and pay bills promptly and we’re now seeing a lot of signs that the resilient American consumer is in better financial health entering 2011,” Gary Keith, regional economist for M&T Bank, said in a news release. Here are some other supporting results:

• Credit card defaults within the industry declined during the fourth quarter of 2010.
• M&T Bank’s consumer loan charge-off rate dropped 23% in 2010.
• The U.S. savings rate, while declining slightly at the end of 2010, has risen from about 2% in January 2008 to 5.3% in December 2010.

The study also found that while consumers may feel good about their own personal debt levels, they’re not sharing the same optimism about the health of the economy overall. Half of those polled say they think the country is still in a recession, which is about 6% lower than it was ten months ago.

To reduce personal debt, 65% of those surveyed said they were likely to spend less over the next year. One-fourth said they would use savings to help reduce debt and two-thirds said they would or probably would get a bank loan if needed. “Consumers with any debts want to make sure they’re getting the best possible interest rates. With rates still being quite low, many people have the chance to refinance loans at lower rates to save money. Lowering the interest on loans helps you pay down principal faster,” said Paul Kieffer, manager of the Personal Financial Planning Department at M&T, in a news release.

Study: American Consumers Feeling Financially Fit is a post from: Thistle Debt Consolidation