EDITOR OF REDSTATE
Barack Obama Wants to Increase Your Taxable Income By Taxing Your Phone Usage
This is how the Obama administration is going to raise your taxes without actually increasing the tax rates — they’re going to kill you with a thousand little tax bills.
The latest? If you use your company cell phone to make personal calls, the IRS will consider it a taxable fringe benefit.
The Internal Revenue Service proposed employers assign 25% of an employee’s annual phone expenses as a taxable benefit. Under that scenario, a worker in the 28% tax bracket, whose wireless device costs the company $1,500 a year, could see $105 in additional federal income tax.
The IRS, in a notice issued this week, said employees could avoid tax liability if they showed proof they used personal cellphones for nonbusiness calls during work hours. The agency also could decide on a set number of phone minutes as “minimal personal use” that would be untaxed.
The burden is on you to show the IRS that you use a personal cell phone to make your personal phone calls. The law has actually been on the books since 1989 — put there by Democrats — but the IRS has never actually enforced it until now.
This is exactly what Obama is going to do — find rarely or never enforced provisions under the existing nebulous tax code and stick it to people who have jobs, while then turning around and funneling workers’ money to non-workers.