What is an Obesity Tax?  Well, according to NY state governor, David Patterson, it is a new tax idea to raise money to cut the state deficit. The tax would be applied on all non-diet sodas sold in New York State. This is completely outrageous. How can the governor get away with this?

Well, it is only a proposal. In fact, recent scientific studies have shown that people who drink diet soda also gain weight. So his logic seems a little skewed. And therefore, seems a little unfair to single out soda when beverages such as fruit juice can contribute to obesity.

The Governor is trying everything in his power to make up for shortfalls in the state deficit. He also plans on raising cash by applying the following tax moves:

reviving the state sales tax on clothing
Changing funding of hospitals and health care that could shift more health costs on individuals and employers
Lifting the limit on how much state tax can be charged for gasoline
Eliminating legal exemptions in the income tax that he considers “loop holes”
Making further adjustments to make sure all taxpayers are paying their fair share
Increasing taxes on insurance policies
Increaseing by $600 the tuition (about 15%) for state residents attending the State University of New York and City University of New York.

His 2009-2010 budget proposal is an effort to cutting spending and increasing revenues to deal with deficits he projects will total $47 billion over three years. The current budget is about $120 billion.

One bright spot of his budget proposal includes a call for an increase in the welfare grant beginning in 2010, the first since 1990; changes to make more poor New Yorkers eligible for government-subsidized health care; and more services for returning veterans. He proposes

Making it easier for the poor and working poor to get government health coverage by eliminating some anti-fraud measures, including face-to-face interviews, finger printing, and an asset test.
Allowing 19- and 20-year-olds who do not live with their parents to be eligible to enroll in Family Health Plus, the state health care plan, under the same rules as if they did live with parents.
Income-eligible public workers will also be able to enroll in the state’s Family Health Plus coverage.
seek a federal waiver to allow adults at 200 percent of the federal poverty level - about $20,800 a year - to be eligible for Family Health Plus
Take $282 million in funding for graduate medical education and redirect to the state’s pool to cover the care of indigents at teaching hospitals and to
Increase funds for indigent care in clinics.
Hire two workers to help alert returning veterans and their families of government services and to create a mobile outreach service that will travel the state to meet with veterans.
Increase funding to food banks, pantries, soup kitchens and shelters.
Increase funding in programs to prevent lead poisoning in children, mostly in poor city neighborhoods.
Create a $1 million obesity prevention program.

If obesity is an issue in your life and you’re looking for ways to lose weight, here are some great weight loss ideas.

Charles Rangel, the chariman of the House Ways and Means Committee, helped  preserve a lucrative off-shore tax loophole for an oil drilling executive. This issue has prompted the House ethics committe to expand the inquiry on the matter.

Rangel is a powerful New York Democrat who insists the charges are false. But is it just coincidence that the businessman linked to the scandal pledged $1 million for a planned Charles B. Rangel Center for Public Service at the City College of New York?

Beyond suspicions about the offshore tax loophole worth tens of millions, the panel must look into Mr. Rangel’s use of congressional letterhead to solicit support for his eponymous center. Then there’s his use of rent-stabilized apartments in Harlem at cut rates and his failure to pay taxes and disclose $75,000 in income from a Dominican villa on which he enjoyed an interest-free mortgage.

The ramifications are great. It could lead to Rangel giving up his chairmanship while the investigation proceeds.  House speaker Nancy Pelosi is in a tough position - she needs to act on the matter on this Democratic party member.  She needs to urge Rangel to step down.  If he doesn’t, she needs to remove him.

Ethics violations by a public servant in such a high position cannot be tolerated.  His power in making decisions regarding huge fiscal and tax issues means there can be no doubts about the leadership’s priorities.

Let’s face it, times are tough and they will probably get tougher before they get better.  It’s certainly not the time to make charitable contributions … or is it?

Making charitable contributions could help to reduce your 2008 income tax obligations.  Here are a few recommendations and the rules for each, from non other than the IRS:

1. Special Charitable Contributions for Certain IRA Owners
An IRA owner, age 70 ½ or over, can directly transfer tax-free up to $100,000 per year to an eligible charitable organization. This option, created in 2006 and recently extended through 2009, is available to eligible IRA owners, regardless of whether they itemize their deductions. Distributions from employer-sponsored retirement plans, including SIMPLE IRAs and simplified employee pension (SEP) plans, are not eligible.

To qualify, the funds must be contributed directly by the IRA trustee to the eligible charity. Amounts so transferred are not taxable and no deduction is available for the amount given to the charity.

Not all charities are eligible. For example, donor-advised funds and supporting organizations are not eligible recipients.

Transferred amounts are counted in determining whether the owner has met the IRA’s required minimum distribution rules. Where individuals have made nondeductible contributions to their traditional IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions. See Publication 590, Individual Retirement Arrangements (IRAs), for more information on qualified charitable distributions.

2. Rules for Clothing and Household Items
To be deductible, clothing and household items donated to charity must be in good used condition or better. A clothing or household item for which a taxpayer claims a deduction of over $500 does not have to be in good used condition or better if the taxpayer includes a qualified appraisal of the item with the return. Household items include furniture, furnishings, electronics, appliances, and linens.

3. Guidelines for Monetary Donations
To deduct any charitable donation of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank or credit union statements, and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid. Credit card statements should show the name of the charity, the date, and the transaction posting date.

Donations of money include those made in cash or by check, electronic funds transfer, credit card, and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity.
These requirements for monetary donations do not change or alter the long-standing requirement that a taxpayer obtain an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet the requirements of both provisions.

To help taxpayers plan their holiday-season and year-end giving, the IRS offers additional reminders at http://www.irs.gov/newsroom.