As though things are not bad enough for the residents of the Gulf states , the IRS is proposing taxing those who have recieved compensation for livelihoods and lives that have been all but destroyed ! Says alot about how much Government really helps people !
Here's the thing, I don't have a full-time job any more either but I am still paying taxes on what little taxable income I am still receiving. I can assure you that those folks will get all sorts of tax breaks next year. I only worked full-time half of last year--my writing income didn't count as I was generally paid in cash through a third party--and my refund was higher than it ever was!
In other articles they break down what can be taxed and what is not taxed. Income is taxed. Some forms of compensation that are not income will not be taxed. Payment to offset property losses should not be taxed as the owner is not gaining anything.
There just doesn't seem to be any one non biased story on this today.
The real issue is if they will be fairly compensated. If they are then they would not incur any less income than before and thus would not be effected... they would pay the same tax.
Will be interesting to note if BP gets any additional tax breaks as a result of the huge "loss".