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One response to revenue-raising limitations being placed on local government is to delete exemptions. In the textbook, P. S. Flores offers the following examples of welfare and charitable groups enjoying property-tax exemption: YMCA, fraternal clubs, chambers of commerce, labor unions, the American Legion, Masonic lodges, orphanages, humane societies, hospitals, and retirement and nursing homes. Which exemptions would you delete? How would you justify it?

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Two kinds of taxes not explicitly mentioned in Figure 11.6 are luxury taxes (for example, taxes on furs, jewelry, boats, and airplanes) and sin taxes (for example, taxes on alcohol, tobacco, oil, gasoline, and firearms). What impacts, secondary as well as immediate, do you think each kind of tax has?

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2016 is already off to a quick start and with April 15th getting closer, it’s that time of year again to think about your taxes. We’ve all seen the countless television ads but have you actually followed through and filed your taxes yet? How you decide to file depends on your personal situation and until you complete your filing, you won’t know for sure how much you might owe or receive as a refund. Though 2015 is over, it is the right time to consider some savvy approaches to possible deductions for next year.

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Most retirement accounts offer tax benefits and by investing in one such as a 401k or IRA you can save for the future and take advantage of those tax benefits whether they are today or still to come. By investing in one of these retirement accounts, your taxable income is actually reduced and the funds continue to grow tax deferred until you withdraw from the account. If a retirement account is offered through work, employers will often match your contributions and sometimes additionally make a profit sharing contribution. All these accounts have contribution limits and if you have a qualified plan with your employer, your outside IRA contribution is not tax-deductible. The IRA investment, though, grows tax deferred and still offers a tax benefit down the road. By maximizing your contributions to retirement you are saving for the future while also reducing your taxable income for your next filing.

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These are just a few strategies you can use to reduce your tax bill going forward. Your investment advisor and tax professional can help to ensure you’re using all of the best approaches to reduce your taxes.