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TaxBuzz Top 5 - Harris Aims to Forgive Medical Debt, FBI Raids OC Supervisor's Home for Tax Crimes & More

TaxBuzz Top 5 - Harris Aims to Forgive Medical Debt, FBI Raids OC Supervisor's Home for Tax Crimes & More

Each Friday, TaxBuzz brings you the top five tax and accounting headlines you need to know from the workweek. We know life can get busy and you don't always have time to scroll through your news feed to stay informed.

We weed through all of the week's stories to showcase the most important updates in the tax and accounting world.

1. Kamala Harris Pushes for Widespread Medical Debt Forgiveness

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Jim Vondruska/Getty Images

Democratic Presidential nominee and current Vice President Kamala Harris is advocating for widespread medical debt forgiveness in her latest economic plan. Harris, alongside her Vice Presidential nominee, sitting Minnesota Gov. Tim Walz, wants to collaborate with states to alleviate medical debt for millions of Americans and prevent future debt accumulation. “No one should go bankrupt just because they had the misfortune of becoming sick or hurt,” Harris stated.

Approximately 15 million Americans have medical debt on their credit reports, totaling over $220 billion, according to recent research. A poll by the University of Chicago Harris School of Public Policy shows that 51% of adults believe federal medical debt forgiveness is crucial, surpassing the 39% who prioritize student loan debt relief. “Medical debt affects an enormous number of people, so it’s an issue that resonates with voters,” noted Larry Levitt of the Kaiser Family Foundation in a CNBC article.

While Harris did not detail the execution of her plan, experts suggest that government investment could significantly reduce debt. “Medical debt can be bought from collection agencies for a penny on the dollar,” explained Levitt. Existing efforts, funded by the American Rescue Plan, aim to cancel about $7 billion in medical debt for roughly 3 million Americans by 2026. Despite skepticism about its impact on mental health or credit access, Harris' initiative could offer critical relief for many struggling with medical bills.

2. Orange County, CA Supervisor's Daughter & Nonprofit Sued for Alleged Tax Dollar Misuse

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albertc111/GettyImages

The Orange County, California Supervisor's daughter and a nonprofit organization are facing a lawsuit from the county, accused of misappropriating tax dollars meant for pandemic relief. The Viet America Society (VAS) reportedly received up to $13.5 million to support the elderly and needy, but the lawsuit alleges that VAS executives engaged in “pervasive self-dealing,” misusing both local and federal funds for personal gain.

According to the Los Angeles Times, one of VAS'd executives, Rhiannon Do, is the daughter of Orange County Supervisor Andrew Do. This connection was not previously disclosed. The suit claims that Rhiannon Do played significant roles at VAS during the time her father directed substantial funds to the nonprofit, leading to a personal gain that included the purchase of a million-dollar home.

Supervisor Andrew Do has not commented on the allegations. VAS attorney Mark Rosen has dismissed the lawsuit as "a disgrace" and suggested it is politically motivated. The lawsuit follows extensive investigations by LAist, which revealed the alleged financial misconduct and familial connections.

Just yesterday, August 22, the FBI raided the Do family home.

3. Florida's Final 2024 Disaster Supply Sales-Tax Holiday Begins This Weekend

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Jodi Jacobsen/Getty Images

Florida's last disaster supply sales-tax holiday of the year kicks off this Saturday and runs through September 6, per an Axios report. With hurricane season intensifying and recent storms like Tropical Storm Debby causing significant flooding, this tax-free period is crucial for preparedness.

The Florida Division of Emergency Management has released a disaster supplies kit checklist, which includes essentials such as food, water, first aid supplies, insurance documents, flashlights, batteries, and medicine. Local Walmart stores have many of these items, with a recent shopper finding 30 essentials for under $200.

Eligible tax-free items include travel-sized food bowls for pets, portable power banks, and self-powered radios. For a comprehensive list of eligible items, you can refer to this Florida Revenue document.

Kevin Guthrie, executive director of FDEM, emphasized the importance of this final tax holiday: “The final disaster sales tax holiday for this year's hurricane season could not come at a better time as we enter the historical peak of hurricane activity. The time to prepare is now.”

4. Hunter Biden’s Tax Case Trial Schedule Set by Federal Judge

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Samuel Corum/Getty Images

In Los Angeles, U.S. District Judge Mark C. Scarsi has outlined the trial schedule for Hunter Biden’s ongoing tax case. Jury selection is set to start on September 5, with opening statements expected to commence on September 9. Prosecutors anticipate their case will last about six days, with fewer than 30 witnesses. Biden’s defense is expected to take around two days, says NBC News.

Hunter Biden, who was not present at Wednesday’s hearing, was at the Democratic National Convention for his father's speech. The case involves three felony and six misdemeanor charges related to alleged tax evasion during a period Biden attributes to drug addiction. The indictment accuses Biden of spending millions on a lavish lifestyle instead of paying taxes.

The hearing also addressed what evidence could be presented to the jury. Biden’s attorney, Mark Geragos, sought to include evidence of Biden's past traumas, including the deaths of his mother, sister, and brother, as context for his addiction. However, Judge Scarsi sided with the prosecution, limiting the scope of such evidence. Prosecutor Leo Wise argued that Biden’s personal struggles do not excuse his alleged tax evasion.

5. 2024 Property Tax Rates Revealed: Highest and Lowest States

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John Rob/Getty Images

A new study by Maptive sheds light on property tax rates across the U.S. for 2024, highlighting significant disparities between states. Property taxes, which fund vital public services like schools and emergency services, vary widely depending on location.

Highest Property Taxes:

  • New Jersey: Leads with an average effective rate of 2.47%, resulting in $8,928 annually on a median-priced home.
  • Illinois: Follows closely at 2.29%, translating to $5,213 per year.
  • Connecticut: Imposes a 2.16% rate, with homeowners paying about $6,251 annually.
  • New Hampshire: Has a 2.09% rate, resulting in an average tax of $6,235.
  • Texas: At 1.90%, Texans pay approximately $4,399 annually.

Lowest Property Taxes:

  • Hawaii: Tops the list with the lowest rate of 0.29%, leading to an average annual tax of $1,915.
  • Alabama: Comes in at 0.43%, with an average tax of $742.
  • Colorado: Has a rate of 0.52%, costing $2,125 annually.
  • Nevada: Charges a 0.55% rate, resulting in $1,793 per year.
  • Utah: Rounds out the list with a 0.57% rate, leading to an average tax of $1,972.

These variations reflect the differing approaches to property taxation across states, influencing everything from monthly mortgage payments to long-term financial planning.

Which headline this week most interests you?

Feature Image by Credit: Andrew Harnik/Getty Images

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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