'FOR FIRST TIME, MORE CORN USED THAN ETHANOL THAN LIVESTOCK'

(Cedar Rapids Gazette) -- TheGazette.com reports that "for the first time ever, more of the corn crop may go into gas tanks than into the stomachs of cattle and poultry destined for kitchen tables." One expert told the paper… "We really need to plant more acres to corn next year than this year, and this was the second most acres planted in 67 years."

ACCOUNTANTS IN THE MOVIES

In Hollywood, accounting can seem like a pretty glamorous profession, or not.

Rick Moranis played Sigourney Weaver's accountant neighbor and admirer Louis Tully in the 1984 comedy classic "Ghostbusters." Possessed by a demonic ghost, Louis is transformed from a mild-mannered accountant into the "Keymaster" and needs the help of Bill Murray, Dan Aykroyd, Harold Ramis, Ernie Hudson and the rest of the ghost-busting crew (along with their Proton Packs). Moranis reprised the role in the 1989 sequel "Ghostbusters II" and hopefully will come out of retirement to appear in "Ghostbusters III," which is set to be released next year.

$3.5 TRILLION TAX HIKE INCLUDED IN THE RECENT DEBT LEGISLATION

(Tax Foundation) -- TaxFoundation.org reports, "One of the least reported facts about the 11th hour debt limit deal between the White House and Congressional leaders is that it assumes that on January 1, 2013, virtually every working American will begin paying much higher taxes than they are today." According to the Tax Foundation, "baked into the deal is a $3.5 trillion tax increase, yet plan supporters say it does not raise taxes" since the "current law” (baseline) assumes that all of the Bush-era tax laws expire as scheduled at the stroke of midnight on December 31, 2012.

This means that all income tax rates will go up across the board, the child credit will fall from $1,000 to $500 and the marriage penalty will return. The analysis notes that meanwhile, federal spending is expected to total nearly $46 trillion over the next ten years.

If Congress should decide to not let the Bush/Obama tax laws expire, then there is an additional $3.5 trillion overdraft in the works.

This is just like if you were working on your family budget and because of past debts, you were close to bankruptcy. In order to make the budget balance, you budget that in six months you and your spouse were going to both get a second job and earn an additional $25,000. But six months later, you decide that you can’t handle working another part-time job and so, you default.

YOU MAY WANT TO UNWIND YOUR ROTH CONVERSION

Many taxpayers elected in 2010 to convert their regular IRA to a Roth and either pay the tax in 2010 or spread it out over 2011 and 2012. If you converted your Roth as long as you timely filed your income tax return or got an extension to October 15, 2011, you have until October 17th “unwind” the conversion and treat it as if it never happened.

The primary reason for considering this is the drop in stock prices from 2010 until now. By unwinding the conversion, you may be able to then redo the conversion and save substantial tax this year.

For example, let’s assume a taxpayer had $500,000 in his IRA on June 1, 2010 when he converted it into a ROTH. Now, let’s assume the value of the ROTH is only $300,000. By unwinding the ROTH conversion, the taxpayer does not pay tax on the difference between the $500,000 last June and the $300,000 value now. At the highest tax bracket including applicable state income taxes, the total tax savings could approach $100,000.

Remember, you only have until October 17, 2011 to unwind this conversion

LONGTIME PARTNER

I have to take a few minutes and pay tribute to Bob Sylvester CPA who died September 23, 2011.

Bob Sylvester was a former partner of mine and a close friend. Bob had been ill for some time and he was in hospice for the past few weeks. Bob and I go way back. In 1972, Bob gave me a chance and hired me as new junior accountant with the firm of Lindell, Sylvester Lindell. He was my mentor and taught me a lot about business. Eventually we became partners to form Kopsa, Swanson & Sylvester accounting firm. In 1999, Bob became sick and retired to enjoy his family. Much of the success that I have had is attributable to valuable lessons from Bob. He will be missed.

To read more about Bob's life: Robert Sylvester

'BUREAUCRACY GONE WILD: OBAMA'S UNHELPFUL ADVICE TO A FARMER'

(Politico) -- Politico.com reports on the publication's unsuccessful attempt to get an answer to a simple question from a farmer. The story was written after an ag producer in Illinois told President Obama recently when he visited Illinois that he was concerned about, "more rules and regulations — including those concerning dust, noise and water runoff — that he heard would negatively affect his business."

According to the story, the president, on day three of his Midwest bus tour, replied: "Contact USDA. Talk to them directly....my suspicion is, a lot of times, they're going to be able to answer your questions and it will turn out that some of your fears are unfounded." MJ Lee, a Politico.com reporter, writes that when he "decided to take the president's advice and call the USDA for an answer to the Atkinson town hall attendees question," he found himself "in a bureaucratic equivalent of hot potato — getting bounced from the feds to Illinois state agriculture officials to the state farm bureau." After more than four hours of phone calls spread over two days, "still no answer to the farmer's question."

Full Story



And these types of bureaucrats will soon be running our health care.

ACCOUNTANTS IN THE MOVIES

In Hollywood, accounting can seem like a pretty glamorous profession, or not.

Charles Grodin plays Jonathan "The Duke" Mardukas, an accountant for the Mob who gets nabbed by bounty hunter Jack Walsh, played by Robert De Niro in the 1988 comedy-action hit "Midnight Run." To collect the $100,000 bounty on the Duke's head, De Niro needs to get him from New York to LA, but the Mafia and the FBI are both on their tails. Grodin made a bit of a mini-career out of playing accountants. In the 1993 flick "Dave," he appeared as CPA Murray Blum. In one scene, Murray the accountant helped President Dave Kovic, played by Kevin Kline, find an extra $650 million in the federal budget to open homeless shelters. We could use him in Washington now.