THE WARREN-WATCHUNG CONNECTION PAGE 10 JUNE/JULY/AUGUST 2026 theconnectionsnj.com 80 years of professional service Fee-based Wealth Management Tax-efficient Investing Family Office Services Financial Planning Tailored Service, Disciplined Strategies, and Committed Guidance. Individual Tax Preparation Business Tax Preparation Accounting Estate and Trusts Accounting Services are provided by Shapiro Certified Public Accountants and not a service provided by Raymond James. Shapiro CPA's and Shapiro Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Complimentary Initial Consultation 30 Technology Dr., Warren, NJ 908-222-3770 info@shapirogrp.com The key to your financial success shapirogrp.com Sophisticated expertise for today and future generations. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Shapiro Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. son. We have provided proactive individualized tax management along with timely and accurate preparation since 1937. Clients have the ability to choose from among our professional services. Those who choose to use our integrated services have the added benefits of a single point of personal contact and the efficient and stress free convenience that tax reporting documents are received electronically by our offices. As a local resident of the community, I enjoy providing timely and helpful information on a wide range of financial issues. I would welcome the opportunity to put my 40 years of unique experience to work for you. You should discuss any tax or legal matters with your appropriate professional. This article is not to be construed as written advice or to pose any specific recommendations. cereal companies receive a tax break for putting a toy inside the box. Reminds me of Cracker Jack. New York spent the effort to create a Bagel Tax. Whole bagels are exempt; however, sliced or smeared, you pay tax. In NJ, even Halloween is taxed; pumpkins you eat are tax-free, but painted or carved, you pay tax. Five states have no sales tax, and nine states have no income tax. Common winners are Alaska and New Hampshire if you do not mind the cold. As a lifelong NY sports fango Rangers and Knicks-I am pleased Madison Square Garden is exempt from property taxes. For our Star Trek fans, in New Mexico you are exempt from paying income taxes when you turn 100 years old. Live long and prosper. Modeling the universe of strategies for an array of potential tax environments takes considerable time, coordination, and decision-making. We help clients to design and implement sophisticated financial plans with goals to maximize and retain wealth while minimizing taxes. We stand ready to help clients for whatever the future will hold. We have provided proactive individualized tax management along with timely and accurate preparation for over 80 years. Experienced and equipped to manage the complex needs of successful individuals and closely held businesses. I would welcome the opportunity to help your family and business grow and prosper. Shapiro CPAs’ caring and experienced team guides clients to a stress-free tax seahe first taxes date back to ancient civilizations, such as the Sumerians, who recorded taxes on clay tablets. Perhaps taxes are as old as writing itself. Today, the IRS processes over 160 million individual federal tax returns annually, and the vast majority (over 93%) are filed electronically. Why are taxes so hard to understand? In 1913, the US tax code was 400 pages; now it is estimated to be 70,000+ pages. Albert Einstein is credited with saying, “The hardest thing in the world to understand is income taxes.” Benjamin Franklin coined the famous term “In this world, nothing is certain, except death and taxes.” War and taxes have always been linked to each other. President Lincoln enacted the first US income tax in 1862 to fund the Civil War. Historically, income tax rates have been raised to pay for conflict. In searching the Shapiro CPA archives (pictured), I found this 1938 personal income tax Form 1040(A). This may have been the first year our firm prepared tax returns since it was founded in 1937. One page and color-coded. The tax rate was 4%, prewar and prior to large social programs. Contrast that to top tax rates of 90% to fund WWII, 70% in the 70’s, falling to a low of 28% under President Reagan and hovering between 30-40% since. Of course, there are all sorts of taxes, not just personal income tax. There’s Sales Tax, VAT, Property Tax (NJ viewed as highest in the country), Excise Tax, Gas Tax, Estate-Death Tax, Corporate Tax, Tolls and Tariffs. What’s next...Tax on Tax? Let us look at some fun facts. Canadian Five states have no sales tax, and nine states have no income tax. Common winners are Alaska & New Hampshire if you do not mind the cold. FINANCIALFORUM Income Tax History & Fun Facts By Robert Shapiro CPA ABV-Owner Shapiro CPAs T
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