Tax Reform – Time to Get Down On It

Only one group of people likes our tax laws just the way they are:  the accountants.

Our tax code is so complex that nobody understands it.  If you call the IRS ten times to get a question answered, you are likely to get ten different answers – that is, if your call even gets through!  30 million calls went unanswered at last count in 2015.

No two CPAs will ever come up with the same tax liability given the same set of books.  It’s not their fault – the tax code was 75,000 pages a year ago (probably more by now).  And that’s a good thing, if you make your living doing tax returns.  For the rest of us, not so much.

Tax compliance costs almost a half-trillion dollars a year, and that doesn’t include the routine accounting that businesses do every day to determine their profitability. 90% of Americans think the tax code is too complex.

Finally there is an opportunity to do something about it.  GOP members of congress have come up with a tax reform plan that would reduce most individual tax returns to one simple page, eliminate most loopholes and targeted deductions, repeal the complex alternative minimum tax, and do away with business depreciation.

Oh, the humanity!  Tax accountants will be leaping from their first-story windows.  H&R Block will no longer have an office on every block.  Packages of TurboTax software will be relegated to the bargain bin at Ollie’s.  Corrupt and inefficient IRS employees will have to get real jobs that actually produce something of value.

More importantly, GDP growth will suddenly jump from 2.5% to 3%.  Then 4%, and upward. Eliminating the productivity drag of all that accounting, reducing tax payments, and deducting the cost of capital purchases from taxable income will give businesses and individuals a huge shot of economic momentum.

Of course this can only happen if Congress is convinced that voters give a damn.  Most of them would just as soon spend your money for you rather than let you do it yourself, and they enjoy controlling your behavior by controlling your wallet.

It’s way past time for tax reform.  Today might be a good day to pick up the phone and call your member of Congress and tell him or her to get down on it.

Tom Balek – Rockin’ On the Right Side

Get down on it, come on and
Get down on it, if you really want it.
Get down on it, you gotta feel it
Get down on it, get down on it

Get Down On It – Kool and the Gang

 

They’re getting a little gray, but they still got it going on!  It’s Kool and the Gang.

 

 

 

One thought on “Tax Reform – Time to Get Down On It

  1. it? I wrote a letter to Senator Tim Scott but did he see it…who knows.

    To the Honorable Senator Tim Scott,

    The struggle you have and the battle you must fight for the common, salt of the earth, citizens in the Senate no doubt is brutal but I’m calling on you to stand on the wall for us.

    The LOVE of money has taken deep roots in Washington DC throughout these many years. There’s nothing wrong or bad about money… It’s the LOVE OF IT and POWER (they both go hand-in-hand) that has corrupted The House and Senate, allowing all of their constituents to die on the vine. Yes, we become the collateral damage as a result of the money from lobbiests to bribe Congressmen for all these years. Their minds are now seared so badly they don’t know when they lie to themselves. They may have come in with good principles and heart to make a difference but became corrupt and that’s why they leave with so much money falling out of their pockets. We need fresh “unseared” minds there and I’m hoping you will be one of them.

    A simple tax code, uncomplicated would work. If they laugh at you for going with one like that, have the character of strength and backbone to laugh at their ridiculous complicated unethical plan.

    Stand for the people and
    we will stand with you,
    Iona Cheryl Ware Kranz

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s