Bill starts out by identifying the obviousproblem - “Our4,000-page (and growing) Internal Revenue Code is a horrible mess that needs tobe cleaned up”. And then goes on tooffer “five changes I believe would be hugesteps in the right direction -- and the reasons why I doubt we will see themanytime soon”.
He is spot on, and I agree 100%, withnumbers 2 through 5. I am not againsteliminating the taxation of Social Security (I do not believe there is doubletaxation of SS benefits, as Bill asserts) – but I would have benefits taxed thesame as any other pension to which employees contribute after-tax dollars.
Regarding eliminating refundable creditsBill hits the nail on the head when he says –
“IfCongress wants to create welfare programs without any monitoring, that is apolitical decision that the populace can take into account when they vote. ButCongress should not be allowed to sneak welfare payments through the taxsystem. That's deceptive and non-transparent.”
And he correctly identifies the various“phase-out” rules for certain deductions and credits as - “disguised tax rate increases that Congress never has to admit to”.
He correctly goes on (highlight is mine) –
“Ifhigher tax rates are deemed necessary, the politicians should raise them in astraightforward and transparent way. Of course, many probably fear that suchtransparency would hurt their re-election chances. They might be right aboutthat, but it's no excuse. Deception andlack of transparency make for horrible tax policy and, unfortunately,elected representatives won't change their behavior until voters make them.”
*Bruce, the Missouri TAXGUY and host of the weekly “McTax Hangout” show, has aguest post by Jonathan of mydefaultedloans.com on “The Helping Hand of the Student Loan Assistance”.
Whileyou are there be sure to check out Bruce’s “store”.
* And Bruce himself discusses “Hiring the Right Accountants for Your Business”.
*Kay Bell explains that the “IRS' Third Offshore Amnesty Brings Total Recovered Funds to More Than $5 Billion”.
“The tax agency says that its latest offshorevoluntary disclosure program, or OVDP which is the term the IRS prefers insteadof tax amnesty, has pushed the amount collected in all its efforts to more than$5 billion.”
Hey,if they did so well with this tax amnesty – how about a general federal taxamnesty program like those successfully offered by many state over the years?
*The WASHINGTON TIMES reports that “Tax Cheats Got $1.4 Billion in Stimulus Loans”
“Taxcheats were given $1.4 billion in government-backed mortgage loans underPresident Obama’s economic stimulus, and the government doled out at least anadditional $27 million in tax credits to delinquents who took the first-time-homebuyertax break, according to a government audit released Tuesday.
Undergovernment rules, delinquent taxpayers are supposed to be ineligible for themortgage insurance program unless they have reached a repayment agreement withthe Internal Revenue Service. But the Federal Housing Administration didn’thave the right controls to weed out bad applications, said the GovernmentAccountability Office, Congress‘ chief investigative arm.”
* Trish McIntire reminds us that there isno such thing as a “Magic Refund Pencil” at OUR TAXING TIMES.
Taxpayers please pay attention -
“Whenyou sign your tax return, you are agreeing with what is on the return. You arethe responsible party should there be problems. Take the time to review andquestion that return before you sign. If you see a deduction that you didn’tgive the preparer or you don’t understand, ask questions. Ask why deductionsweren’t used.”
* Peter Reilly was the first to tell methat the “Individual Mandate In Obamacare Is Constitutional” at his FORBES.COM“Passive Activities” blog.
“Accordingto Scotusblog the individual mandate has been upheld. It survives as a tax. The entire bill is upheld with somelimitations on the federal government’s power to terminate state Medicaid funds.”
And according to a tweet by Dana Andrews(the EA and not the actor) –
“Well,my job and many others just got reaffirmed to be even more complicated. Thanksto the Supreme Court and Obamacare.”
It didn't get more complicated - it just didn't get less complicated.
Joe Kristan’s latest Tax Roundup at THE ROTH AND COMPANY TAX UPDATE BLOG,appropriately titled the “Supreme Court Frenzy Edition” provides links todetailed coverage of the decision.
If you are a glutton for punishment you canclick here to read the text of the decision.
To be honest I have nothing much to say onthe subject. It is not a new tax law –just the upholding of a previously enacted one. Just another example of the idiots in Congress further complicating themucking fess that is the US Tax Code to deal with non-tax social issues.
* Have you taken advantage of my "Special Summer Savings for Tax Pros" yet?
TTFN
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