In a meeting with business leaders, Trump stated that he would cut federal regulations by 75% or more. Really? That is impossible; given the shear magnitude of regulations in this country.
We have 75,000 pages of tax code. ObamaCare has spawned 20,000 pages of new healthcare regulations. During the Obama administration, almost 82,000 new pages of regulations were generated across all agencies of government. A record. And, George W. Bush was no slouch either. His administration and Congress generated more than 79,000 pages of regulations during his terms in office.
Here's the reality. The members of Congress call themselves "law makers". That's what they think their job is. Not "law cutters". So, the pile of laws simply keeps piling up. Thus, for Trump to eliminate 75% of regulations, he's going to need a lot of cooperation from the very people who make those laws. I don't see that ever happening. It's just not in their DNA.
References:
Trump tells business leaders he wants to cut regulations by 75% or 'maybe more': http://www.cnbc.com/2017/01/23/trump-tells-business-leaders-he-wants-to-cut-regulations-by-75-percent-or-maybe-more.html
Look at how many pages are in the federal tax code: http://www.washingtonexaminer.com/look-at-how-many-pages-are-in-the-federal-tax-code/article/2563032
How Many Pages Is Obamacare? https://robschwab.com/how-many-pages-is-obamacare/
Obama Sets New Record For Regulations – 81,640 Pages In 2016: http://www.zerohedge.com/news/2016-11-17/obama-sets-new-record-regulations-%E2%80%93-81640-pages-2016
Showing posts with label tax code. Show all posts
Showing posts with label tax code. Show all posts
Monday, February 27, 2017
Monday, August 17, 2015
Why The Tax Code Must Be Streamlined
Several GOP contenders for the Presidency have said that they would simplify this country's bloated tax code if they were elected. But, no one really explains "why" we need to do something about it.
As of April 15th of this year, there were more than 74,600 pages of federal tax code to wade through. In 1913, when income tax was adopted, it was just 4 pages long. In 2011, General Electric (GE) filed a 57,000 page tax return for their 2010 taxes. Using every tax break available to them in those 74,600 pages, GE managed to pay zero taxes on $14 billion dollars in profits. And, I suspect that a legion of IRS agents were needed for months to insure that GE's 57,000 page tax return was completely legal.
If we had a simplified tax code without a bunch of tax breaks, GE would not have been able to avoid paying any taxes in 2011. Also, Americans wouldn't spend 6.1 billion man hours preparing their returns each year.
Let's put the most hated of Federal Agencies -- the IRS -- out of business by reducing our tax code to what it was in 1913.
References:
Look at how many pages are in the federal tax code: http://www.washingtonexaminer.com/look-at-how-many-pages-are-in-the-federal-tax-code/article/2563032
GE Filed 57,000-Page Tax Return, Paid No Taxes on $14 Billion in Profits: http://www.weeklystandard.com/blogs/ge-filed-57000-page-tax-return-paid-no-taxes-14-billion-profits_609137.html
It takes Americans 6.1 billion hours to prepare their taxes: http://www.politifact.com/truth-o-meter/statements/2014/apr/15/virginia-foxx/it-takes-americans-61-billion-hours-prepare-their-/
As of April 15th of this year, there were more than 74,600 pages of federal tax code to wade through. In 1913, when income tax was adopted, it was just 4 pages long. In 2011, General Electric (GE) filed a 57,000 page tax return for their 2010 taxes. Using every tax break available to them in those 74,600 pages, GE managed to pay zero taxes on $14 billion dollars in profits. And, I suspect that a legion of IRS agents were needed for months to insure that GE's 57,000 page tax return was completely legal.
If we had a simplified tax code without a bunch of tax breaks, GE would not have been able to avoid paying any taxes in 2011. Also, Americans wouldn't spend 6.1 billion man hours preparing their returns each year.
Let's put the most hated of Federal Agencies -- the IRS -- out of business by reducing our tax code to what it was in 1913.
References:
Look at how many pages are in the federal tax code: http://www.washingtonexaminer.com/look-at-how-many-pages-are-in-the-federal-tax-code/article/2563032
GE Filed 57,000-Page Tax Return, Paid No Taxes on $14 Billion in Profits: http://www.weeklystandard.com/blogs/ge-filed-57000-page-tax-return-paid-no-taxes-14-billion-profits_609137.html
It takes Americans 6.1 billion hours to prepare their taxes: http://www.politifact.com/truth-o-meter/statements/2014/apr/15/virginia-foxx/it-takes-americans-61-billion-hours-prepare-their-/
Tuesday, April 14, 2015
Have You or Your Tax Preparer Read All 70,000 Pages of the Federal Tax Code Yet?
Last year, about 170 million Americans had to file a tax return at a cost of 1.35 billion (billion with a "b") man hours in preparing those returns. On average, that's about 8 hours per person or the equivalent of one long business day per filer spent putting numbers in little boxes, adding them up, and checking off things he or she may not understand. Then, at the end, you sign and date the thing swearing that its totally correct or you may be subject under penalty of law.
Up until ObamaCare, only those who reasonably made any income had to file tax returns. But, this year, because of the new healthcare law, even those, who in the past, made too little to pay taxes must file a return anyway in order to prove they have official ObamaCare approved health insurance and avoid paying a penalty. According to the nation's leading tax service, H and R Block, only about 1 in 4 low income families even knows this; leaving 3 out of 4 in violation of IRS rules and regulations by not filing the up to 3 forms associated with proof of insurance. Of course, the friendly IRS has whipped up a handy 21-page single-spaced guide to help you understand how to fill out those three forms. Unfortunately, for most people reading the guide, it will seem like it was written by some alien being; especially for low income families with limited education. Of course, this means millions more tax returns and it also means thousands of new IRS agents to handle all that new paperwork.
In 1989, when the tax code was about 30,000 pages long, the LA Times found that the IRS help line was 30.8% wrong in the advice they gave someone with regard to their tax preparation. Today, with more than 70,000 pages of tax code, it's anyone's guess how accurate (or inaccurate) the help line is. But, this we do know. The IRS has already said that it will only be able to handle half the calls to its help line and 87% of those who do get connected will have to wait 2-1/2 hours for the call to be answered.
My purpose in explaining all this is to say that the current tax code is beyond human comprehension. It would be like remembering page-by-page every book you ever read plus all future rewrites.
Simply, the tax code needs to be abolished and a simplified system installed in its place. After all, the original income tax was a flat tax. Then, it morphed into a progressive tax in which the more money you made the higher your taxes were. Ever since then, each political party has attempted to curry favor by modifying the code to give special exemptions to garner votes. Taxes have become both punishing and incentivizing; always with the voter in mind. No one should have to wait 2-1/2 hours to get an answer about trying to pay their taxes without the threat of fines or jail time.
References:
The Cost of Tax Compliance: http://taxfoundation.org/blog/cost-tax-compliance
H&R Block: ‘No One Can Understand’ New Obamacare Tax Code: http://dailycaller.com/2015/01/19/hr-block-no-one-can-understand-new-obamacare-tax-code/
IRS seeks 4,000 agents, $303 million for Obamacare: http://www.washingtonexaminer.com/irs-seeks-4000-agents-303-million-for-obamacare/article/416051
IRS Help Line Has Error Rate of 30.8% - Los Angeles Times: http://articles.latimes.com/1989-03-11/business/fi-777_1_irs-employees
The IRS will answer less than half your calls this filing season: http://www.washingtonpost.com/blogs/wonkblog/wp/2015/01/14/the-irs-will-answer-less-than-half-your-calls-this-filing-season/
Up until ObamaCare, only those who reasonably made any income had to file tax returns. But, this year, because of the new healthcare law, even those, who in the past, made too little to pay taxes must file a return anyway in order to prove they have official ObamaCare approved health insurance and avoid paying a penalty. According to the nation's leading tax service, H and R Block, only about 1 in 4 low income families even knows this; leaving 3 out of 4 in violation of IRS rules and regulations by not filing the up to 3 forms associated with proof of insurance. Of course, the friendly IRS has whipped up a handy 21-page single-spaced guide to help you understand how to fill out those three forms. Unfortunately, for most people reading the guide, it will seem like it was written by some alien being; especially for low income families with limited education. Of course, this means millions more tax returns and it also means thousands of new IRS agents to handle all that new paperwork.
In 1989, when the tax code was about 30,000 pages long, the LA Times found that the IRS help line was 30.8% wrong in the advice they gave someone with regard to their tax preparation. Today, with more than 70,000 pages of tax code, it's anyone's guess how accurate (or inaccurate) the help line is. But, this we do know. The IRS has already said that it will only be able to handle half the calls to its help line and 87% of those who do get connected will have to wait 2-1/2 hours for the call to be answered.
My purpose in explaining all this is to say that the current tax code is beyond human comprehension. It would be like remembering page-by-page every book you ever read plus all future rewrites.
Simply, the tax code needs to be abolished and a simplified system installed in its place. After all, the original income tax was a flat tax. Then, it morphed into a progressive tax in which the more money you made the higher your taxes were. Ever since then, each political party has attempted to curry favor by modifying the code to give special exemptions to garner votes. Taxes have become both punishing and incentivizing; always with the voter in mind. No one should have to wait 2-1/2 hours to get an answer about trying to pay their taxes without the threat of fines or jail time.
References:
The Cost of Tax Compliance: http://taxfoundation.org/blog/cost-tax-compliance
H&R Block: ‘No One Can Understand’ New Obamacare Tax Code: http://dailycaller.com/2015/01/19/hr-block-no-one-can-understand-new-obamacare-tax-code/
IRS seeks 4,000 agents, $303 million for Obamacare: http://www.washingtonexaminer.com/irs-seeks-4000-agents-303-million-for-obamacare/article/416051
IRS Help Line Has Error Rate of 30.8% - Los Angeles Times: http://articles.latimes.com/1989-03-11/business/fi-777_1_irs-employees
The IRS will answer less than half your calls this filing season: http://www.washingtonpost.com/blogs/wonkblog/wp/2015/01/14/the-irs-will-answer-less-than-half-your-calls-this-filing-season/
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