Taxes

I have been swamped for the past six weeks and am just getting to this post. I originally wrote it on my Blackberry. It brings up the thought that forcing the republic to hire a professional is unconstitutional.

I have been busy over the past couple of weeks. I took a whole day last Saturday. It was a beautiful day outside. I spent it inside working on my taxes. I also had to take off from work on the 14th to finish the job. I’m not happy. Here is why: I was once an accountant/financial analyst. I was paid to work in accounting. I was very comfortable in finance and an adequate accountant. I was simply bored to near death. This experience exposed me to the tax system. I am familiar with and can follow most accounting speak. I would venture to say that I may have a better understanding of accounting than 90 percent of the population.

My first point is this: I am still nervous and apprehensive about filing my own taxes. There are over 70,000 pages of tax code and it is technical data.
Next: to avoid paying more than my share I have to know current tax law. I am now in sales and work from the home as does my wife. We are able to reduce our taxable income by listing our home office expenses and associated business expenses. This takes tax software a computer to run it on and a basic knowledge of accounting. Accordingly most people with income are required to file. However, just because you file does not mean that you pay taxes. For almost 50 percent of the population there are no federal income taxes. If the non paying person files they may still receive a check for an income tax credit. This is a redistribution of wealth. In essence for me to reduce my taxes while ensuring that I pay the correct amount I either have to know the current tax law (part of the 70,000+ pages) or hire someone who does. To comply with the law I have to expend resources (a lot of time) or pay a tax professional. This, in my opinion, is unconstitutional. I am not against paying taxes at all. I believe we need to pay for the proper protection and maintenance of the country.

What is the solution? The current tax system needs to be overhauled to make it easier to comply. I imagine this will also increase participation; ie tax receipts. A flat or non-progressive tax rate would be an idea. Perhaps a consumption based tax would get the results this country needs. This would take administrative burden from the payer. Think about the amount of productive hours this would free.

JW