Half Year Doing Taxes For The Government
By JOHN M. DERBY
August 3, 2017
took over half this year to complete our taxes. The taxes
were complicated by the fact that we own a business, we
have rental property, and we also do the taxes for our wife’s
Many people have businesses and do their own family taxes,
so that is not uncommon. We also have to hire a tax accountant
to compile the information and prepare it before e-filing
it to the IRS. Our cost for that work is over $3,000 a year.
Then we pay whatever tax our tax accountant determines is
necessary. We do not complain about how much we have to
pay in taxes, although we feel the capital gains tax is
a detriment to growth, and it keeps people from spending
money on business development.
Our complaint is with the amount of time and effort it takes
for us to file all the data which will be required for next
year’s taxes, and to provide that data in an organized
manner for our tax accountant.
Why not have a simple flat tax? The government has talked
about it for years, but is no closer to a solution.
Everyone agrees that tax reform is necessary. Everyone agrees
that tax laws are full of loopholes, which benefit those
who are rich enough to hire tax accounts to take advantage
of such loopholes.
Wouldn’t a flat tax eliminate all of that? Everyone
simply pays a flat rate for everything which is purchased;
as simple as that.
If you are a rich person and you want to live high on the
hog, then you pay more taxes. If you are poor and can not
afford expensive things, then you pay less taxes.
Just think of all the costs which would be saved. The number
of people working for the IRS could be cut in half. Tax
accountants would have to look for other jobs.
Many countries are already using a form of flat tax. In
Europe they call it the VAT for value added tax. In Mexico
they have an across the board tax of 16 percent.
Our present corporate tax is so high it chases businesses
to foreign countries. Not only does the United States not
get the corporate tax from these corporations but it also
loses the jobs which go with them. Instead, Congress should
give corporations a special allowance to bring the billions
of dollars kept out of our country and allow this money
to be put to work rebuilding this nation.
Someone needs to figure out what this country could do with
a flat tax of 16 percent. Half to be used for state and
local needs and the other half to run the federal government.
While Congress debates tax reform this summer, let them
think about total tax overhaul.
The flat tax would do that.