Obama: Simplify the IRS Tax Code

Filed in Accounting, Business, Intuit QuickBooks by on January 26, 2011

President Obama called on Congress to simplify the ITS Tax Code by eliminating deductions. He said, “This will be a tough job.” NO, IT WON’T!

There is one very easy way to simplify the IRS Tax Code completely: GET RID OF IT! Businesses and Internal Revenue waste more than 50% of federal tax revenue on tax compliance and tax opportunity (planning and mis-planning) costs. Income taxes place our exporters at a terrible disadvantage (exporters pay income tax, but other countries waive value added taxes on exports). Our income tax also applies to most worldwide income, while other countries only tax local income. This makes our income tax the worst possible way to finance government.

As an accountant, I have been studying tax simplification for 50 years. Obama now wants to simplify the IRS Tax Code by eliminating tax deductions. I AGREE, though it means less blood (wasted) money for CPAs like me. However, our 70,000 page IRS Tax Code has long gotten more complex each time we tried to simplify it. Millions of pages of IRS rulings, case law and commentary now interpret it. That is why the best tax professionals call efforts to simplify the IRS Tax Code, “The CPAs and Attorneys Full Employment Act.” Click here to ask President Obama and your Congressmen to simplify the IRS Tax Code by GETTING RID OF IT!

One simple way to simplify the IRS Tax Code relates to Obama’s plan to limit the four billion new 1099s, required by the new Health Care Law. This plan got one of the only standing ovations from all Congressmen, though Obama only wants to drop 1099s for small business. My Health Care Mess, $1 Trillion in Extra Hidden Costs post shows this is terrible waste for businesses of all sizes, which will cut tax revenue by $250 billion. Almost no one has been considering this inevitable major tax revenue loss.

Dropping small business 1099s means IRS will be unable to match remaining 1099 payments with business income tax returns, to help it collect $1.7 billion a year from tax evaders. That amount is tiny compared to the business cost. The ability to switch to a fiscal year or the accrual basis also meant that cash basis 1099 payments were never likely to match any reported income. Having business 1099s exclude credit card payments (separately reported by credit card companies) only made matches even less likely, according to the Internal Revenue Taxpayer Advocate. She also says that using credit cards and fewer suppliers, to cut 1099 costs, will devastate small businesses (who create 70% of new jobs). Finally, keeping extra 1099s, even for big businesses, means the Health Care Law Promotes Identity Theft.

Click here to ask President Obama and your Congressmen to simplify the IRS Tax Code by GETTING RID OF IT! There is only one easy way to simplify the IRS Tax Code that complies perfectly with the new Obama and Republican agreement banning earmarks and with Obama’s new desire to minimize regulations. Every tax deduction and exemption is an EARMARK for someone, so we should ELIMINATE THEM ALL.

This will not increase taxes, as we will simultaneously cut tax rates. There is a very simple way to do this, without cutting initial government revenue. We can do it, while permanently solving balance of payments problems and massively increasing U.S. jobs (the major Obama and Congressional goal). We can do all this and much more with the ridiculously simple FairTax, so click here to ask President Obama and your Congressmen to simplify the IRS Tax Code by GETTING RID OF IT!

Under the FairTax, taxes will suddenly cost less than nothing. This is because we will pay around 30% less on most pre-tax purchases, once we eliminate businesses tax compliance and tax opportunity costs. We will even see how much tax we really pay every day, so few of us will ever again ask for more “free government services.”

Please follow the FairTax on FaceBook. Contact us our new South Florida FairTax Meetup (use the email at the top of the linked page). Important, click on and share this picture with your friends, President Obama and your Congressman!

 

I only found one person that would not support the FairTax, once they understood it: a CPA trying to keep his blood money.

 

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Fastest, easiest, accurate, low-cost QuickBooks! Intuit - QuickBooks CEO, "You're fantastic Mike! Absolutely fantastic!" Tax fighting CPA.

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