Over the last couple weeks, I laid out primary concerns associated with the American tax code: Effectiveness at encouraging productive decisions about money and time Simplicity/understandability Fairness Stability/predictability I believe that my proposal accomplishes these four things, and contrasts with elements of dysfunction in the current code. We have been the victims of literally aggregious [...]
Archive for the ‘Taxation policy’ Category
My Federal Tax Proposal
Posted in General economic, Taxation policy on February 22, 2012 | 1 Comment »
Taxes – Features of Simpson Bowles proposal
Posted in General economic, Taxation policy on February 21, 2012 | 1 Comment »
The tax proposal included in the Simpson Bowles proposal is an excellent effort, clearly in the right direction for America. http://www.fiscalcommission.gov/sites/fiscalcommission.gov/files/documents/TheMomentofTruth12_1_2010.pdf Relative to the tax code, the report describes its goals as: “Reform and simplify the tax code. The tax code is rife with inefficiencies, loopholes, incentives, tax earmarks, and baffling complexity. We need to [...]
The Estate Tax
Posted in General economic, Taxation policy on February 16, 2012 | 1 Comment »
There are three methods by which Americans are taxed currently: 1. Income tax – Federal and many states 2. Property tax – State and municipal real estate taxes (Florida has a small net worth tax) 3. Consumption tax – Federal fuels and use taxes, state and municipal sales taxes All have passed court muster as [...]
More Incongruities – Taxation of Social Security and Unemployment INSURANCE
Posted in General economic, Taxation policy on February 14, 2012 | 4 Comments »
There are a few tax principles that guide consistency and congruity over political pandering. One such principle is that insurance proceeds are immune from taxation. There is a distinction between insurance premiums (life, disability, health, employment, social security) that are paid with before tax dollars (deducted immediately from gross income) and those that are paid [...]
Itemized Deductions – Class Implications
Posted in General economic, Taxation policy on February 13, 2012 | 5 Comments »
According to Karl Marx, the term “class” does not refer to the amount of money that you earn, but refers to the relationship to the means of production. So, in that light, the very favored tax treatment afforded to old wealth of income from long-term capital gains and dividends over income from work and small [...]
Itemized Deductions – Individuals’ Authorization of Federal Expenditure
Posted in General economic, Taxation policy on February 10, 2012 | 1 Comment »
There are so many problems with itemized deductions that its difficult to know where to start. Lets start with the problem associated with legislative process. With most Congressional authorization of specific expenditures, whether through the direct earmark process or through the funding of agenices (acting within legislative guidelines), there is a direct legislative path of authorization [...]
Taxation and Saving – Incongruity of current law
Posted in Taxation policy on February 9, 2012 | 1 Comment »
People save for a rainy day, for a major purchase, to fund an enterprise, for children’s education, for other dependents’ needs, for retirement, for charity, to pass on to heirs. Saving for a rainy day, dependents’ needs, and for retirement are minimum necessities. Unless one has family that is severely ill, the saving for retirement [...]
Some Unearned Income Good – Some Bad (Taxes)
Posted in General economic, Taxation policy on February 8, 2012 | 1 Comment »
People work individually and enterprise at what they feel called to do. People pursue paid corporate careers based on status and income that they can realize over their lives. Capital however is more machine-like and tends to be channeled to the highest total return. The poor have no capital, no savings, very very limited retirement [...]
Tax law complexity
Posted in General economic, Taxation policy on February 2, 2012 | 1 Comment »
The tax code is unnecessarily complex. There is not much else to be said. How is it too complex? 1. Many types of entities, each with their own advantages, logic and features 2. Many ad hoc incentives, (adjustments, deductions, credits) exceptions to basic principles then corrections to unintended consequences. 3. Many types of income categories (self-employment, ordinary income, [...]
Tax Policy – First Thoughts (this week)
Posted in General economic, Taxation policy on January 31, 2012 | 1 Comment »
I’m an accountant. This is tax season. I’m not busy yet, so its a time to think and establish themes for the year. Theme 1 – My role as a professional is to care, to apply my knowledge for the best interests of my clients, emphasizing finance, but in the context of finance as part [...]
