Posts Tagged ‘1040 EZ’

Uncle Sam’s tax code five times longer than the Bible

IRS Tax Form

by Paul Stanley

Newscast Media WASHINGTON, D.C.—Just in case you were wondering, the Internal Revenue Service tax code dwarfs the Bible in terms of the number of words used and a U.S. Congressman is picking up where others have left off in trying to simplify the rules that tell taxpayers how much they own Uncle Sam each year.

“This report confirms that the code is 10 times the size of the Bible with none of the good news,” said Rep. Dave Camp, chairman of the House and Ways and Means Committee. “Our broken tax code has become a nightmare of loopholes and special interest provisions that create added complexities and costs for hardworking taxpayers and small businesses.”

“Comprehensive tax reform will make sure everyone is playing by the same rules and help businesses create more jobs and invest in their workers,” Camp said. Depending on the version used there are approximately 774,746 words in the (King James) Bible. However, there are over 4 million words in the tax code that tax lawyers, accountants and taxpayers refer to when they prepare their annual tax return.

To make matters a little more complicated, Congress has made almost 5,000 changes since 2001, or an average of more than one per day since. Although Camp was a little off in his estimate, taxpayers do have a professional advocate whose job it is to make filing their return a little easier.

Nina Olson of the Taxpayer Advocate Service, a nationwide organization of about 2,000 taxpayer advocates, is responsible for submitting two annual reports to Congress and she agrees the code can overwhelm even the more ardent tax professional.

Part of Olson’s job is to assist taxpayers file accurate returns and wade through the volume of rules and regulations.

“If tax compliance were an industry, it would be one of the largest in the United States,” Olson wrote in one of her reports.

“On one hand, taxpayers who honestly seek to comply with the law often make inadvertent errors, causing them to either overpay their tax or become subject to IRS enforcement action for mistaken underpayments,” she said. “On the other hand, sophisticated taxpayers often find loopholes that enable them to reduce or eliminate their tax liabilities.”

And while Camp says he is determined to reform the tax code in 2013, the last time any major changes were made was 1986.

Both Democrats and Republicans consistently talk about tax reform and the more common subjects include eliminating or reducing mortgage and charitable deductions. According to congressional estimates, the most common deductions save taxpayers around $450 billion per year.

The problem, says Olson, is one person’s loophole actually benefits another and that if you eliminate one or more common deductions, it most likely won’t raise enough revenue to make the change worthwhile.

“That’s what we’ve been trying to say to taxpayers, that the special interests are us. It’s not just oil and gas or whatever you want to point your finger at,” she told The Associated Press. “That’s not where the money is.”

http://www.newscastmedia.com/tax-code.htm

         

Be the first to comment - What do you think?  Posted by Joseph Earnest - January 11, 2013 at 5:33 pm

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Democrats in Senate pass tax cut bill in time for 2012 election

Tax return

by Anugrah Kumar

Newscast Media WASHINGTON, D.C.—Democrats in the U.S. Senate pushed for and succeeded in the passage of a bill to extend tax cuts for the middle class. The Democratic bill was approved Wednesday by a near party-line 51-48 vote, and Vice President Joe Biden presided over the chamber just in case his vote was required to break a tie, The Associated Press reported.

The measure was passed soon after a rival Republican plan to include the best-off in the tax reductions was defeated 54-45 in the Senate.

When the Democratic bill goes to the Republican-controlled House of Representatives next week, it will certainly be rejected. “The House will vote next week to stop that tax hike, and until the Senate does the same, the threat to our economy remains,” House Speaker John Boehner said in a statement following the vote on Wednesday.

Democrats seemingly pushed for the measure just to allow President Obama to say to voters in the run-up to the Nov. 6 presidential election that his party got the measure passed but Republicans prevented his party from implementing it.

Democratic Senator Charles Schumer said, “Now the ball is in Speaker Boehner’s court. The Senate has spoken, the message is clear: ‘put the middle-class first.’”

“With the Senate’s vote, the House Republicans are now the only people left in Washington holding hostage the middle-class tax cuts for 98 percent of Americans and nearly every small business owner,” Obama said in a statement.

However, the passage of the Democratic bill also allows Republicans to say that the Democratic Party doesn’t care for businesses. Senate Minority Leader Mitch McConnell, a Republican, said, “Thank goodness it’s not going anywhere because it would be bad for the economy, the single worst thing we could do to the country.”

The $250 billion Democratic measure seeks to extend tax cuts for another year that are otherwise set to expire in January. But those tax cuts are not meant for individuals whose annual earnings exceed $200,000 and couples earning more than $250,000 yearly.

Under the Democratic measure, individuals earning over $200,000 and couples making at least $250,000 would see their top rates on those earnings rise from 33 percent and 35 percent today to 36 percent and 39.6 percent in January.

Republicans in the House are now expected to pass a bill similar to their $405 billion measure the Senate rejected Wednesday.

http://www.newscastmedia.com/taxcuts.htm

          

Be the first to comment - What do you think?  Posted by Joseph Earnest - July 27, 2012 at 1:55 am

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