Tax Reform Panel Déjà Vu
WebCPA writes, It’s been five years since former Senator Connie Mack, then chairman of the President’s Advisory Panel on Federal Tax Reform, said the panel would “take a fresh look at the existing Tax Code and will formulate options for making the tax system simple, fair and productive.” Last Friday, the President’s Economic Recovery Advisory Board delivered its report on tax reform options “to achieve three broad goals: simplifying the tax system, improving taxpayer compliance with existing tax laws, and reforming the corporate tax system.”
According to the PERAB press release, the report is meant to be informative rather than prescriptive. Its intention is to aid discussion about the wide variety of tax reform ideas in these areas. The report will also be submitted to the bipartisan National Commission on Fiscal Responsibility and Reform as they continue to consider ways to address our nation’s middle and long-term fiscal challenges and to achieve fiscal sustainability. The Tax Reform Subcommittee of the PERAB received more than 600 serious submissions of tax reform ideas from the public both in person and in writing or electronically during their deliberations. They considered as many of these suggestions as possible.
The report states that the Board was not asked to recommend a major overarching tax reform, such as the 1986 tax reform, the tax plans proposed by the 2005 Tax Reform Panel, or proposals for introducing a value-added tax in addition to or in lieu of the current income tax system. They received many suggestions for broad tax reform, and some members of the PERAB believe that such reform will be an essential component of a strategy to reduce the long-term deficit of the federal government. But consistent with their limited mandate, they did not evaluate competing proposals for overarching tax reform in this report.
I have perused the Report.
I take issue with the politics of this undertaking. They state up front that they mission was to generate ideas that would, in total, not increase the tax of families making under $250,000. That is just as un-constitutional as pres. Bush’s instructions to come up with a tax proposal that maintained Progressivity.
That is a false goal. The system should be be used to un-constitutionally redistribute income.
It goal must be to fairly allocate our common costs to each citizen based on that citizen’s impact on the cost relative to others.
So long as the tax system is used to accomplish Socialist goals of “from each according to his means and to each according to his needs”, the American Republic will be endangered.
The simplifications offered are not bad (they could have offered a great deal more simplification than they have suggested). They took a very fine scalpel to the Tax Code when they could have used a chain saw to produce the same revenue while greatly simplifying the tax system.
The whole process of becoming e-file provider takes 45 days in total soo better one has to initiate the process straightaway. From 2012 it will become compulsory for most of the tax preparer which is 11 tax return or more but this is year any preparer who is preparing more than 100 will have to get E-services account.
This move to press for 100% e-filing where as now it is 70% e-filing by 2012 it will be 100% e-filing only .
More details….
http://www.outsource2india.biz/2010/10/tax-return-preparers-required-to-use.html