Death and Taxes

The first is inevitable, the second wasn’t always so onerous. Here’s a history of taxation in the United States. It’s long but incredibly interesting.
Bearing in mind that the power to tax is the power to destroy, which system would you prefer to live in? One that is straight forward and takes only what’s necessary or one that is capricious and is so susceptible to corruption in it’s crafting and execution, that there’s no way for individuals to be absolutely certain that they’re in compliance. OK forget it, it’s not really a question.
I would add that I don’t necessarily think that Tom Daschle et al. specifically set out to evade taxes. Perhaps I’m wrong, but I think the fault really lies in the complexity of our tax code, if a friend loaned me a car or had his mom drive me to work I sure wouldn’t have thought it was “income”. That it was a limo and a driver isn’t really that different.

Additionally, if our system weren’t so overlaid with special interests why doesn’t the IRS provide free tax preparation software? Sure they have free tax preparation for people with straightforward returns and those with an adjusted income of less than $56,000? But why does our government fail to provide the rest of us with the tools we need to fully comply with the law instead of forcing us into the arms of the H and R Blocks and Jackson Hewitts, and hoping that maybe they get it right?

Here are some snips from the article in case you don’t have time to read it all.

“The Constitutional framers were wary of a government’s power to tax. Taxation of the American Colonies by a distant and corrupt England was a driving force behind the American Revolution. Consequently, they believed in decentralized taxation and delegated most public revenue collection to localities, which relied primarily on property taxes. During peacetime the federal government met its expenses through relatively modest excise taxes and tariffs. During wars, such as the War of 1812, federal taxes were temporarily raised to finance the war or pay down the ensuing debts. Once the financial crisis passed, taxes were reduced in response to public opposition to high tax rates. “

“The impetus for the modern federal income tax rests not with a wartime emergency but with the Populist movement of the late 1800s. The tax system in place at the time, based primarily on excise taxes on alcohol and tobacco, was largely regressive. The Populists revived interest in an income tax as a means to introduce a progressive tax based on ability to pay. They saw it as a response to excessive monopoly profits and the concentration of wealth and power. In other words, the tax was not envisioned as a means to generate significant additional public revenue but as a vehicle of social justice.”

Of course it was… Some things to think about as we head into tax day tea party season.

by Stephanie

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