A Brief Timeline of Taxation Practices of the USA, Part Three

Raleigh NC Tax Preparation

W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…

So the question remains, what happened with the tax system in the United States?

US tax makers have been reaping what they have been sowing for quite a while. Our honor system has been trumped by a system in which all taxpayers are under watch due to the heavy threat of evasion. Basically, consent has been replaced with compulsion. Honor has been replaced with espionage. If you are feeling the pressure with today's taxes, call a Cary NC CPA for all your tax-related needs!

In the 1950s, no bank told the IRS about the affairs of citizens who went to that bank, interest was not reported, withdrawals of cash weren't reported, and not a thing that went through any account was photographed. Also, real estate transactions weren't reported, stock transactions weren't reported, dividends weren't reported, income from other sources (Form 1099) was not reported, and US Customs did not require a declaration of the amount of money carried. Go here if you want help from a modern-day Tax Preparation in Cary, NC.

Before it was espionage, it was an honor system, and it functioned quite well. The deterioration that happened over the previous fifty years to the present is that everything of any fiscal significance is now reported.

Adam Smith said that people will evade taxes and tax laws shown no respect when there is a general suspicion of much unnecessary expense and great misapplication of the public revenue. In other words, $500 toliet seats, high-dollar grants to study the sex lives of ants, etc.

For the sake of catching a few tax resisters and evaders in the 1950s Congress made a tax monster of the US tax system that more and more taxpayers attempt to evade. As a general rule, widespread tax evasion is a sure sign that a government’s tax system is bad. People will pay taxes, even income taxes, if the rates are reasonable.

Thanks for reading! Stay tuned for more updates!

http://www.marccpa.com/

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