A Short Timeline of Taxation Practices of the USA, Section 3

Raleigh NC Tax Preparation

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

So, what went wrong with the tax system in the United States?

US tax makers have been reaping what they have sown for a long time. Our honor system has been trumped by a system in which every tax payer is under watch because of the heavy inclination of evading their taxes. Basically, consent has been replaced with compulsion. Honor has been replaced with espionage. If you're feeling the pressure with today's taxes, call a Cary NC CPA for all your tax-related needs!

In the mid-20th century, there wasn't a bank in the US that informed the IRS about the affairs of citizens who went to that bank, interest was not reported, withdrawals of cash were not reported, and not a thing that went through any account was photographed. Also, real estate transactions weren't reported, stock transactions were not reported, dividends were not reported, income from other sources (Form 1099) was not reported, and US Customs didn't 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 50 years to now is that anything 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 created a tax monster of the US tax system that more and more taxpayers try 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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This entry was posted on Thursday, December 24th, 2009 at 1:28 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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