Tag Archives: income tax law

The Future of Income Tax Regulation

As time goes on, each political campaign mentions either abolishing the IRS or simplifying the code to allow for easier completion.

I am not confident in either of those taking place. While the simplification of the code would do wonders, the complexity of it also aides in positive reinforcement.

Things such as adopting children, going to college, buying a energy efficient car, are often things done through the tax code to get the public to do something. Not saying that is right or wrong, it just is what it is.

Whenever you get politics involved, the process becomes very time consuming and difficult, as every special interest group and lobbyist is after their time and vote. So getting pulled in a million different directions just makes it even harder to get real reform completed.  No matter what happens, someone will not be happy with the changes.

One area that I think will never change is the charitable deduction. There is too much pressure on this as many people give to Goodwill and Salvation Army. One thing I could see though is additional phase outs for high income earners.  The AMT is getting enough pressure as it is though, so that is another sticky topic will will discuss in future tax articles.

While there is lobbying on behalf of tax preparers, there will always be a segment of the population that needs some sort of advice and financial wisdom, so your jobs are not going away, only perhaps change a bit as time moves on and the IRS evolves.

Tax code is extremely complex and if you do not feel confident or have a unique circumstance, seek the help of a tax professional near you.