A Brief Timeline of Taxation Practices of the USA, Section Three
Posted on December 29, 2009
Filed Under Internet Marketing | Leave a Comment
W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
So, what went wrong with taxes in the US?
US tax makers have been reaping what they have sown for quite a while. Our honor system has been replaced by a monster in which all taxpayers are under surveillance due to the heavy inclination of evading their taxes.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 1950s, there was not a bank in the US that informed the IRS about customer affairs, interest rates went unreported, withdrawals of cash were not reported, and nothing 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 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 erosion that occurred over the last fifty years to now is that everything of any fiscal significance is now reported.
Adam Smith observed that taxes will be evaded and tax laws shown little respect when there is a general suspicion of a lot of meaningless expense and a lot of misspending 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 spawned a tax abomination of the US tax system that more and more taxpayers attempt to bypass. As a general rule, mass tax evasion is a clear signal that a government’s tax system isn’t working. Citizens will pay taxes, even income taxes, if the rates are acceptable.
Thanks for reading! Stay tuned for more updates!
http://www.marccpa.com/
Comments
Leave a Reply
