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Tuesday, January 12, 2010

The Best Argument EVER For Tax Reform

Some people are fighting for a fair tax, replacing our income tax structure with a VAT, a Value Added Tax(country wide sales tax). Others argue for a Flat tax, one tax rate on income for everybody, no deductions etc. Both sides are fighting for the same concept. Simplify the way the federal government collects taxes. America's Tax Structure is just so complicated and is getting more complicated every day. The best proof for this argument was made by IRS Commissioner Douglas Shulman on C-Span (video at bottom of post).
During an interview on C-SPAN's "Newsmakers" program that aired on Sunday, Shulman said he uses a tax preparer for his own returns.

"I've used one for years. I find it convenient. I find the tax code complex so I use a preparer," Shulman said.

Pressed on how he would make the tax code simpler, Shulman responded, "I don't write the tax laws. Congress writes the tax laws so that's a whole different discussion."

The IRS this month announced it will be scrutinizing the tax preparer industry. Shulman said the IRS is looking to set "a minimal level of competence in the preparer community."

Later in the C-SPAN interview, Shulman downplayed his use of a tax preparer, saying he has used one for 10 years. He noted that he and President Barack Obama are proponents of simplifying the tax code.

Shulman said about 60 percent of Americans use tax preparers and another 20 percent use software to file their returns.

He added, "So you're over 80 percent of people who aren't just sitting down and filling out the forms themselves."
If the head of the IRS can't figure out the tax code enough to do his own Taxes, How the heck are we supposed to? That my friends is the best argument ever for simplification of the tax code.


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