Is a “fairer” tax in our future?
Add one more certainty to the age-old “death and taxes”: complaining about taxes. Political commentators, politicians and our elected and appointed leaders frequently share their views on the state of our complex tax system.In 2005 Neal Boortz and John Linder suggested we needed serious tax reform.In 2012 Nina Olson, the taxpayer advocate, suggested the tax system needed a major overhaul.In 2013, will Congress finally make it happen?In response to sequestration, tax policy is being discussed again. The president suggests increasing taxes for the wealthy, raising Medicare premiums, and reducing Social Security cost of living adjustments. Republicans are generally opposed to President Obama’s proposed solutions.After Congress’ challenges of trying to reach a tax overhaul agreement last year, the House Ways and Means Committee is now seriously looking at the possibility of tax reform. Chairman Dave Camp (R-Michigan) is drafting legislation to simplify the tax code and reduce tax rates. Rather than try to amend the current code, the committee’s strategy is to start fresh and decide what exemptions are really needed.Will it be successful? Camp plans to complete the legislation draft by the end of the year, so it’s unlikely to be approved in time for the 2014 tax season. We’re not giving up hope though that our leaders can forge a more streamlined system.Surprised a CPA firm wants change? Don’t be. Our primary role is helping you plan for your financial future. While taxes will always be an aspect of that planning, constant, complex tax change and upheaval (to satisfy particular constituencies) hurts everyone.Our suggestion? Keep your eye on the news. Get involved. Insist your legislators vote for a simpler tax code (if you agree that’s the best policy). Remember, our leaders work for us!Meanwhile, if you need assistance dealing with present tax-related concerns, you can count on the professionals at Patrick & Robinson CPAs. We’re always accessible with the advice you need to seize the advantage for your future.Contact us at Office@CPAsite.com or 904-396-5400.
