A typical example of where the liberal elites that want to run everything always
fail. Government does a much worse job of running an economy than the private
sector. A simple fat tax would save maybe $300 billion a year and no
deductibles. It takes Americans 7 billion hours to calculate their taxes from
thousands of pages of tax code and nearly half of Americans don't pay any
Surprise1? The Gov't going off half-cocked and doing it
half-right (not the word I wanted to use).
J-TXDon't worry about getting audited forever. If the
Democrats ever get their way, they will take away charitable deductions to
organizations like Church and BSA. And I'm not trying to be funny in
saying that. I really think a good portion of Democrats and especially liberals
would be very happy to take away those types of deductions.
$110B, or $11B per year? And they are auditing me for $400? Three
years in a row? Just because my charitable donations include conservative
groups like the LDS Church and the BSA?
And now that the Federal Government is adding another huge layer of bureacratic
nightmare to the system, namely the 2600 page health care plan, we can now
expect more unaccounted for and mismanaged tax payer money to make our country
even more inefficient and deeper in debt. Too big of anything, government,
business, religion, ect. always becomes too big for proper management, because
no one person or group of persons can keep track of all that needs to be kept
track of. It's practically a law of physics.
David is right. The tax code desperately needs simplifying. Then let go half the
IRS people, and let them go out into the economy and do something constructive,
to bring more revenue into the government. So simple. So right. So
impossible when those making the tax rules are using those rules to buy donor
It's in the government's interest to give out improper tax credits.
That's why they do it.
The tax code is simply too complex and to big for any agency to implement and
carry out enforcement. There are thousands of pages that detail and define the
tax code.It is past time to simplify the tax code. A flat tax would
fix much of the problems described in this article. A flat tax with either no
deductions, or relatively few deductions, would work nicely.
Two things...If this tax credit is complicated in some way, why not
just simplify it... especially since there is so much lost money involved.Secondly, why should we be paying anyone (rich or poor) for the
privilege of living in the U.S.? To let some people get by without paying any
federal tax should be benefit enough. It seems crazy for the IRS to be actually
paying back more money than people pay into the system. Dumb things like that is
yet another reason this country is going broke so quickly.
That's rich.....the IRS blaming the unscrupulous Taxpreparers is akin to
Bernie Madoff blaming George Bush
Here are some interesting facts from a recent article in the New Yorker by
George Packer:Nationally, the IRS's workforce has been cut by
25% over the last twenty years, whereas the number of individual tax returns
filed annually has grown by more than 25% over the same time period. This means
there are much fewer IRS employees with a much higher workload. As
a result, the IRS conducts about half the number of face-to-face audits compared
to 1992. The odds of being convicted of a crime due to an IRS investigation has
also decreased by approximately 50%.Meanwhile, most IRS employees
haven't had a raise in over three years, every IRS employee lost three days
of pay due to the sequestration last year, and during the recent shutdown about
90% of IRS employees were sent home without pay.This all equates to
"mission accomplished" for many conservatives who feel like smaller
government is always better government. However, at current
spending levels, it's estimated that every dollar added to the IRS budget
results in an additional seven dollars collected in revenue. So while
Republicans pat themselves on the back for less spending, tax evasion runs
The number of IRS employees has declined over the past 10-15 yrs. There were
more IRS employees in the 90's than there are now. The IRS budget
was cut last year by $300 million. They are having to do more with less. The
advent of electronic filing also opens up new avenues for tax fraud. Our tax system could be made simpler but that isn't going to happen--not
with the dysfunction in D.C. And powerful interests wanting to protect favored
the affordable care act is going to be a huge mess and will distract us all from
the demise of Social Security and Medicaid...this is not going to go well
How does that amount of tax fraud compare with the tax fraud of businesses? Or
how does that amount compare with the fraudulent tax payer rip offs by local
governments? Or of the tax not paid by Charities, churches, Arts, and other
Its so easy to committ this fraud. All you have to do is create ficiticious
earnings on a schedule c and then report it on your 1040. Your earnings need to
be in the neighborhood of $10,000.00 for the year. These types of earnings
while recording a child in the household will net you the earned income tax
credit and some other calculation that I beleive increases your total child tax
credit. If you have 1 kid you will get about 800 dollars back. If you have 2
kids you can get double that and so on. Now many people think this should cause
a rise in audits of this group but the reality is the IRS only focuses 5% of
their audits ont this group which means that its the easiest way to scam the
I have little faith in the IRS. They were giving out money to ITIN holders for
children that were nieces and nephews who had never lived in the United States.
They sent over a million dollars worth of refunds to ONE apartment unit.If
they cannot detect those problems I have little confidence in their
abilities.And it took five years of warnings by the IG of the IRS for
changes to be made.
Earned income credit is for low income families with children. Low income
implies low education and/or lotsa time trying to get by. And then the IRS says
"honest families that have trouble figuring out how to calculate the
complicated credit" Well, duh --- it should not be a Rube
Sadly, the many things (WIC, food stamps, subsidized housing, free
lunches,etc)that were intended to be a temporary "safety net" have
become a way of life for some.More than a few have become adept at
gaming the system.
Fraudulent payment of subsidies, refundable tax credits and other wealth
redistribution schemes is nothing new. Nor is it ever acceptable.We
should end EVERY program which recycles money from one taxpayer into cash in
another's pocket. EVERY refundable tax credit, EVERY "subsidy."There will be enough fraud with people just being allowed to skip paying
taxes below a certain income level. Not need to cut them checks as well while
we are $17 Trillion in debt.But, we will not. And many times more
will be paid to scammers and crooks in the future, even though we are bankrupt.
After all, why not borrow money we don't have to give it to people who are
not eligible for a program? That's life on the liberal welfare plantation.