Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: Spots who wrote (1060)	4/25/1998 3:17:00 PM
From: Colin Cody	Read Replies (1) of 5810

Spots, there is still a tremendous burden on the public due to the sheer cost and complexity of the tax codes, which is in addition to the absurd proportion of GNP extracted by the various levels of government. It's "off the books" so the government doesn't have to take the heat for it, but it's a tremendous drain on national resources. Add to that the economic costs of market distortion caused by central-economic-planning-committee mentality of the congress and many states, and the result is incalculable. I don't mean cheap. I AGREE. Consider Automobiles. When I was younger I could take one apart piece by piece and reassemble it screw by screw (with a few dozen left over) (g) and it would provide me with safe transportation! TODAY it is much too complicated. Geez, I use to be able to "rebuild" my old SHOES with thread and epoxy! Today's footwear is far too complex to try that again! (g) The Tax Code IS complicated. It is MY OPINION that the ready availability of the PERSONAL COMPUTER that has tempted CONGRESS to go wild with their TINKERING. EXAMPLE:- Just look at DEPRECIATION: When I got out of school we had maybe 6 allowable methods of computing it for every possible asset that existed. In the past 20 years Congress ADDED HUNDREDS more! Why? Not the CPAs! With six methods we had enough for nearly EVERY business need ever imagined. (I think the AICPA added two new ones for intangibles: goodwill and software). The REAL REASON was CONGRESS' TINKERING for Social Engineering. I just don't buy what you say about all the work generated for CPAs, lawyers, etc by a genuine simplification of the tax codes. Of course there would be interim work generated to dismantle the useless (destructive) tax-only white elephants that have been assembled over decades. Heck, there was a lot of work generated to convert stables to garages, too. So start up a "Make a Garage from YOUR Stable" business today and see how rich you get. Of course the coach fitters became car fitters (body by Fisher). That is, they took up useful work <G>. WELL I AM ONLY GUESSING ABOUT THE POTENTIAL INCREASE IN BUSINESS. IT IS A LONG WAY OFF IF EVER THAT WE WILL SEE ANY ELIMINATION OF TAXES AS YOU'VE DESCRIBED AND A LOT CAN HAPPEN TO THE CPA PROFESSION BY THEN. My point is NOT that are CPAs hungrily awaiting this new increase in business. It is to dispel the FALSE message that CPAs are lying when we poo poo the Flat Tax / NST based on our FEAR of lost business! Simple personal 1040 income taxes are NOT the bread and butter of the CPA profession. HERE: From "The Practical Accountant" April 1998 issue page 6 the results of an annual CPA Firm survey: Based on 100% of their billings "doing books and financial statements and opinions thereon" about 42%; "Advisory and consulting" about 13% "Tax related work" about 45%. Of that 45% tax work the LION'S SHARE would be CORPORATE WORK, and that of HIGH NET-WORTH INDIVIDUALS. It is my GUESS that the 1040 work that would "fit on a postcard" might be 2% of the CPA's profession. And THAT to a fair extent is probably done more "as a courtesy" in maintaining existing large clients and developing contacts for referrals into new BUSINESS. (and keep in mind this is ONLY the CPA FIRMS. There are as many CPAs working in Industry who do ZERO 1040 tax work) That is, the congress will never do it. Now you're saying it clearly! All the talk is to raise MONEY for those touting the Flat Tax. Many people will actually vote for those politicians because they praise the flat tax / NST. Many others will actually send their money as contributions to various Flat Tax organization on the Internet. The more $$$ they send, the more $$$ the "officers" will have to spend on salaries and perks! Colin

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