Senate pushing tax reform. May sound good, but whenever there’s tax reform, taxpayers lose.
Tattoo that on the back of your hand.
“This will be the biggest tax bill since Reagan’s 1986 tax act.” Senator McConnell.
If you think Reagan was different, think again. Reagan gave us “passive activities”, “at risk” rules & all kinds of things that limited legitimate deductions. That was part of their broad brush approach to tax shelters. It’s true, tax shelters are no more. But that’s not the only thing that died with the 86 tax act. Rental real estate went from a terrific “deduction” to a “nothing” kind of thing limited to $25,000 in loss deductions. And it wasn’t even a tax shelter. It was just something ordinary Americans could do.
http://www.businessinsider.com/r-us-senates-hatch-sees-support-for-tax-reform-2015-1.
The politicians I’ve named are all Republicans.
Calling those lying *#y#k*s will probably not do you much good, but you might as well give it a try. Tell them to keep their hands off the tax code.
I haven’t written about the tax code much on here, but in my opinion, it’s a thing of beauty. Not that anyone designed it that way. It just turned out that way. I’m writing a paper on that subject right now and I’ll make it available here should I ever get it done. It gives a true artist tons of alternatives for cutting your income tax to the legal minimum. If Congress does reform taxes, you’ll be sorry. All the good stuff will go away in favor of a flatter tax with fewer deductions and fewer alternatives.
Then we’ll have to fight it out in court because that will be a violation of Glenshaw Glass and the 16th amendment. But that’s a story for another time.
bizztrategy @ Ellis CPA 