Here's an editorial by Knight Kiplinger that suggests there's no way Congress will simplify the tax code. He offers several comments that I agree with, so we'll take them one by one:
There are a lot of tasks I'd rather do myself than pay someone to do for me, but preparing my tax return isn't one of them. I'm among the estimated 60% of taxpayers who use a professional. It's not that the return my wife and I file is complex -- no exotic tax shelters, rental property or day trading. But given that the IRS's own hotline provides incorrect information about half the time, I'll leave the task to my savvy CPA.
This is where I net out too. Too much time and money in completing a tax return myself -- I leave it up to someone else.
Like millions of Americans, I yearn for genuine tax simplification, and I'm not fussy about what form it takes. Any of the radical reform plans would be better than our present Rube Goldberg contraption -- some 60,000 pages of arcane code, regulations and IRS rulings that distort our economy, penalize saving and unfairly reward special interests.
Preach it, brother!
But I wouldn't mind paying even a somewhat higher federal tax bill than I do now in exchange for true simplification. I would feel better knowing that, with the demise of countless tax breaks for favored individuals and industries, everyone would be paying his or her fair share.
My issue is more "I wouldn't mind paying more, if I could count on the government to spend it responsibly."
Realistically, what are the odds that these plans will be enacted? Sadly, slim to none.
Let's face it: When it comes to true income-tax reform, Congress still prefers the devil it knows to an unpredictable devil it dares not imagine.
Unfortunately, I have to agree with him.
By the way, Knight's column is one of the main reasons I get Kiplinger's Personal Finance magazine. If you get it as well, I suggest you be sure to read what he says every month -- it's good stuff!
Need help preparing your taxes? FMF recommends: H&R Block. Do it yourself or have us do it. It's never been easier.
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