W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
So the question remains, what went wrong with the tax system in the US?
US tax makers have been reaping what they have sown for quite a while. Our honor system has been replaced by a monster in which every tax payer is under watch due to the heavy threat of evading their taxes. Basically, compulsion has replaced consent. Honor has been replaced with espionage. If you are feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!
In the 1950s, there wasn’t a bank in the US that told the IRS about customer affairs, interest rates went unreported, withdrawals of cash were not reported, and not a thing that went through accounts were photographed. Also, real estate transactions were not reported, stock transactions weren’t reported, dividends were not reported, income from other sources (Form 1099) wasn’t reported, and US Customs didn’t require a declaration of cash carried. Go here if you want help from a modern-day Tax Preparation in Cary, NC.
It was an honor system, and it worked. The deterioration that occurred over the last fifty years to the present is that everything of any fiscal significance is now reported.
Adam Smith observed that taxes will be evaded and tax laws shown no credence when there is a general suspicion of a lot of unnecessary expense and a lot of misspending of the public revenue. For example, $500 toliet seats, high-dollar grants to study the sex lives of ants, etc.
For the sake of catching a few tax resisters and evaders in the 1950s Congress made a tax abomination of the US tax system that more and more taxpayers try to evade. As a general rule, widespread tax evasion is a sure sign that a government’s tax system isn’t working. Citizens will pay taxes, even income taxes, if the rates are reasonable.
Thanks for reading! Stay tuned for more updates!
http://www.marccpa.com/
Comments on this entry are closed.