A Few Words About Taxes
Death and taxes are certainties, but I have had conversations with people about taxes, income and seen billboards recently that make me wonder if only death is a certainty.
My guru on taxes was my father. A bean counter if there ever was one. He was very clear about a couple of things, declare all your income and file your returns. This makes sense to me. He enjoyed trying to figure out realities in matters and also believed in taking deductions. Again this makes sense. Depreciation was a good friend of his, as were receipts and notes on the receipts.
In Miami there are billboards advertising refunds on your federal income taxes based on your family size. I imagine the amounts advertised are related to the earned income tax credit. I think the idea of a tax credit for low income workers is a good idea. Unfortunately lots of folks take liberties with this portion of the tax law and tax preparers often assist in this type of tax fraud.
Other wise educated folks believe that if they don't get a 1099 they don't need to declare that income. The self employed should declare that income and pay the taxes on that income. This will give them credits in their social security account. Just because it is difficult to trace doesn't mean it isn't income. Folks that work for cash on the low end of the wage think they are getting a break, but the employer is also avoiding paying taxes.
Employers complain about having to do paper work but there is a significant amount of money that is going out the door because because it is not being reported and the whole system suffers because of it.
I'm open to the idea of tax reform and it should be a regular part of the legislative process. Without periodic reform the wealthy and politically connected benefit and others are left behind in the process.
My guru on taxes was my father. A bean counter if there ever was one. He was very clear about a couple of things, declare all your income and file your returns. This makes sense to me. He enjoyed trying to figure out realities in matters and also believed in taking deductions. Again this makes sense. Depreciation was a good friend of his, as were receipts and notes on the receipts.
In Miami there are billboards advertising refunds on your federal income taxes based on your family size. I imagine the amounts advertised are related to the earned income tax credit. I think the idea of a tax credit for low income workers is a good idea. Unfortunately lots of folks take liberties with this portion of the tax law and tax preparers often assist in this type of tax fraud.
Other wise educated folks believe that if they don't get a 1099 they don't need to declare that income. The self employed should declare that income and pay the taxes on that income. This will give them credits in their social security account. Just because it is difficult to trace doesn't mean it isn't income. Folks that work for cash on the low end of the wage think they are getting a break, but the employer is also avoiding paying taxes.
Employers complain about having to do paper work but there is a significant amount of money that is going out the door because because it is not being reported and the whole system suffers because of it.
I'm open to the idea of tax reform and it should be a regular part of the legislative process. Without periodic reform the wealthy and politically connected benefit and others are left behind in the process.
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