Today millions of taxpayers across the nation are scrabbling to file their 2011 tax forms before the April 17th deadline. While we scramble the Senate is on the Hill discussing whether to raise taxes under the “Buffet Rule” on those who earn over a million dollars a year. Let me tell you, the Buffet rule is the wrong rule.
As taxpayers struggle to complete the correct forms required by the IRS they cringe in fear hoping they do not get audited because of an inadvertent omission. The tax code is so complex not even the IRS agents agree with how to fill out most of the forms or which forms are actually needed for individuals and corporations.
With on-line searches today we find pages and pages of sites relating to our tax codes are illegal and are considered an excise tax which is not legal. Millions of individuals fail to file returns each year rebelling against a law that is unjust. The IRS code is over burdensome and the average citizen can not comprehend the language used. To file a regular Schedule 1040 return the IRS suggests taxpayers need 18 hours and the cost would be around two hundred thirty dollars. This information is located on page 94 of the instruction form which is 98 pages long.
Now, if you have adjustments, or disabilities, investments or other deductions you have added costs and time to file the proper forms needed. The instruction manual goes on to inform taxpayers they need schedule A if they decide to itemize deductions. The information provided for this set of forms needed to fill out takes up 13 pages of instructions.
Next we have the Schedule C instructions. Profit or loss from a business as a sole proprietor goes on this form. Now to follow this form the instructions go on for another 11 pages and many other forms in addition to the Schedule C form.
How about the Schedule D form if needed to declare “Capital Gains and Losses”. With 14 pages of instructions and several other forms needed the filers at this point are pulling their hair out. Cussing and screaming as they insist the IRS and it’s forms are just “NUTS” and we need a change to the system that is fair for all.
When they gain their composure Schedule E needs to be looked at. The instructions fill 10 more pages on Supplemental Income and Loss that may need to be addressed. Do you own an interest in a Domestic Partnership, or a Foreign Partnership? Then you must file Schedule E along with other forms such as 1065 and Schedule K.
Do you have profit or Loss from Farming then it’s time to look at Schedule F to file out. On the first page of the 18 page instruction manual in addition to the schedule F form there are at least 8 other forms that are mentioned that may need to be filed.
Next in the instruction manual comes Schedule J, Income Averaging for Farmers and Fisherman. By this time the taxpayer’s eyes are red from fatigue and ire. After reading through the 14 pages of instructions the individual finds it in themselves to possibly find an accountant or bookkeeper to help them with the paperwork so they don’t screw up.
Schedule R follows J with just 4 pages of instructions to direct the taxpayer to file the paperwork concerning Credit for the Elderly and the Disable. On page 4 a physician files out the form to certify the individual is in fact disabled.
Finally with 98% of the Schedules filed out the taxpayer gets to move on to Schedule SE. Schedule SE directs the filer to fill out this form if they earned $400 or more dollars during the tax year. The self employment tax instructions take up only 5 pages to inform the filer how to declare the tax and finish up with the paperwork so it can be sent off to the appropriate IRS location.
All this so our Political representatives can continue to cater to the lobbyists and special interest groups who do not want to see the tax system changed for the benefit of the individual.
Senator Thune (R) South Dakota, stated on the floor “it is time for the gimmicks to stop” as they discuss the Buffet Rule. The bill does one thing which is to target one group of individuals to pay more in taxes. These taxes will not reduce our debt as they will only raise approximately 40 billion extract in revenue. Folks, remember we have a national debt of just under 16 billion billion dollars, or 16 trillion if you can add that high. In addition this President has authorized spending within our Federal Government on average 1.4 trillion more each year then the government receives in revenues.
Sen. Mikulski (D)Marylandstated “the Buffet rule is a fair rule” as she emplows that it is time the rich pay their fair share. “We do have to make it fair” and this is the way to do it according to the Senator fromMaryland. “I think Buffet had a good idea, let’s codify it” Barbara goes on as she finishes with her time at the podium.
No, we don’t need a new addition to the tax code, what we need is a new tax code. The Buffet Rule is the wrong rule when corporations across the nation fill out hundreds of tax returns without paying one red cent into the IRS. What we need is a fair or a flat tax which treats all entities equally, not just those who have the lobbyist powers to persuade Congressional leaders to not do the right thing for their personal gains.
PATRIOT 