Taxing Notes

Here I am, hurling towards another ending to an intense tax season, trying to focus long enough on something that could be used as a newspaper column, thoughts of how to finish partially completed returns swirling, instead of thoughts of complete, coherent sentences.

I will try.  Here are some of my impressions of the tax season so far -

Most people are doing the best they can to responsibly report under a very chaotic system.  It is hard to gather everything you need to make a complete tax return.  Yes, there are those of us who simply can turn in a W-2 and have it done, but even those have considerations that are hard for the average person who is not drenched in the knowledge of tax laws and regulations.  Do you qualify for earned income tax credit?  Do you have dependents, and who exactly qualifies for a dependent or not?

To get something as simple as a child tax credit, or a tuition credit, now requires more forms and questions than ever before.  Proof of health insurance has become necessary.  Every action is requiring more and more information.

The IRS is not our enemy.  Yes, there can be impolite or bureaucratic agents, but those exist in every line of work.  They are just trying to enforce and advise about the jungle of laws and regulations enacted by Congress.  And Congress seldom acts in the interest of all, but convolutes and complicates the law in order to benefit whatever special interest they cater to. It makes things even more difficult that they are understaffed and overworked.

My father used to pride himself in preparing his own taxes.  He would do so by hand, no assistance from computers or accountants.  As he aged, he would send me his information to prepare for efile submission, even though he had hand completed his forms.  I was always amazed at how accurate he was.  Now that kind of thing has become too complicated for even some of the smartest of us.  Even I prepare my own taxes using computer software.

Every year I hear calls to reform the tax system and to make it simpler.  That is something that we can all agree on, no matter our place on the political spectrum.  Instead, every year Congress seems to make it more and more complicated.  They see the tax code as a way to legislate and complete their priorities.  Want to improve education in the country?  Instead of rebuilding schools or providing more materials and supplies, or better paid teachers, why not simply instead raise the credits and deductions for education expense?  Worried about energy?  Just give more tax loopholes to the energy providers.  Sadly, we have decided to advantage the fossil fuel users instead of alternative energy, but that is just an example of how we use the tax  code to influence the direction of the country, for good or ill.

I would love for us to have a simpler system.  I think that would benefit all.  Well, except maybe me and others who make a living in part helping people complete those complicated returns.

Once again, a new Congress is looking at tax reform.  They say they want to make things simpler. We'll see.  I have my doubts.  They may have good intentions, but the lobbyists will descend, and we may be left more confused and puzzled than ever before.

What can I say?  Bad for the average citizen trying to do his best to follow the tax code, good for my profession's job security.  And so it goes.