Why am I just hearing about this?
For as many as 50 million Americans, the IRS gets all the information it needs to calculate taxes from employers and financial institutions. As part of Edwards’ plan, the IRS would calculate the tax bill and mail it to them on a Form 1, where they could verify and recalculate it or simply sign and return it. Form 1 is a step toward Edwards’ vision of a tax code that is simpler and fairer and that rewards work.
People hate doing their taxes. For a lot of people this would eliminate the whole April 15th hustle of getting your taxes in order and mailing them off. Please do this.
As a guy who spent 17 years with the IRS, 15 years as a Revenue Officer, I can tell you, simply, that that is the craziest idea imaginable.
The turmoil and bureaucratic fumbling that such an idea might engender beggars the imagination.
Aide from what it would do to the organizational structure of the IRS, there are atleast 10,000 IRS employees who could give a dozen reasons, each, why that is a spectacularly stupid and unworkable idea.
Apparently, when Edwards was a Senator, his staff never handled any IRS complaints.
Incidentally, the IRS has the power to prepare certain payroll tax returns, under IRC section 6020(a) and IRC 6020(b)
I think the proposal is more trouble than it’s worth (extended discussion here.)
But let’s at least credit Mr. Edwards recognition that running for President is a chance to have a national discussion of ideas like this. At last, Edwards is no longer running on a platform that consisted of nothing other than “Not Bush”.
Celebrate the small steps where you can…
Ferris: And they’re not even IRS empoloyees, I don’t think…
I want to hear the NTEU weigh in…
And they are way liberal.
Flat Tax Or No Tax!
“Flat Tax Or No Tax!”
Bold words from someone who doesn’t pay taxes.
This is like letting the proverbial fox count the chickens in the henhouse.
If you are careless enough to let the IRS figure your taxes for you, why even bother filing a “return” at all? Why not just let the IRS keep all your withholdings and dispense with the waste of time and money created by generating “returns”?
Of course such a system would be incumbent upon the fact that taxpayers accurately filled out their W-4 withholding forms. In that case, perhaps Edwards’ plan should include a stipulation that accepting such an arrangement would entitle the IRS to make unannounced visits to the address listed on the employee’s W-4 form in order to verify that the information regarding marital status and dependents is correct.
The only way this would work would be if there were a flat tax with no deductions. I suppose if you were filling out an 1040EZ with astandard deduction this would work for you, but all those people who itemize- the govenment has only a little of that information and it changes from year to year. But I’m sure that John Edwards’ accountants could have told him that.
As an employee who works on 100% commission and who has two businesses on the side and gives a good part of my “excess” to non-profits, the government, the amending process would be just as much (if not more) as them sending me a Form 1.
Thank goodness for Quickbooks and Turbotax (and an accountant friend who helps me plan ahead.)
This is insane. People SHOULD have to slave over preparing their taxes. They SHOULD have to spend their valuable time filling out every single form, schedule, and other type of paperwork to pay their taxes. That’s the only way that might get people to notice just how much of THEIR money the government takes every year, and ask WHY they are paying so much.
“Withholding” was one of the greatest scams ever perpetrated on the American people. It converted the tax burden into a “bonus” as every year millions of Americans celebrated their returns as “money from the government,” not realizing that it was instead the repayment of a tax-free loan to that very same government. They were rejoicing in getting their own money back, after being deprived of its use for most of a year.
Now John Edwards wants to make it even less work. Thanks, but no thanks. This sheep is already being shorn too much already.
J.
Besides, what Mr. Edwards probably doesn’t know is that the core of the IRS’s collection philosophy is “voluntary compliance”.
God, what a dumb idea this is!
Day - um!