New Energy Articles Blog

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 taxes in the US?

US tax makers have been reaping what they have sown for quite a while. Our honor system has been trumped by a monster in which all taxpayers are under watch because of the heavy inclination of evasion. Basically, consent has been replaced with compulsion. Honor has been replaced with spying on citizens. If you are feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!

In the 1950s, no bank told the IRS about customer affairs, interest rates went unreported, withdrawals of money were not reported, and not a thing that went through any account was photographed. Also, real estate transactions weren’t reported, stock transactions were not reported, dividends were not reported, income from other sources (Form 1099) was not reported, and US Customs didn’t require a declaration of the amount of money 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 happened over the last fifty years to the present is that everything of any fiscal significance is now reported.

Adam Smith said that people will evade taxes and tax laws shown little respect when there is a general suspicion of much meaningless expense and great misspending of tax revenue. For example, $500 toliet seats, huge grants to study the sex lives of ants, etc.

Because the government wanted to catch a handful of tax resisters and evaders in the 1950s Congress made a tax monster of the US tax system that more and more taxpayers try to evade. As a general rule, mass tax evasion is a clear signal that a government’s tax system is bad. Citizens will pay taxes, even income taxes, if the rates are acceptable.

Thanks for reading! Stay tuned for more updates!

http://www.marccpa.com/

Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, taxes

You can leave a response, or trackback from your own site.