Wednesday, April 7, 2010

The Daily Note - Taxing Times

This tax season is particularly hard for me and I'll be glad when it's over.  It is difficult to advise clients about what is around the corner when we are not getting any clear direction.  We've had hard years before, but none so unknown. Besides the coming new tax burdens, there are other troubling tax plans brewing in the vats of Congress.  On top of which there are a lot of giveaways.

It seems to be like the IRS has become a welfare agency for about 50% of taxpayers paying roughly 3% of the total tax revenue. It is really scary if you consider that the other 50% has to support them with the refundable credits which keep increasing in titles and volume:
Earned income credit, Child credit, Student credit,  Work credit, Housing credit, Renters credit, Energy credit, Car credit and I didn't list them all.

They might as well say, "name your own credit".   I really don't see any of them ending, although they keep saying they will, and then extending them another year or two until they become a permanent fixture and a permanent cost.  No one reports on the cost of these credits to the tax payer although I'm sure they are costing many a $bill and unequalizing even more what is already unequal.  Chaos is the best way to describe the tax system and we know what causes chaos,  don't we?  It's when everyone is trying to get their wish without regard for another, something like how our Congress operates.

So now you know, if you didn't already, why the tax system is so screwed up and remember Congress just passed another tax bill by the nom de plume "health care".  In case you are wondering what this article has to do with trading, it is a warning of what is coming to your doorstep next:  The trading tax.
Yes, a tax. You weren't expecting a credit were you? Sorry to disappoint.

Happy Trading, Living, Dancing

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