A Brief Timeline of Taxation of the USA, Section Three
Posted on: December 18, 2009 by: adminW. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
So, what went wrong with taxes in the US?
Image via Wikipedia
US tax makers have been reaping what they have sown for a long time. Our honor system has been trumped by a system in which every tax payer is under surveillance because of the heavy threat of evasion. In other words, consent has been replaced with compulsion. Honor has been replaced with espionage. 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 the affairs of citizens who went to that bank, interest was not reported, withdrawals of cash were not reported, and not a thing that went through accounts were photographed. Also, real estate transactions weren’t reported, stock transactions weren’t reported, dividends weren’t reported, income from other sources (Form 1099) wasn’t reported, and US Customs did not require a declaration of cash 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 50 years to the present is that anything of any fiscal significance is now reported.
Adam Smith stated that taxes will be evaded and tax laws shown little credence when there is a general suspicion of much unnecessary expense and a lot of misapplication of the public revenue. In other words, $500 toilet seats, high-dollar grants to study the sex lives of ants, etc.
For the sake of catching a few tax resisters and evaders in the 1950s Congress spawned a tax abomination of the US tax system that more and more taxpayers attempt to bypass. As a general rule, mass tax evasion is a sure sign that a government’s tax system is bad. People will pay taxes, even income taxes, if the rates are acceptable.
Thanks for reading! Stay tuned for more updates!
http://www.marccpa.com/
Related articles by Zemanta
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=4d8a37d4-d443-4897-ad00-017ad9c0c4fb)
