W. Marc Gilfillan, CPA, NC, individual and business CPA and Tax expert, shares about the history of taxes…
So the question remains, what happened with the tax system in the United States?
US tax makers have been collecting what they have been sowing for a long time. Our honor system has been trumped by a system in which all taxpayers are under surveillance because of the strong threat of evading their taxes. In other words, compulsion has replaced consent. Honor has been replaced with espionage. If you’re feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!
In the 1950s, there wasn’t a bank in the US that told the IRS about the affairs of citizens who went to that bank, interest was not reported, withdrawals of money weren’t reported, and nothing that went through accounts were photographed. In addition to this, real estate transactions were not 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.
Before it was espionage, it was an honor system, and it worked. The erosion that happened over the previous 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 no respect when there is a general suspicion of a lot of unnecessary expense and a lot of misspending of tax revenue. In other words, $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 created a tax abomination of the US tax system that more and more taxpayers try to evade. As a general rule, widespread tax evasion is a sure signal that a government’s tax system isn’t working. People will pay taxes, even income taxes, if the rates are reasonable.
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Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, taxes
Tags: accountant, bookkeeping, cpa, income tax, marc gilfillan, NC, raleigh, tax, tax preparation, tax return, taxes