I am an accountant. I received my bachelors in accounting and have worked for one of the top accounting firms in the world since I have graduated. I understand that taxes have a big impact on our lives and yet most of our members of Congress have no real knowledge of our tax laws. Here are my guidelines for handling tax related issues:
1) Tax Rates
I will always choose to cut spending, rather than increase taxes. I want to lower the tax rate so that you have more money in your bank accounts.
Our government wastes an enormous amount of our taxpayers’ hard earned money. Trump had the right idea when he created an executive order that mandated that for every one new regulation, two must be revoked. I think we should apply this concept to spending. If you want to increase spending of taxpayers’ money, then you need to find a place to decrease spending by an equal amount elsewhere.
2) Automatic Tax Filing
Have the I.R.S. complete most of the people’s tax return. Countries like Spain and Denmark already do this by having companies send tax information directly to the government. The system will allow for you to make changes to your return if you require extra deductions (ex – charitable giving), but would simplify the process and fill out most of the taxes automatically. This would also streamline the process and not require citizens to waste time or money on complicated tax preparation software.
3) Simpler Tax Law
In the 2016 election, Carly Fiorina stated that she wanted a three page tax code. This was one of the most intriguing moments of the election for me. A three page tax plan. Simple enough that anyone could understand it. Loopholes could no longer be hidden in the current 73,000 page long tax code. I am not saying that I want a 3 page tax law, but something close to 10-25 pages would be realistic and ideal.
Here is what would happen if we reduced the tax law to a handful of pages: a) You would no longer need to pay an accountant to do your taxes. Taxes would be simple enough to do on your own or with a simple software provided by the government. Americans spend over $265 billion a year on tax accountants. All of that money could be in our bank accounts. b) There would be no more loopholes. With a 73,000 page tax code, a loophole can be hidden easily. With a 10-25 page tax code, any loophole would be found. c) Many tax accountants would no longer work for accounting firms. This is actually a good thing. Currently, tax accountants produce nothing of value to our economy. They just tell the government how much money is owed to them. And by simplifying that process with a 10-25 page tax code, their job just became easier or unnecessary. As an accountant, I can say that we would land on our feet. We have valuable business knowledge and skills that are valuable outside of tax accounting, which will actually help grow our economy.