Posts Tagged ‘tax code’

The jungle of tax reform

April 11th, 2011
By: Tim Heston

On Friday night I was like a kid half-heartedly doing his homework while watching the weather and awaiting the snowstorm. I kept thinking the storm would close school (government shutdown), and I could stop this blasted homework (my income taxes).

Then at the 11th hour (literally: it was a little before 11 p.m.), the House speaker emerged--worn, weary, but determined--and told us all that our elected officials had agreed on a deal and avoided a government shutdown. Hearing the news, I changed my plans for Saturday and shuffled off to bed, dreaming of incomprehensible forms that I’m convinced were developed by megalomaniac accountants who wanted to make their jobs more interesting and grandiose. For them, addition and subtraction just weren’t enough. They needed amortization, depreciation, basis points, and line-by-line instructions leading taxpayers in vicious circles of confusion that turn what should be a logical exercise rooted in deductive and inductive reasoning into pure hell.

After finally filing, I had a thought: At some level, I actually was hoping the government would shut down--resulting in worldwide uncertainty and thousands without paychecks--just so I wouldn’t have to face my dreaded 1040. What’s wrong with this picture?

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Shifting, not reducing, the tax burden

September 27th, 2010
By: Tim Heston

The more rhetoric I hear this election season, the more I’m reminded just how little the government can do to fix the economy in the short term. It can pour money into shovel-ready projects, but those don’t seem to be long-term fixes, and they won’t right the ship in time for the midterm elections.

A unique wrinkle to this economic recovery has been the stark contrast between unemployment and corporate earnings. The unemployment rate stays stubbornly where it is while corporations report significant profits. Why aren’t they hiring? It’s because growth prospects are so gradual that there’s no need to ramp up the headcount just yet. What company would hire hundreds if it can count on only very gradual economic growth over the next few quarters?

“A jobless rate hovering close to 10 percent is shaking consumer confidence and shackling spending, the biggest part of the economy.”

After reading that statement in a Bloomberg article on manufacturing last week, I paused. Why exactly is consumption such a huge part of the American economy? How did we get here?

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