{"id":133,"date":"2000-09-12t07:49:00","date_gmt":"2000-09-12t12:49:00","guid":{"rendered":""},"modified":"2024-10-01t09:16:56","modified_gmt":"2024-10-01t13:16:56","slug":"tax-simplification-hah-its-all-politics-as-usual","status":"publish","type":"post","link":"\/\/www.g005e.com\/2000\/09\/12\/tax-simplification-hah-its-all-politics-as-usual\/","title":{"rendered":"tax simplification? hah! it’s all politics as usual"},"content":{"rendered":"
by: rick telberg <\/p>\n
sept. 12, 2000 (smartpros<\/a>) ? whether its bush or gore this election day, don’t count on tax simplification in the next presidential term. <\/p>\n after two years as ombudsman at the internal revenue service, val oveson has stepped down. he is moving back home to bountiful, utah, and going to work for pricewaterhousecoopers. at the annual meeting of the national association of enrolled agents, he fired off a few parting shots at washington and how washington works.<\/p>\n he talked about paranoia in washington, inertia at the irs, the inevitability of e-filing, and a radical plan for overhauling depreciation rules.<\/p>\n but he started with the futility of pursuing tax simplification.<\/p>\n “there is no constituency for simplification,” he said. “the power behind tax legislation is for credits and breaks and incentives. every credit, break or incentive complicates the tax code geometrically.” <\/p>\n the biggest blow to tax simplification, he noted, came with the ironically named tax reform act of 1986. in essence, it exacerbated without resolving the age-old debate between changing the tax base — affecting how many people pay taxes — and the tax rates — affecting how much they pay.<\/p>\n “flat tax proposals,” he said, “ignore the fact that 97 percent of the code deals with base.”<\/p>\n he also took a shot at the alternative minimum tax. he pulled no punches, calling it “absolutely asinine and stupid… to have two completely different tax systems.” and then things were complicated even more by the 1993 collection of phaseouts, deductions and credits.<\/p>\n oveson also came out for a complete overhaul of the depreciation rules. depreciation disputes, he said, are the single biggest source of litigation in the tax courts, he said.<\/p>\n instead, taxation could be greatly simplified just by allowing taxpayers to expense everything they now depreciate. “i’m convinced,” he said, “that if you allow taxpayers to expense it, then it will even out over time, with increased profits in the out-years and, so, increased tax revenues in the out-years too.”<\/p>\n nevertheless, there is reason to hope that technology could help the everyday lives of taxpayers and practitioners alike.<\/p>\n “e-filing is here to stay,” he said. <\/p>\n but the public’s unfounded fears of security, compounded by what almost amounts to neurosis at the irs, is holding it back. “we’ve got to be able to agree on what level of risk and security is reasonable and acceptable,” he said. “we’ve got to get over this paranoia about privacy.”<\/p>\n oveson’s last remarks were saved for his audience of tax professionals. “we would not be able to operate the united states tax system without the practitioner.”<\/p>\n “heck,” he said, “we can’t even answer our own phones now. we need to increase our reliance on you.”<\/p>\n clearly tax professionals had a friend in oveson. he’ll be a tough act to follow.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" by: rick telberg sept. 12, 2000 (smartpros) ? whether its bush or gore this election day, don’t count on tax simplification in the next presidential term. after two years as ombudsman at the internal revenue service, val oveson has stepped … continued<\/a><\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"129943,138048,136551,138126,133112,129835","_relevanssi_noindex_reason":"","footnotes":""},"categories":[8],"tags":[],"class_list":["post-133","post","type-post","status-publish","format-standard","hentry","category-resources"],"acf":[],"yoast_head":"\n