Tags: Kleinfeld | tax | reform | Congress

Your Wealth Is at Risk While Presidential Candidates Claim Tax Reform

By Denis Kleinfeld
Monday, 01 Oct 2012 07:54 AM Current | Bio | Archive

GOP presidential candidate Mitt Romney and President Barack Obama both claim that they want to reform the tax code.

I have yet to find anybody who can tell me exactly what that means. At some 77,000 pages, the total of the tax code fills an entire library wall.

The argument is over something called raising taxes. Whether this means actually having more tax proceeds paid in to the government or merely the raising the marginal rates is left to the voter's imagination.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

Maybe the candidates are talking about reducing the deficit, paying off the debt, simplifying the law, making the law more equitable and fair (whatever that means), closing the income gap, restricting Americans from using international banking or investments or any number of areas that the tax law allows the United States to control investment income and wherever Congress perceives a U.S. interest.

Neither of the candidates seems to have ever held a tax code in their hands. Likely, they signed their annual tax return, but never actually looked at it or even picked it up.

Most likely, the presidential candidates just sign on the line where their accountant points and says, "Sign here."

It is fair and accurate to say this is the total extent of the candidate's familiarity of and actual hands-on knowledge of the tax law that they think they are going to "reform."

What seems to be lost on the presidential candidates, and a worrisome risk factor to investors, businesspersons, professionals, retirees and even those receiving the transfer payments, is that tax reform is more like a hallucinogenic claim.

The income tax system is barely administrable today, with the future indicating that a total collapse is approaching rather quickly.

Then again, no income tax system in the history of the world has ever worked.

This revelation was again brought home to me when it was reported in the various tax media and news outlets that the Department of Justice’s Tax Division and the Internal Revenue Service are having a difficulty dealing with the problem of identity theft and refund fraud.

The press release was to inform all the taxpayers that something is being done to deal with this problem.

The problem is not the making of the DOJ or the IRS.

The problem is Congress.

Congress after Congress passed tax reform law after tax reform law, making victims of both the government's tax administrators and the taxpayers.

After 100 years of the income tax experiment in the United States, neither presidential candidate seems to realize that "tax reform" is not possible with a tax system that was doomed from the start.

The problem of identity theft and tax refund fraud is only one small piece of the failures of our present tax system.

Even this small piece causes the Treasury to hemorrhage billions of dollars.

While Congress and the president tout how they are saving a million or billion dollars here and a million or billion dollars there, they ignore the tax system they created, which corrupts our politics while draining the taxpayers of their personal liberties and their money.

We are informed that the tax administrators will not be able to solve the identity theft and refund fraud dilemma for at least two years.

While gallantly trying to hold back the tide of identity theft and refund fraud, the DOJ and IRS recognize that the problem is ever increasing and they are going to try over the next two years to come up with some system that might work.

As to the timing, two years might be a bit aggressive. As the government news release said, "We've seen very complicated schemes that cross many jurisdictions and involve a lot of people working together."

Hard to police when Congress has starved the tax administrators’ budget and yet placed increasingly complex burdens on them.

Every Congress and president previous to this election have contributed their part to the colossal tax monster that is devouring our economy, increasing the risk to the national security of the United States and destroying any personal freedoms that were to be protected under the Constitution.

Taxes might rise, but no matter how much comes in the front door, a massive amount of the tax dollars is going to go out the back.

I doubt there is much hope that whoever is elected president will do any different than was done before.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

The importance of this election is that one candidate is intentionally crashing the system, while the other seems intent on trying to do some good for once.

But, as the problem of identity theft and refund fraud shows, the government is scrambling to regain its ability to protect the tax system and the economy from waste, abuse and fraud.

What does this mean to you?

Your wealth, whether hard earned, inherited or just won in a lottery, is at risk and you need to protect it from all risks, including the government, or it will be lost.

© 2017 Newsmax Finance. All rights reserved.

1Like our page
2Share
Kleinfeld
GOP presidential candidate Mitt Romney and President Barack Obama both claim that they want to reform the tax code. I have yet to find anybody who can tell me exactly what that means.
Kleinfeld,tax,reform,Congress
861
2012-54-01
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved