A Brief Timeline of Tax Law of the USA, Chapter 3

Raleigh NC Tax Preparation

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 taxes in the US?

US tax makers have been reaping what they have been sowing for quite a while. The honor system has been replaced by a monster in which all taxpayers are under watch because of the strong threat of evasion. In other words, compulsion has replaced consent. Honor has been replaced with spying on citizens. If you’re feeling the pressure with today’s taxes, call a Cary NC CPA for all your tax-related needs!

In the mid-20th century, there was not a bank in the US that informed the IRS about the affairs of citizens who went to that bank, interest rates went unreported, withdrawals of cash were not reported, and nothing that went through accounts were photographed. In addition to this, real estate transactions weren’t reported, stock transactions were not reported, dividends were not reported, income from other sources (Form 1099) wasn’t reported, and US Customs didn’t require a declaration of cash carried. Go here if you want help from a modern-day Tax Preparation in Cary, NC.

It was an honor system, and it worked. The deterioration that happened over the previous 50 years to the present is that anything of any fiscal significance is now reported.

Adam Smith said that people will evade taxes and tax laws shown little respect when there is a general suspicion of much meaningless expense and a lot of misspending of the public revenue. In other words, $500 toliet seats, high-dollar grants to study the sex lives of ants, etc.

For the sake of catching a few 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 sign that a government’s tax system is bad. Citizens will pay taxes, even income taxes, if the rates are acceptable.

Thanks for reading! Stay tuned for more updates!

http://www.marccpa.com/

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