Thursday, June 19, 2014

Audit Trail


Ever get audited by the Internal Revenue Service?  Pretty much on demand, you have to produce receipts, bills, bank statements, etc.

Meanwhile as the IRS scandal continues, it appears they are not usbject to their own rules.  The IRS has reported to Congress that they have lost the hard drives containing the emails between Lois Lerner and Democratic Members of Congress regarding who should and shouldn't receive tax exempt status.

Is that a joke?  In an investigation that has been ongoing for years, the IRS just now realizes it does not have the hard drives in question that can refute Republican assertions.  This is no longer about simply violating ethical standards, but is bordering on criminal obstruction.

The other thing it should be doing is forcing Republican hands.  At this point since the IRS does not want to play ball, you need to swallow your pride and your business tax breaks and respond just as forcefully as the Administration is.  Stop funding the IRS.

We talk all the time about reforming the tax code, but the answer is no longer to reform the tax code, but to end it.  Now is the time for a flat tax.  Yes, I am ready to give up my mortgage interest deduction.  Yes, I am willing to give up my deduction to charitable entities.  (Realize of course charitable entities are only charitable, if the IRS says they are, an issue at the crux of this situation.)  I will give up the deduction for being a parent.  What about the marriage tax...don't worry about it!  If you go to a flat tax and everyone is taxed at the same rate, it shouldn't matter if you are straight, gay, or somewhere in between when it comes to taxation issues.

The problem with the tax code is not only that it is too arcane for most people to understand, but it is all about picking favorites.  If you are married we will lower your taxes slightly - because we like married people.  If you invest in this industry or that one - we will lower you taxes because we want people to risk their money in areas they normally wouldn't.

Since the IRS can not find basic hard drives to tell us who did what, where, and when, close up shop.  I am tired of hearing excuses from these morons.  Let the bureaucrats and accountants and tax lawyers fund, ahem, honest work.  It is now time for the IRS to get audited.



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