Tax Reform Anyone?
The complexity of our federal tax system was highlighted today in a piece on IRS real estate investment rules. From Dow Jones Newswires via the Myrtle Beach Sun News:
NEW YORK – Amateur “flippers” in the real estate market have more to worry about than a bubble burst. An IRS audit might interrupt their trip up the property ladder. Some amateurs are buying and selling properties too quickly, running the risk that the IRS may deem the transactions a person’s business, with gains taxed as ordinary income, subject to self-employment taxes. The best way to avoid a problem is to consult a CPA or tax attorney before you begin the real-estate transaction. [Full Story]
Wouldn’t it be nice if investors and entrepreneurs could concentrate their efforts on making sound business decisions, instead of consulting a CPA or a tax attorney about tax code provisions? When the President’s Advisory Panel on Federal Tax Reform presents their recommendations, let’s hope that Congress doesn’t put them on the shelf to collect dust. The American people deserve a tax system that is simpler, more intelligible and easier to comply with.
You can read Tax Foundation research on tax complexity here.
Was this page helpful to you?
Thank You!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationLet us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback