Complex Tax System

The Tax Attic with Jerry Coon — March 25, 2010

March 25, 2010 // 0 Comments

New bill creates more complex tax system I did something on Sunday evening that I have not done previously. I watched C-Span for a solid three hours. I don’t think I have watched C-Span for three total hours in my entire life before Sunday. I would rather do just about anything than watch C-Span. However, on Sunday, a train wreck was occurring in Washington that I just couldn’t keep myself from watching. The House of Representatives was debating and voting on health care reform. The majority of Americans want health care reform. They want insurance companies to be reined in. It should be illegal to throw people off the rolls because they get sick. People with pre-existing conditions should be able to get insurance. Insurance companies should not be able to raise rates like Anthem Insurance did last month by 36%. We should be able to buy health insurance anywhere we want, if we want to buy health insurance, and insurance companies should be able to conduct business in any state they want. A child should be able to stay on his/her parent’s insurance plan until age 26. There are plenty of reasons to reform the health care system. I happen to be one of those people, however, who thinks the federal government, with the sheer magnitude of these bills, is overstepping its bounds this time. In the few hundred pages that I scanned, I did find the one five-line paragraph that prohibits insurance companies from dropping people because of a health issue. I’m sure that somewhere else within those several hundred pages was another paragraph that keeps insurance companies from unilaterally raising rates by 36% at a time or, even though I couldn’t find it, I would hope that it does. I am concerned about the potential mandated funding of abortions, but that is found in the bill. From a professional point of view, I am in the business of preparing tax returns, and this bill will be good for the tax preparation business. The bill creates new excise taxes and credits and penalties on taxpayers and businesses that will tend to make our tax system more complex. Changes, credits and new taxes tend to be good for my type of business. The bill […]