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December 10th, 2010 at 09:54 am

I think this sums it up pretty good:

Why the Tax Compromise is a Mistake



My head is spinning at work.

It's hard to remember all the "one-time" absurd tax laws for the state to generate revenue. My boss about gave me a heart attack when he said NO SAFE HARBOR for Cali income tax this year. Turns out he was wrong. (I thought he knew something I didn't and freaked me out a bit - that is only true if your income tops $1 million).

I've got clients calling me about this health care credit (For small employers with low-wage employees, who provide health insurance). It's so convuluted, no one qualifies. But I have to stare at it a couple of hours to tell them they don't qualify.

I am reading about the IRS lack of guidance on carryover basis for Estates in 2010. No Estate Tax in 2010. Sounds great, right? No. No stepped-up basis for inherited assets. I just read that this form (to allocate basis) is due April 15th, for people who passed in 2010 with larger estates, though the IRS has not issued any guidance on a number of issues, and has not even provided the form.

It's December 10 and AMT is not patched though it has been promised to be (for 2010).

The government wants to pass a social security tax holiday that is too late to implement for January.

People all the time tell me that accountants must support all this crap because it means job security. I think the line from "job security" to "it's practically impossible to do my job" was crossed when Bush took office. But, it's just gotten worse since Obama took office. I actually contribute to my profession's political action committee because I know they support SIMPLIFYING all this mess. It's honestly the main reason I contribute.

California is a mess because they can't justify to match all the tax breaks at the Federal level. I have to give California that. Though it is a huge PITA for tax payers and tax professionals, at least they don't blindly play along with tax legislature they can't afford. For me, there are 3 tax systems. Fed, AMT, and California. That's 3 times the work compared to a decade ago (when AMT was more rare and California mostly conformed to Federal law).

2011 will be a fun year, indeed!

3 Responses to “Taxes/Politics”

  1. Joan.of.the.Arch Says:

    Your head is spinning and my head is about to explode. Well, off and on I have felt that way. Several times today, for sure. --Heck, every time I catch up with the news. In the Mauled Again blog I found assurance that we in our household are not totally alone. I promised I'd do some breathing exercises tonight, as I did last night, but I almost wish it were exorcisms I would be doing as it won't matter much if a wee person like me happens to explode, but the monstrously sweeping greed can do in a whole country, a whole world.

  2. terri77 Says:

    I read somewhere that Obama is wanting to work on simplifying the tax code in 2011. Hope your PAC gets behind him/lights a fire under the administration on this goal.

  3. Dido Says:

    I am glad I am starting my accounting career in Pennsylvania--flat 3.07% state tax (though we also have local taxes and while that used to be universally 1%, a couple of years ago that changed and you have to check everybody's town website because they're all over the place from 0 to 2%. I'll be doing my mom's taxes this year and she's in CA so I'll have to learn something about the CA system, bleagh.

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