You want some maddening numbers? We’ll give you some maddening numbers involving
contemptible US income
tax system:
By
the government's own
estimate it takes an
average US taxpayer
over 28 hours to complete
a 1040 tax return.
And 60% of all taxpayers
needed a paid professional
to help them to file
their taxes.
Individuals
and businesses spend
5 billion hours annually
complying with the
income tax. And, with
estimated compliance
costs of over $200
billion, this is more
than it costs to produce
every US car, truck
and van!
When
the first national
income tax became law
in 1913, the entire
Internal Revenue Code
was 173 pages in length.
Today, the IRC contains
over 60,000 pages,
along with nearly 500
IRS forms, each containing
many pages of fine
print instructions.
The
IRS publishes and distributes
over 8 billion pages
of forms and notices
each year which, if
laid end to end, would
circle the Earth 28
times!
The
tax code is so complex
even the IRS can't
figure it out. Recently,
a US Treasury investigation
found that IRS employees
gave the wrong answer
about 50% of the time
when responding to
taxpayers' questions!
The
General Accounting
Office reported that
in auditing 45 random
IRS transactions, 16
were properly calculated
and 29 were wrong,
an error rate of 64%!
The
administrative costs
of the bloated 114,000
employee IRS bureaucracy
exceeds $10 billion
a year. That number
is five times the number
of FBI agents and twice
as many as CIA employees!
In
the year 2000, individual
income taxes consumed
10.2% of the entire
US GDP.
Sad
to say, neither President
Bush or Senator Kerry
have addressed the
need for federal tax
reform in spite of
long standing major
proposals for a flat
tax or a national sales
tax. Politicians who
continue to ignore
the tax/IRS dilemma
do so at their own
peril!
If
you would like more
information regarding
asset protection, trusts,
family limited partnerships
or the subject of this
article please call
or email our office.