Why Changes to the Tax Regime Are Necessary
The current tax reforms today are very convoluted. Accordingly, there are needs for a reform to be introduced. As a result of the numerous regulations, most of the citizens have opted to hire tax professionals. This is because most of the people do not have a good understanding of how the tax regulations work. To hire a tax professionals, a person has to spend a lot of money. if a person makes a mistake when filing the taxes, they might be penalized. The current tax regime has been shown to have many shortcomings. For instance, the regime is responsible for discouraging growth in the country. There are also indications that the convoluted tax regime has been responsible for curtailing innovation in the country.
The complicated tax regime has also led to reduced productivity of American businesses. By introducing tax reforms, the country is likely to experience many benefits. Some of the benefits are short term whereas others are long term. First and foremost, the lines made by Americans will be reduced significantly. Currently, most of the people spend a lot of time lining to pay the 1031 taxes. When reforms are introduced, the number of pages that a person has to fill will also reduce. When the pages are reduced, the whole process is likely to take shorter time. This will free a lot of time which can be spent doing some other productive things.
By introducing tax reforms, a lot of time will be saved. For instance, the process of filing the taxes will require lesser time. Lesser time will be needed in keeping of records. According to research, Americans spend a lot of time talking to the IRS currently. By introducing budget reconciliation reforms, lesser time will be spent on talking with the IRS. This means that Americans will concentrate on more productive activities and hence contribute to the growth of the country.
When there are fewer forms and instructions, many aspects of the lives of individuals will also change. For instance, most people will have less hassle. The agony experienced by Americans today when filing the tax returns will be reduced significantly. In the current tax regime, many people are very fearful of the prospect of making a mistake. By making a mistake, there are repercussions which are likely to arise. For instance, a person might be audited by the IRS. There are also chances that a person might be committed to jail for a long period of time. Know more about taxation at http://www.ehow.com/video_4438266_advice-using-online-income-tax.html.