Tax Reform Talk - Continued
January 06, 2011Miscellaneous
Just one day after we posted about the increased chatter about the need for a tax reform and its allegedly impending inclusion in Obama's 2012 budget, the National Taxpayer Advocate released its annual report to Congress. The key issue and the number one priority in tax administration identified in the report is the need for a tax reform. The report goes on emphatically to proclaim that "The Time for Tax Reform is Now." The key culprits leading to this desperate need for a change hardly come as a shocker. The report lists "the complexity of the tax code as the most serious problem facing taxpayers" and further reasons that "complexity obscures understanding and creates a sense of distance between taxpayers and the Government, resulting in lower rates of voluntary tax compliance." The full report could be found here http://www.irs.gov/advocate/article/0,,id=233846,00.html. Again, as we previously mused, it is difficult to surmise whether all this talk will lead to any meaningful change and how the federal income tax landscape for funds and investors will evolve, but it appears that there are more and more proponents for such a change.