Proposal To Simplify Tax Codes For Small Businesses
Simpligy the Tax Code for Small Businesses
The Chairman of the House Ways and Means Committee wants to help small businesses by revamping the tax code. He has submitted a proposal to simplify tax compliance. The draft addresses several areas so that business owners can have a better idea of what they will pay on a yearly basis. The changes include a simpler formula to determine the tax code, additional time to submit returns and a permanent tax incentive that lets them deduct the expense of new equipment.
The Tax Foundation, a research group from Washington, D.C., reported that businesses are hesitant to invest. This is a result of a requirement that states that business expenses should be written off over a period of several years or perhaps even longer. This requirement limits a business by allowing it to deduct only a portion of its investments directly. The rest of the investments are to be deducted over a lengthy period of time that is contingent on somewhat confusing rules.
Strengthen the Economy & Increase Wages
Controller for BedFord Machine & Tool, Brian Pemberton, noted his appreciation for laws that help his business save money. The funds saved can be reinvested back into his business through additional jobs or increased capital. He added that the money aids not only in the growth of his own company, but it also can be put back into the economy.
Another section of the proposal simplifies the tax laws that apply to sole proprietors, partnerships and S-corporations. Options could be to revise current laws or to update those laws with a new process. Because of the major role they play in America, small businesses should be a large consideration in tax reform legislation. So far, the new proposals have been met with a good response from many small-business professionals. President Barack Obama has included several changes to the draft.
An Unbiased Tax Code for All Business
The nation’s largest group of tax attorneys feel that the changes to the tax reform are progressing well and they agree with the recent proposals. A spokesman for the organization explained that the bi-partisan involvement in putting together the draft has improved the proposals. The overall purpose of the bill is to make the tax code unbiased for businesses across the board, no matter their size. A spokeswoman for the National Association of Manufacturers added that simplifying the tax code will help the economy since the complications of the current system could mean that America is left behind in the global economy.
The draft added several key components, such as increasing the amount small businesses can use in cash accounting and increasing deductions for start-up costs. The small-business controller further observed that as complications have increased in the last two decades, the government needs to update the regulations accordingly. A streamlined tax code will help businesses compete effectively in today’s market.
Peter Wendt is a blogger interested in tax law. In need of a experienced tax attorney in Austin? Wendt highly recommends you visit http://johnmcduff.com.
Categories: Federal Tax, Income Tax, State Tax, Tax Law Tags: small business, tax code, tax compliance, tax law
Tax Avoidance – Time To Name And Shame?
Much has been made over recent months about aggressive tax avoidance schemes and the types of companies and individuals who enter into them. As the media has seemingly started to try to ‘name and shame’ those promoting the scheme, as well as some of their higher profile participators (such as Jimmy Carr), is the next step to publicise other individuals and companies who become involved in such strategies? There seems to be a suggestion that those entering into tax avoidance schemes are somehow immoral. But is this a fair assumption to make? Consider the generation of people who have never worked and have milked the welfare system for every penny. Is it fair to name and shame those who have made their money, contributed to the country’s coffers and who want to keep some money back for themselves?
It is widely reported that HM Revenue and Customs (HMRC) loses out on £5billion of revenue a year as a result of tax avoidance schemes and the exploitation of loopholes. Despite efforts to try to stem the flow of such schemes, with specialist anti-avoidance teams in place across the UK, there is no doubt the ’boutique’ firms are still peddling their wares.
The House of Commons Public Accounts Committee has recently reported that HMRC is failing when dealing with the ’boutique’ tax practices in more ways than one. Inefficiency within HMRC when dealing with such matters means that it can take a long time before a scheme can be closed. As such, scheme promoters will use this as leverage when selling schemes to their clients. For the taxpayer, they are sold a scheme on the basis that if it works then they will not pay tax at all. If it fails, then they have delayed paying the tax.
For companies and individuals, this is extremely tempting when it comes to making the choice between making payment to HMRC as required or retaining the funds (even if temporarily) for themselves. Cash flow has become prevalent as the economy continues to struggle.
The committee advised that there needs to be more of a deterrent, for the firms selling the schemes and those entering into them. One suggestion is that the scheme providers and participators should be publicised on a list or ‘named and shamed’. However, there is a strong argument that this is contrary to the rights of the individuals involved.
As well as this, it would be difficult to judge which schemes should be listed. There is a big grey area between normal, run of the mill tax mitigation planning and the aggressive tax schemes which are under fire. Mistakes could be made which could ruin the reputation of those perceived to be involved in ‘aggressive’ tax planning as part of a name and shame campaign. This grey area, whereby people seek to plan for their taxes within the realms and intention of tax legislation, would need to be protected.
Mandy Jones is a highly experienced specialist when it comes to tax planning and so is well placed to offer advice for the likes of taxrebate.co.uk.
Categories: Federal Tax, Income Tax, State Tax, Tax Evasion, Tax Law Tags: finance, money, tax, tax rebate, taxes
Heating and cooling systems get tax credits
The popularity of heating and cooling systems in Maryland homes is rising, and fortunately, homeowners are now able to get rewarded when they file their taxes for 2012, as well as 2013.
It’s tax season once again, and A Supreme Heating and Cooling would like to tell the customers of the tax credit they’re able to receive for the heating and cooling systems in their neighborhood. The tax credit available will apply to homeowners and will allow people to get up to $500 just for having energy efficient heating and cooling systems. The tax credit will work for 2012 and will continue throughout 2013; however, you have to take notice that this tax credit will only apply to energy efficient heating and cooling systems, not every single heating and cooling system around.
If you don’t have an energy efficient heating and cooling system, you would probably like to consider getting one installed by A Supreme Heating and Cooling; they’re a reliable company to turn to for those living in Anne Arundel, Baltimore and Howard Counties.
If you haven’t heard of the company yet, A Supreme Heating and Air Conditioning serves Baltimore, Howard, and Anne Arundel Counties with repairs for a variety of makes and models. They’ve been working proficiently for the last 28 years in the heating and cooling business. A Supreme Heating and Air Conditioning also offers a 24-hour emergency service, giving its customers incredible satisfaction and support.
Categories: Federal Tax, Income Tax, State Tax Tags: avoiding taxes, federal tax, income tax, tax credits, tax law