Too Much Uncertainty in The Tax Law

In my last post, I listed 12 trends I discern from recent tax rulings and legislative activity with the number one trend being uncertainty. While we might think of uncertainty mostly existing at the federal level, it is at the state level as well. *

The Wall Street Journal has an article today also noting the problems of uncertainty in the tax law. In "'Temporary' Tax Code Puts Nation in a Lasting Bind" (12/14/10), the authors write:

"The level of uncertainty, unusual for developed nations, complicates planning and discourages hiring and investment, many economists and corporate executives say."

This is all really an odd way to design a tax system. It also makes people forget why we have a tax system (to raise revenue for government operations).

What do you think?

*An example of uncertainty in California where it is not yet known how Prop 26 affects 2010 legislation including the conformity bill passed in April 2010 (which likely causes at least one taxpayer to pay more tax).

Too Much Uncertainty in The Tax Law 2010-12-14T14:01:00-08:00 Rating: 4.5 Diposkan Oleh: Unknown