Estate Tax:
AMERICANS pay taxes throughout their lives, then pay again after death. This is wrong. The death tax itself should be terminated. Yes, there are two things we can’t avoid – death and taxes. But it should not mean that taxes paid during our lives resurrect to haunt us again… after death.
Alternative Minimum Tax (AMT):
This is a terrible second set of tax traps to get you if you don’t pay enough income tax. We pay enough tax, some more than enough; yet, some of us have to pay an additional alternative tax after paying income tax. This AMT was designed to target millionaires who were not paying their fair share. But over decades, it has snared common taxpayers like you and me. It’s the cancer of the tax code. This has to go.
Corporate Taxes:
Our corporate tax rates are the highest in the developed world. Highest. This is why U.S. companies leave our shores. This is why they keep their income abroad. This is why U.S. multinationals stash their cash overseas. As a result, we miss out on investment opportunities that could grow our economy and create jobs here in the good old USA. President Trump has to bring jobs back.
Foreign Bank Accounts:
Some foreign banks refuse to open bank accounts for Americans because of complicated U.S. tax laws. Foreign bank reporting is cumbersome and may not be worth dealing with especially for relatively small deposits. U.S. tax laws are just too complex to deal with. This is why some expats renounce their U.S. citizenships.
Earned Income Credit (EIC):
Do you have friends or relatives who cannot receive refunds because hackers and thieves have already filed their tax returns and stolen their earned income credits by using their name and social security numbers? This credit is plagued by fraud. It’s estimated that about 30 percent of all payments is fraudulent. Terrible.
Tax-Exempt Organizations:
While most charities do their jobs to help the afflicted, the poor, and the sick, some charities give so little to their causes. Some organizations collect billions of dollars; yet almost none go toward missing children, wounded veterans, or cancer patients. For example, the Cancer Fund of America spent less than 1 percent of donations on charitable activities. It paid $5 million to its founder’s family and spent $80 million on hired fundraisers, but gave only $890,000 to cancer patients. There are plenty of good charities, of course, but the rules need reform. One also wonders why the National Football League (NFL) pays multi-million dollar salaries to athletes but is classified as tax exempt. There’s a need for sweeping changes. President Trump has to overhaul our complicated tax laws.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].