Thursday, April 28, 2016

Taxes… Late Again!


Well, it is that time of year again and as has unfortunately become an annual tradition we have filed an extension on our taxes. I was really hoping to get them done on time this year and had even lined up a new accountant but, with everything that has transpired over the last few months, it just wasn’t going to happen before the deadline. While I have much of the material and receipts set aside for this endeavor, I still need to print out a swath of statements and organize the mountain into the different deduction categories. It is definitely an undertaking that I am still not looking forward to.

The real issue that I am finding now is in the upcoming schedule that doesn’t seem to have too many free moments available to get the work done. Well, at least the next couple of months as the summer should provide enough time to pull everything together. This is a real issue, on the one hand I don’t want to spend the hours preparing the paperwork while on the other I really don’t want to give the government more money than I have to give them. After all, we are the ones that had to work for the money.

However, this rather large dilemma is actually proving to be a good thing as it is forcing me to take the tax proposals on the table by the various presidential candidates into more serious consideration. Essentially, this eliminates those whom I have already seen as a detriment namely both Democrat candidates. Basically, I have to look at what kind of financial position I will find myself in should Trump, Cruz, or Kasich take office. Well, at least what is being proposed… I won’t fully believe any of the ‘plans’ until they are implemented. And, let’s be honest, Kasich is done so I am going to focus on Trump and Cruz.

Simply put, you can go with an overhauled 10% flat tax as proposed by Cruz or a simplified graduated tax rate starting with those earning more than $25,000 ($50,000 for married couple filing jointly). For one, a flat tax is something that is manageable across the board and eliminates much of the overhead associated with the tax system (i.e. it would cut government spending) while a revised system would reduce the tax revenue while doing nothing to reduce the burden of associated overhead. Contrary to what many would want you to believe, the flat tax is sustainable and a sensible approach. Plus, I really don’t have a lot of confidence in someone proposing a tax structure when they themselves have spent years paying as little as possible while declaring bankruptcy many times over.

So, in the end, my support of Senator Cruz has been reaffirmed. It has been a long road getting here (he is the third candidate that I have decided to back) but we are now at the point when he is the one candidate that makes sense to me. Additionally, I like his decision to name a running mate in Carly Fiorina who brings a more moderate voice to the ticket as well as a long track record of executive business experience. Now all we can do is wait and see how the remaining primaries play out and what kind of contest we have during the national convention. It will certainly be interesting.