Taxes

Obama: Value Added Tax (VAT) A "Novel" Idea

Mr. Andrew Roth - April 22nd, 2010

A Flat Tax? Don't Forgettaboutit…

Mr. Andrew Roth - April 22nd, 2010

Cheating the Government

Mr. Andrew Roth - April 13th, 2010

What if you could cheat on the government in the same way that it cheats on you?  Cato’s Dan Mitchell writes about how accounting gimmickry allows the government to grow bigger and bigger.  Why not turn the tables on them for your own benefit?  Excerpt:

For example: When CBO and JCT concoct their official scores about increases or decreases in government spending or revenue, they use "base-line" math. So when CBO said Medicare spending would be cut by several hundred billion dollars over the next 10 years, the first thing you need to understand is that Medicare spending actually will be increasing during that time period from $528 billion this year to about $1 trillion in 2020. But CBO says Medicare spending will be "cut" because it is not increasing even faster.

Imagine if you got to do the same thing with your tax return. Not many of us received raises last year because of an economy weakened by bad government policy. But let’s say you were one of the lucky ones (a government employee, perhaps?) and you got a $5,000 raise. Unfortunately, Uncle Sam is going to want a big chunk of that additional money.

Here’s where CBO accounting would be a big help. Why don’t you assume that you were going to get a raise of $10,000. Because your pay "only" went up by $5,000, you can claim your pay was reduced. The IRS will come down on you like a ton of bricks, but you can tell the agents as they cart you away that you were following official government methodology. (Maybe they’ll go easy on you when you tell them that an identical approach helped push the IRS budget up to $12 billion.)

What a VAT Means for the Economy

Mr. Andrew Roth - April 08th, 2010

This Tax Day, You Will Pay

Mr. Andrew Roth - April 06th, 2010