The executive and congressional branches of the federal government working together are in the late stages of delivering themselves two large gifts. Middle-class Americans and so-called small businesses once more will be tapped to pay for their largess. The feds are already so deep into family and small business taxpayers that they can feel that hole in a citizen’s sock are now prepared to present to gifts for themselves.
Elected representatives driven by a desire for reelection will lower taxes, thus meeting their promise of no tax increase. Who will receive this largess? The trillion dollar lower tax will come in the form of tax amnesty for major corporations. Revenue dollars socked away overseas untaxed will now be repatriated to American shores. This is not a new occurrence. In 2002 the Bush administration introduced this amnesty program. Shockingly it produced almost 3 times the expected revenue to the government coffers. When the amnesty period ended, corporations immediately began to stuff their overseas vaults with new revenue. Amnesty guarantees these earnings come home at a 5% tax rate, not the advertised 35%. An emergency situation exists concerning tax collections for the federal government. For tax revenue this will be the equivalent of giving a sexual performance drug to a teenager. Every elected official can crow they lowered taxes! Corporations can reset their operations to prepare for amnesty number three.
The Chamber of Commerce and other so-called business advocates proclaim 70% of today’s gross national product and taxes are generated by small family-owned businesses. It is guaranteed this group will not receive even a hint of amnesty. Just the opposite, but a gift to the government they believe will bring hundreds of billions into the federal swine feed bin. The mom-and-pop businesses will be receiving their gift in the mail. This is the 10 million tax audit notices the IRS promises to send to taxpayers. Just like cracker jacks the surprise contained in the 10 million letters are the 400,000 of these revenue generators will experience what the IRS calls a hard audit. Any citizen or small business person that has experienced a hard audit would easily label it as a trip to hell economically.
If you are a taxpaying citizen quietly ask your acquaintances if they know anyone who has been audited by the IRS. Seek out that person and ask them to explain how efficient their business and family life was during the audit. Also look for someone that has been audited by the IRS special unit who oversees hard audits. Without prompting these victims will utter the word hell before they finish describing what they encountered.
Potential audit parties can mitigate the pain and disruption if they prepare an asbestos suit to protect from a third-degree financial burn. Even then they will feel that heat and stress standing in the fire.
Choosing the right material or team members is key to surviving. When the IRS finishes its massive audit operation victims will be easy to find. Investing in a game plan and choosing your tax team increases your odds of survival 10 fold.
