Thursday, November 15, 2012

How government works

During my time in continuing education, we had a big time discussion about tax preparer compliance audits.

To catch you up to speed. In recent years, the tax preparation business has become populated with various criminals and now the IRS is trying to clamp down.You may ask yourself, why?

Like any question in life, if you answer money, you'll be right about 90% of the time.

Over the years, every time the rich got some tax break the poor had to get something as well. Never mind that they paid no income tax to begin with.

So to throw the poor a bone, Congress expanded the Earned Income Credit.

Now you have poor people getting refunds of up to $7,500 and unscrupulous preparers more than willing to help these people scam the government.

If you were a normal thinking person, you might say. Wow there's a lot of fraud in here! Maybe this program shouldn't be so lucrative as to encourage fraud. And with that kind of thinking you'd never make above a GS 14 payscale.

How you move up the government totem pole is to suggest that the government sets up a whole new bureaucracy to regulate tax preparers.Never mind the people getting the dough.

And you wonder how the feds can't seem to cut a trillion or two.

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