New 1040 Questionable
Since the last time I can remember, the income tax formula has been the same:
+ Gross income
Adjustments to income
Allowable deductions (standard deduction and previous exemptions)
or itemized deductions
Equals taxable income. Then you can calculate your tax and deduct:
Non-refundable credits (meaning, the floor is set to zero taxes)
+ Refundable credits (such as the EITC)
= Taxes or refund
Hence then, it would be appropriate to provide financial information on a form that aligned perfectly to such basic formula. Each line item on the top tax form would be derived from one schedule. Yet, while the Trump administration had such opportunity to simplify the 1040 form, it fully failed to look at every detail. Was it due to a failure at understanding the implication correlated with other entries? Call me a cynic, but let’s ask if the unclarity is aimed to create confusion?
Every entry on the tax form collects statistical data that is gathered for future reference as to the state of our economy and, thus, is a stand-alone number. Therefore, if a condensed version would be created it would involve schedules for each of the basic lines in the annumerated example of the basic formula presented above. A quick study on databases are sufficient to arrive at that conclusion.
Let’s face it, if our leaders are charged with our well-being and prosperous future, it ought to be reasonable to expect higher standards. It’s no surprise that our President fails to disclose the NOL’s that have kept him in operation for all these years. I thought I was on welfare when I collected food stamps, but our President has potentially driven us to a bankrupt state and expects me to pay the taxes that cover his irresponsible financial endeavors. These days it’s not welfare recipients bankrupting the country, it’s incompetent government officials by any means, just because they can.
No more bail-outs Mr. Trump.
My suggestion would be to incorporate the AMT formula into the various schedules that exist now, or that are feasibly incorporated into schedules, and reduce the obscurity behind income taxes.
Stop hiding behind the AMT.
The AMT is more like an ATM. As long as your business structure satisfies the foreign and/or private investment letter of the law, you’re able to avoid paying higher income taxes that are only adjusted due to AMT regulation.
It’s circumvention at its best and unpatriotic.