It’s the New Year and sadly, the same old Congress. With that in mind, I thought that Congress could use a little help with their New Year’s resolutions for 2012, so a couple of days ago, I posed this question on my blog:
What’s on your tax and financial #wishlist for Congress in 2012?
Here’s what my readers had to say:
- Angie Kenison DeLong: Our congress needs more awareness of how the income tax system works for most Americans. I would like to see every senator and representative take and pass the RTRP exam to demonstrate that they are qualified to vote on tax bills.
- Christianne Kapps: I wish there was a way to force banks to keep foreclosed homes on their balance sheets until they ACTUALLY sell the houses, thereby making banks: a) more willing to re-fi instead of rushing to foreclose; b) reduce or slowdown growing inventories; c) keep property tax paying homeowners in their homes, increasing states taxbase and keeping schools properly funded, stabilizing neighborhoods, and propping up client credit ratings, rather than destroying them.
- Christianne Kapps: Congress should make the income tax rate 0% for any individual (1040 filers) whose AGI is less than $100,000, ( or annual payrate less than $150,000) (double for families) but make the non-filing penalty $1000 to $2000. you’ll increase compliance and reduce the complications and back and forth of withholding and refunding as well as put more money in taxpayers hands (but put Social Security withholding back to previous levels)
- Christianne Kapps: Some rule needs to be thought up concerning state and local income tax. now states and municipalities can pursue you for giving a lecture in their region even if you never lived there, but you don’t necessarily get a reduction from your home state/municipality – effectively double taxing, not to mention complicating your tax returns. if there were a unified form for recording where you live/work to distribute income tax to the appropriate taxing agency – or – if you only paid income tax to your municipality/state of residence, compliance would be easier/higher, you would only be taxed once, and you wouldn’t have to fill out so many returns.
- Kathy Hanley: Congress needs to keep more money in the United States. They should start with only purchasing products grown and manufactured in the United States.
- Marilyn Cooper Baker: I would like to see the members of Congress pay into the Social Security System!! Then see how fast it would get fixed!!
- Greg Miller: my tax and financial wish list contains two items. first congress needs to pass the Fair Tax act of 2011 H.R. 25/S.13. passing the fairtax will take us closer to our founding fathers goals of a voluntary, progressive tax on purchases above the federal poverty guidelines. it removes embedded tax costs of goods produced here in the united states making our U.S. made goods more competitive with imported goods. it allows international companies to invest profits from overseas operations here in the U.S.. it allows small businesses to keep the profits it needs to grow tax free. it allows all savings and investments to grow tax free giving lower income families that want to help themselves a hand up instead of a hand out. it places the tax burden on those that choose to spend more helping to end the class warfare that income taxes cause. it stops congress from buying votes via the tax code as any tax changes apply to every one equally. it returns power to the people. to help with that return of power congress needs to pass a real balanced budget bill based on actual revenue not GDP such as H. J. RES. 23 this bill will require congress to balance the budget while not allowing the tax rates to be increased unless two thirds of congress agree’s. with this balanced budget amendment and the fair tax in place the people have control of the purse strings. if congress is making laws that are for the good of the country any one that wishes to can do well. there spending will increase and federal revenue will increase. if congress starts making choices that hurt the country consumer spending will decrease which will decrease the money congress has to spend on the poor choices. to quote Alexander Hamilton in Federalist #21 “Imposts, excises, and, in general, all duties upon articles of consumption, may be compared to a fluid, which will, in time, find its level with the means of paying them. The amount to be contributed by each citizen will in a degree be at his own option, and can be regulated by an attention to his resources. The rich may be extravagant, the poor can be frugal;”
- John Izzo: I sure like the thought of Congress paying into Social Security! I believe that Congress should not pass any laws that effect those of us in the country while exempting themselves from the jurisdiction of the laws.
- @Eligabiff: 2012 tax #wishlist @taxgirl tax law changes must be passed by Oct 1 for current tax year & next tax year.
- @Eligabiff: And another 2012 #wishlist @taxgirl fix AMT permanently.
- @Eligabiff: My 2012 tax #wishlist for @taxgirl extend payroll tax cut through the end of the year since it is already screwed up & then let it expire.
- @Cairnmom3x: @taxgirl #wishlist invest in innovation, education and infrastructure, bring jobs back to small town USA from China. Tax imports from China
- @Cairnmom3x: @taxgirl #wishlist abolish Obamacare
- @Cairnmom3x: @taxgirl #wishlist figure out a way to cut debt by reallocating spending and balance the budget – how much $ does it really cost to run USA?
- @Cairnmom3x: @taxgirl #wishlist put aside party differences to do what is truly in the best interest of the country – neither party has it 100% right
- @Cairnmom3x: @taxgirl #wishlist accountability to taxpayers for how they spend our money – the fed govt’s bal sheet and p&l are too complex to understand
- @Cairnmom3x: @taxgirl #wishlist I am a big proponent of privatizing Soc. Sec. for workers under age 45, all others should have the option
- @Cairnmom3x: @taxgirl #wishlist simplify the tax code for individuals – a flat tax with a min exemption would accomplish this
- @Cairnmom3x: @taxgirl #wishlist term limits – I think terms for all elected officials should be 6 years (including the president and all of Congress)
- @rdftaxpro: @taxgirl What I want to see in 2012 – all current members of Congress who run for re-election in 2012 are voted out of office!
- @JoselynDawn: @taxgirl #wishlist An online tax payment system with check boxes next to every gov’t funded program/agency, let me choose where my $ goes.
- JoselynDawn: @taxgirl #wishlist Cut down the current code. It shouldn’t break my back 2 carry. Focus on increasing revenue & decreasing public freak out.
- @LeviTheFA: #wishlist Clarity. (Higher/lower, whatever, just some long term dir) RT @taxgirl: Congress Needs Some Advice in 2012 goo.gl/fb/WUwgE
- @sweetbv: @taxgirl, I’d love for Congress to stop overspending and pass a balanced budget before fiscal year end. #wishlist
- ef436: While I doubt that much will get done in Washington in 2012 – I’d like to see a balanced budget – with some emphasis on finding and allocating funds for areas and programs that are really in need, such as education
- mklimpel: My wish list for Congress includes term limits – I think the whole idea of making a career out of being a senator or representative has caused the gridlock we are experiencing – politicians are avoiding making hard choices that would benefit the country because they are too worried about getting reelected. In addition, I think the culture of getting reelected has contributed greatly to members of Congress becoming completely out of touch with their constituents – they just don’t listen to the people that elected them. I would also like to see more required disclosure around new legislation. The sheer size (hundreds or even thousands of pages) of some of the legislation that has been enacted in recent years calls into question whether members of Congress even understand what they are voting for. Large corporations have to file 8-Ks disclosing significant events or changes that impact their businesses – why shouldn’t Congress have to post summaries of bills (written in plain english) at least 5 – 7 days prior to when a vote is taken to allow people to understand what is contained in the legislation and allow them to make informed decisions about whether or not to support the legislation. One last suggestion I have is for the people of the United States to have a say in whether Congress gets to adjourn for any vacations during the year – the fact that they leave for holiday breaks when legislation is hanging in the balance is just not right – try that in any other job and it wouldn’t be tolerated!
- rdftaxpro: KPE – Here is what I hope happens in 2012 – Every single current member of Congress who runs for re-election in 2012 is voted out of office!
- kloftis: Enough with all the politics, Congress! Step up and pass a flat tax. Citizens should understand what their share of the cost of govt is.
- pegatha: I would like a provision in the tax code that *every* number, anywhere in the tax code, is indexed for inflation. Just like the personal exemptions, standard deduction, FICA limit, etc. are always adjusted for economic reality – every other number that also affects tax thresholds and calculations should be adjusted. That’d get rid of the last-minute AMT patches. Sec. 179 limits. Mortgage interest limits (well, I don’t agree with that subsidy, but whatever). Teacher expenses (really, $250? that’s insulting). It just makes sense to adjust everything.
- pegatha: Re: the 179 limit – now that I think about it the $125k limit for certain years is indexed, but once (if) it reverts to the $25k limit, that isn’t indexed, is it?
- donnalaubscher: I would like Congress to do anything that could be considered bipartisan. But, really, they need to correct the payroll tax cuts. Two months?? Granted, I am a CPA, but I suspect they have never looked at a payroll report. How are those even going to be able to reconcile? My wish list for ever has been elimination of AMT, but the country cannot afford for AMT to be fixed.
- mactax: Wish for Congress- for them to do anything constructive with a minimum posturing and partisanship. What I dream will happen- I promise I haven’t had anything fermented or distilled (yet)- right after the President enters to deliver the State of the Union Address, the doors are flung open and Thomas Jefferson, Benjamin Franklin, and John Adams enter. They proceed to lay into all our assembled leaders(and the wannabes) about their behavior and lack of leadership. Name names, cite their behavior, hold them accountable on national television. If Santa can visit billions of children in one night, surely our founding fathers can come back for a couple of hours for some much needed butt kicking.
- Rainer V.: I just wish Congress would stop playing politics, and give us a stable, known, predictable tax code. Individuals cannot plan, and employers will not hire, when they don’t know what their tax responsibilities will be over the next few years (or even the next quarter)!
- maxst: The best thing we could do as a nation for our economy and jobs is to enact the FairTax ending the income tax and forever ending the taxing of our paychecks. As a result of the FairTax, we would see jobs flooding into America instead of fleeing and we would no longer have to grovel, snivel and whine like beaten down slaves for a measely 2% payroll tax cut when we could have a 100% one. We’ve had the income tax for nearly 100 years and have tried every trick in the book including a “flat” income tax, and yet it still isn’t “fair?!” Isn’t it time we drop the insanity of trying the same things over and over while expecting different results? To me, it seems the choice is obvious, the FairTax, bringing the single greatest transfer of power OUT of DC and back TO the people and economic prosperity or continue with the same old, same old and keep getting the same results!
So looks like we want clarity, simplicity and less politicking. What did we miss?
Congress, are you listening?