While there is no doubt that the details of the tax law are complex, the function of the law is fairly simple. ~ Tom Wheelwright, CPA, CEO and Author of Tax-Free Wealth
Tempe, Arizona (PRWEB) August 19, 2015
With Republican Presidential Candidates debating how to simplify the law, Tax Expert Tom Wheelwright emphasizes that overhauling the tax code because it’s too complex really shows a complete misunderstanding of its purpose to fuel the economy with incentives for business. As the CEO of ProVision Wealth, author of Tax-Free Wealth and former Ernst and Young National Tax Department Professional during the last major tax reform under Reagan, Tom believes the tax law purpose is already simple.
Based on working with successful small businesses, entrepreneurs and investors for 30 years, Tom explains, “While there is no doubt that the details of the law are complex, the function of the law is fairly simple. To say that the tax law needs to be simplified so the average person can understand all of the details of how to work within the tax law is similar to saying that the human body should be simplified so the average person can identify diseases and remedies.”
The body is a complex set of systems that work together to create an amazing machine sustaining human life. Similarly, the tax law is a complex set of systems that work together to create an amazing set of laws that aim to accomplish a very specific purpose. Tom believes that just as nobody doubts the need for doctors, there really should be no concern about the need for professionals to understand and advise on the tax laws. People want a healthy and strong body just as people want lower and more effective taxes.
Maintaining a healthy body really is very simple. Eat right and exercise. Avoid too much stress and get enough sleep. Maintaining a low tax rate and effective tax law is equally simple. Understand that the tax law is a series of incentives for business owners and investors. Then, start a business or actively invest in assets that are recommended by the tax law. The result will be lower taxes.
A simple example is car expenses. Traveling to and from work is normally not deductible, so this expense will not result in lower taxes. However, set aside an office in the home for business, then travel to the office or to see customers, and the commuting expense becomes deductible. This is a simple incentive for people to use a home office.
Once people realize that the tax law generally works as intended to promote the economy, stimulate certain activities and reduce taxes for those who follow the law as intended, there might be a greater emphasis on how to improve the system rather than how to dismantle and replace the system.
If the desire is to increase investment in renewable energy sources, such as solar and wind, more emphasis can be given in the tax laws to incentives for people to invest and develop these energy sources. If the desire is to encourage education, more incentives can be inserted into the tax law to encourage these activities.
Rather than replace the entire tax law, perhaps the answer is to recognize that while the details of the tax system are complex, the system works as a series of incentives to promote social, economic and energy policies. Like the human body, the current tax system is already simple in its function and purpose. While changes may be needed to what is emphasized, a wholesale change to the tax system may not be the best answer anymore than replacing the human body’s systems is the best solution to sickness and disease.
Liz Kelly, Goody PR, 310-987-7207
About: Tom Wheelwright, author ("Tax-Free Wealth"), CPA and CEO of ProVision Wealth (Tempe, Arizona), is a leading tax and wealth expert, speaker, and a Rich Dad advisor/speaker for Robert Kiyosaki, who wrote Rich Dad Poor Dad. He is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. His work has been featured in Accounting Today, Investors Business Daily, Deseret News National, and as a guest on the ABC Radio News, AM870 The Answer, Real Estate Guys Radio Show and Money Radio 1510 Business for Breakfast. http://taxfreewealthadvisor.com