I’m Too Cynical: 2005 In Review

…Or so I’ve been told.

But as I continue to age (a phenomenon that I’ve been assured will continue) I have begun to wonder if Mark Twain was correct, when he said, “Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself.” Congress has shown a complete lack of fortitude in regards to taxation.

I am getting ahead of myself a bit. First, we have the Kelo v. New London Supreme Court decision, where private property rights took a back seat to the long hand of legislatures everywhere. Then we have the California Legislature conforming with most of the changes in federal taxes, but ignoring HSAs.

2005 will long be remembered for the disastrous hurricanes, Katrina, Rita, and Wilma. Congress did some good by passing tax relief for those impacted by the disasters. However, Congress couldn’t resist playing the morality card by excluding relief for “morally challenged” industries, such as gambling. It’s not as if gambling has done anything for Mississippi’s Gulf Coast region. I mean, back in the late 1970s the area was horribly poor, with few prospects for improvement. After the introduction of casinos, the area’s economy grew tremendously. However, Congress can’t be seen helping out the “sinners.” (Please also read Professor Maule’s excellent commentary on this issue.)

I would not want to forget the IRS as 2005 draws to a close. Indeed, the IRS attempted, in the name of “improving customer service” to close some taxpayer information offices. (Here, at least, Congress interceded to stop the closure.) More recently, the IRS wanted to cut three hours from their customer help lines; the recently passed defense appropriation bill contains language preventing such a closure. Of course, the quality of IRS telephone help remains at the usual, high level—only 25% of callers receive incorrect information.

And as 2005 drew to a close, Congress began debating extending AMT relief, extending the lower dividend tax rates, and other tax relief items. Any relief has been postponed until 2006. This one deserves watching, because the AMT is poised to strike millions if something isn’t done.

Of course, no holiday year-in-review article would be complete without noting the positive things that have happened in 2005. Congress continues to monkey with adapt the tax code for changing times, making it easier to work with easier for professional tax preparers such as myself to get work, and have lifetime employment. State legislatures, such as California’s, continue to lower tax rates and decrease regulations continue to pass more regulations forcing us to live in a nanny state. At least on the local level, things are different. It’s not as if Irvine has any huge public works boondoggles in the future, things like a Great Park, that would undoubtedly need taxpayer funding at some later date. (At least this last item probably won’t come home to roost for ten years or so.)

Finally, have a wonderful holiday season. Whether you celebrate Christmas, Hanukkah, or any other holiday, I wish you and yours a wonderful, safe and merry season. Merry Christmas and Happy New Year.

3 Responses to “I’m Too Cynical: 2005 In Review”

  1. dahowlett says:

    Thi sounds remarkably familiar from this soide of the pond

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