First Edwards starts with his overview:
The American tax code is unnecessarily complicated and full of shelters and loopholes that favor wealth over work. While corporations and wealthy families can hire expensive accountants and lawyers, ordinary families face unnecessary obstacles in calculating and paying their taxes. It takes seven hours to complete even the simplest tax form, the 1040EZ. One-third of EZ filers pay tax preparers. Meanwhile, for tens of millions of taxpayers who file simple returns, the Internal Revenue Service already has all the data it needs (such as household size, wages, and interest income) to calculate the tax or refund due. [IRS, 2005; GAO, 2006]
In the first of a series of Saturday Morning E-Casts, John Edwards describes his plan to overhaul the tax filing system. Under his plan, the IRS will calculate millions of families' tax bills and mail it to them on a new "Form 1." Like a credit card bill, families could verify and recalculate it or simply sign and return it. Form 1 is part of Edwards' vision of a tax code that is simpler and fairer and rewards work.
As usual, the rich don't have to worry about these things. They can afford lawyers to fill out their taxes and shelter their income. For the average working family however, this is not the case. They must increasingly pay for expensive tax preparers to fill out their taxes and take a large chunk of their refund. Edwards is determined to end this. Here are some of the ideas:
Completing Tax Forms for Up to 50 Million Americans: For as many as 50 million Americans, the IRS gets all the information it needs to calculate their taxes from employers and financial institutions. Under Edwards' plan, the IRS will calculate these taxpayers' bill and mail them a completed return. Families would only need to do one thing with Form 1: sign and return it. Families with more information - such as charitable contributions, capital gains, or other more complex transactions - will not be able to use Form 1. Form 1 would save taxpayers an estimated 225 millions hours a year. [Goolsbee, 2006; Gale and Holtzblatt, 1997; Treasury, 2003; GAO, 1996]
This is a very good ideas. The IRS would take tax-filers information and provide them with their completed return. Working families need only sign on the dotted line and return. This could save a lot of confusion, plus give more of working families their whole tax return. It is a win-win proposal.
Next Edwards addresses the ease of filing:
Making Filing Easier for All Taxpayers: Each year, both taxpayers and the IRS get information returns from employers and financial institutions (on W-2 and 1099 forms) showing wages, interest and mortgage interest paid. Taxpayers who lose a piece of paper and do not correctly report their income faces audit, additional taxes, interest, and penalties. Under Edwards' plan, the IRS will mail the information it has collected to taxpayers, eliminating the need to gather duplicative documents. The IRS will also provide a free interactive web site for all taxpayers that eliminates the need for data entry, calculators, and tax tables. Of course, families could also choose to continue calculating their taxes as they do today.
Anyone who has ever lost their W-2 and waited impatiently for a replacement can certainly relate to this. The IRS should be used to make it easier to file taxes, not harder. These are two very good ideas to do just that.
Edwards moves on:
Helping Low-Income Workers: The Earned Income Tax Credit (EITC) lifts more than 4 million people in working families out of poverty every year. However, due to its complexity, as many as one out of four eligible families fail to receive it. By informing families of their eligibility for the credit, Form 1 will significantly increase the EITC participation rate. [CBPP, 2006; Brookings, 2006]
It has been proven that the EITC is a very effective way to fight poverty and put money back into the working family's wallet. This is a great ideas to reach the people who deserve the credit, but fall through the cracks. Anything that helps working families recieve more of their tax dollar back is an excellent idea to help them.
Edwards ends by talking about what will do the most good for everyone, fighting the big-monied special interests:
Taking on Special Interests: Form 1 could save families $2 billion in tax preparer fees, and the tax preparation industry has fought similar efforts. In California, one company spent over $500,000 in a failed effort to derail the successful ReadyReturn program. At the federal level, the IRS agreed with the tax software industry to limit free online filing to low-income taxpayers. Its barebones "Free File" program for low-income taxpayers has a history of hidden fees and bait-and-switch advertisements. [Goolsbee, 2006; L.A. Times, 5/5/2006 and 12/5/2006; Bankman, 2005; Cal. Franchise Tax Board, 2005; Accounting Today, 1/8/2007]
While big money has fought tooth-in-nail to make sure they get to keep recieving huge portions of the working families tax returns, Edwards has a better way. Filing taxes suddenly becomes easier, and the American worker gets to keep more of their money for their families. No longer will the tax-preparation industry be able to fleece the Americans who need their money the most.
While all this talk of "reaching out" and "working with the other side" tends to make some people feel warm and fuzzy all over, it is NOT what our party or nation needs right now. We need a leader who will worry more about the American worker than working with big business to limit progress. This is just why we need John Edwards. He understands we are in for a fight, and wants to fight for the American working family instead of compromising with the very people who would continue to fleece them.
It is time working America had a leader. It is time that leader fought for them, and didn't compromise their needs. John Edwards understands that the time for compromise has passed, and it is time to fight for what we believe in. Please join me in supporting a real Democrat who isn't afraid to fight for what Democrats fight for. Big Money has had plenty of representation in Washington the last thirty years. It is time we elected a leader who cares about working families more than they care about the lobbyists and special interests who derail progress. John Edwards has proven he is the only leader who will do this without compromise.
http://johnedwards.com/...
John Edwards in 08- The ONLY choice for working Americans!!!
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