Long term capital gains are not economically more or less beneficial than incomes derived from entrepreneurs steadily nurturing and reinvesting into their enterprises. I am not opposed to speculators but Im opposed to using tax policy to favor any business model over others. Unlike the proponents of the long term capital gains tax loopholes, I prefer our government promote transparent open markets that we all may be able to trust. There was an income averaging provision within our income tax regulations that mitigated progressive tax rates excesses when applied to a tax payer that enjoyed an unusual income boon within the current any single taxable years. The IRS did not differentiate between the deserving and undeserving taxpayers. It just enabled a taxpayer who earned a great percentage of income increase in any single year to average out their income over their prior leaner years and they were taxed at that decreased rate. This tax reduction was not limited to investors or those that sold their homes. It benefitted lottery or quiz program winners, sport or entertainment figures, inventors or anyone else that hit ANY KIND of financial jackpot within the taxable year for which theyre filing an income tax return. The income averaging tax form treated the current and a number of prior years as one total amount of income divided equally among all of those prior years. This mitigated the otherwise higher tax rate due to progressive income tax rates. I don't remember the exact regulations but I do remember that I availed myself of income averaging after graduating and finally began earning a living wage. I did it again after receiving my first really big salary increase after I left school. Respectfully, Supposn
Sounds like a cyberattack to me... IRS says experiencing computer failure Wed Feb 3, 2016 - The U.S. Internal Revenue Service said on Wednesday it is experiencing computer failure across several systems and temporarily cannot accept many taxpayer returns.
There is still income averaging if you are a farmer, Schedule F or if you receive a lump sum pension and meet a certain age requirement. However, the income averaging from the basis of capital gains and other incomes was eliminated by TRA 86 because the tax rates were reduced from a top rate of 50% to 28% in a two tier income bracket.
W-2 deadline just came and went. More likely they are inundated with earned income tax credit filers.
The IRS and the govt in general should not be engaged in social engineering. Taxes should be set by dividing the federal budget by the population and assessing every person a flat tax. No tax breaks for marital status, children, gambling losses, home mortgage or any debt, etc. Everyone plays, everyone pays.
