This could really apply to every level of government, especially our rulers in DC.

Tax cut facts and fantasies

Maryland’s taxaholic Democrats

D-I-Y Tax Prep Software

Again, I am not endorsing the concept of anyone preparing their own tax returns.  However, if you are set on doing this, you really should use a computer program.  There are far too many things that can be left out or screwed up when doing returns by hand to justify scrimping on the cost of a copy of one of the consumer programs.  I would never even consider doing a tax return by hand because of all of the interrelated forms and schedules that make it too easy to leave something crucial out.  Here is an updated review of some of the most popular consumer level programs.

One tip for those who do use one of these programs.  Make sure you have it print (or hand-write it yourself) “Self Prepared” in the paid preparer’s section.  I handled an IRS audit a few years ago for a couple where the wife had used TurboTax to prepare their 1040; but had left the paid preparer section blank.  IRS suspected it had been prepared by one of the underground preparers that they have been trying to catch.  The audit opened a can of worms that took me several months to straighten out with the Auditor and Appeals Officer, costing thousands for my fees. 

A first crack at dynamic scoring

Foes of dynamic scoring are at it again

Dynamic scoring’s double edge

Our money vs. their money

Thick haze of economic misunderstanding

Bush Will Fight for Smaller Tax Cut

Bush aide sees ‘give-and-take’ shaping tax cuts

President Seeks To Revive Plan For Tax Cuts
Signs Suggest Bush, Hill GOP May Accept Smaller Proposal

The status of the tax cut plans, as well as how they are measured, are both still important issues. As I have to constantly remind everyone, the numbers that are used to describe the “cost” of tax cuts are completely bogus on several levels.  Most important is their use of static analysis or scoring methods, which do not allow any consideration of changes in behavior due to changes in tax rates and rules.  Second is the fact that nobody has an accurate crystal ball that can predict the future.  Even changing from static to dynamic scoring moves the figures from being mere WAGs (wild ass guesses) to SWAGs (scientific wild ass guesses).  It always fries me to hear anyone discuss tax legislation figures as if they were gospel, when they are anything but.    

USA Today’s Take On The GAO Report On Tax Preparers 

Adding insult to injury.

The IRC can be interpreted in more ways than the Bible.

White House Signals Flexibility on Tax Cuts

Not a good sign.  Little Tommy Dashole must be like a shark smelling blood in the water.