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A business tax attorney needs to be more than an attorney

A business tax attorney needs to be more than an attorney

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Published by: Anthony Ellis Parent on Aug 14, 2012
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A business tax attorney needs to be more than an attorney

IRSMedic: Parent & Parent LLP 144 S. Main St Wallingford, CT 06492 Phone: (203) 269-6699

Business Tax Attorney
Business is not about taxes. It is about making money. A profit. And taxes are about destroying profits. There are no denying this facts (or you could deny them, but then you would be wrong).

These pillars were built over a lot of broken dreams

For many tax professionals we know, it is as if they have more sympathy for tax collectors than their clients. It’s true. And maybe at one point I was as well. But over the last ten years, my eyes were opened up to the way things really are.
Truth #1. The more the government gets in revenue, the larger the deficit. The more the government tax, the more they overspend. Take my home state of Connecticut for example.

According to the New York Times, in 1990, the State of Connecticut had a budget deficit of $65 million. and this was after then Gov. Bill O’Neil signed into law what was the the biggest ever tax hike in Connecticut history. So then what happened just a year later in 1991? The new governor, Lowell Weicker, implemented a new income tax to tamp down a state budget deficit that ballooned from $65 million to $1 billion. So the problem should stopped, right? Connecticut shouldn’t have a budget deficit now that it had all this additional tax revenue. Or if you guessed that the exact opposite happened, you’d be correct.


In 2007, Connecticut ranked highest in per capita public debt (and still does). Now in 2012, the state budget deficit tops $3.6 billion dollars. The more the government taxes, the larger the budget deficit, and the harsher the economic climate, which leads to more tax increases, which leads to larger budget deficits. And on and on. The death spiral will need some sort of economic miracle (they do happen BTW — and we’re definitely due) to avoid an eventual default of public debt.
Truth #2. Deficits are not good.

Keynesian economics is as dis-proven as phrenology (while phrenology went the way of eugenics, Keynesians are still partying like it is 1931). This idea that government can jump-start the economy by throwing a lot of other people’s money around. The problem with government spending is simple and much like the broken window fallacy (the most overlooked economics lesson of all time). “Keynesian theory suffers from a rather glaring logical fallacy. It overlooks the fact that, in the real world, government can’t inject money into the economy without first taking money out of the economy. Any money that the government puts in the economy’s right pocket is money that is first removed from the economy’s left pocket.” -Dan Mitchell, 2009 For example, in Connecticut, for every $579 million that is spent to link two economically distressed cities 10 miles apart though a busway, that is $579 million not in the hands of entrepreneurs seeking the maximum return on the investment.
Truth #3. Government spending for the sake of spending is not a good idea.

Government does not understand the broken window fallacy, how is it expected to efficiently allocate scare resources, when for government, resources aren’t scarce? There is no effective limit on deficit spending.
Truth #4. Government gets to double, even triple tax everything.

The is only one source of inflation. The increase in money supply. who increases the money supply? A privately held entity known as the Federal Reserve. As more money is printed for government spending, the value of what is in your bank account is decreased. Inflation is the stealth tax that is rarely talked about. But that’s not the end of it. The government actually taxes this stealth tax as well. For example, in 1960, Mary Goodwife buys an investment property for $100,000. And in 2010, she sell its for $727,807.20. The government will come along and tax the sale of her property claiming that she needs to pay taxes on the $627,807.20 that she profited. But did she really make that much money?


Well there is a reason I said she sold her property for $727,807.20. Because that is exactly how much $100,000 in 1960 dollars is worth in 2010. So even though there was no gain in the property relative to her purchase power, the IRS (and state) can still tax this phantom gain (of course there are ways around this, most notable the 1031 like-kind exchange)
So there’s the reality. Now what?

Of course you can still make money. Of course there is plenty of opportunity out there. you just have to realize what a hazard and danger the government is to your business.
Why a business tax attorney needs to be more than an attorney

And if you get behind in back business taxes like payroll taxes, you know there can actually be a silver lining. As you can even use this as an opportunity to make a meaningful changes to your business. A realistic payment plan or settlement with the IRS must be reached. but in order to do so, there must be a turn-around plan for the business in place. And honestly, as a tax attorney, there is no greater satisfaction than simply solving a tax problem, but also solving a client’s revenue problem as well. Real Tax Attorneys for Tough Tax Problems 888-477-4258 irs, tax, help, lawyer A business tax attorney needs to be more than an attorney

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