Oh, what a world, what a world! While media chatterheads go on about Libor and other financial chicanery, this sneakily one of the most depressing financial news stories in some time:
Firms Pass Up Tax Breaks, Citing Hassles, Complexity – John D. McKinnon
But executives, particularly at small and medium-size companies, complain that many of the tax deductions are either too cumbersome or too confusing. In some cases, the cost of obtaining the tax benefit is greater than the benefit itself—a wrinkle that has helped spawn a cottage industry of tax-credit consultants. Also problematic is the threat of pushback from the Internal Revenue Service.
The result: many companies are saying “no, thanks” and are likely paying more taxes than legally required. And corporate breaks that Washington hopes will boost the economy often prove ineffective.
You’re thinking, well, of course they’re talking about Greece. No! The US ! A world where the tax code is so convoluted that small businesses pass up tax breaks in the world’s breadbasket of capitalism is a miserable world indeed. It also starkly displays how, 10 years hence from Sarbanes-Oxley, big firms with big accounting and audit budgets have an advantage over smaller firms… all due to a bloated tax code.
I never know if it’s most appropriate to laugh or to cry on tax day. Here are two articles to make you do both: