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IRS Now Wants To Repeal Cell Phone Tax

narramissic writes "Last week the IRS caused an uproar when it requested public comments on ways to clarify a decades-old law, seldom enforced, that would tax personal usage of business cell phones. But IRS Commissioner Doug Shulman said that the request for comments did not mean that the largely ignored rule would now be enforced. 'Some have incorrectly implied that the IRS is "cracking down" on employee use of employer-provided cell phones,' Shulman wrote. 'To the contrary, the IRS is attempting to simplify the rules and eliminate uncertainty for businesses and individuals.' And in fact, the IRS is now recommending that the law be repealed, saying that 'the passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete.'"

10 of 124 comments (clear)

  1. Something doesn't smell right... by Manuka · · Score: 3, Insightful

    The IRS wants to get RID of a tax?

    Why am I deeply suspicious of this?

    What's really going on here? What am I quietly going to get nailed on instead?

    1. Re:Something doesn't smell right... by eldavojohn · · Score: 3, Informative

      The IRS wants to get RID of a tax?

      Why am I deeply suspicious of this?

      What's really going on here? What am I quietly going to get nailed on instead?

      I read another article by Reuters about this that is entitled:

      Obama backs repeal of tax on personal cellphones

      Very little mention of the IRS in that article. They make it sound like Treasury Secretary (Timothy) Geithner got together with Douglas Shulman, the Internal Revenue Service Commissioner, and convinced him to ask Congress to repeal this. Together.

      You know, I don't know where the initiative came from, it doesn't really matter. But I found it amusing that a lot of news outlets probably thought "IRS to Repeal Tax"? That cannot sell and sounds like a lie. Better rephrase that to "Obama Cabinet Moves to Repeals Tax."

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      My work here is dung.
    2. Re:Something doesn't smell right... by Savior_on_a_Stick · · Score: 5, Insightful

      There are many situations where a request for comments is mandatory.

      Your right winger knee jerk reaction is utterly without a basis in the facts of this particular situation.

      The irs actually does a pretty fair job of making some sort of sense - twisted though it occasionally may be - out of the spaghetti legislation handed to it by congress.

      It's hardly surprising that they would ask congress to ditch a law with which maybe a half dozen people on the planet comply.

      The cost of maintaining the documentation, training it's agents, publishing forms no one uses - what's the point?

      It's typical that even when an agency steps up and says "um...we've looked at what we're doing and there are some practices that don't make sense, and don't serve anyone, and we'd like to change them - anyone else have any input first?" - some troll crawls out of Limbaugh's jock to piss and whine.

      Get a life.

  2. Wait, what? by Logical+Zebra · · Score: 4, Funny

    The IRS wants to repeal a tax law?

    Who are you people, and what have you done with our Internal Revenue Service?

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    I have a bad feeling about this...
  3. Sorry, What? by whisper_jeff · · Score: 4, Funny

    Sorry. What? The IRS is being logical? They want to repeal an outdated law? Who is this new IRS?

    1. Re:Sorry, What? by hansraj · · Score: 3, Funny

      Not only that, kdawson posted a feel-good story instead of a world-is-coming-to-an-end story! Something is seriously wrong around here.

  4. It's a pun, dude by smittyoneeach · · Score: 4, Informative
    --
    Get thee glass eyes, and, like a scurvy politician, seem to see things thou dost not.--King Lear
  5. Re:Hey, ya know: screw the dumb stuff by 140Mandak262Jamuna · · Score: 4, Insightful
    Cool down buddy. Consumption tax flat tax etc are all stupid ideas sold to people like you who are easily persuaded that the grass is greener on the other side. Have you lived in economies that tax goods and services at more than 10%? Can you imagine the kind of tax evasion that goes on, and the parallel cash economy that springs up immediately? How many people you know who evade the simple 5% or 6% local sales tax on the services by the landscaper or the handy man? That is the tax that goes to pay for your own local neighbourhood schools and snow removal. Now imagine how willing they will be to pay a 17% or 22% tax to distant Washington DC? Can you imagine the kind of intrusive systems needed to catch the scofflaws? If you think IRS is intrusive looking at your pay slip, wait till you get IRS demanding you show documentation for having paid tax on your wrist watch and shaving blades.

    Do these right wing nutties have any idea of the dangers of a cash economy? Today, in USA, 1$ in cash is worth 1$ in bank. But 1 million dollars in cash is worth lot less than 1 million dollars properly accounted for in the bank. Black money is worth lot less in USA than white money. That is not the case in Mexico, Phillipines, Pakistan, Bangladesh etc. Once unaccounted money gets decent buying power, then corruption sets in. We are paying pittance for our judges, police chiefs, auditors and law enforcers in general. Once cash economy takes root, corrupt people will work their way into every crevice of power and it would exceedingly difficult to get rid of them. The source of cash economy is tax evasion. Purely on that account, we should stop drinking the cool aid about consumption tax and such stupid ideas.

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    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  6. Re:Hey, ya know: screw the dumb stuff by m.ducharme · · Score: 4, Interesting

    But if you want social spending, and haven't told me how you're doing it without chronic deficit spending, you haven't told me much.

    This part's actually not that hard, my country (Soviet Canuckistan) had been deficit-free for several successive governments now. We're probably going to have a deficit this year, thanks to your country's free-market true believers deregulating the hell out of your banks (and other causes) since Reagan, and finally taking down the world economy, but we're expecting the return to deficit spending to be temporary. There's a good chance that the current government will fall, because the deficit is going to be bigger than projected (the PM's a Conservative, incidentally). But not to worry, Canadians in all demographic groups will continue to receive their universal health care.

    The trick seems to be 1) don't deregulate the financial system, because greedy bastards will rob you blind if given a free hand. 2) turf out politicians who take too much pork (a little pork fat does keep the wheels turning), because the greedy bastards will rob you blind if they can and 3) turf out politicians who threaten to take away your most cherished social programs, because the greedy bastards would rather spend the money on pork (see 2).

    Of course I'm being too glib, but if your basic requirements are social spending and no deficit (I suspect you'd rather see no social spending, given some of your sources), then it's been done, and done consistently (if not always done well).

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    Rule of Slashdot #0: You and people like you are not representative of the larger population. - A.C.
  7. Re:Hey, ya know: screw the dumb stuff by Colonel+Korn · · Score: 4, Informative

    Cool down buddy. Consumption tax flat tax etc are all stupid ideas sold to people like you who are easily persuaded that the grass is greener on the other side. Have you lived in economies that tax goods and services at more than 10%? Can you imagine the kind of tax evasion that goes on, and the parallel cash economy that springs up immediately? How many people you know who evade the simple 5% or 6% local sales tax on the services by the landscaper or the handy man? That is the tax that goes to pay for your own local neighbourhood schools and snow removal. Now imagine how willing they will be to pay a 17% or 22% tax to distant Washington DC? Can you imagine the kind of intrusive systems needed to catch the scofflaws? If you think IRS is intrusive looking at your pay slip, wait till you get IRS demanding you show documentation for having paid tax on your wrist watch and shaving blades.

    Do these right wing nutties have any idea of the dangers of a cash economy? Today, in USA, 1$ in cash is worth 1$ in bank. But 1 million dollars in cash is worth lot less than 1 million dollars properly accounted for in the bank. Black money is worth lot less in USA than white money. That is not the case in Mexico, Phillipines, Pakistan, Bangladesh etc. Once unaccounted money gets decent buying power, then corruption sets in. We are paying pittance for our judges, police chiefs,
    auditors and law enforcers in general. Once cash economy takes root, corrupt people will work their way into every crevice of power and it would exceedingly difficult to get rid of them.
    The source of cash economy is tax evasion. Purely on that account, we should stop drinking the cool aid about consumption tax and such stupid ideas.

    All of Europe lives with a VAT, which is a consumption tax. The rates are usually around 20%. Citizens aren't ever asked to show they paid tax - that's put on the businesses. I've seen more under the table money in the US than in Europe, perhaps because the VAT is so much simpler to enforce across the board. Prices in Europe always include tax - no one shakes their fists at the tax markup, and those who have a problem with it don't seem as upset as the typical American who is upset with the income tax.

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    "I zero-index my hamsters" - Willtor (147206)