Well, if you've wandered around my blog at all, you've probably figured out that I am opinionated, and libertarian in my views. I have tried to keep my political opinions out of this blog, but I heard something today and it just chapped my hide... I can't take it anymore.
Some of you might know that Barry Bonds recently knocked out the home run that puts him in first place for lifetime home runs. A young guy caught the ball... and he might have a serious problem. I can't tell you much about him, except that I've heard he was a college student. But, he might have to start looking over his shoulder for the tax man.
Some experts are saying that the IRS will be looking to collect a bit over $200,000 from him for catching the ball. You see, experts think the ball is worth about $600,000, and the $210,000 is the amount of gift value this guy received when he caught the ball. So, if he wants to keep it, he'll have to cough up the cash. it doesn't matter if he would never sell the ball... the IRS would say that he has already received the value... and it is income.
It is time to adopt the FairTax. We need to get back to a point where taxation is something that can be understood. If you aren't familiar with the FairTax, please go to the link and read up. It is the most studied article of legislation... ever. It would make our live a LOT easier. Think of what you pay for tax prep and accountants to get ready for tax season. Think of the time you spend in tax prep. And, think of the consequences if you make a mistake. And, despite the fact that the IRS itself can't consistently answer their own questions correctly, making a mistake at some point is likely.
It would make life easier for us, for our buyers and sellers, and even our builders.
<rant off>
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I'd love to hear from you...
The dude is in college, was on vacation, heading to Australia with two other friends.
I can understand your head scratching about the IRS...
...but this isn't the poster boy I care about. Sorry.
I'm glad he caught the ball. That's it.
Wow, I am not the only one! I have been in favor of a sales based tax for many years so everyone would pay based on what they spent, not what they earned or saved. I think it is abominable to be taxed on our savings accounts.
And if we went to a retail sales tax system, we could get rid of many layers of bureaucracy. Even the drug dealers and criminals would end up paying taxes when they use their ill-gotten-gains to buy their "bling". After all, if you are buying a Ferrari, you should pay more than a guy who buys a Ford.
I worked as a tax preparer in another lifetime... Boy what an experience. There was a court case where the IRS claimed that the regular maintenance that FedEx was doing on its airplanes was not actually a maintenance. They claimed it was an upgrade which is more heavily taxed! They based their decision on the cost of the maintenance. They even went as far as to claim that the huge turbine engines were not actually part of the airplane.
There was a similar case with tugboats - the IRS claimed the engines were not part of the boat and therefore did not meet the requirements for regular maintenance. They didn't care that those engines will lock up tight or break down if you don't maintain them properly. And what is an airplane or a tugboat without an engine? Either a glider or a raft, neither of which is any good for moving cargo!
Eventually, the IRS lost both of these cases, but only after several appeals. It cost the taxpayers literally millions in court costs. And I wonder how many other instances of stupidity have ended up in expensive lawsuits.
I'm no expert, but from what I remember, the kid who caught the ball did not receive a "gift". I think it could be handled like beach-combers handle the taxes for the items they find. There is a difference between "found items" and "gifts".
Hi Lane, Right on with the fair tax! All this talk of more embedded tax (to pay for our crumbling bridges) makes me sick.... Everyone needs to listen to Boortz!