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Top Tax Concerns Of My Readers In 2017

In selecting what I write about I have three criteria – practical advice, humor and matter for reflection. The latter catch-all category represents the ways in which taxation intersects other important issues.  There is probably some topic that does not have some sort of a tax angle to it, but I can’t think of one.  The other principle is that generally, I don’t write about something unless I have something to add or have adopted that issue as something I follow regularly.

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Earnings Havoc Unleashed By Tax Act

Earnings Havoc Unleashed By Tax Act

One of the biggest changes was about how changes in “enacted rate” are accounted for.  A significant part of the computation of the provision for income taxes concerns deferred tax assets and liabilities.  Very simply if you write something off or recognize income at a different point in time in figuring your reported earnings than you do in figuring your taxable income,  you will end up setting up an asset or liability to recognize tax benefits that you will be taking later or took sooner – deferred tax assets (DTA) or deferred tax liablities (DTL).  As timing difference reverse DTA are amortized making for higher income tax expense in later years compared to what is on the return and DTL are relieved making for lower income tax expense.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.