David Kirkham Testify Before The Senate Finance Committee
 

Guys,

I have been invited to testify before the Senate Finance Committee next Tuesday in Washington DC on “Complexity and the Tax Gap: Making Tax Compliance Easier and Collecting What’s Due.”

They asked me to testify from the point of view of a small business owner.

Any suggestions you all have would be greatly appreciated.

David
:):):)

Congrats David,

I wish you the best of luck with it.

:)
Anth

David
I pray that, with the current political and fiscal disconnect between our congressional bureaucracy and the true working class, they are not wasting your time.
Proud to have you speak on my behalf.

brobehr

The tax calculation should be forced to fit on a single 8x11 page and can be completed without professional help in a couple of hours by anyone.

Thank you so very much. I will do my best.

David
:):):)

Thank you. I will certainly tell them the complexity is costing jobs.

Moderators,

I know this is a Cobra site but I truly want to hear what everyone has to say as many people on this site are small business owners or work for small businesses.

Guys,

Let's please keep the rhetoric to a minimum and come up with solutions--not flames.

David
:):):)

There's the best idea overall. As another small business owner, the current filing requirements are ridiculous! Just make it a flat tax and it would be a whole lot easier.

The problem comes in that it would put a lot of folks out of work (government and private sector) and they can't have that.

So simple a caveman could do it?? (the tax form)

David,

While I recognize this as an old saw I would really appreciate it if they;

1.) Kept their regulatory nose(s) out of our business
i.e. Health Insurance, EPA, OSHA, for starters
2.) Reduced the level of taxation. Less tax means more money to invest in expansion (= more jobs)
3.) Expand the section 179 and bonus depreciation to include more things we buy to grow our businesses
4.) Abandon/Revise their anti business mindset that produced ideas like the 1099's that would go to anyone/business we paid $600 to for goods or services.
5.) Go back to being a Federal Government and stop the micromanagement of things they should not be involved in like incandescent vs CFL lighting.
6.) Give us a modicum of visibility and certainty with respect to regulatory change and at the same time certainty with respect to how long it will be effective - at the very least what it is. It's tough to plan when you don't know what the rules will be next year.

Thanks for going to bat bat for us. Hope you get at least a single or double. I'm not kidding myself about home runs with the current crowd we have up there.

Ed

Thank you for the suggestions. I sincerely appreciate you guys cheering from the bench. Thanks so much for trusting me to take a few swings.

David
:):):)

David,

Some good suggestions from the other members on Federal.

While this is a federal tax hearing, I suggest also speaking about state and local tax impact as well as Federal taxes on small businesses. It's not only Federal, but often the large number of state and local taxes that pile on top of Federal taxes that can overwhelm a small business.

I don't know about Uthah, but friends of mine from other states frequently talk about how burdensome and costly. Plus, many of them overlap with Federal taxes.

I can't remember where I read it, but a number of years ago I saw something written from one of our Presidents in the late 1800s or early 1900s, I believe, that prophesized Federal taxes will become small in comparison to state and local taxes.

Good luck on the hearing.

Greg

Thank you David,

If the federal government would reduce taxes for the small businesses along
with regulations that do nothing except hinder progress, and simplify the tax
filing process - they might be surprised at the rebound of the economy. That
is, if the states wold do the same. i have a small business here in Hawaii that is construction related (fire suppression systems) and unfortunately the
construction business has been in the pits for over two years now. What is
their solution? Build an $8 billion fixed rail 20 miles long that will cost $300M
a year to run. No where for taxes to go but up, with less than 1 million people
to pay for it. Sad thing is, I doubt if 5% will ride it so the traffic problem will
not change.

Best of luck with your input to them - now if only they would listen!

I'm afraid I won't be able to say much about state taxes, but they should remember we have to pay them too as they pass the federal laws.

David
:):):)

I've have had first hand experience dealing with a committee recently and because of my situation, I cannot go into my personal opinion about my involvement, but I will offer a few suggestions to think about:
Know your audience - During our preparation of the upcoming visit, we spent a bit of time digging into their bio's and any pubs that either had been released from their office or articles written about the individuals (and/or their staff). It wasn't long into our presentations that we discovered first-hand that this committee had their own agenda and regardless of the facts that we presented, it was twisted to suit their objective(s). Ray Charles could see that we were used as a pawn used to substantiate their position. At first I took it personal, but realized that I (we) were not one of the "Big Dogs".

Research the current situation - Your invitation is based on the fact that you are actively attempting to make our country better (don't want to say active in politics....that term has a negative cogitation), you are well respected at all levels, and the fact that you are a very successful businessman. Spend time becoming familiar with other industries so you'll have a better understanding of what obstacles other small business sectors are experiencing.

My last comment isn't directly tied to taxation, but I see the greatest threat to businesses (small and large) within the U.S. is the lack of focus to develop newer technologies. Case in point is NASA....they're shutting down the shuttle program and I feel that NASA is "wondering" around without a tangible long-term goal/objects. At the moment, I'm pretty removed from the details of NASA's woes but I used it as one example to demonstrate my point that our country is pouring money into other programs that will not allow the United States to maintain it's number one position as the leader in the development of technology.

You may have already thought of these suggestions but I'm hoping that my comments may spawn other ideas that will be helpful in your preparations. Like others, I will keep you in my prayers!

GT350Mike,

Thank you.

David
:):):)

I hope you have an opportunity to point out that any system of taxation that is so complex as to require a paid professional prepare your tax return is.................immoral.
And the excessive cost of compliance totally unproductive.

Good luck,

John

P.S. I like the old Mae West quote:
'JUDGE: Are you trying to show contempt for this court?
MAE WEST: I was doin' my best to hide it.'

Many business decisions are made based upon advoiding taxes, not what makes the best use of capitol. This process makes US businesses less efficient and less competitive. Flat tax and eliminate loopholes. The federal govt needs to stop using the tax code to buy votes and influence behavior.

Apparently in Spain there was or is a tax law for restaurants where the amount of chairs dictated the monthly income tax. I.e. 20 seat = $2.000. Done.
A similar option could apply for cars: x units built per months, $x/y tax to be paid.

If you want to pay less tax, you need to prove why your expenses were higher than average.

Good luck David.

- Quit trying to manipulate behavior with tax law.
- Make the tax burden proportionally equal.
- Make it that every one pays.
- Place the tax burden on consumption not production.
- Simplify, Simplify, Simplify,
- Eliminate the IRS.
- Implement a national Sales Tax.

Last year between National, Local, State, and Sales taxes I paid 69% of my income in taxes. I understand the current Tax code is 10,000 pages long. A business has to hire professional and expensive accountants to prepare their returns. It's so complicated that no 2 accountants will come up with the same numbers. Returns are prepared in fear or being audited. I recently was audited. It cost me $7,000 to have my accountant work through the audit. In the end it was determined that my return was accurate and I didn't owe anything more. But, the fact that it requires professional and expensive help to defend an audit is just wrong. Legit deductions are not taken for fear of raising the "red flag" that will trigger an audit. Just some of my thoughts.

Thanks, John

As a small business owner and US citizen, I've been told I need to "buck up," "tighten my belt," and be prepared for things to get worse. I "need" to be responsible with my money and spend it in the "proper" way. Well please tell them that I am tired of writing a check for my taxes and sending it to the most fiscally irresponsible group of people ever put on earth. Let them come run my business for a week and see that to work 40 hours I generate 30 hours of paperwork to comply with their insane laws. Sorry to be so harsh, but I counted to 100 before I started typing and I'm still fired up! Thank you in advance.

David, I'm very proud to have you represent me and to add my thoughts. I hope they are helpful.

You would like to think that these committees are unbiased, however most have a preconceived idea of the desired outcome and are looking for input that supports their position, not discredits it. While this is unfortunate, it is helpful for you to know this going in. Here are my thoughts assuming this is the situation here:

1. Know your committee. What states do they represent and what are the key revenue generators for those states? What party do they each represent? What have they published that gives some insight into their position (agenda, desired outcomes, positions and perspectives)? Who else is testifying, what do you think their agenda will be, and why do you think they were chosen?

2. Pick two or three key points you want to demonstrate not make (for example flat tax, elimination of loopholes, and simplification of documentation). Demonstrate your points through reference to respected sources that are not partisan, biased, or easily discredited. Focus on the two or three points only and try not to stray. Also, don't let any agenda driven questions get you off your points. Watch for questions that try to manipulate your desired position. Remember, most are lawyers and all are politicians, so they won't be able to help themselves in this area.

3. Tell them what you are going to tell them, tell them, and then tell them what you told them. Sage advice from a mentor of mine years ago on making a short, but impactful and memorable presentation. You will only have a few minutes to make your points, so pick the most important and stick to them.

Good luck, man! I know you will be fantastic!

Mark