Paying the Piper

The current administration's Internal Revenue Service gives with one hand and takes away with the other.  I have just been working on my 2011 income taxes and am surprised to find two (to me) significant changes (i.e., no Schedule M and a decreased lifetime limit on energy tax credits) that increase my taxes by well over a thousand dollars.  I find it interesting that these changes have been slipped into the tax code with little fanfare while, at the same time, I hear the political hoopla about the continuation of reduced payroll taxes.  The difference still seems a net gain for The Barry's tax collectors.  To see a detailed list of this year's changes go to: Tax Code Changes.

Understand, I am not here objecting to paying more in taxes, but, not being in the 1%, I am wondering what other changes are still in the works (hopefully, removal of the carried interest tax rate.)  And I have to speculate what might be the effect on total tax receipts given our sluggish level of economic activity.  If aggregate government tax receipts increase substantially this year (as I expect) and if our deficit still lingers in the stratosphere, then I am beginning to see the outlines of regressive taxing on the part of those who tout progressive tax reform ... as well as continued fire-hose-like government spending.  Given the incessant shifting of the tax-code, no wonder U.S. businesses are sitting on their hands.  Clarity and direction would surely improve things.