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  • Genie Hayes
    The Tax Accountant and the FairTax: Compatible Indeed. In the early seventies, I chose accounting as a college major not merely because the starting salaries
    Message 1 of 1 , Sep 1, 2005
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      The Tax Accountant and the FairTax: Compatible Indeed.

      In the early seventies, I chose accounting as a college major not merely
      because the starting salaries were among the highest in the nation, but
      because I rightly saw that being proficient in the "language of business"
      would prepare me for so many directions in my career. In 1986, two things
      happened: one was the passage of the Tax Reform Act. The other was my
      personal entry into the field of financial planning that ultimately led me
      into investment advisory services. Lamentably, I did not immediately let go
      of the tax practice that provided so much security to my family. Instead I
      held onto it for about 10 years. I can now look back and say that the very
      best business decision of my career was to finally give up tax prep in 1997.
      It was then that my other business was able to truly flourish and it did so
      within a year. Have I had to give up all that I learned as a tax
      practitioner / accountant? Hardly.

      What I learned very well was that the first rule of investment is
      diversification. The reason is the mitigation of diversifiable risks. One
      of those is regulatory risk. Nearly all businesses have some risk that one
      of the governments can cause it great damage at the stroke of the
      legislator's pen. In my opinion, the tax-preparation business has always
      been, and remains, an example of extreme regulatory risk. The continuation
      of the business is very dependent upon the perpetuation of the tax code-the
      more complex, the better for that business/industry alone. Any industry
      who's very existence is created and maintained solely by regulatory fiat is
      not really a business and will eventually fade if democracy rules. One that
      fulfills human and societal need will flourish.

      Whether Fair Tax (H.R. 25) passes or not, it would be smart for all tax
      practitioners to diversify their investment in their careers. Nearly all of
      us who have mastered one of the more difficult curricula in college and then
      passed one of the most rigorous professional exams known to humanity are
      smart enough to do many things. In the repeal of the tax code, little or no
      re-tooling would be necessary for a tax accountant to shift his or her
      priorities to that of capital creation through improved profitability. Let
      me explain. In our capitalistic society, the true goal of any business
      enterprise is making a profit. From Wall Street to Main Street, business
      people become obsessed with increasing their profitability from one quarter
      or one year to the next. This goes far beyond the mere reduction of
      expenses (including taxes). It runs to the very heart of business and the
      measurement of it rests primarily with accountants.

      To pose the threat of loss of jobs in the tax prep industry as a reason to
      resist passage of Fair Tax, is analogous to the buggy whip manufacturer who
      resisted the introduction of the automobile. Whether you view it from a
      micro point of view (being good for the citizen) or from a macro view (being
      good for the nation), Fair Tax has, at its core, a promise for us that far
      outstrips the potential of the automobile to do good for our nation and its
      citizens.

      Scott Neal, CPA
      P.O. Box 2010
      Lexington, KY 40588



      Genie Hayes
      genie@...
      1-800-FAIRTAX #137

      Get The FairTax Book today! Attend a Congressman John Linder and Neal Boortz
      book signing near you!

      Please visit http://www.fairtax.org/boortz_book.html
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