Making Laws and Sausages: Not A Pretty Sight

My Comments on December 4, 2017:

A quote attributed to 19th century German Chancellor Otto von Bismarck crosses my mind frequently of late.  “Laws are like sausages.  You should never watch them being made.”

He is right.  For a time, I lived and worked in the sausage factory on the Potomac.  Law-making wasn’t pretty then. It still isn’t.

As I keyboard (formerly I typed), I await the probable conferencing between the Senate and the House of Representatives to work out the differences between their versions of tax reform.  I am not encouraged about what may result.

The Congressional Republican majorities compare their work nostalgically to the Tax Reform Act of 1986.  The TRA of 1986 was thoughtfully designed in a bipartisan effort with time to hold hearings and to deliberate carefully.  Even in such an environment, Congress designed a plan that unintentionally destroyed much of the real estate business and many (albeit already weak) savings and loan institutions.  Many commentators have concluded that the TRA of 1986 eventually hurt or did not help very much the economy.

This proposed sausage very likely will be toxic, even though its manufacture is, in some cases, well-intentioned.  I predict that the legislation that may result will be one of the oddest and most confusing tax laws ever enacted in the course of human habitation of this orb.  Historically, little good has come to our country when Federal taxes and not Federal expenditures are cut.

So, I’ll keep watching the current events on Capitol Hill, even though they are pretty disgusting.  People pay me good money to be current on the tax law and its evolution.   They have to.  Ugh.

VKM

Making Laws and Sausages: Not A Pretty Sight

Latest News

The Home Mortgage Interest Deduction – Changes Under the TCJA

The Tax Cuts and Jobs Act of 2017 (“TCJA”), enacted Dec. 22, makes modifications to the deductibility of ...

Qualified Opportunity Funds – A New Investment Vehicle from the TCJA

A new Qualified Opportunity Zone (“QOZ”) program to encourage investment in low-income communities (“LICs”) is part of the ...

The Bipartisan Budget Act of 2018, passed and signed into law on February 9, 2018, has a number of tax law changes.

On February 9, Congress passed, and the President signed into law, H.R. 1892, the “Bipartisan Budget Act of ...

HM&M Updates

Randy Garcia selected as TSCPA Rising Star

The Texas Society of Certified Public Accountants (TSCPA) recently announced its 2018 Rising Star honorees. This recognition highlights ...

Jessica Gooch Named Shareholder

HM&M is pleased to announce Jessica Gooch was named Shareholder of the firm effective January 1, 2018.  Thank you for ...

Kim Lyons Named Shareholder

HM&M is pleased to announce Kim Lyons was named Shareholder of the firm effective January 1, 2018.  Thank ...