{"id":98,"date":"2024-06-14T22:14:22","date_gmt":"2024-06-14T22:14:22","guid":{"rendered":"https:\/\/www.bourbonnaistax.com\/blog\/?p=98"},"modified":"2024-06-14T22:14:22","modified_gmt":"2024-06-14T22:14:22","slug":"deep-thoughts-about-taxes","status":"publish","type":"post","link":"https:\/\/www.bourbonnaistax.com\/blog\/deep-thoughts-about-taxes\/","title":{"rendered":"Deep Thoughts About Taxes"},"content":{"rendered":"\n

Around 300 BC, the Greek philosopher Zeno of Citium and his followers gathered in Athens on a Stoa Poikile<\/em>\u2014a \u201cpainted porch\u201d\u2014to discuss how to live a virtuous life built around wisdom, temperance, justice, and courage. (I realize this isn\u2019t what you expect from your favorite weekly tax column. Stick with me.) Zeno went on to influence future philosophers like Seneca, Epictetus, and perhaps most notably, the Roman emperor Marcus Aurelius. Together, they became known as the Stoics, and their lessons are enjoying a renaissance today.<\/p>\n\n\n\n

Most people understand the word \u201cstoic\u201d to mean repressing one\u2019s emotions or simply enduring patiently. However, at its core, stoicism boils down to the notion that it\u2019s not events that upset us so much as our reaction<\/em> to those events. Stoics look at what happens around them and ask, \u201cCan we control this?\u201d If so, they fight the good fight. If not, they don\u2019t waste time, energy, or emotional balance fighting a battle they can\u2019t win. No amount of yelling at the airline representative is going to stop a summer storm that parks itself over O\u2019Hare!<\/p>\n\n\n\n

That same philosophy can help manage the infuriating gauntlet we laughingly refer to as \u201cthe tax system.\u201d Former president Jimmy Carter campaigned against it as \u201ca disgrace to the human race,\u201d and 50 years later, his attack still holds true. There\u2019s not a single sitting senator or representative who would defend the Internal Revenue Code as it currently stands. But sadly, today\u2019s dysfunctional Congress would struggle just to pass a resolution declaring that ice cream tastes good, let alone craft a tax system that meets the needs of our modern economy. \u201cFixing\u201d the tax code appears as likely as fixing that storm over O\u2019Hare.<\/p>\n\n\n\n

So, what do stoics do? They accept the tax code as it is, warts and all. Then, they work to control outcomes within that flawed system. That means planning to take advantage of the sometimes hidden, sometimes silly ways to legally pay less. (Seriously, can you imagine Marcus Aurelius meditating on the Augusta Rule?)<\/p>\n\n\n\n

The next couple of years will be especially challenging for stoics looking to accept battles they can\u2019t win. That\u2019s because the current framework, enacted by the Tax Cuts and Jobs Act of 2017, turns into a pumpkin just like Cinderella\u2019s carriage at midnight on December 31, 2025. At that moment, if Congress hasn\u2019t acted, standard deductions, rates, and a host of other factors revert to their 2017 levels. That will mean trillions in higher taxes for most Americans. Now, there\u2019s broad bipartisan agreement to extend most of the current rules, especially for individuals making under $400,000 per year. But who knows what might happen? As Mark Twain once said, \u201cNo American is safe when Congress is in session.\u201d<\/p>\n\n\n\n

What\u2019s worse, we probably won\u2019t have time to do much planning before whatever new rules Washington passes become law. In 2017, it took Congress until December 20 to send the White House a bill to sign. That meant planners had just 12 days\u2019 notice before the 2018 rules and rates took effect. That\u2019s actually a luxury compared to previous Congressional efforts. In 2012, Congress was faced with the challenge of extending rates from the 2010 Tax Relief Act that expired at midnight that year. They finally got the job done 11 hours after the deadline passed on New Year\u2019s Day.<\/p>\n\n\n\n

Most Americans who make enough money to benefit from professional tax services can expect a bumpy ride over the next couple of years. Don\u2019t worry\u2014we\u2019ll be here to guide you through the things you can<\/em> control to pay less, no matter who wins the election and what the rules look like.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most people understand the word \u201cstoic\u201d to mean repressing one\u2019s emotions or simply enduring patiently. However, at its core, stoicism boils down to the notion that it\u2019s not events that upset us so much as our reaction to those events. Stoics look at what happens around them and ask, \u201cCan we control this?\u201d If so, they fight the good fight. If not, they don\u2019t waste time, energy, or emotional balance fighting a battle they can\u2019t win. That same philosophy can help manage the infuriating gauntlet we laughingly refer to as \u201cthe tax system.\u201d Former president Jimmy Carter campaigned against it as \u201ca disgrace to the human race,\u201d and 50 years later, his attack still holds true. <\/p>\n","protected":false},"author":2,"featured_media":99,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[3],"tags":[4,10,11,9,29],"class_list":{"0":"post-98","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-taxes","8":"tag-tax","9":"tag-tax-reduction","10":"tag-tax-savings","11":"tag-tax-strategy","12":"tag-wealth-tax","13":"entry"},"_links":{"self":[{"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/posts\/98","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/comments?post=98"}],"version-history":[{"count":2,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/posts\/98\/revisions"}],"predecessor-version":[{"id":101,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/posts\/98\/revisions\/101"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/media\/99"}],"wp:attachment":[{"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/media?parent=98"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/categories?post=98"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bourbonnaistax.com\/blog\/wp-json\/wp\/v2\/tags?post=98"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}