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Every person I know who makes over $200K per year spends WAY too much time on tax-related paperwork instead of being productive at what they are good at. Assum
by patrickgzill 16y ago
Every person I know who makes over $200K per year spends WAY too much time on tax-related paperwork instead of being productive at what they are good at.
Assume a scenario where a simplified tax (your choice of methods such as flat, no-income-but-higher-sales-tax, etc.) exists such that, say, 10 hours of time is enough to prepare a high net worth individuals' return.
Even if the net taxes were a little higher, productivity would go up because this busywork which does nothing for the economy disappears.
And since many CPA firms would be getting less hours, they could go and do something productive as well.
- 2arrs2ells 16y agoI agree with you that the tax code is in need of a drastic restructuring. But realize that when you argue for a simplified tax, you're saying we need to get rid of the many incentives baked into the current code. These run the gamut, including things like: Investing (lower capital gains rate + ability to deduct losses from gains) Education (credits/deductions for education spending + student loan interest) Homeownership (mortgage interest deduction - just imagine home prices without it) Alternative energy (credits for purchasing solar panels/green cars) Charitable giving And so on... I'm not saying that all of these credits/deductions are needed, just that their absence would cause changes to the US far bigger than your "lots of accountants +entrepreneurs would have some more free time" intended effect.