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The reason we have complicated taxes in the US is because US politicians make it complicated. Trump actually did a good job to simplify by increasing the standa
by u678u 6y ago
The reason we have complicated taxes in the US is because US politicians make it complicated. Trump actually did a good job to simplify by increasing the standard deduction and effectively removing AMT. Still its complicated because every politician wants their little tweak.
- mmcdermott 6y agoThe tweaks have a purpose, though. Generally when we talk about taxes we are thinking about funding the core services that everyone (yes, everyone) agrees on. But the system is used to do two other semi-related things. One is to reward one's constituency with tax breaks and the other is to install direct or indirect penalties on behavior. Taxes-as-funding can be simple. Those are revenue type conversations that also happen in every business on earth. Taxes-as-behavior-modification is where things get truly convoluted because you have different groups tacking on their own dis/incentives (so the thing as a whole will lack cohesion) and the number of edge cases simply explodes. "We want A, but not B, but A->B so we'll add a new rule, but that..."