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One way for it not to cost tax payers billions of dollars to drastically simplify the tax code while they are at it. A big part of the cost is directly attribu
by morning-coffee 3y ago
One way for it not to cost tax payers billions of dollars to drastically simplify the tax code while they are at it. A big part of the cost is directly attributable to the complexity of the rules to be followed to figure out how much to pay based on your circumstances. Throw all that nonsense out and all that should be left is a relatively simple "You made X, so you owe X * rate"
- seunosewa 3y agoThe complexity of the tax code is a result of negotiations between various political and commercial interests and lawmakers at the federal and state level. Simplifying it means changing a whole lot of laws touching taxation, which is practically impossible when the people negatively impacted by each change will be lobbying hard against. It's hard enough to get a single bill through congress. If they somehow achieved the impossible feat of changing all bills that touch taxation, the code will start accumulating complexity again starting from the next day.
- phpisthebest 3y agoThe complexity of the tax code is a result of the starting assumption that all income belongs to the government and anytime they exempt some kind or level of income that is a "cost" to the government that then has to be offset by other rules in the tax code
- NoMoreNicksLeft 3y agoThe tax code can't ever be simplified... simplification is effectively equivalent to eliminating all the various tax breaks that people are eligible for. A simple (perhaps the simplest) one sentence tax code is "everyone pays 10% of gross income"... this is considered regressive. As you add to the tax code to make it less painful, it grows more complicated. Some large fraction of the population effectively pays no federal income tax at all. The rules for exempting them and discounting them to the point of $0 owed alone accounts for some significant portion of the tax code.
- phpisthebest 3y agoYou can make a progressive simple tax. The problem is not progressive taxation, the complexity comes in when government attempts social engineering via the tax code by incentivize behavior they deem "good" and penalizing behavior they deem bad i.e tax credits for EV's , children, different taxes for married vs unmarried persons, etc etc
- NoMoreNicksLeft 3y agoIf you make it progressive enough to satisfy popular opinion, then you'll have something alot like we have now. The social engineering, as you call it... those are what people think of as "fairness". No one's going to win office simplifying that stuff away.
- chaxor 3y agoLay off the Sim City, Herman Cain
- Spooky23 3y agoGreat idea. Let’s start with your pretax health insurance, standard deduction, dependent and mortgage/salt deductions.