Huh. I admit that I don't follow this particularly closely, but I've only ever heard one "flat tax" proposal, really, for years and years.
Could the tax code be simplified? That's an interesting question.
I agree that it's quite complex, at least if you have a lot of different sources of income, or a lot of deductions. On the other hand, when for me it was just a W-2 and filing singly, it was cake.
So I think I'd like to drill down a bit deeper into what, exactly, is meant when people say it's too complex.
It strikes me that the complexity in the tax code is primarily the result of two things - first, the rich trying to pay less, and second, the attempt to reward folks for doing things like donations. That, and perhaps the intersection of state and local with Federal tax laws.
It's one of those things - kinda like earmarks, that on the surface seem pretty easy to fix (i.e. abolish them) but once you start to dig a bit, become complex, and you start saying "hey that's fair, or not so bad, or I understand why that's in there" pretty quickly.
What about the tax code do you find complex or onerous?
Well, this question made me think about the tax preparation course a few years ago, when the inequities of the tax system became really apparent.
First of all, he tax code is just one law on top of another for years and years, and then never remove anything. That's why we have this entire industry dedicated to preparing taxes and lobbying for their regulation. I think that's a little obscene. Plus, if we could simplify the tax code and cut out the people who prepare them, I think we could increase tax payer participation in the political process because they would understand how much of their money is paid into the system. Case and point: the tea baggers. I don't think many of these people are paying much, if any, taxes to begin with and I don't think they appreciate the services their taxes buy.
The other issue is that there are too many loopholes for the wealthy. A flat tax of some sort - and it can be on consumption, or income, or whatever, would level the playing field. It's exactly the deductions for things like charitable giving, or "farming" or other things that the wealthy can write off that decrease their contribution overall.
Could the tax code be simplified? That's an interesting question.
I agree that it's quite complex, at least if you have a lot of different sources of income, or a lot of deductions. On the other hand, when for me it was just a W-2 and filing singly, it was cake.
So I think I'd like to drill down a bit deeper into what, exactly, is meant when people say it's too complex.
It strikes me that the complexity in the tax code is primarily the result of two things - first, the rich trying to pay less, and second, the attempt to reward folks for doing things like donations. That, and perhaps the intersection of state and local with Federal tax laws.
It's one of those things - kinda like earmarks, that on the surface seem pretty easy to fix (i.e. abolish them) but once you start to dig a bit, become complex, and you start saying "hey that's fair, or not so bad, or I understand why that's in there" pretty quickly.
What about the tax code do you find complex or onerous?
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First of all, he tax code is just one law on top of another for years and years, and then never remove anything. That's why we have this entire industry dedicated to preparing taxes and lobbying for their regulation. I think that's a little obscene. Plus, if we could simplify the tax code and cut out the people who prepare them, I think we could increase tax payer participation in the political process because they would understand how much of their money is paid into the system. Case and point: the tea baggers. I don't think many of these people are paying much, if any, taxes to begin with and I don't think they appreciate the services their taxes buy.
The other issue is that there are too many loopholes for the wealthy. A flat tax of some sort - and it can be on consumption, or income, or whatever, would level the playing field. It's exactly the deductions for things like charitable giving, or "farming" or other things that the wealthy can write off that decrease their contribution overall.
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