I was told that the books on tax laws stack up from floor to ceiling in a huge room and it is impossible for anyone to finish reading all the materials in a lifetime. There are way too many tax codes, deductions, credits, and all that matter. The government needs to clean up some of this stuff. Calculating and filing taxes should be easy. I understand the need for tax credits and deductions for mortgages, student loans, and things like that, but that should be easy to find and calculate on the tax form.
I know some people who are strongly in favor of a simple flat tax rule. Say, 15% and everyone’s earnings will be taxed at that rate. Therefore the more you earn the more you pay — fair and square. If Joe makes 10,000 a year, he will owe $1,500 in taxes. If Bill makes a million, he will owe $150,000. Think how simple everyone’s taxes will be then. CPAs’ will hate this idea, but tax filers will be able to fill out their 1040 quickly and send it in on time. Auditing also becomes so much easier. Tax loopholes/cheats get eliminated and that’s a good thing. Everyone pays their fair share. The government will have more money and the people should benefit from that.
This is all optimistic thinking, but they’re already doing this in Europe.
“The hardest thing in the world to understand is the Income Tax.” – Albert Einstein