Ken’s Take:
(1) Of course a simpler tax code makes sense, but it’ll never happen. Why? Because the complicated tax code is Congress’ source of power. It allows them to pick winners & losers — among people, ideas and, oh yeah, contributors.
(2) I’d add a 7th principle: Everybody has to have some skin in the game.
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Excerpted from WSJ, “We Need a Simpler Tax Code”. April 10, 2009
As the national taxpayer advocate, I am required to report to Congress each year on the most serious problems facing U.S. taxpayers. With April 15 fast approaching, it will come as no surprise to many frustrated taxpayers that the complexity of the tax code tops my list.
The law should be plain enough that most people can compute their own liabilities on a single form.
In developing a comprehensive tax reform blueprint, I recommend that emphasis be given to six core principles.
First, the tax system should not be so complex as to create traps for the unwary.
Second, the tax laws should be simple enough so that most taxpayers can prepare their own returns and compute their tax liabilities on a single form, and simple enough so that IRS telephone assistors can accurately answer taxpayers’ questions.
Third, the tax laws should anticipate the largest areas of noncompliance and minimize the opportunities for such noncompliance.
Fourth, the tax laws should provide some choices, but not too many, since choices are confusing and can lead to taxpayer error.
Fifth, where the tax laws provide for refundable credits, they should be designed in a way that is minimally burdensome both for the taxpayers claiming the credits and for the IRS in administering them.
Sixth, the tax system should incorporate a periodic review of the tax code — a sanity check to guard against complexity creep.
Tax simplification would benefit all Americans, regardless of political party.
Full article:
http://online.wsj.com/article/SB123933106888707793.html
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