There would be so many advantages to dumping the IRS and the current income tax that it’s hard to know where to begin. We have built a tax system that actively encourages or even forces bad spending and investment habits. Not to mention the fact that people’s every economic decision is not based on its own feasibility, but its tax impact.
This is why I think in the end we will finally get off the ridiculous treadmill that is our current income tax system and get something along the lines of FairTax implemented, if only to save Americans from wasting a mind-boggling US$600 BILLION PER YEAR in compliance costs and pre-compliance economic decision costs.