I’m always drawn to these threads. I’m a tax professional for over 25 years. The code has existed my entire lifetime so I’ll say I’m not sure it’s productive or economically responsible to ditch it. That notwithstanding, lobbying efforts from S&L Governments, lobbying firms, corporations, unions, trade unions, professional associations, etc.. have made it way too complex for individuals.
I’d do away with the filing of tax returns. I’d let the IRS bill citizens. This is how.
You eliminate all exemptions, deductions, etc.. everything. You lower the tax rates to the effective rate people are paying now net of their deductions at each and every bracket.
Tax wages, interest and dividends at normal rates. Tax capital gains and capital gain dist. at reduced capital gain rates. Tax any other financial instrument as an item of “intangible income” at the normal income rates. All of this information is already reported to the IRS.
Wait for you bill and pay. If you can forecast your taxes well enough, the only balance due or refund owed to you should be a function of your non W-2 income.
This would keep the IRS employed (what lobbyists want) and greatly reduce the burden on the average US taxpayer.
Alas, it’ll never happen
With respect, a bad idea compounded by bad enforcement should not endure merely because it's old.
Alas, it’ll never happen
You’re right about that.
Both houses of congress have standing committees that are responsible for modifying taxes.
These are desirable committees for members of congress to sit on because it is easy to get people to give you money when you sit on one of these committees.
The Libs like to talk about change but this is not the change they are waiting for.
Since I don’t get paid off of it, I will say that it would be beneficial because freedom and privacy are far more important to me than they are to anyone who would defend income tax for any reason.