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View Full Version : Anyone out there think the tax code will ever be truly simplified?



gimmethesimplelife
2-1-11, 11:20pm
Does anyone believe that this can or will ever happen? Every year I find it frustating how complex taxes are, even with my relatively simple taxes as a server and even with tax software. I remember reading that in New Zealand, the government sends you a postcard every year stating what you owe or what you are getting back, which you can check against your records. There is flat tax after a certain income level and no deductions, no itemizations, no tons of records to keep for three to seven years, none of this. Could we truly ever have something like this here, what do you think? Rob

ApatheticNoMore
2-2-11, 1:21am
Every year I find it frustating how complex taxes are, even with my relatively simple taxes as a server and even with tax software.

+ 1 (yes, every year >:()

Too many people benefit from the tax codes as it is, so no I don't think it will happen. Btw I don't think you need a flat tax to have a simple tax code, graduated progressive taxation could actually be quite simple (at least if the rates cover broad brackets). It's the itemization, the income treated 100 different ways, the calculation you often have to do to even figure out income, often using several different methods), the "I wonder if I qualify for this non-itemized deduction", although I never do) that makes it a never ending nightmare. Not the broad structure of the brackets but the 10 million and 1 exceptions to just having income fall in those brackets.

Sometimes I wonder if they could balance the federal budget just by eliminating all itemizations and other special treatment (are you a WWII veteran etc.?) and treating all income the same using the existing brackets (including investment income). It wouldn't surprise me.

flowerseverywhere
2-2-11, 7:22am
the IRS budget was over 12 billion dollars in 2010. If the tax code was simplified I have to think there could be a huge cut in this budget.

I would love to see it simplified. However, you have a lot of people making money off our tax code. The IRS, tons of accountants and tax companies, and of course lobbyists who try to get codes written their clients way.
The more shiny buildings filled with people in suits who need a salary, retirement benefits etc the more bogged down the system is.

I doubt it will change much though as the people in power benefit from the tax code as it stands.

janharker
2-2-11, 12:48pm
The number of supporters both across the country and in Congress is growing rapidly for The Fair Tax. Here's the link so that you can read the Bill for yourself: http://www.govtrack.us/congress/billtext.xpd?bill=h111-25

You can keep up with progress on Facebook. Or go to www.fairtax.com Though they don't keep that web site as up to date as they should.

It's been introduced both in the House and Senate. It definitely has a good chance of passing.

freein05
2-2-11, 1:08pm
I don't think it will be simplified. We use the tax code for too many things like stimulating the economy, get people to buy homes and cars. The tax code should be used to only generate revenue to support government spending and nothing else. It is a mess right now.

Gregg
2-3-11, 1:08pm
The complexity provides advantages to a lot of individuals and companies, loopholes for lack of a better term. Without debating morality there are quite a few people that oppose simplification. Personally I think a plan along the lines of how Rob described New Zealand's makes a lot of sense, but think the battle to get there is uphill enough that we won't get there anytime soon.