We have the most confusing, complicated, convoluted tax system. It has so many thousands of pages of fine print that no human being can really understand or know it all.
According to the National Taxpayer Advocate, the tax code now has over four million words and individuals and businesses spend about 6.1 billion hours each year doing their taxes and complying with the tax laws. There is no good reason that we should have a tax code nearly as complicated, confusing, and convoluted as it is.
Richard Rahn, Chairman of the Institute for Global Economic Growth, wrote: “None of this is necessary. The United States could move to a simple, flat tax system as other countries have which would raise as much revenue with far lower rates, and without much of the economic and liberty destroying complexity. Better yet, the nation could move to a system of user fees and consumption taxes, as some countries have, enabling the abolition of the income tax. Such a system would greatly increase economic growth and opportunity, individual liberty and reduce health destroying fear and anxiety among the people.”
The over-whelming majority of the people want a much simpler system, but the people, companies, charities, and institutions that have special tax breaks in our present complicated system have thus far been able to defeat major reform.