Does the tax code need to be this big or this complex?

Question

I read that the complete tax code in paper form would exceed the rating for a 1/2 ton pickup truck. And although I don't make a ton of money I wouldn't dream of doing my own taxes just because I have multiple income sources.

Now those people who make a ton of money can afford tax accountants and tax lawyers to find every loophole to minimise the tax burden they bear. But to me it's just insurance in case the IRS comes after me.

Shouldn't the tax laws be simpler? I know it would put many CPAs out of business but wouldn't it be better if you and I didn't need a CPA to figure out taxes?

Answer 1

The problem is that every time the congress goes to simplify the tax code they take out a lot of complications but then add in new ones. Every lobbyist comes rushing in to remind legislators that there are urgent needs in their home district that can be met by adding a new wrinkle to the laws that benefits only their clients and screws the rest of us.

Answer 2

Yes, I'd agree that tax law should be simpler.

That said, most people don't have situations that use many of the provisions in the code - they just don't apply to most people's income and situations.

Having multiple income sources is very common, and doesn't make doing your taxes complex. Now if you own several businesses, with a lot of eligible expenses for each, that's a different story.....

Answer 3

It's done that way to make it impossible for the average person to understand PLUS full of all kinds of formulas that make it ridiculous for us to understand. That way if the CPA tells you that you owe x amount of dollars, you can't figure out why.

Answer 4

It can be simpler. Do away with the whole thing. Go to www.fairtax.org read it. It would work.

Answer 5

None of us intelligent answerers can be helpful to you.

You first need to "spell check" your question, before any of us can give you an intelligent answer.