I know economics is complicated, but I don't think economists really understand how complicated it is. By trying to complicate the tax code to match the complexity of economics they're just creating so much wasted productivity. Also, economics is so complex that it's not possible to take every income, expense, fairness and equitabity factor into consideration. Its just like insurance. There are so many risk factors to consider in determining someone's chance of an accident its not rational to even bother considering them. The best solution to both taxes and insurance should be simplification.
2007-12-20 13:52:46 · 7 answers · asked by wisemancumth 5 in Business & Finance ➔ Taxes ➔ United States
There is a joke among tax preparers (CPAs and EAs): "I love it when Congress 'simplifies' the Tax Code because my business goes up 20% the next year."
For the average person, the tax code isn't that complex. Period. For a vast majority of people, their tax return is very straight foward.
I have better idea. Maybe people should just start getting smarter and pay attention to the things in life like taxes, interest rates and investments.
2007-12-20 14:04:27 · answer #1 · answered by Wayne Z 7 · 4⤊ 0⤋
The tax codes are not actually trying to be matched up with economics, nor are they written to take into account every financial scenario. It is not economists that write the tax code, it is the politicians, congress. I believe the reason the tax code is so complicated is because "special interests" are being accomodated for, probably to pay back favors. I agree that the tax code should be simplified but that would probably not make it any fairer. Someone will always be slighted and someone will always benefit more than others.
If we eliminate deductions, those that really need them will lose out. A flat tax will always assess taxes at a higher percentage of "need income" on the poor than the rich. The rich would only loose disposable income.
Those with simplier income issues will have simplier tax returns. Your tax filing should only become complicated when your sources of income become more complicated. If your situation is that complicated, you are probably doing fairly well.
2007-12-20 22:18:31 · answer #2 · answered by RANDALL M 3 · 1⤊ 0⤋
I am in complete agreement with you. I have no problem in paying my taxes but I will take every deduction or credit that I am eligible for. The tax laws are designed to catch every possible angle and situation in order to collect taxes. I too would like tax simplification. By-the-way, there are a lot of lawyers in Congress (past, present, and probably well into the future).
2007-12-22 11:05:29 · answer #3 · answered by Gary 5 · 0⤊ 0⤋
some polititions are trying to simplify the tax laws, but i dont think that will happen any time soon.
by keeping the tax complicated, we actually pay much more in taxes than we may realize. also, the rich pay less than the middle. also, they can waste more.
look at the AMT, all they do is patch it. both parties really want to keep it but they have to make it look like they dont.
2007-12-20 22:12:42 · answer #4 · answered by viajero_intergalactico 6 · 0⤊ 0⤋
Because when politicians ask the voters whether they would like a simpler tax code or another tax reduction, which answer do they get?
2007-12-21 13:51:39 · answer #5 · answered by r_kav 4 · 0⤊ 1⤋
And the IRS employee joke is that it's their full employment act.
The government loves to spend our money. It also loves to bribe the voters into thinking they are doing a good job so they'll be reelected.
2007-12-20 22:06:33 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Because that is the way congress makes it.
2007-12-20 22:02:48 · answer #7 · answered by Anonymous · 3⤊ 1⤋