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Monday, May 13, 2013

Why the Tax Code Sucks

I see people bat around estimates of the number of pages the US tax code contains, yet they never seem to say why such a large document is bad. After all, complicated answers aren't necessarily wrong answers.

Is a complicated tax system bad because it's a pain in the ass to do taxes? Yes, but not a good enough reason to scrap it. Life is a pain sometimes.

But when the complicated system is used to favor influential political donors or, worse, silence opposition, as in the recent news that Tea Party groups were targeted by Obama's IRS, then, my liberty-loving friends, we have a problem.

A simple system of determining tax burden is needed because simple rules prevent the uneven and easily exploitable collection of revenue from being manipulated to target or exempt individual groups or industries.

If taxes on business profits were, for a completely random example, 10% for every company, the end, then there is no method by which one business could leverage political influence over another.

Lower taxes might be what everyone hears when a pundit pushes a flat tax, but it is justice in the collection of revenue that we seek here at MF, and is so sorely lacking in America today.

Without favoritism in the tax code, I contend* the Free Market would be in a far better position to police itself.

*My logic behind this will be saved for another post or posts, since it would be too long and too off-topic to lay out here.

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