U.S. Tax Reform: Complexity, Inequality, and the Road Ahead

The complexity of the U.S. tax code is a direct result of the need to define different types of income. Every individual’s income is unique, whether it belongs to an on-site employee, a truck driver, a farmer, or an oil producer. The tax code must define a common set of rules to ensure fairness, but this is often where challenges arise. It is my responsibility to determine what the code does not explicitly state, and Congress attempts to rectify these discrepancies.

Why Simplification Will Remain Elusive

Thank you for asking a question that does not contain any absurd assertions. My belief is that a simplified tax code will never truly happen, as it would reduce the government's ability to control the populace through tax credits, incentives, and deductions. Achieving a more rational tax system could lead to significant public unrest, regardless of its overall impact on revenue. Taxpayers who currently pay no federal taxes might be unhappy about increased contributions, while those who rely on entitlements would likely revolt if reductions in entitlements were required to balance the budget.

There is a small percentage of individuals in Washington, D.C., who advocate for a more equitable tax system. However, the practicality of implementing such changes is questionable. The political and social forces at play make any substantial overhaul a daunting task.

A Vision for a Fairer Tax System

I would like to see a fixed percentage tax system for all citizens. Poor people would pay little, rich people would pay a lot, and everyone would have a stake in the social fabric. The idea is to ensure that every individual feels a sense of responsibility towards the community they live in.

This approach would make sure that everyone contributes to the upkeep of society, thereby promoting social equity and unity. While this system may not have a positive impact on the government's revenue, it would significantly address concerns of inequality and fairness.

As an accountant, I have personally experienced the complexities of the tax code. Paying my fair share according to whatever the government decides has never been a source of frustration for me. However, it has become increasingly important to engage professionals to handle the rapidly changing tax landscape. My wife now brings our tax returns to a certified public accountant (CPA) to ensure that we are compliant with the latest changes.

Reforming the Tax System for the Better

Reforming the tax system is essential to ensure that all voting citizens contribute equally to the upkeep of society. Tax reform that requires everyone to pay the exact same dollar amount would be a step in the right direction. While this might not be a popular position, it can create a more equitable society.

Another aspect of tax reform that could be beneficial is to introduce a tax on gun owners that covers the cost of emergency services. This measure would not only ensure that gun owners contribute to the public good but also help fund those who may need immediate assistance following an incident. This tax could be viewed as a small price to pay for the safety and security of the community.

In conclusion, while a simplified and more equitable tax system may not be politically feasible, it remains a desirable goal. The key to success lies in addressing the underlying issues of inequality and ensuring that everyone has a stake in the future of society.