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Overnight Open Thread

146
lawhawk2/08/2011 8:14:36 am PST

re: #142 blueraven

That’s the rationale to keep and add yet more tax breaks to everything from ethanol (it’s good for the environment) to mortgage interest deductions (it’s good for people to own their own homes), etc. Aside from the distortions to the economic markets, the tax breaks increase the complexity to the point where it is nearly impossible to do your taxes without significant assistance via tax filing software or tax prep services.

Tax simplification, which can streamline the tax collection and compliance, can be used to keep revenues generated the same, all while lowering the tax rates. While both sides of the aisle want tax simplification - the question becomes how to do so - whether simplification can or should be used to increase revenues, or keep revenues constant.

All I know is that the current tax code is unworkable and every year beyond the 1986 recodification/simplification, the situation becomes even worse as tax breaks are piled on top of each other and trying to suss out your tax obligations become more difficult.