10/19/17 – Tax Code
As Washington considers tax cuts, it should also reform the tax law.
Here’s what’s happening behind the headlines.
It’s way past time for Congress to simplify the tax code. When you add-in IRS regulations and Tax Court decisions we have a tax code nearly 75,000 pages long. If stacked, it would reach more than 25 feet high.
The tax code should be simplified. Drastically.
Typical American families shouldn’t have to hire professionals to figure out what they owe the government. About half of all filers do just that. Many spend hundreds of dollars. And this is just for family finances.
A decade ago, the GAO pegged the cost to individual taxpayers of around $100 billion each year.
In 2009, the Small Business Administration estimated tax compliance cost businesses about $160 billion annually.
No doubt both figures have increased.
Much of this is money better spent on products, services, employee salaries and family priorities.
The total cost of tax compliance for families and businesses is more than a quarter of a trillion dollars. These paperwork costs do very little to grow our economy.
It’s time to revise the tax code.