“This raises an obvious question as next week’s dreaded filing deadline closes in on taxpayers,” USA Today’s editorial board states. “How can a revolutionary new product — using about as much computing power as a mainframe computer might have had a few decades ago — be so easy to use, while a tax code serving a constant purpose of funding government be so complex?”
USA Today writes, “The answer is that the iPad is the product of free enterprise. The tax code is a product of politics and, in this age of dysfunctional government, it is a particularly defective one.”
“Blame for this rests not with the IRS, which simply administers the tax code, but with Congress, which writes the tax laws,” USA Today’s editorial board writes. “The code gets more complex each year because both parties see it as a tool to reward favored constituencies and special interests rather than a necessary evil to fund government.”
“When Republicans were in power, they added uncertainty and complexity to the code with temporary breaks for individuals and a raft of corporate breaks for the likes of ceiling fan importers, race track operators and erstwhile Oldsmobile dealers,” USA Today’s editorial board writes. “Former president George W. Bush created a commission to streamline the code, then hung it out to dry when powerful industry groups attacked its recommendations.”
“President Obama created his own tax simplification panel a year ago but has put it on such a tight leash that it might simply punt to a newly created commission on the national debt,” USA Today’s editorial board writes. “Meanwhile, his legislative agenda has mucked up the tax code even more. The stimulus, the “cash for clunkers” plan, the tax credits for homebuyers and energy efficient improvements, the health care reform act and the new jobs bill all add wrinkles.”
“For Americans struggling with their taxes, the code is nothing short of a nightmare. The IRS says the average person who fills out his or her own 1040 long form spends an average of 21.4 hours. So it’s no surprise that in tax year 2007, about 86 million Americans used paid professional preparers. But it’s a certainty that millions of them ended up signing returns they don’t understand,’ USA Today writes. “The Government Accountability Office estimated in 2005 that all of this cost $107 billion, or about 1% of the economy — a titanic waste.”
“Big tax breaks for health insurance, retirement plans and interest paid on mortgages — plus a raft of smaller provisions for things such as home improvements and flexible fuel vehicles — add pages to the code and cost the Treasury about $1 trillion a year in lost revenue,” USA Today writes. “What’s more, industries that benefit from all this are not the ones churning out awe-inspiring products such as the iPad, but ones that live off justifying why they should get special breaks.”
Full article here.
MacDailyNews Take: Very little meaningful and beneficial to the public at large will be accomplished on this issue (or many others) until senators and congresspeople are term-limited, thereby removing the constant pressure for these public servants – we say again, “public servants” – to secure blocks of votes via the dispensation of rewards to special interest groups. Career politicians would cease to exist and the people serving would have to come from the private sector, proving that they understand what holding a real job, running a business, paying taxes, and otherwise living within current laws entails. Such illogical lunacy as passing, for one example, health care laws that don’t apply to themselves would not be possible as the lawmakers could expect to eventually return to private citizen status and have to live with the laws, too. The next seat holder would go to Washington knowing the plusses and minuses of living and working under the laws and they would work to improve them for their guaranteed return home at the end of their final term. Their votes would be different because they’d be be forced to Think Different.™
Don’t hold your breath for this to happen, as the term limits would have to be passed by the senators and congresspeople themselves. If it were to somehow miraculously come to pass, though, the possibilities would be as promising to the country as those offered to developers, accessory-makers, and end users by Apple’s iPad.
Agreed. Term limits for the D.C. people. It is really sad that most al these people have been in office longer than I have been alive (I’m in my 30s now).
However, the way things are headed, we will all be paying more taxes. Something like 50% if the spending in D.C. doesn’t stop.
Good lord that’s a stupid Op-Ed piece. The tax code is hopelessly complicated, true, and we may all benefit from something darned close to a flat tax, but the purpose of the tax code is *totally* different from that of an iPad. You might as well ask “why is the tax code complicated, but a banana is easy to peel?” It’s also moronic to say that the tax code is complicated because of government, and the iPad is simple because of private enterprise. If that were the case, then all of Microsoft’s products would be equally simple.
dumb dumb dumb.
I’m not so sure that term limits would do anything unless you also solve the revolving door problem, wherein the retiring Congress critter goes on to a lucrative career as a highly-paid “consultant” for services rendered to whichever industry/corporation footed the bill to get him/her elected.
Bah, I already pay way more than 50% in taxes…and most people are probably closer to this than they think. Yes, thanks Washington, I don’t get to keep a cent of all my sweat and efforts until July!
I urge everyone to learn about and support FairTax:
http://www.fairtax.org
And, yes, MDN, I’ll second the term limits motion!!
“but ones that live off justifying why they should get special breaks.”
Like money hoarding churches? <cough…Vatican…cough>
Or we could have publicly financed elections, accomplish the same thing with the added bonus of retaining the best representatives. Oh, yeah, and we’d save hundreds of millions every cycle that could be put to better use.
Didn’t MDN just note that modern was too complex to allow mere tinkerers to screw up the experience for the rest of us? Is the government any less complex? Statecraft takes experts.
Sorry- that should have been “..modern computing was too complex..”
No, MDN, term limits isn’t the answer; all that would do is to make Congressional staffers even more powerful — unless you want to “term limit” them, too?
The bottom line is the bottom line: whoever pays for successful campaigns owns the duly elected — for however few (or many) terms they serve.
Using the iPad for political commentary.
What’s the world coming to?
More government, more taxes and more deficit spending. Isn’t that what “the majority” voted for last election? *sigh*
How to fix Congress:
1. Term Limits: 12 years only, one of the possible options below:
A. Two six-year Senate terms
B. Six two-year House terms
C. One six-year Senate term and three two-year House terms;
2. No Tenure / No Pension:
A congressman collects a salary while in office and receives no pay when they are out of office.
3. Congress (past, present & future) participates in Social Security:
All funds in the Congressional retirement fund moves to the Social Security system immediately. All future funds flow into the Social Security system. Congress participates along with the American people.
4. Congress can purchase their own retirement plan just as all Americans.
5. Congress will no longer vote themselves a pay raise. Congressional pay will rise by the lower of CPI or 3%.
6. Congress loses their current “Cadillac” health care system and participates in the same health care system as the American people.
7. Congress must equally abide in all laws they impose on the American people.
8. All contracts with past and present congressmen are void effective 1/1/2011.
Consumption tax INSTEAD of income tax. It shouldn’t matter what you make- only what you spend. This way- everybody pays but we end up each paying less- a lot less. The problem right now is not everybody pays- if everybody did- instead of paying 30% – 40% – we would only have to pay about 5% of our income. The consumption tax solves this by not deriving your tax from what you make- but by deriving it from what you spend. It’s fair for everybody. No tax returns to file- nothing. It’s a pay as you go system- one big sales tax across the board. The government will have more money than they know what to do with and so won’t we.
Think different.
Tax is overly complex because people are sinful. As soon as a tax law is in place we find a loophole around it. We even pay people to find the loopholes.
If we were not sinful the Tax Code would be one line saying:
“Pay what you think is your fair share of tax”.
</pulpit>
Perhaps somone can explain why Exxon and G.E., 2 of the largest and most profitable corporations in the USA are always able to dodge paying ANY income tax. Sure would lighten the load for the average Joe.
“Blame for this rests not with the IRS, which simply administers the tax code, but with Congress, which writes the tax laws,”
Let’s put the blame where it belongs. If we are voting these people into Congress, then isn’t it our fault? Voter turn out is (typically and embarrassingly) low.
Not one member of Congress has ever filled out an IRS form. They have flunkies to do it for them. Pass a law that members of Congress have to do their own taxes and see how quick things change.
It doesn’t get much simpler than a national sales tax on goods and services with subsidies to offset the cost of such a tax on lower incomes.
This is a much better idea than penalizing achievement and punitively removing funds from the very people who have the capability to drive the economy as today’s fscked up “system” does.
the tax is complicated because people want it that way….they want exceptions, incentives, disincentives, their deductions, but not others, they want government help in their industry, but not others….
do you really want a federal sales tax? add 20+% to the cost of everything – house, food, car, chewing gum, clothes, yacht, etc…no deductions, no business expenses, no exceptions, — I didn’t think so. There will be exceptions made 1 nanosecond after the thing is passed…..complication will soon follow
That being said….I do my 1040 with a schedule C, two incomes, and house in about 2 hrs…it is not that hard unless you are trying to dodge something
No more Most favored nation status & tariff everything imported.
No more deductions or exemptions and pay a flay income tax.
National VAT that exempts nothing.
Eliminate ALL OTHER TAXATION.
No more Most favored nation status & tariff everything imported.
No more deductions or exemptions and pay a flay income tax.
National VAT that exempts nothing.
Eliminate ALL OTHER TAXATION.
No more Most favored nation status & tariff everything imported.
No more deductions or exemptions and pay a flay income tax.
National VAT that exempts nothing.
Eliminate ALL OTHER TAXATION.
No more Most favored nation status & tariff everything imported.
No more deductions or exemptions and pay a flay income tax.
National VAT that exempts nothing.
Eliminate ALL OTHER TAXATION.
No more Most favored nation status & tariff everything imported.
No more deductions or exemptions and pay a flay income tax.
National VAT that exempts nothing.
Eliminate ALL OTHER TAXATION.
No more Most favored nation status & tariff everything imported.
No more deductions or exemptions and pay a flay income tax.
National VAT that exempts nothing.
Eliminate ALL OTHER TAXATION.
@ Farlo
it’s enlightening to know that my country’s government (uk) isn’t the only one to indulge in self interest whereby they merrily stick their noses in the trough whilst uttering to the rest of us “Do as I say, not as I do”. my sympathies to our American cousins.