Why Not a Better Tax System?

Written by Confusion support on -

I am completely confused as to why we need such a complex tax code in the USA.  It amazes me that people in charge who consider themselves great patriarchs of the people even allow such a thing.  The only real explanation is that it is benefiting them and they really don’t want to change something that is benefiting them.  Since the majority of the country’s leaders are in the upper class, monetary wise, it must be that the tax codes are in favor of the wealthy.  This sounds like a “duh” statement, but it is one that is blatantly ignored by most and I am confused as to why.  In reality how much can our leaders be “for the people” if they allow such stupidity?  Why is there such hesitancy in moving toward a simpler tax system?  Is it because the complex tax system creates tens of thousands of jobs (IRS employees, tax preparers, etc.)?

I don’t understand why the vast majority of people are not in favor of a more “flat” tax system, whereas all people are charged the exact same percent of their income, regardless of what they make.  In this case, income would be considered any money coming into your pocket from any source.  No special treatment for capital gains, dividends, age related income, etc.  Getting paid in cash would elude a flat tax system, as it eludes today’s system, but there is little that can be done about that….except one thing.  What if the income tax system was thrown out altogether and a national sales tax was implemented in its place.  That way all people buying anything in the USA (including tourist and illegals, who use our resources and roads) would help to fund the country and every living and buying person would be equally taxed.  It wouldn’t matter if you got paid in cash.  If you buy a product you pay the tax. 

I am not an economist so there probably is something I am missing about such tax systems that make them impossible to implement.  I would like to see an intelligent answer as to why a flat tax type of system would not work, or why a partially flat tax system wouldn’t work.  I have not yet seen such an explanation.  To me, flat tax systems are not mentioned much only because they would not benefit the wealthier in any way, even though it is known that they would be fairer overall to the majority of people.

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Tags: flat tax, tax politics, taxes
Posted in Tax Confusion |
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