Alcoholic Actuary
Veteran Member
Excellent article on NPR:
lots-of-candidates-want-to-simplify-the-tax-code-heres-what-they-get-wrong
and
There is multiplication involved so there is plenty of fodder for the math-haters. Of course the real motive for such a maneuver is obvious:
(link to an analysis of Bush's proposed tax plan)
The article concludes with some very profound points:
Can we seriously stop whining about our tax code being too complicated? 4th grade children are laughing at us.
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lots-of-candidates-want-to-simplify-the-tax-code-heres-what-they-get-wrong
article said:"The real complication in the system is in the tax base, not in the rate structure. Figuring out how you calculate capital gains or figuring out whether you're eligible for the EITC [Earned Income Tax Credit for lower-income Americans], given the child rules — once you've got that, then you just plug in the rates."
and
article said:"The number of brackets has an almost imperceptible effect on the complexity of tax law as it is lived by the individual taxpayer," Kleinbard said. "Taxpayers are not, left to their own devices, engaged in high-level mathematics."
There is multiplication involved so there is plenty of fodder for the math-haters. Of course the real motive for such a maneuver is obvious:
article said:"The call for fewer tax brackets in every case has as its real motive lowering the tax burden on the highest-income Americans, not making life simpler for the middle class," Kleinbard argued. Consider Bush's tax proposal as an example. While it limits deductions, it also would overwhelmingly benefit the highest earners (and grow the national debt — unless there is unprecedented growth in the economy)."
(link to an analysis of Bush's proposed tax plan)
The article concludes with some very profound points:
- There is no 'correct' number of tax brackets.
- The US tax system is almost perfectly optimal.
- The tax code is complicated but for some very necessary reasons.
- The vast majority of US taxpayers will never need to delve into the details of the tax code anyway.
Can we seriously stop whining about our tax code being too complicated? 4th grade children are laughing at us.
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