The Unnecessarily Complicated System of Taxes

tax

“In this world, nothing is certain but death and taxes” – Benjamin Franklin

As most of you know, today is the last day for you to file your taxes on time. Therefore, the question must be brought up again: Why in the world are taxes so **** complicated in the United States? I have seen numerous statistics that millions upon millions of dollars are wasted just trying to figure out the tax codes every year. There are so many deductions and exclusions and loopholes that it is nearly impossible to figure it out on your own. This is honestly straight up embarrassing. As someone who has been doing taxes for three years or so, I find it insane that I have to purchase software just to walk me through the incredibly complicated tax process (shout out to Turbo Tax). Why can’t the system just be simpler?

I honestly don’t see what is wrong with a simple flat percentage of earnings that everyone pays. It is obviously the most fair system and it would be the most efficient as well. The government already wastes a large percentage of our money anyway, we should not have to pay money in order to figure out how to pay someone to waste our money. If we are looking for a way to cut into the deficit, tax code reform is not a bad place to start. I certainly hope I will not have to put up with this nonsense when I am out in the working world.

What do you guys think would be the best system for taxes? Let me know in the comments down below. Please like the post, comment if you have feedback, and share the blog with others.

Thanks,

Jeff

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About Pierro Perspective

Die hard Boston sports fan
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One Response to The Unnecessarily Complicated System of Taxes

  1. Andrew Luce says:

    Hey Jeff haven’t talked to you in a while but thought I’d share my two cents:

    I like that our tax system basically is a flat percent depending on how much work people put in to seek out deductions (obviously depending on tax bracket). Since my knowledge/experience is mostly in corporate tax, I will stick to that but I assume personal tax is similar (beyond a 1040EZ at least). Tax deductions are great especially for large corporations allowing them to defer their tax liabilities and increase their profitability in the short-term. This encourages firms to invest in new equipment (deductions from declining-balance depreciation make this advantageous), invest in municipal bonds etc. You’ll notice these things are nice incentives for companies to invest differently in ways that contribute to overall economic/societal growth. There’s a method to the madness which makes some sense.

    As for fairness- I think the system we have is completely fair. A perfect example of course is Romney and his effective rate. A majority of his earnings were from capital gains which are incredibly risky. Betting on stocks and dividends are a bit more risky than working an hourly job, thus these earnings are taxed lower (again assuming the same tax bracket). Obviously it’s quite alot more complicated than that. Long story short, if the taxpayer chooses to collect most of their income from risky investments they will similarly pay a low tax rate.

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