Wednesday, January 7, 2009

Tangled Tax System Mystery


~ our already complex tax code continues to be a changing, tangled mystery to most honest taxpayers — and an asset to those intent on skirting the law. Every effort must be made to provide quality service to honest taxpayers who want to comply with the law.

The IRS cannot continue to operate with the outmoded and inefficient systems and processes it uses today. Over time, the existing systems will become impossible to maintain and at that point, the ability to administer our country’s tax system will be in grave danger.

The approach so far to tax simplification fails to address a fundamental flaw in our tax system: its costly, confusing, and debilitating complexity. SOURCE ...

Statement of Nancy Killefer, Chair, IRS Oversight Board 2004
In 2005, the President's Advisory Panel for Federal Tax Reform criticized the tax system as being extremely complex, requiring detailed record-keeping, lengthy instructions, and complicated schedules, worksheets, and forms. They stated that it penalizes work, discourages saving and investment, and hinders the competitiveness of American business. The tax code is commonly riddled with provisions that treat similarly situated taxpayers differently and create perceptions of unfairness.

See also: The Medusa Economy | Tax Policy Center
Financial Success - The American Dream

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