Today, the committee in charge of the Tax Code released a video on how the system doesn’t work and how they plan to fix it. The Republican-led body presents three solutions:
- Make the Tax Code simpler and fairer: “By getting rid of all the junk in the income Tax Code, we could shrink it by 25 percent”
- Make the Tax Code more efficient: “By getting rid of special interest handouts and lower tax rates across the board”
- Make the Tax Code more accountable to taxpayers: “Whenever a tax loophole gets closed, let’s make sure that money goes back to the people who are paying the taxes in the first place and not to pay for more Washington spending”
Though these are lofty goals for Congress, it's clear from recent legislation like the 2012 American Taxpayer Relief Act that making a meaningful impact on our Tax Code will require extensive reform. Almost everyone agrees that the system is “too complex, too confusing, and too costly” and that is precisely why having a plan makes sense. Still, identifying the problem is just the first step towards fixing it. U.S. businesses -- big and small -- deserve, a fair, effective, and efficient Tax Code and Washington is in the prime position to fix it.
Here’s hoping that Congress can come together to relieve all taxpayers of the dread and stress of the current Tax Code (a system that has been changed “4,400 times over ten years” by both parties).
For more information on how complex our tax system is, check out NTU’s 2013 Tax Complexity study, which will be updated later this year. NTU Foundation also surveyed folks which tax system the U.S. should change to during our annual Milton Friedman Legacy Day event.
How would you change the Tax Code? Streamline the current system? Completely replace it? Leave a comment down below!