I think we can all agree that our tax system is a mess. The rules, regulations, requirements, and loopholes involved in taxes are overwhelming. So much so, the head of the IRS has admitted that he does not do his own taxes, stating the rules are simply too complex. If Doug Shulman can’t figure it all out, what hope do the rest of us have?
Which leads us to tax reform. The way our system is set up, any tax reform must be introduced as a bill through Congress – to refresh your memory . Unfortunately, in an increasingly partisan, polarized political climate, getting Democrats and Republicans to agree on anything is nearly impossible.
That being said, members of Congress are still trying, and I think we can applaud the effort. Democratic Senator Ron Wyden and Republican Senator Judd Gregg have let slip that they are working on a sweeping tax reform bill. Reports indicate that the bill would reduce the standard Form 1040 from 76 lines to a more reasonable 30 lines, and would do away with a large number of tax loopholes that make our tax system so confusing.
Of course, while we all complain about tax complexity, we still clamber after our representatives to provide more tax breaks – via deductions and credits. Add lobbyists and corporate interests into the mix, pushing politicians to create more tax breaks that benefit various industries - for example the housing industry and the First Time Home Buyer’s Credit - and you can see how difficult this can be.
While regular people like you and me know that our tax system is unbelievably complicated and leading lawmakers agree that the tax code is unfair and obsolete, large changes can be incredibly difficult to push through the legislative process. Are our political leaders willing to risk alienating corporate donors and voters in order to fix our tax system? Backing up a step, would a tax simplification bill be effective?
What would you do to simplify the tax code? Leave me a Facebook message, or Tweet your ideas #taxreform.
(hat tip: NPR)
Friday, September 10, 2010
Blog Archive
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- Warren: Regulation Will Help Customers and Banks
- More Families, Friends Move In Together
- Regulatory Squabbles Threaten Financial Reform
- Five Ways to Save Money on Thanksgiving Travel Now
- The New Overdraft and Debit Laws Explained
- 5 Ways to Get Your Retirement Back on Track
- IRS Issues Guidance on Expanded Adoption Credit Av...
- Consumer, Tax Groups Call For Ban On US Tax Strate...
- 40 States Bank on Rising Tax Revenue In 2011
- Obama Signs Bill Giving Tax Cuts, Loan Help to Sma...
- IRS Wage Garnishments
- IRS: No More Tax Forms In The Mailbox
- Recovery.Gov a Model for Transparency
- Questions for the Tax Lady: September 27th, 2010
- Congress Punts on Taxes
- IRS Scales Back Uncertain Tax Position Requirements
- Fact-Checking the Tax Provisions in the 'Pledge to...
- Bank Fee Whac-a-Mole: New Charges Hit Accounts
- Prepared Remarks of IRS Commissioner Doug Shulman ...
- Jay-Z, Buffett and Forbes on Success and Giving Back
- Postal Service Fine Without Taxpayers
- Warren Buffett: "We're Still In a Recession"
- 4 Ways to Cut Winter Energy Bills
- Democrats Divided on Bush-Era Tax Cuts Vote
- For Many, Health Care Relief Begins Today
- Latest Good Reads
- Even With Extended Tax Cuts, You Might See Smaller...
- Treasury's Bailout Overseer Quits
- Talk with Your Partner about Taxes
- Tax Credit Bonanza for Small Businesses
- Analyst Who Called Recession End Sees Durable Rebound
- Joe Torre Retiring as Dodger’s Manager
- The Details of Obama's $50 Billion Infrastructure ...
- ‘Great Recession’ Over, Research Group Says
- Jobs Picture gets Worse in 27 States
- Fed Considering Whether More Steps Needed to Fix E...
- Another Tax that Democrats want to Raise from the ...
- Questions for the Tax Lady: September 20th, 2010
- 8 Habits of Successful Business Owners
- Oprah: “I'll Pay the Taxes for My Aussie Giveaway”
- Government Could Seek Foreign Investors for GM
- Senate Passes $30B Small Business Credit Measure
- 483 Million GM Dollars = 483 New Jobs
- Consumer Prices Rise, but Underlying Trend Flat
- Obama to Tap Warren to Help Set Up Consumer Agency
- Senate Fails to Cut Tax Provision in Health Law
- Obama Won’t Re-Nominate Former DOJ Tax Division Ch...
- IRS to Hold Open House Sept. 25 for Veterans and P...
- Census: 1 in 7 Americans Live in Poverty
- Tax Education: Why it matters, and what should be ...
- Bankrupt, USA: Why Our Cities Aren't Too Big to Fail
- Where Are They Now? Seven Villains of the Financia...
- Regulator Says Banks Slow to Buy Back Bad Loans
- Bank Makes Rewards Harder to Earn With Card Changes
- Senate Takes Up 'Job Killing' IRS Rule
- Taxes & Identity Theft
- Worries Over Tax Hikes Coloring Business Decisions
- Top 10 Reasons To Visit IRS.gov
- Questions for the Tax Lady: September 13th, 2010
- Tax Court Denies Prof's Claimed Deductions for Res...
- Worries Over Tax Hikes Coloring Business Decisions
- Many Push for Repeal of Tax Provision in Health Law
- Student Loan Debt Exceeds Credit Card Debt In USA
- White House Aides Owe the IRS $831,000 in Back Tax...
- Obama: GOP 'Holding Middle Class Tax Relief Hostage'
- 25 Best Places to Retire
- Is Tax Overhaul Possible?
- 5 Signs the Economy is still Struggling
- Up to 75,000 Dollars, Money Buys Some Happiness
- Taxes On the Street
- Economists Cut U.S. Growth Forecast Again
- The New Threat To Your IRA: An IRS Crackdown
- President Obama’s Tax Plans
- 5 Positive Signs of Economic Recovery
- Cardholders Prefer Debit as Credit-Card Use Falls
- Tax Deduction of the Week: Job Hunting Expenses
- Do Unemployment Checks Keep the Jobless at Home?
- IRS Releases Form to Help Small Businesses Claim N...
- More Tax Cuts
- No Estate Tax Due in 2010 but Beware of Cap Gains
- The Tax Lady’s Tips
- Obama Offers Another Hand To Businesses, More Tax ...
- 20 Rules to Live By for Cheapskates
- About 2,000 Employers Qualify for Federal Subsidie...
- Car Deals Disappear As Dealers Rethink Promotions
- IRS Expects to Register 1.2 Million Tax Preparers
- Labor Day Travel Savings
- States That Received the Most Federal Funds
- IRS Must Define Political Activity
- Save Dough When Dining Out: Top 10 Ways to Cut You...
- Latest Good Reads
- New York Cuts Fees for College Savings Plan by Alm...
- How to Donate a Vehicle Without Leading to IRS Pro...
- Cash-Strapped Calif. County Approves Hospital Tax
- Obama Considering Tax Cuts to Boost Economy
- FDIC Says 829 U.S. Banks Remain at Risk for Failure
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