Why Our Tax System Has to Go!!

Ok, finally a non-partisan (kind of) post about our income tax system.

Here are the reasons we need to trash our current system and replace it with a whole new one, which I will outline in a future post.

1. Our current system is terribly inefficient- We currently pull in approximately $1.7 Trillion dollars a year in income taxes. It costs us about a third of the total revenue to do the accounting, and pay the IRS to bring in these taxes. In other words, it costs us a $1 to pull in $3. This has got to change. 

2. It is so complicated that no one can fully understand it- The IRS tax code has over 600,000 pages. It is estimated that less than 1% of tax returns are perfectly right. When people ask complicated tax questions to accountants the differences in the answers received are always significant. Even when getting a ruling or clarification from the IRS itself, they are rarely consistent.

3. It is used by politicians and special interests to give breaks to their people and tax everyone else. The current system has infinite possibilities for being manipulated so that it has become a tool used by politicians to stay in power.

4. It punishes success and has pushed over $10 Trillion dollars worth of businesses off shores by it's oppressive structure. Entrepreneurs are punished for making more money, hampering their ability to create more jobs. Since it is an income tax, it is flawed from the ground up.

These are the biggest reasons why our current system will not work in the long run.