WHAT THE US TAX CODE SHOULD AND SHOULD NOT BE

 

FYI, here is what I believe the US Tax Code should look like -

First and foremost -the one and only purpose of the Tax Code is to raise the money necessary to fund the government.  

The Tax Code SHOULD –

(1) Be simple – easy for everyone to understand.  Simplicity for simplicity’s sake. 

(2) Be fair and equitable - treat all taxpayers equally.

(3) Be consistent – treat specific conditions, situations, and activities, and maintain specific definitions and descriptions, the same in all instances.

(4) Encourage savings, investment, and growth.

(5) Index for inflation all allowable deductions and credits.

The Tax Code SHOULD NOT –

(1) Be used for social engineering, to redistribute income or wealth, or to deliver social welfare and other government benefits.

(2) Encourage or discourage certain economic decisions (other than savings, investment, and growth), or provide exclusive benefits for specific industries, business activities, or classes of taxpayers.

(3) Contain any refundable credits, or any phase-outs, exclusions or adjustments based on Adjusted Gross Income or Modified Adjusted Gross Income.  

(4) Contain any “alternative” tax calculation systems (such as the “Alternative Minimum Tax”).

(5) Contain any temporary deductions, credits, benefits, or provisions.

Your thoughts?

TTFN