Simpler Tax Code? I’ll Believe It When I See It.
By Alan Stewart Carl | Related entries in Taxes
So, on tax day, President Obama has pledged to make future April 15ths less stressful by simplifying the tax code:
“It will take time to undo the damage of years of carve-outs and loopholes. But I want every American to know that we will rewrite the tax code so that it puts your interests over any special interest. And we will make it quicker, easier, and less expensive for you to file a return, so that April 15 is not a date that is approached with dread each year.”
Why do I have the feeling he’s not talking about a flat tax. Or replacing income taxes with a sales tax or a VAT tax. Or any other major overhaul. Unfortunately, while many presidents and others in Washington come into office with a sincere desire to simplify our tax system, the result is usually the opposite. New deductions and rules are added with the intent of making things fairer or easier, but all the old loopholes and convolutions remain in place, resulting in more frustration for the taxpayer.
Maybe I underestimate Obama’s commitment or abilities, but as long as our tax code is written by a Congress more interested in rewarding their own supporters than creating a simple system, all the presidential declarations in the world aren’t going to make April 15th any less painful.
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April 15th, 2009 at 1:39 pm
A President who has one or more specific proposals for reforming the tax code in part or whole might be able to do it. Regardless of its merits vel non, a flat tax, for example, is a specific proposal. But a President who has only vague, diffuse ambitions for generalized reform is going to fail, because he or she is essentially handing the project over to Congress within certain broad parameters. To Congress. To the same body that wrote the existing tax code, and that is not constrained by broad paramaters laid down by the President anyway.
I don’t fault Obama for not having specific proposals readily to hand, but I would suggest to him that if he’s serious about this, he should exercise leadership by sending Congress a specific proposal, not an amorphous concept.
April 15th, 2009 at 1:49 pm
I don’t think we need a major overhaul, but major simplifications? Definitely. I’ll keep my fingers crossed, but it doesn’t seem likely. Even if Obama can find a way to keep Congress focused, this isn’t exactly a priority right now.
April 15th, 2009 at 2:00 pm
I wholeheartedly agree with Simon here on all points. Vague ambitions handed to congress will avail us all nothing. He’s even taking the high road here. I would go so far to say that the vagueness of the ambitions Obama expresses lead me to question his seriousness.
And I STRONGLY agree with the idea of staring with a handful of specific ideas that seem to make sense and might improve things by being enacted. I don’t need to be promised a rose garden here. I’ll settle for a few changes at a time that make things better and reflect certain priorities.
April 15th, 2009 at 4:15 pm
Most ideas start with what, then move to how. I’m not holding my breath, but Obama’s MO has been to make broad statements and then focus on particulars/a plan
April 15th, 2009 at 5:04 pm
Gerry, with the stimulus, we saw the President making broad statements and then punting to Congress for the particulars – precisely what he cannot do if he hopes (as I doubt he does, frankly) to make real inroads into reforming the tax code.