that might depend on simplifying the tax code, which might be orders of magnitude more difficult
Actually, it would be trivial to simplify the tax code. It couldn't be done overnight, it might take a long weekend. All you have to do is come up with a very simple tax scheme with no complexities and no loopholes. Why couldn't a simple tax system be contained in a 10 page law?
At first make it optional for anyone to switch to the new scheme. After a few years, start a 20 year phaseout of the old system. Tell the holdouts that, first year of phaseout, they must pay 5% of the tax required by the new system and continue to pay 95% of the amount calculated by the old rules. After 10 years it becomes 50%/50%. After 20 years the old system is gone completely. Holdouts can switch completely to new system at any time, but once you switch you can never go back to the old system.
Good point. But I think lobbyists and special interests would throw a wrench into all of that.
If we simplify the tax code, some group somewhere will no longer benefit. I'm sure they and their lobbyists will fight extremely hard to make sure this part of the tax code remains. Multiply this by all the different groups that would be in a similar position and now you might see why I think simplifying the tax code would be extremely difficult.
now you might see why I think simplifying the tax code would be extremely difficult.
Of course. You are 100% right. I was describing a fantasy world, you are describing practical reality.
Edit: just to be clear, I'm not trying to be sarcastic in this post, even though it contradicts what I said earlier about how "trivial" it would be to simplify.
The reality is as you describe. Any serious simplification would be extremely difficult to achieve.
Actually, it would be trivial to simplify the tax code. It couldn't be done overnight, it might take a long weekend. All you have to do is come up with a very simple tax scheme with no complexities and no loopholes. Why couldn't a simple tax system be contained in a 10 page law?
At first make it optional for anyone to switch to the new scheme. After a few years, start a 20 year phaseout of the old system. Tell the holdouts that, first year of phaseout, they must pay 5% of the tax required by the new system and continue to pay 95% of the amount calculated by the old rules. After 10 years it becomes 50%/50%. After 20 years the old system is gone completely. Holdouts can switch completely to new system at any time, but once you switch you can never go back to the old system.