But even tax experts are depressed over the present chaotic state of our tax system. (see here)
"Our tax system is a mess and unless we send a clear signal to Congress to do something about it, it’s just going to get messier and messier. As Bruce Bartlett writes in his book, The Benefit and The Burden, the tax system is like a garden. It gets overgrown and chaotic unless you regularly clean it. Well, we’ve got an eyesore now and need to bring in a bulldozer.
Here’s what leaves me distraught. Sixty temporary tax provisions expired at the end of 2011. Congress enacted each with an expiration date and has subsequently extended almost every one. Most of these “temporary” provisions—nicknamed “extenders”—have been repeatedly extended."
So instead of maintaining a tax system that raises sufficient revenue for government operations, we have a system that plays favorites.
Just another example of Washington not being able to get anything done or make any real changes...I feel like a lot of taxpayer dollars are wasted..I don't know the specifics of it or where exactly tax money goes but I feel like that right there is the problem..no one does..I bet there are very few people that actually do know
ReplyDeleteI think this article relates quite a bit to Tanzi's "fiscal illusions". Most citizens do not know where their tax dollars go. But there are two sides to that problem. Most citizens are not well versed in our current tax code. On the other side, governments (intentionally?) make tax codes extremely complex. I agree with this article in that the tax code is overly complicated and could use an overhaul to clean it up and simplify it. Tanzi also makes the point that one these fiscal illusions is introducing new taxes as "temporary" when they are clearly intended to be permanent.
ReplyDeleteI agree with what both of you said, however I think another reason our tax system is so flawed again comes back to the issue of inequality. The gaps between classes in our society has grown so large that many people at the top don't pay as much as they should. I understand the wealthiest still pay more than everyone else however there are too many people who have unnecessary amounts of money and those are the people that should being paying significantly more in taxes.
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