At this time every year, we are faced with the reality of a very dysfunctional tax system. It is dysfunctional on two levels.
First, the reporting requirements are so complex and byzantine that only someone with a vested interest in the current system could love it. Just try reading a few pages of any of the many instructions covering innumerable forms and complex calculations. (For instance, just one booklet of instructions (for form 1040) is nearly 200 pages long and includes numerous schedules and mind bending computations.)
Second, the system is complex and dysfunctional because politicians have made it that way. They have manipulated the system to their benefit by providing tax advantages to their friends and supporters who in turn supply the funds and vote for their re-elections.
Recently, President Obama has launched his re-election campaign on the issue of "fairness". He was referring to situations where some of the very rich pay less taxes than what he deems "fair". What he doesn't mention is that the tax system he is criticizing is one which he and other politicians (of both parties) have supported and sustained.
A recent article by Thomas Sowell ("Tax policy 'fairness' amounts to fraud", The Times-Union, Feb. 23, 2012) states the following--I quote in part:
"While talking about 'fairness' may provide a fig leaf to cover politicians' naked attempts to grab more and more of the nation's resources to spend, there is no assurance that raising tax rates 'on the rich' will result in any more tax revenue for the government. High tax rates have too often simply caused wealthy people to put their money into tax-free securities or to send it overseas."
"High tax rates in the upper income brackets allow politicians to win votes with class warfare rhetoric, painting their opponents as defenders of the rich. Meanwhile, the same politicians can win donations from the rich by creating tax loopholes that can keep the rich from actually paying those higher tax rates--or perhaps any taxes at all."
Any and all comments are welcome.
First, the reporting requirements are so complex and byzantine that only someone with a vested interest in the current system could love it. Just try reading a few pages of any of the many instructions covering innumerable forms and complex calculations. (For instance, just one booklet of instructions (for form 1040) is nearly 200 pages long and includes numerous schedules and mind bending computations.)
Second, the system is complex and dysfunctional because politicians have made it that way. They have manipulated the system to their benefit by providing tax advantages to their friends and supporters who in turn supply the funds and vote for their re-elections.
Recently, President Obama has launched his re-election campaign on the issue of "fairness". He was referring to situations where some of the very rich pay less taxes than what he deems "fair". What he doesn't mention is that the tax system he is criticizing is one which he and other politicians (of both parties) have supported and sustained.
A recent article by Thomas Sowell ("Tax policy 'fairness' amounts to fraud", The Times-Union, Feb. 23, 2012) states the following--I quote in part:
"While talking about 'fairness' may provide a fig leaf to cover politicians' naked attempts to grab more and more of the nation's resources to spend, there is no assurance that raising tax rates 'on the rich' will result in any more tax revenue for the government. High tax rates have too often simply caused wealthy people to put their money into tax-free securities or to send it overseas."
"High tax rates in the upper income brackets allow politicians to win votes with class warfare rhetoric, painting their opponents as defenders of the rich. Meanwhile, the same politicians can win donations from the rich by creating tax loopholes that can keep the rich from actually paying those higher tax rates--or perhaps any taxes at all."
Any and all comments are welcome.
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