Monday, August 17, 2015

Why The Tax Code Must Be Streamlined

Several GOP contenders for the Presidency have said that they would simplify this country's bloated tax code if they were elected.  But, no one really explains "why" we need to do something about it.

As of April 15th of this year, there were more than 74,600 pages of federal tax code to wade through.  In 1913, when income tax was adopted, it was just 4 pages long. In 2011, General Electric (GE) filed a 57,000 page tax return for their 2010 taxes. Using every tax break available to them in those 74,600 pages, GE managed to pay zero taxes on $14 billion dollars in profits.  And, I suspect that a legion of IRS agents were needed for months to insure that GE's 57,000 page tax return was completely legal.

If we had a simplified tax code without a bunch of tax breaks, GE would not have been able to avoid paying any taxes in 2011.  Also, Americans wouldn't spend 6.1 billion man hours preparing their returns each year. 

Let's put the most hated of Federal Agencies -- the IRS -- out of business by reducing our tax code to what it was in 1913.


Look at how many pages are in the federal tax code:

GE Filed 57,000-Page Tax Return, Paid No Taxes on $14 Billion in Profits:

It takes Americans 6.1 billion hours to prepare their taxes:

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