Federal tax system "abominable" By Wiley Brooks November 07, 2013
The report is titled "Putting a Face on America's Tax Returns: A Chart Book." The Foundation states: "The income tax system in the United States is a sprawling mass of provisions spread across dozens of volumes and has been called everything from a 'disaster' to an 'abomination.' "It takes Americans as many as seven billion work hours every year just to complete the paperwork required. The IRS' own National Taxpayer Advocate estimates that it costs individual and corporate taxpayers more than $165 billion annually to comply with the income tax code. "In order to figure out what we need to fix, we need to understand how the system works now. We've compiled this chart book to not only 'put a face on American taxpayers,' but to provide some must-know background information on the key issues of the tax reform debate." In 1913, the federal income tax started as four pages of forms and instructions, according to the report. Today, the income tax code spans more than 70,000 pages. Back in 1940, the year before the United States entered World War II, excise taxes - including gas and cigarette taxes — were the largest source of federal revenue, followed by Social Security payroll taxes, then corporate income taxes. Today, individual income taxes are the top source of revenue. It is estimated that in 2014, individual income taxes on wages, capital gains, dividends, and other income sources will provide $1.38 trillion. Social insurance taxes, which fund Social Security and Medicare, will bring in $1.02 trillion. Corporate income taxes will provide $380 billion, and excise taxes just $93 billion. Another $169 billion will come from estate and gift taxes and other sources. Some highlights of the Tax Foundation's report:
"Tax reform is in the air in Washington these days," the foundation states. "There is growing bipartisan agreement that the tax code is too complicated, burdensome, and uncompetitive, and is undermining our economic potential." Wiley Brooks www.FairTax.com <http://www.FairTax.com>
Received November 05, 2013 - Published November 07, 2013 Viewpoints - Opinion Letters:
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