Economist: It’s time for a ‘massively simpler’ tax code
John Cochrane, senior fellow at the Hoover Institution at Stanford University, is calling on legislators to overhaul the tax code in a way that puts fewer burdens on everyday Americans.
The first goal of taxation is to raise needed government revenue with minimum economic damage. That means lower marginal rates—the additional tax people pay for each extra dollar earned—and a broader base of income subject to tax. It also means a massively simpler tax code.
In my view, simplification is more important than rates. A simple code would allow people and businesses to spend more time and resources on productive activities and less on attorneys and accountants, or on lobbyists seeking special deals and subsidies. And a simple code is much more clearly fair.
Americans now suspect that people with clever lawyers are avoiding much taxation, which is corrosive to compliance and driving populist outrage across the political spectrum.
There are many plans to simplify our monstrous tax code but one thing is certain: the time for reform is now. Click hear to help Tea Party Patriots in calling for a tax code that is simpler, flatter and fairer!