Quote:
Originally Posted by JSWolf
The US tax system is just a mess and needs to be scrapped and started over.
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The problem is, there are pet issues that will muck up whatever we end up with. Want to encourage home ownership? Allow deduction of interest, property taxes. Want to encourage hybrid cars? Give a tax credit. I don't think anyone really believes a new system will remain inviolate.
If they eliminated the tax breaks for home ownership, the housing market would collapse. Same with certain investment structures. You can argue they never should have arisen in the first place, but since they are here, it isn't as easy as just flicking a switch to a flat tax.
I'm not saying the current system is perfect. IMHO it is not progressive enough. I have the advantage of a 30,000 ft view. To me, the current system is understandable, and logical. You could certainly design another system that was both, but first we need to agree what we are tryng to achieve with tax policy. Is it just revenue? Then a flat tax would accomplish your goals. But if there is behaviour you are trying to encourage/discourage
(capital gains, gas guzzler), everyone has an opinion. That is how we got to where we are.