Simple vs Complex Tax Systems

James Kwak has a recent article on tax systems. A complex system is based on the world being complex therefore the tax system should be complex, thus the 8,000 pages of the Dodd-Frank Act. But the question is who has the time to wade through 8,000 pages of tax regulations? Those who have the resources to do so: big banks, big businesses etc. Plus the field is constantly changing along with the data these regulations are based upon.

This seems like a good argument for simpler tax systems to me, and that does not mean simplistic, just simpler. The more you make the more you should pay in taxes. It is absolutely ridiculous that rich folk like Romney end up paying a lesser tax rate than middle class folk. Heavens, when I was working I paid twice what he did percentage wise. Any tax incentives should be for the middle and lower classes not the wealthy.

Obama’s plan of increasing taxes for those making over a quarter of million a year is simple and sane and just. Romney thinks the middle class makes a quarter of a million per year; he is just out of touch. My complaint is, as it usually is of Obama’s plan, is that in tried to work with others he gives too much away. Tax rates ought to go back to the levels of the Reagan era (I’d prefer Eisenhower’s.)