Monday, February 17, 2014
The Income Tax System Needs to be Simplified
As it is now, there are hundreds of deductions and itemizations that can be entered in to adjust the amount owed on the taxes. There is so much wiggle room and overall it is not that easy to understand everything on the forms. Also everything is rounded to the nearest dollar. When you take all these factors into account and multiply it by the millions of people filing taxes each year, it is so inexact. Some people are going to end up paying more than they should and others are going to end up paying less than they should.
This is why the income tax system needs to be simplified. It should be as simple as paying a set percentage based on how much you earned. For example, say it is 25%. If you earn 10,000, you should pay 25% of that which would be $2,500 for income tax. No messing around with all these countless deductions. Some might argue that there are business expenses. It's true, there are, but that is something you have to take into consideration when you decide to run a business. When we start adding in all these business expenses, that is when it becomes inexact.
When you look at political issues, reforming the income tax system does not seem to be a big priority, but I think it is something we really need to take a look at. The current system has gotten way out of hand with all the deductions and modifications. Income tax is a huge part of the resource that runs this country. It's time we get the finance numbers straightened out so that the correct amount of money is being sent to the government each year.