As tax day approaches, many people will be reminded of why it’s a good idea to simplify the tax code. That’s because for businesses and people alike, tax season is a stressful and costly endeavor that eats up millions of hours of our time.
In fact, our tax code is so complicated that most of us require professional to help us navigate the byzantine system that our government has created. Figuring out what you or your business owes the government every year is often an unending, unpleasant trip down a rabbit hole.
When preparing your tax return, the stakes are always high. If your tax professionals get it wrong, you could face a devastating audit by the bureaucrats at the IRS.
The problem with a complicated tax code
There are many reasons a complex tax code hurts small business and entrepreneurship. Beyond the cost of being tax-compliant, it also often takes hundreds of hours of employee time to get ready to prepare your return.
As a nation, we lose millions of man-hours trying to understand a system of taxation that has wildly intricate rules.
What can the government do?
The federal government could do a lot by instituting easy-to-understand and simple taxation policy. For instance, there are many simple tax reforms that could relieve us from the costly and time-intensive burden of preparing our overly complex tax returns. Make our tax code simpler, and our economy and entrepreneurship will boom.
Taxpayers would be freed from these burdens we face today with a simpler tax code, in effect boosting productivity. The government also wouldn’t need an army of bureaucrats at the IRS chasing down alleged tax evaders.
Takeaway: Make it simple
Millennials wants to see common-sense policies from our federal government, and that begins with simplifying the tax code. April 15 is a reminder of how out-of-control our system has become, and why reform is needed to restore sanity to our system of taxation.
Technological progress has made our society much more efficient, and taxation should be no exception. We should demand better from our government and our elected leaders, who should prioritize devising a system of taxation that is simple, fair and helps boost our economic prospects.
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