Saturday, January 03, 2015

We Need a Stronger IRS

De-funding the IRS and complicating the tax code benefits tax cheaters and raises rates on the rest of us.
If Congress really wanted to lower tax rates, it would broaden the tax base by simplifying the tax code, and it would adequately staff the agency tasked with collecting taxes. In both cases, it has done the opposite. All of this means that our political leaders have not only improved the odds for getting away with (illegal) tax evasion; they have also created more opportunities for (perfectly legal, methodically planned) tax avoidance. Put these factors together, and higher statutory tax rates look inevitable.

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