Tax Day 101: The tax code needs a fix – but exactly how?
Almost everyone agrees that the US tax code needs fixing, but people don't agree on how to do it.
Did filing taxes tax your patience? You're not alone.
Americans spend 6.6 billion hours per year filling out tax forms – including 1.6 billion hours on Form 1040 alone, according to Internal Revenue Service estimates cited by the Tax Foundation in Washington.
The word "complexity" doesn't quite do justice to a tax code that grew from 409,000 words in 1955 to more than 2.1 million by 2005, according to a Tax Foundation tally.
It's a dream come true for members of congressional tax-writing committees, who reap lobbyist donations each year as they ponder the latest tweaks.
The government gives with one hand and takes with the other
The result is a Rube Goldberg-style system that rains credits and deductions from one funnel while using other hoses to vacuum up revenue for the government. With the new Schedule M here and the alternative minimum tax there, it's little wonder that people make lots of mistakes.
Nearly half of filers -- 46 or 47 percent by some estimates -- will owe no income tax this year. But most of them are required to fill out the form anyway. Meanwhile, the government is still running in the red, with tax revenues not matching the rise of spending.
So what's the fix?
Most tax policy experts say that at least some consolidation and streamlining is needed. But the prescriptions vary widely. An Obama fiscal commission is pondering some of the options, while others are relying on grass-roots followers to develop traction.