TO THE TAX LAW AN ODE:
A LABYRINTH SEWED INTO A ROBE
OF SYMBOLS, THIS CODE
THAT TORTURES OUR BRAINS,
WHILST OUR POCKETS IT DRAINS -
REFORM IT, NAY, KILL IT I SAY!
Who hasn’t felt that sentiment when facing an unexpected tax liability in April? Congress continues to waltz with the debt ceiling as the band begins to play: “It’s the last dance, we’ve come to the last dance… the orchestra’s yawning…” (Song: “The Last Dance” by Sammy Cahn and Jimmy Van Heusen, featured on Frank Sinatra concept album “Come Dance with Me,” (Capitol Records). We’ve all grown weary of congress’ dysfunction. Whatever the outcome of this political Greek Tragedy, however, everyone agrees that the Internal Revenue Code is in need of serious repair.
REVENUE RELATIONSHIP TO DEFICIT
Tax revenue is one side of the deficit coin, the other side is spending. Which is heads and which is tails is irrelevant. Some like to say that the deficit is due to spending more than revenues. But, a deficit also will result from collecting less revenue than is spent. In fact, our present deficit and debt are attributable as much to declining revenue as to increases in spending. FactCheck.org reports (July 17, 2011) that spending in 2009 was 25% of GDP, the highest since 1945. Revenue was 14.9% of GDP, the lowest since 1950 when it was 14.4% of GDP. In 1950, the US population was 151.6 million; today it is about 318 million. Thus, increased spending is at least to some extent due to more services being needed for more people; declining tax revenue stems largely from tax policy decisions although the sluggish economy and changes in cultural attitudes towards voluntary compliance may also contribute. TV personality Arthur Godfrey (41St on Miami Beach bears his name) once quipped, “Heck, I don’t mind paying taxes, it’s patriotic; but I’d feel just as patriotic at half the cost.”
Federal revenues for fiscal year 2010 were $2.2 trillion generated mostly (80%) from ...
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