Wednesday, December 4, 2024
IRS
As the bureaucracy braces for an audit some zero in on the Internal Revenue Service (IRS). In times like this the question of a national flat tax are considered but that will never pass. In 2023 the government collected $2.18 trillion in taxes on $14.7 trillion of gross income from 153.5 million tax payers. This is 15% and the amount that would be needed if a flat tax were used. This means that under the current system the 50% of the people who pay no income tax would pay 15% and this destroys the
progressiveness of the tax system. What can be done is a simplification of the current tax code which contains 6,871 pages and the interpretation of these pages adds another 75,000 pages. It is so bad that test have been run to check the system and found it wanting. The same set of facts were presented to many different tax experts and they came back with many different answers. The income tax was introduced in 1913 and in the first 26 years the code grew from 400 pages to 504 pages. As the years passed lobbyist added more loop holes each helping their sponsors. AI could be used to throw out the old and rewrite in a simplified form a new tax code.
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