The tax code has grown enormous over the years, as additions and amendments have been made to it. Today, it has become so gigantic that both taxpayers and the government are required to spend more money on compliance with it. The talk of the overhauling of the tax code is ripe, but removing parts from the tax code would require much thought and time.
According to the National Taxpayers Union (NTU), the economy lost $224 billion and 6.1 billion hours of productivity in order to comply with the country’s tax code. Along with this, because the tax code is so complicated, many taxpayers are forced to hire professional tax preparation help to prepare their returns.
The present tax code also has various loopholes that are used to evade taxes. When changing the tax code, the loopholes will need to be identified and corrected so that tax evasion can be further curbed.
The burden of the tax complexity is borne by both taxpayers and the government, but an overhaul of the tax code will not be without conflict and disagreements. With the tax code four million words long and growing, immediate efforts must be made to initiate that overhaul.