The United States has the most complicated tax system in the world. This is not an accident. The complexities of the tax code have been deliberately created by special interests to benefit themselves at the expense of the American people.
The result is a system that is rigged against the average taxpayer. The wealthy and well-connected can hire armies of lawyers and accountants to find loopholes that allow them to avoid paying their fair share, while the rest of us are stuck with a system that is overly complicated, confusing, and unfair. Elected officials are well aware of the problems with the tax system, but they didn’t act. Here are three reasons.
The current tax system is immensely complex
The United States tax code is more than 70,000 pages long. It is so complex that even the IRS has trouble enforcing it. This complexity benefits the wealthy and well-connected, who can afford to hire teams of lawyers and accountants to find loopholes and avoid paying their fair share. The average American taxpayer, on the other hand, is stuck with a system that is confusing and hard to navigate. This places a huge burden on individuals and businesses, and unfairly benefits those who can afford to hire experts to help them game the system.
The tax code favors the wealthy
The United States tax code is full of loopholes and special exceptions that allow the wealthy and well-connected to avoid paying their fair share. While the average American is stuck paying taxes on their wages, the wealthy can shelter their income in offshore accounts and invest in tax-free vehicles. This creates a two-tiered system in which the rich get richer while the rest of us are stuck with the bill. It is estimated that the wealthiest 1% of Americans pay just a fraction of the taxes they owe, while the bottom 50% pay a higher effective tax rate than the rich.
Special interests have a stranglehold on Congress
The tax code is full of special tax breaks and preferences that benefit narrow special interests. These special interests have a stranglehold on Congress and can prevent any real reform from taking place. So long as special interests can block reform, the tax system will remain unfair and rigged against the average American taxpayer.
The United States tax system is in dire need of reform.
It is too complex, unfair, and benefits the wealthy at the expense of the average taxpayer. Elected officials were well aware of these problems, but didn’t act. There are a lot of reasons for this, but the most important is that special interests have a stranglehold on Congress and can block any real reform from taking place. Until this changes, the tax system will remain rigged against the average American.