Introduction: complexity = your best tax planning opportunity …
In the post: “While some Homelanders have a private tax system – USA imposes FATCA and CookvTait on #Americansabroad” I argued that: the more complex the system, the less the possibility of understanding the rules. The less the rules can be understood, the more the rules can be exploited. The super rich are able to pay in order to exploit the complexity of the rules to ensure that they pay a lower percentage of tax. This is the true cost of the complexity of the Internal Revenue Code. It is also why the biggest threat to America is not from outside the borders. The biggest threat to America is a Congress that uses the Internal Revenue Code to do political favors for favored individuals. Remember the story of Mr. Stack (and I don’t mean the Mr. Stack of “It’s a myth fame)“.
Wilton Jere Tidwell commented that:
The Marxist Income Tax lends itself to evasion unless you are honest and then it is so complicated that nobody gets it right. There are more words in the tax code than in the Christian Bible and the code is harder to read and understand.
We really need to go back to the founders idea of a sales Tax on all new goods sold, that way even the pimps and others criminals would pay as they spend and the overseas citizens could live their lives without fear of the Jackbooted IRS. The latest is they port of entry officials will check to see if you are tax compliant and confiscate your passport or revocation if you aren’t compliant.
I am a proponent of the FairTax and until we do it there will just be more hardship and strife.
Congress wants the issue and also wants the campaign funds they get to give special tax breaks to the people with money to contribute to their funds.
As goes the complexity of the Internal Revenue Code, so goes the opportunity to exploit that code for the payment of less tax.