As tax season begins, most tax practitioners have experienced the following annual outcry, â€œThe Tax Code must be simplified!â€ The most common suggestion for accomplishing this is to establish one tax rate that would be applied equally to all. Is this a workable or even necessary solution? This forum will explore that question.
For this discussion, do research and formulate your opinion on the above issue and respond to the following questions:
- It is often said that fewer tax brackets would aid in streamlining the Tax Code. How many different tax brackets should exist for individuals? Why? How many tax brackets should exist for corporations? Why? Describe whether or not it is reasonable to view the number of tax rates as a genuine source of complexity when determining tax liability. Support your claims with at least one credible source.
- Describe whether or not deductions to lower taxable income are a source of excessive complication when calculating tax liabilities. Explain your reasons.