Friday, January 21, 2005

Tax Posts Coming

One of us in deeply in the midst of studying for a Tax Exam. Afterwards, I intend to have lots and lots to say about Christianity and (1) taxation in general and (2) tax reform in particular. In the meantime, let me just say that Bush's sense that the Tax Code needs to be simplified is not wholly off-base. I'll disagree completely, I'm sure, with how he will try to do it. But something needs to be done.

Take this little dandy of a provision as an example of why tax simplification is indeed necessary:

Internal Revenue Code Section 274(c)(3): Certain foreign travel -

"For the purposes of this subsection, travel outside the United States does not include any travel from one point in the United States to another point in the United States."

Two questions:
(1) Why in the world is someone's travel destination relevant to how much of their income we tax?

(2) What sort of loophole was being exploited that this ridiculous provision is meant to close?

So, at this moment, I have a couple of thoughts: the Tax Code needs to be reformed, and I hate Tax Law.

1 Comments:

At 12:49 AM, Blogger DLW said...

If you're interested in tax-reform, I would suggest that you check out the Basic-Income-Guarantee idea here. The BIG is a progressive version of the flat-income-tax simplification of the tax-code. It has many advantages over existing approaches and should be given more consideration.
cheers,
dlw

 

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