EXACTLY. As long as the tax code is ridiculously complicated, we're going to need ridiculously complicated bureaucracy and IT systems to manage and enforce that complexity. Let's see how well our new GOP overlords in Congress manage to legislate an actual reduction in tax code complexity, now that they have the gavel all to themselves in both the house and the senate.
Let's not bring the cart before the horse. If you want an IRS that can run on a shoestring budget, make a shoestring tax code that I can print on my home inkjet printer -- THE WHOLE CODE -- in under 5 minutes.
Otherwise, shut the fuck up and fund the IRS so they can do what they are required to do by law.
I posted my plan above, but I'll copy it here for your perusal:
I think there should be one one federal income tax rate, and only one exemption. Make the rate whatever you want it to be, I don't care.
The one exemption will be the amount equal to 5 times the level of poverty for a person or family, at the location they live. Use the federal Cost of Living Allowance to factor the difference between poverty levels in California and Arkansas.
Anyone who reasonably believes their income for the year will fall below that level (five times their local poverty level for their family size), does not even have to have income tax removed from their paycheck. They still have FICA amount removed, but not the rest. Since they don't have any taxes removed, and they are under the exemption, they also don't have to file for a refund in the spring.
For those above that income level, they pay accordingly on the overage, with the correct percentage removed either each time for obvious cases, or once the limit is reached for the close cases. Cases of births, deaths, loss of job, etc will be worked out individually as needed.
Again, this covers Federal income tax. The states are free to do whatever they choose.
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End of above post.
The main points that would be needed to add would be
A) Income from investments, particularly when they are paid in lieu of a large salary such as Warren Buffet has popularized.
B) Business owners filling as individuals, deducting cost of business items (quick fix, incorporate or pay the tax).
C) Corporate taxes. But I bet I could reduced them to a single line of (Revenue - Expenses = Net). Not saying it's optimal, but it will print in under five minutes.
D) Individuals can form groups without having to ask permission from the government. Period.
That's all I got. Feel free to fine tune it and submit the bill to the House of Representatives.