Tax Code Complexity

In our economic policy chapter, we explain that the complexity of the tax code reflects the complexity of the economy. Still, it is a challenge both for citizenship (it is hard to comply with the law) and deliberation (legislators do not fully comprehend the law that they are amending). In an earlier post, we noted that the IRS Commissioner does not do his own taxes. The Daily Caller finds the same for those who write the tax laws:

Rep. Xavier Becerra, a top Democrat on the Ways & Means Committee that was holding the hearing, is keeping a watchful eye on those tax preparer services, who he says sometimes fleece unwitting customers. “Americans who could fill out a simple [tax forms] are being charged hundreds of dollars to do what they” could on their own, he said.

So does Becerra prepare his own taxes?

“No. I have a tax preparer back home who’s been doing it for me for many years,” he told The Daily Caller. Becerra explains that his finances are more complex — and his tax filings fall under far greater scrutiny — than ordinary Americans who could figure out the forms if they tried.

How about the chairman of Ways & Means oversight subcommittee that asked for Shulman to testify Thursday?

“Oh no, no, no, no, no. I have an accountant that I’ve been using for years,” Rep. John Lewis said. He said he needs to head home this weekend to fill out paperwork for his accountant.

Read more: http://dailycaller.com/2010/03/26/tax-writers-cant-figure-out-the-tax-code-either/#ixzz0jIBoY2UP