tag:blogger.com,1999:blog-14162253.post2078897481543422797..comments2024-03-28T18:57:15.124-06:00Comments on Wash Park Prophet: The Case For Two Track Tax EnforcementAndrew Oh-Willekehttp://www.blogger.com/profile/02537151821869153861noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-14162253.post-45236219854877681942008-04-18T16:38:00.000-06:002008-04-18T16:38:00.000-06:00I'm all for tax simplification, although not a rep...I'm all for tax simplification, although not a repeal of the income tax. In contrast, the 93% of GOP Congressmen opposed the a very benign tax simplification bill passed in the House this month, and Bush has threatened to veto it.<BR/><BR/>For the average wage, salary and financial investment earning taxpayer, the number of provisions which drive compliance and audit costs is pretty small. So, I'm not convinced that the income tax is hopeless.<BR/><BR/>Complexity isn't nearly so great of an issue for big business, as compliance costs relative to the amounts at stake is pretty low.<BR/><BR/>Tax law can be complex for the self-employed and those with non-financial investments (I'm such a person myself). But much of the mess can be cleared away with a willingness to accept rough justice rules and sacrifice a certain amount of flexibility.Andrew Oh-Willekehttps://www.blogger.com/profile/02537151821869153861noreply@blogger.comtag:blogger.com,1999:blog-14162253.post-5182453288112084292008-04-18T16:08:00.000-06:002008-04-18T16:08:00.000-06:00The problem isn't that tax penalties are too low, ...The problem isn't that tax penalties are too low, it's that the cost of an audit is too high. Because an audit can happen to the innocent, it breeds cynicism and temptation to cheat. Compared to the cost of an audit, penalties are inconsequential.<BR/><BR/>The solution is not to raise penalties, but rather to lower the burden of an audit by simplifying the tax code, or better yet eliminating it altogether as Ron Paul advocates.Michael Malakhttps://www.blogger.com/profile/10007582156392845677noreply@blogger.com