The Foundation

"Would it not be better to simplify the system of taxation rather than to spread it over such a variety of subjects and pass through so many new hands." --Thomas Jefferson

Government

2013-04-15-briefIncome Redistribution Day

"It's Tax Day. Most Americans dread Tax Day, and for good reasons. Beyond the huge tab Americans pay to the government, the tax code is so complex that it's difficult to figure out what we owe to the IRS. This is a pain for taxpayers and a huge drain on the economy. According to the federal Taxpayer Advocate in its 2012 report, Americans' cost of complying with today's complex tax code totaled $168 billion in 2010. That's almost as large as the impact of the Obama tax hikes in fiscal year 2013, and twice the size of sequestration this year. It takes taxpayers 6.1 billion hours -- or 51 hours per household -- to complete all the required filings. That's more than six full eight-hour working days per household! The compliance burden comes on top of the direct financial cost of $3.5 trillion in federal spending. In 2012, Washington collected $20,000 in taxes for every household in America. But Washington spent nearly $30,000 per household. ... 45 percent or almost half of all spending went toward paying for Social Security and health care entitlements. ... Growing government spending threatens current and future taxpayers with higher taxes. Congress should reduce spending and prevent any more tax increases. Congress also needs to reform the tax code so it is less of a burden on the American people. Tax day is a real drag, but it doesn't have to be this bad." --Heritage Foundation's Romina Boccia and Curtis Dubay