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Can Computers Be Used To Optimize the US Tax Code?
FatLittleMonkey writes "Science fiction author David Brin wonders whether the US tax code, described by President Obama as a '10,000-page monstrosity,' could be dramatically simplified. His idea is about using computers to shuffle the existing system: 'I know a simple way the sheer bulk of the tax code could be trimmed by perhaps 70% or more, without much political pain or obstructionism! ... it should be easy to create a program that will take the tax code and experiment with zeroing-out dozens, hundreds of provisions while sliding others upward and then showing how these simplifications would affect, say, one-hundred representative types of taxpayers... Let the program find the simplest version of a refined tax code that leaves all 100 taxpayer clades unhurt. If one group loses a favorite tax dodge, the system would seek a rebalancing of others to compensate. No mere human being could accomplish this, but I have been assured that a computer could do this in a snap.' With all the talk about Open Government, perhaps the computer code currently used in tax modelling could be released to the wider community, leading eventually to a Folding@Home type project."
That procedure would lead to the same results. Maybe some redundancy would be removed, but obviously he doe not understand why the Tax system is complicated. Its the politics, stupid. Many of these 10000 pages are just small little promises somebody has given to *his* voters at some point. And nobody wants to cut such things, because one time this starts, it could be soon the promises to *your* voters. So no matter how absurd something is, it will stay there forever.
Slightly longer answer:
Maybe
Would politicians accept the solution without re-bloating it first? No
Scrap the whole thing and start over. All the cruft is from decades of putting in and taking out different provisions for thousands of groups of people. Start with whatever rates you want. Then stop. What's the point of taxing someone 30%, then giving them a mortgage deduction, education deduction, horse rodeo operator deduction, etc.? Same with corporations; if you're going to give them all tax breaks on their water coolers, just drop the rates. The IRS will be pissed, thousands (millions?) of accountants will be pissed, and everyone else get 4 hours of their lives back from stupid paperwork each year.
Vote monkeys into Congress. They are cheaper and more trustworthy.
Yes, you're the only person who has done research on this topic. Out of the hundreds of millions of people affected by the tax code, nobody has ever thought to sue the federal government over income taxes or to use this as an affirmative defense against charges of tax evasion. You could be the hero who leads us all into a tax-free future by finding that honest judge of which you speak.
Get to work on that. Good luck, and let us know how it turns out.
It's the same reason why we don't replace the income brackets [20k-30k$/year], [30k-50k$/year], etc by an exponential formula. It would be more correct mathematically, more just when you go from 29999$ to 30001$ but people are too dumb to understand it.
Going from 29999$ to $30001 means you would only be taxed the higher rate on $1 of income, not the whole amount. If it wasn't your intent to imply otherwise I apologize, but I see people making that mistake all the time for some reason.
We're the lowest taxed generation since WWII. The highest rate now is 35%, and few pay it. The highest tax bracket in the 90s was 39.6. The highest tax bracket under most of Regan was 50%. Under Nixon was 70%. Kenedy was 91%. Eisenhower was also 91%. The rate coming out of WWII was 94%.
Try doing actual research before spitting out far right talking points.
I still have more fans than freaks. WTF is wrong with you people?
We do have "slightly" more government services to compensate though, or at least we do in Sweden. Our "marginal" tax rate is about 55%, though of course no one actually pays that much, the tax bracket up to about 380,000 SEK is about 30%, then 50% up to about 540,000 SEK, after which it's about 55%. When I take into account the things Americans have to pay huge sums of money for out of pocket (health care, education, daycare, parental leave, sick leave, etc) I'd say we got the better end of the stick.
rm tax code | /dev/null
Computers CAN fix the tax code.
*Repent!Quit Your Job!Slack Off!The World Ends Tomorrow and You May Die!
Slightly longer answer:
Maybe
Would politicians accept the solution without re-bloating it first? No
Actually, the original idea will never get off the ground, because most of those 10,000 pages deal with things like "companies employing less than 100 people and which are located in a depressed neighborhood and which have names ending in a vowel get to deduct the cost of the president's jet." Things like that are added to give one particular company a break, but they never mention the company's name, just a set of circumstances that describe only that company. The company knows who they are, but we are unlikely to figure it out since each of the intersecting sets is rather large. Unless that company is part of one of the clades, that particular clause will have zip effect and it will be proposed for deletion, leading to that company and all the others in the same situation to object to the entire process.
Nothing for 6-digit uids?
I look at taxes from an entirely selfish perspective. I benefit immeasurably from living in a stable society with relatively low levels of poverty and a high standard of living and free or cheap education. I can walk into the doctor's surgery and be given - either for free or for a token amount - cures for diseases that would have killed the richest man in the world a hundred years ago. I was paid by the state for the last stages of my formal education (my PhD).
Unfortunately, this costs money, and I have to pay for some of it. If it could be funded entirely by pixie dust, that would be great, but since that's not the case, this society is an expense that I consider worthwhile. I'd rather avoid paying taxes, in much the same way that I'd rather avoid paying for a new laptop, but I consider the price I pay to be very reasonable for the benefits that I receive in both cases.
Oddly enough, your line of reasoning from an altruistic perspective seems to reach the same conclusions as mine from a selfish perspective.
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Wow, it's great that you exposed him for the liberal he is. That is obviously not classical liberalism because it seems that he wants to justify higher levels of taxation, but perhaps it is social liberalism and he craves greater government revenues to support gay marriage or whatever it is that liberals like these days. Oh well, he's bound to be a liberal because you don't agree with liberals and he said something you don't agree with.
When did it become fashionable to display such a stunted view of politics by saying that "liberals/conservatives say X". As a self-confessed social and economic conservative I have to say that my own views are certainly not the same as most other "conservatives" and would much rather be in the company of a socialist or libertarian that can justify their position than someone who agrees with my own views for the wrong reasons.
When Argumentum ad Hominem falls short, try Argumentum ad Matrem
I take it you know more about economics than you do about the command line, right?
You understand it is true, though?
Income Tax in the United States originally applied only to profits from dividends and the like. Wages and salaries were explicitly excluded. It affected only the wealthy who could afford to invest, and were successful at it.
That is really the only way it passed, by exempting 90% of the population. For an example, see Tennessee State's income tax today.
Learning HOW to think is more important than learning WHAT to think.