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Tax Reform In The United States - Research Paper Example

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Tax Reform In The United States

The present tax code can also be said to be burdensome on the part of the taxpayers, on the aspect of compliance. The complex procedure involved in the accounting appears to be far more serious that it should be. For instance, Internal Revenue Service is unable to monitor the compliance with the corporate income tax because of its complexity. The Schedule M-3, a complicated form that attempts to adjust accounting income or loss with taxable income or loss, must be filled with taxpayers themselves. As a result, “companies can spend millions of dollars each year tracking and disclosing a multitude of transactions as a means of assisting the IRS in determining whether a return should be audited” (American Business Conference, 2005). Hence, the government, through its defective tax system, hinders the growth of its economy and its constituents.
From a critical view of an ordinary income earner, there seems to be a big inclination to favor the big income earners as opposed to the lowly income earners. Robert McIntyre, director of Citizens for Tax Justice group, mentions that on the federal level poor people pay about 8 percent of their incomes and rich people pay over a quarter of their income. However, on the state and local level it appears that low-income earners pay about 13 percent, the middle class pays about 12 percent, while people with high incomes pay only 9 percents. Thus, theoretical justice is not achieved. The collection of revenue by the government is geared towards the wrong target or direction. While it is more difficult to pay taxes without receiving material damage for poor people, current tax system collects the most part of the budget from them leaving low-income classes without social ...Show more


This paper deals with the tax reform implemented in the United States. It is mentioned here that a sound tax system is characterized by fiscal adequacy, which means that the revenue raised is sufficient to meet the needs of the government…
Author : ukonopelski
Tax Reform In The United States essay example
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