Subject: Re: a stocks and dividends question
From: Jerry Dwyer <gdwyer@dwyerecon.com>
Date: Sat, 11 Jan 2003 09:16:04 -0500

At 02:52 AM 1/11/03 +0900, Stephen J. Turnbull wrote:

>I don't know any economists who aren't in favor of drastic
>simplification of the tax code (including the two who worked for the
>IRS!)  Do you?  There are great differences over whether the
>simplification should be "revenue neutral", whether it should be flat
>or progressive, and how the different plans would affect the economy
>overall, of course.

Agreed! Every economist I know wants to simplify the tax code, and the tax 
code only gets more complicated year by year as narrowly targeted tax cuts 
are added.

The tax code is confusing to everyone. I sometimes think that we owe the 
complexity to computers.

If it weren't for TurboTax, I couldn't figure out my taxes in a week! If 
everyone had to do the arithmetic by hand or on mechanical calculators, 
taxes would never get done.

The targeted tax cuts, which introduce the complexity, are possible because 
detailed computer-simulation models make it possible to estimate the 
effects of any tax change on households making between $20,000 and $35,000 
with N kids and age T-T* years.

Jerry


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