We cut tax exemptions in 1986, it was the most admired tax reform in U.S. history. Congress and the president worked together then to eliminate scores of loopholes and exemptions and deductions; this made taxes much simpler, and allowed a major cut in tax rates.
T.R. ReidWe have the most expensive compliance system in the world. The IRS brags that they spend 35 cents for every $100 they collect. They're very efficient collectors. And the reason is they stick the real cost on you and me.
T.R. ReidThe U.S. has the most complicated and difficult tax system in the world; we've made it hard to file and pay taxes.
T.R. ReidCorporations use all sorts of complex stratagems to move their profits overseas, and thus escape the U.S. income tax.
T.R. ReidIt used to be that we taxed property - zapped farmers basically. And there were very rich people who didn't pay that much tax. So in 1913, they put in the income tax. It was incredibly popular. The tax we love to hate today.
T.R. ReidStarting in the '80s or so, after the United States sharply cut its rates, other countries decided they better do it too, and here's how you do it: you just wipe out the exemptions, the deductions, the credits, the depreciation allowances. And people complain, "Oh my God, it's terrible," but you give them much lower rates and you give them an easier form to file, and people accept that tradeoff.
T.R. Reid