Loopholes exist partly because of the complexity of the tax code, but, often, they are inserted intentionally so that the wealthy can take advantage of them.
This preferential treatment is provided not only in the way that the tax is structured, but also in the form of tax loopholes, which allows taxpayers to take advantage of weaknesses in how the laws are actually worded to circumvent them, thus lowering their taxes in a way that Congress may or may not have intended.
#BENEFIT PRINCIPLE OF TAXATION ECONOMICS CODE#
Although tax accountants and lawyers help people to comply with the tax code and reduce their taxes, their work has no true economic worth since the need for their help could be eliminated by simplifying the tax code and facilitating the filing of taxes, especially through electronic filing.īesides trying to promote or limit certain activities, much of the complexity of the tax code results from Congress giving preferential treatment to particular groups, especially the wealthy and businesses. Reducing the administrative burden not only benefits the taxpayers but also the economy since tax collection is not an objective of tax policy, but simply a requirement. Tax efficiency minimizes the cost of complying with the tax code by reducing its administrative burden and by minimizing any distortions in the economy caused by the tax.
0 kommentar(er)
