/* Google Analytics Code asynchronous */

Wednesday, January 12, 2011

Are you afraid of what is complex?


We're told that the tax code is too complex, so we need to simplify it, and call doing so "Comprehensive Tax Reform".

But simple is not efficient, is it? I mean, you can do great harm with solutions that are too simple and, thereby, insufficient to their corresponding problems.

Would you say that a three-gear shift is better than a five-gear shift, just because it is simpler? No. Why are three tax brackets better, then?

I would expect the tax law of any developed, diversified economy to be complex, to be just. Human activity is varied and complex and I can't see how you can deny that or pretend that there is a simple solution.

Smart regulation and smart taxation doesn't have to do with simplification, per se.