Repeal the Tax Code to Cut Spending

Congress can easily cut a trillion dollars in spending by simply repealing the tax code. Ironic, isn’t it that the tax code is America’s worst spending problem? [1] Taxes should raise revenue, but Congress spends nearly as much money through tax expenditures as the income tax brings in as revenue! [2, 3]

But wait! Imagine the disruption to America’s economy if all that spending disappears! Vital government programs will suffer:

  • Wealthy golfers will have to walk: Think of the knee and hip replacements! [4]
  • Paper mills will move from diesel fuel, paper prices will jump, tree huggers will lose their jobs! [5]
  • Whirlpool and GE will suffer losses, dirty dishes and underwear will multiply! [6]

 

If direct government spending boosts the economy by the Keynesian multiplier effect [7], what happens when government spends money by not collecting taxes? Higher tax rates, increased tax avoidance, greater tax code complexity and increased tax code compliance costs – let’s call this phenomenon the Tax Code Expenditure Reverse Multiplier.

Americans detest the tax code and the IRS, which enforces it. What better way to celebrate Tax Day coming on April 15th than by repealing the tax code and cutting a trillion dollars in spending at the same time. If you agree, let Congress know by joining the petition!

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