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The Obstacles to Overhauling the U.S. Tax Code

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    Tax Foundation’s Scott Hodge on why tax reform is needed despite the challenges.

  • Duration 3:37
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About reforming the rest of the tax industry that includes personal tax preparation and every Scott Hodge from the Tax Foundation things.

So much for joining us and they do all make it sound so simple -- mean Paul Ryan.

Was on sixty minutes and he jumped in when -- asked Mitt Romney -- -- taxes and he said look.

We need to get rid of the havens for really wealthy people and lowered the rate overall to make America more competitive he made it sound so simple and so Smart.

Is it that simple and Smart.

Well it's obviously challenging because behind every one of those loopholes is a huge industry.

Of of of lawyers and accountants and lobbyists and industries that are benefiting from -- so yeah you're going to be taking those guys on.

But that's worth they've the price because the ultimate beneficiary here is that the economy and taxpayers the national taxpayer advocate says that.

Complexity is the number one challenge facing taxpayers today.

And we spent about six billion hours -- over 200 billion dollars a year complying with the tax code all that goes away that's -- to the benefit of the US economy.

Well I mean it and we just showed that one point two million never knows the number of tax for parents out there there's so many people know personal income tax.

-- -- -- -- -- -- -- -- -- I thought I still jobs I know I'm trying to only them know your checks of your tax lawyers lose their jobs and no one's gonna cry a river over that once you figure.

None of the economy -- -- figure out and it it's a bigger something.

They can learn computer code and maybe next didn't make the next apple iPad.

-- look at -- all of those people what we considered dead weight loss the economy.

Those of the people that are are mucking up the tax system.

Interpreting -- forests but they're not doing anything really productive.

And affect most of what's in the tax code is is not -- it's actually dragging down the economy.

So the most and more we can simplified and more we can make it easy for all of us to a comment comply with -- the better off the economy is in the in the long run.

You know I like to plain -- perfection -- you let me ask you another one we -- Bob -- on a little while ago he said.

You know why don't we lower they close the loopholes.

And lower that tax rate for corporations and he said I may end up paying -- my corporation even more tax I don't know the total amount of revenue could go up.

But this would make America more competitive how -- you who -- sort of sort that out.

There are always companies always taxpayers that have built their -- around the tax code.

That's wrong and we shouldn't have that and so some taxpayers will pay more because they've -- basically turned their lives around the tax system.

But most of -- taxpayers will be better off.

-- a lower rate without any of the attack that the tax preferences in the -- this -- a lot like -- JC -- is done with their pricing they got rid of the sales and moved to everyday low pricing.

Wal-Mart tightly priced legal action if we're for JC Penney -- their disaster right now and then it's funny everyone Salem up there's something nobody can figure that out I don't think that's it isn't working it's working for Wal-Mart.

Everyday low pricing has made them the world's biggest.

Retailer so I think we need -- Wal-Mart tax system where the minute -- mark to -- Texas with -- -- high tax rates and a lot of these kind of -- -- -- that we're gonna see you simplification of the tax -- in my lifetime.

An -- -- my eighteen years old.

I -- but I thought we saw an 86 I think we can see it again I think next year all of all the trains are moving in that direction.

Everyone is looking toward next year I think that the with the winds are at our back but it's gonna take a lot of political courage and a lot of -- we're real political leadership from the White House we haven't seen that yet.

Let we'll have to see what happens next year okay sky high stakes are gonna -- a lot of fun you've.

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