tax.com: Tax Complexity and "Sullen Animosity"

Tax Complexity and "Sullen Animosity"

Joseph J. Thorndike | Jun. 2, 2010 03:30 PM EDT

People have been complaining about tax complexity for ages. Maybe forever. Here's a tidbit from 1920, published by Wall Street titan and prominent arts patron Otto H. Kahn:

One of the essentials of wise taxation is simplicity of method. Nothing tends more to create a sullen animosity against fiscal measures, nothing is more apt to cause a man to feel justified in his own conscience to give himself the benefit of any doubt or technical loophole, than to be compelled, in addition to paying heavy taxes, to sit down and grapple with complicated tax forms and intricate schedules or to spend money for the employment of lawyers and accountants to tell him what he has to pay.

There's more than a little wisdom in that observation. I've always believed that complexity is a powerful force in tax politics, if not tax policymaking. But as the old saying goes, it's everyone's second priority.

When Kahn first published his comment, he was hailed for his insight. Just as quickly, he was completely ignored.

Comments (2)

It's not complexity that irks me. It's intentional deception like the bait and
switch AMT or steep phase-outs that boost marginal tax rates far above the
"sticker price" statutory rates.

Congress feels free to enact deceptive tax law, and some members also cheat on
their own taxes. Under these conditions it's a tribute to the character of
Americans that compliance is as high as it is.

Posted by AMT buff on Jun. 2, 2010 at 06:44 PM

The more complex taxes are the more unfair they are. Tax law is influence by
numerous lobbying organizations all trying to benefit or at least minimize the
impact of any tax change. Tax should be based on a simple method with fairness
being a primary component.

Posted by Mke Coleman on Jun. 6, 2010 at 05:23 PM

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