Wednesday, June 22, 2011

IT’S REALLY QUITE SIMPLE


 Complexity in government is bad. Simplicity is good. We should tell our representatives to “keep it simple, stupid!” There is nothing good to be said about a convoluted and incomprehensible system of health-care administration and tax collection. For instance, the current complex tax system has thousands of inequities. The politicians line their pockets by continually tinkering with the tax code to benefit special interest groups. We should scrap our confusing, unfair tax code and replace it with a simple flat tax of one low rate with no deductions or special interest loopholes. Unlike the current system, a flat tax is simple, fair, and good for growth. Instead of the 893 forms required by the current system, a flat tax would use only two postcard-sized forms: one for labor income and the other for business and capital income.

You should never underestimate the power of a simple idea. Sometimes very simple ideas are the best solution to some of our most complex problems. When your next challenge arises, look around for a simple idea that may end up being the best and the cheapest solution to your problem. “They say the world has become too complex for simple answers. They are wrong!” _ Ronald Reagan “The business schools reward difficult complex behavior more than simple behavior, but simple behavior is more effective.” _Warren Buffett  “All the great things are simple, and can be expressed in a single word: freedom, justice, honor, duty, mercy, hope.” _ Winston Churchill  “Simplicity is the ultimate sophistication_ Leonardo da Vinci  “Simple beats complex”_ Harry Teets.                                               

2 comments:

  1. Dear Free:
    The current tax "system" has another genesis: the desire to socially engineer we Americans. Want people to own homes? Give a tax break for mortgage payments. Want people to have children? Give a generous tax break for every child the taxpayer supports.
    Any flat tax will have to get past the demonic opposition of home owners, parents, and the rich who would have to pay more.
    While the tax code should be made more simple, it won't solve the real problem: spending.
    We must put governments on strict diets and create rules that force them to stay on them.
    TsarPat

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  2. Dear Tsar,
    I appreciate your thoughtful comment. I almost agree with you! I do not think that a flat tax would mean that home owners and parents would pay more. They would pay less because the rich would pay more. You are absolutely right about the spending problem. A strict diet for the government enforced by a pay reduction for representatives who vote for deficit budgets is my suggestion. We do not need social engineering imposed by misguided (stupid) politicians!

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