We cannot lose sight of the fact that complexity is the result of our struggle for fairness. The cost of preferential rules to the tax system is rarely weighed against alternatives for reaching the same goal, either when they are added, or in future years. Some preferences have evolved to lose sight of their underlying purpose. For example, a home mortgage deduction is allowed to encourage home ownership. Such views tend to harm compliance rates and lead to lack of faith in the tax system.
Preferences add complexity to the system.
Some rules seem to be driven by revenue goals rather than what makes sense, what is simple, or what follows a particular philosophy for the income tax system. This results in a lengthy set of regulations, numerous calculations and increased recordkeeping, which all just results in a difference in timing for when cost of goods sold affects gross income. Commonly Listed Goals for Major Federal Tax Reform Listed below are various goals that have been suggested as reasons to undertake major reform at the federal level in the U.S. Background information is also provided here to better understand why each of the goals has likely been offered as a reason for reform. The following goals are not listed in any particular order. To simplify the current tax system.