The tax base is inadequate. Some categories of income are taxed at a much lower rate than earned income from wages or not taxed at all. Adjusting income tax rates is a useful tool for Congress to deal with social and economic imbalances such as inflation and unemployment. The complexity of the present system, however, makes it difficult for Congress to assess the fairness and effectiveness of changes. Therefore, passage becomes prey to the special interests which have encumbered the system we now have.
Taxes clearly have effects beyond the simple transfer of assets.
Social and economic processes are affected by tax policy. Investments are often made to shelter income from taxes rather than to increase the productive capacity of industry. Therefore, the people must have adequate ethical criteria for making hard political and fiscal choices. Adequate resources for programs. The people must be willing to pay for the services they expect as citizens.