What are the benefits of simpler taxes? Q.What are the benefits of simpler taxes? A.Simpler taxes have lower compliance costs—in both time and money—and may encourage taxpayers to use tax provisions aimed at helping people pay for socially desirable activities. Read more about What are the benefits of simpler taxes?
What policy reforms could simplify the tax code? Q.What policy reforms could simplify the tax code? A.Reducing the number of distinctions among economic activities and taxpayers’ characteristics would simplify the code, reducing both taxpayers’ compliance costs and governmental administrative costs. Some distinctions among taxpayers promote fairness, so there are trade-offs among goals, but the tax law could be simplified without compromising equity. Read more about What policy reforms could simplify the tax code?
What is carried interest, and should it be taxed as capital gain? Q.What is carried interest, and should it be taxed as capital gain? A. Carried interest, income flowing to the general partner of a private investment fund, often is treated as capital gains for the purposes of taxation. Some view this tax preference as an unfair, market-distorting loophole. Others argue that it is consistent with the tax treatment of other entrepreneurial income. Read more about What is carried interest, and should it be taxed as capital gain?
