Another tax season has come and gone when Americans and American businesses spend $250 to $300 billion dollars for no other purpose than to make sure that they have complied with the law. As in other areas of the law, the tax code long ago became too complex for the average person to understand. With deductions and credits for everything from children to purchasing the correct automobile, armies of tax preparers and lawyers are kept employed.

Societies with low levels of literacy have been kept subjugated throughout history because the people could not read. A complex, byzantine tax code effectively robs people of their literacy and leaves them open to manipulation. In what way can people be truly free when they need outside assistance to understand what it is that they are supposed to do? True freedom comes from clear laws that are easy for the public to understand. Examples would be a 65 mph speed limit, no murder, and no stealing. These laws are easy to understand, and it is very easy to avoid breaking these laws. The tax code on the other hand is so convoluted and confusing that an amateur who attempts to comply without professional assitance risks violating some arcane rule, even if he honestly wants to pay what he owes. Vague and confusing laws are the playground of tyrants, and the enemy of freedom. A tax code that is convoluted to the point of vagueness restricts the freedom that Americans can enjoy.

A solution to this morass would be to either institute a flat tax, or do away with the income tax in favor of a consumption-based tax. Both moves would expand freedom in that either Americans would be easily able to calculate what they owe, or they would be relieved of the necessity of doing so altogether. The simplicty and transparency would also make it difficult for politicians to reward their supporters secretly by making beneficial changes to the tax code, thereby making the governing process more accountable. Compliance under a consumption-based tax would come close to 100%, since businesses would continue to double as government tax collectors as they do now with state sales taxes. All things being equal, increased compliance would result in more tax revenue. It would also have the added benefit of not requiring the government to maintain a costly compliance bureaucracy, as it does now.

In summary, the current tax system is too convoluted and restricts freedom. A simplified tax system would increase freedom in American society, in that the average American could easily comply with the tax code without having to pay a third party. An open society with clearly demarcated rules and laws is one in which freedom flourishes. It is time to increase freedom and simplify the tax system.