Originally Posted by
GogglesPisano
I agree it would be too simplistic. There has to be a way to define "income:" whether it be from an employer, self-employed, dividend, interest. Once it's defined it should all be taxed at the same rate (perhaps some gradation for higher incomes.)
As far as simplification goes, we can start with getting rid of ...
Mortgage interest,
Charitable contributions,
Depreciation.
Ironically, income is and has been defined for a very long time but, for Federal Tax purposes, the IRS and tax lawyers always turn to the touchstone case
Commr. v. Glenshaw Glass Co., 348 U.S. 426 (1955), which is probably the most important case in American tax law in that it defined "income" quite broadly.
Glenshaw Glass established that income is:
"Any undeniable accession to wealth,
which is clearly realized by the taxpayer, over which the taxpayer has complete dominion."
If you paint a farmer's barn and the farmer pays you for that service with meat from half a cow, the value of the meat is income.
The issue(s) revolve(s) around what part and how much of that income is either exempt or deductible under the Federal Tax code. That's where the CPAs and tax lawyers make their $$$. 😁