Benjamin Franklin said, "The only things certain in life are death and taxes." Someone changed the quotation so, in its augmented form it reads: "Death and taxes are alike in being certain in life, but death does not get worse every time Congress meets."
Every year some politician suggests that he will help in simplifying the Internal Revenue Code. I expect to see that happen about as much as I expect to see a herd of pigs flying by, which would, you will agree, be a porcine.
In 1986 the IRS instructions for Form 1040 occupied 52 pages. In 2009 the instructions had doubled, to 105 pages.
In 1986, when the Internal Revenue Code was substantially rewritten, the Code plus the regulations added up to 5,739,000 words. In 2005 the Code and the regulations totaled 9,097,000 words. There are probably another 1,000,000 words added since 1986.
Congress tries to make it appear that a new tax law is going to make the tax law fairer and better and simpler by attaching a warm and fuzzy name to it; preferably one with an acronym which works. For example, we had the Employee Retirement Income Security Act, in 1974. What could sound better than "retirement income security?" The acronym, ERISA, is easy to say, although we tax lawyers had another name for it: "Every Ridiculous Idea Since Adam."
The most recent legislation is entitled the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010." Certainly 'Tax Relief' and "Job Creation" sound positive, but "TRUIRJCA" just does not cut it as an acronym.
A new tax law may start out simple, but then amendments and special provisions are attached to it like ornaments on a Christmas tree, because many interests want a piece of the action. What was simple becomes complex, and what was complex becomes incomprehensible.
The tax law is now so complex that working with it is a chore for tax lawyers. Some years ago when a client called, we could provide an immediate answer. Now, even a simple question requires research because the law is so convoluted.
We would love to see the tax law simplified. I have little hope that it will happen.
