US Tax Code Debate: Calls Grow to Abolish the IRS and Adopt a Flat Tax System

Key Takeaways:

  • The U.S. Tax Code expanded from 1.5 million words in 1955 to over 16 million, causing 6.5 billion hours in compliance.
  • Many public figures, including Chamath Palihapitiya and Brian Armstrong, support simplifying taxes through a flat tax system.
  • Critics of progressive taxation argue for reforms to reduce complexity and prioritize fairness in the U.S. tax system.
US Tax Code, US Tax Code Debate: Calls Grow to Abolish the IRS and Adopt a Flat Tax System

YEREVAN (CoinChapter.com) — The U.S. Tax Code has come under scrutiny after the Department of Government Efficiency (DOGE) revealed its rapid growth over the decades. Prominent figures, including Elon Musk and Vivek Ramaswamy, have supported efforts to simplify the system.

DOGE highlighted that the U.S. Tax Code, which had only 1.5 million words in 1955, now exceeds 16 million words.

In a recent post on their X account, DOGE stated,

“Because of this complexity, Americans collectively spend 6.5 billion hours annually preparing and filing their taxes.”

A graph showing the growth in the number of words in the U.S. Tax Code and regulations from 1955 to over 16 million words today. Sources: Government Publishing Office, West Publishing Company, House of Representatives' Office of Law Revision Counsel.
U.S. Tax Code Word Growth Chart. Source: Department of Government Efficiency (DOGE)

The statement has intensified public discussions on eliminating bureaucratic inefficiencies and transitioning to a flat tax system.

IRS Becomes a Target in Tax Reform Discussions

The parody X account @realdogenews, followed by 776,500 users, added to the debate with a provocative question:

“If you could only choose one agency to abolish, which would you choose and why?”

Many responses focused on abolishing the IRS, citing its role in enforcing the complex U.S. Tax Code.

One commenter remarked,

“The IRS and Department of Education are the two agencies that cause the most harm to Americans.”

Another wrote,

“A flat tax system across the board would eliminate stress, deaths, and imprisonment caused by the current tax structure.”

Entrepreneur and venture capitalist Chamath Palihapitiya also weighed in. He noted,

“DOGE asked what people think of the IRS, and many said to wipe out the tax code and give us a flat tax system.”

A post from Autism Capital featuring Chamath Palihapitiya's remarks on simplifying the U.S. Tax Code, advocating for a flat tax system. The tweet references the benefits of reducing tax complexity and highlights a related tweet from Matt Strickland discussing the necessity of a simple tax code.
Chamath Discusses Flat Tax Proposal. Source: Autism Capital (@AutismCapital)

Palihapitiya added that people were willing to accept reasonable tax rates in exchange for a simpler system.

Flat Tax System Gains Attention Amid Tax Code Complexity

The progressive tax system faces criticism for its intricate brackets and numerous deductions, which many see as unfair and burdensome.

A tweet from @Father_perez describing their experience with a tax audit for $25,000, criticizing the IRS. The post includes a list highlighting various scenarios where taxes are applied, emphasizing frustration with the U.S. tax system.
Tax Frustrations Shared by Street Philosopher. Source: @Father_perez

A flat tax system, supporters argue, could also lower compliance costs and create fewer barriers to productivity. Moreover, treating all income equally would reduce distortions caused by progressive taxation, though it would not eliminate all inefficiencies.

A tweet by @MattForVA discussing the necessity of taxes but advocating for a flat tax system based on marketplace transactions instead of earnings. The post critiques the complexity of the current tax system and its impact on ordinary citizens.
Matt Strickland on Flat Tax Proposal. Source: @MattForVA

The current U.S. Tax Code has become a symbol of government overreach, according to critics, as it complicates financial planning for both individuals and businesses. Consequently, many participants in the discussion advocate for reforms that prioritize fairness and efficiency.

Brian Armstrong Highlights Need for Tax Code Reform

Brian Armstrong, CEO of Coinbase, recently commented on the issue, suggesting,

“Getting rid of individual income tax entirely would be ideal.”

A tweet from Brian Armstrong proposing the elimination of individual income tax, shifting the tax burden to businesses through a sales tax or business income. He highlights the complexity of the current tax code, noting its 150,000 pages, and argues for simplifying tax reporting for 200 million adults by focusing on large corporations instead.
Armstrong Advocates for Tax Reform. Source: @brian_armstrong

Above all, his statement aligns with widespread calls for a simplified tax system that reduces administrative burdens.

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