Is the Income Tax System Doomed?

Posted on 21. Jan, 2006 by in Saving & Investing

Thomas J. Frey, the Senior Futurist at The DaVinci Institute wrote an article yesterday entitled “The Coming Collapse of Income Tax.” He claims that within 10 years the income tax system in the United States will be dismantled. “A number of emerging new forces coupled with the universal dislike of the system will soon gain enough of a toehold to cause it to collapse.”

If I remember correctly, every year around this time someone writes an article about the impending collapse of the income tax system. In fact, it would be interesting research to see how far into the past people have been predicting the tax system’s demise. Personally, I think such “predictions” are laughable. Do we want the incomet tax system to be dismantled? Maybe. But will it? Very, very unlikely. Even with the “evidence” that Frey brings to the table, the fact is that an income tax system is an evil neccesity.

I agree that the current system is bloated and innefecient to the point that some major reform will be necessary. I agree that even accountants hate taxes. However, a total dismantling is a joke. Just the logistics of completely dismantling the system and replacing it with something else is mind-boggling and something no administration is EVER going to attempt. I’ll even put money on that.

So give the article a quick read and let me know – do you think the U.S. tax system is going to collapse?

One Response to “Is the Income Tax System Doomed?”

  1. Paul D

    22. Jan, 2006

    If Americans just decided to stop paying it, income tax would be gone overnight. But as long as people think they can vote themselves a bigger piece of the government’s benefit pie, the tax rate (be it income tax or some other type) can only go up.

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