“At the beginning of the 20th century, federal taxes accounted for 3 percent of the nation’s gross domestic product, and federal tax rules filled just a few hundred pages. But for the past sixty years, federal taxes have averaged about 18 percent of GDP, and today, federal tax rules and regulations span over 60,000 pages.
The federal government extracts over $2 trillion in federal taxes from families and businesses each year, which imposes a huge economic cost. The key problem with current federal tax laws is that high rates and the unequal treatment of economic activities create enormous distortions that reduce economic growth.
The reduced growth leaves people with less money to buy food, clothing, and other needed items.
The federal tax rules impose other costs too. The complexity of federal tax rules creates compliance and administrative costs, and it makes financial planning more difficult for individuals and businesses.
Furthermore, the hidden nature of many federal taxes imposes a cost in transparency. In particular, it is difficult for citizens to figure out the overall burden of taxes they are paying under the current system. “