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.”
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.”
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 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.
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.”
Above all, his statement aligns with widespread calls for a simplified tax system that reduces administrative burdens.
The post US Tax Code Debate: Calls Grow to Abolish the IRS and Adopt a Flat Tax System appeared first on CoinChapter.
