The one thing you can’t accuse our tax code of being is simple. In fact, complicated isn’t a word that sufficiently describes the tome that is the US Tax Code. Did you know it’s 3.8 million words long? Did you know that 75 years ago, it was a total of two pages long, but now it’s 189 pages long? No wonder the US tax system is so convoluted and why so many people dread tax season. And why CPAs make so much money digging into everything from sales taxes to estate and inheritance taxes.
I Pay How Many Different Taxes?!?!
As you can imagine, in a 189-page tome, there’s bound to be a lot of taxes. But did you know that we have to pay 97 taxes? Yes, you read that right, there are 97 taxes you have to pay. Is it a wonder that the IRS has nearly 2,000 publications, forms and instruction sheets you can download off their website?
But there seems to be some method to the madness. In 1998, when the tax code was slightly shorter, Money Magazine asked 46 different tax professionals to fill out a income tax return for a household. It was all hypothetical, of course.
Now, you’d expect these professionals to know their business, which, of course, they did. Another thing you’d expect would be for them to generate consistent results, right? Well, no. They all had different results for a simple income tax return.
In 2009, PC World tried a similar experiment, except this time it was with five of the top tax preparation software websites. Again, they all had different results.
Apparently, those 97 taxes are too complicated even for the professionals, so it’s no wonder the rest of us regular folk shy away from completing tax returns. Clearly, it’s almost impossible to do it correctly. Even if a professional is doing it.
So, where’s the method? Well, incorrectly filed taxes lead to fines, which means the government makes more money. Of course, that could be construed as a conspiracy theory, but it still makes one wonder. After all, how can one not think conspiracy when you see things like “Flush Taxes” in the list, right? What’s next? A tax on using toilet paper? One thing’s for sure, when they start taxing us to breathe, we might have to consider moving.
Here are the 97 taxes in the US tax code:
- Air Transportation Taxes
- Biodiesel Fuel Taxes
- Building Permit Taxes
- Business Registration Fees
- Capital Gains Taxes
- Cigarette Taxes
- Court Fines
- Disposal Fees
- Dog License Taxes
- Drivers License Fees
- Employer Health Insurance Mandate Tax
- Employer Medicare Taxes
- Employer Social Security Taxes
- Environmental Fees
- Estate Taxes
- Excise Taxes On Comprehensive Health Insurance Plans
- Federal Corporate Taxes
- Federal Income Taxes
- Federal Unemployment Taxes
- Fishing License Taxes
- Flush Taxes
- Food And Beverage License Fees
- Franchise Business Taxes
- Garbage Taxes
- Gasoline Taxes
- Gift Taxes
- Gun Ownership Permits
- Hazardous Material Disposal Fees
- Highway Access Fees
- Hotel Taxes (these are becoming quite large in some areas)
- Hunting License Taxes
- Import Taxes
- Individual Health Insurance Mandate Taxes
- Inheritance Taxes
- Insect Control Hazardous Materials Licenses
- Inspection Fees
- Insurance Premium Taxes
- Interstate User Diesel Fuel Taxes
- Inventory Taxes
- IRA Early Withdrawal Taxes
- IRS Interest Charges
- IRS Penalties
- Library Taxes
- License Plate Fees
- Liquor Taxes
- Local Corporate Taxes
- Local Income Taxes
- Local School Taxes
- Local Unemployment Taxes
- Luxury Taxes
- Marriage License Taxes
- Medicare Taxes
- Medicare Tax Surcharge On High Earning Americans Under Obamacare
- Obamacare Individual Mandate Excise Tax
- Obamacare Surtax On Investment Income
- Parking Meters
- Passport Fees
- Professional Licenses And Fees (another form of taxation)
- Property Taxes
- Real Estate Taxes
- Recreational Vehicle Taxes
- Registration Fees For New Businesses
- Toll Booth Taxes
- Sales Taxes
- Self-Employment Taxes
- Sewer & Water Taxes
- School Taxes
- Septic Permit Taxes
- Service Charge Taxes
- Social Security Taxes
- Special Assessments For Road Repairs Or Construction
- Sports Stadium Taxes
- State Corporate Taxes
- State Income Taxes
- State Park Entrance Fees
- State Unemployment Taxes (SUTA)
- Tanning Taxes
- Telephone 911 Service Taxes
- Telephone Federal Excise Taxes
- Telephone Federal Universal Service Fee Taxes
- Telephone Minimum Usage Surcharge Taxes
- Telephone State And Local Taxes
- Telephone Universal Access Taxes
- The Alternative Minimum Tax
- Tire Recycling Fees
- Tire Taxes
- Tolls
- Traffic Fines
- Use Taxes
- Utility Taxes
- Vehicle Registration Taxes
- Waste Management Taxes
- Water Rights Fees
- Watercraft Registration & Licensing Fees
- Well Permit Fees
- Workers Compensation Taxes
- Zoning Permit Fees
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The U.S. tax system’s complexity, exemplified by its 97 distinct taxes and a massive 3.8 million-word Tax Code, poses significant challenges for both professionals and everyday taxpayers alike. This intricate network of taxes not only makes tax preparation a daunting task but also raises questions about the efficiency and fairness of the system. The discrepancies in tax filing outcomes, whether done by human professionals or sophisticated software, suggest a need for simplification and reform. As taxpayers grapple with an ever-expanding list of taxes, from the mundane to the bizarre, it becomes imperative to seek education on tax matters. Armed with knowledge, taxpayers can navigate the labyrinth of the tax code more effectively and potentially safeguard themselves against undue financial burdens. Ultimately, a push towards a more straightforward and transparent tax system could benefit all, reducing confusion and ensuring a fairer process for contributing to the nation’s needs.
