Flat Tax Frenzy: Americans Debate Tax Code Overhaul on X

CN
5 hours ago

The debate hit a fever pitch after the Department of Government Efficiency (DOGE), spearheaded by prominent names Elon Musk and Vivek Ramaswamy, floated the idea of eliminating a great deal of the U.S. federal agency’s tax code while stressing the need to simplify the system. Last week, the DOGE X account posted, “In 1955, there were less than 1.5 million words in the U.S. Tax Code. Today, there are more than 16 million words.”

The DOGE X added:

Because of this complexity, Americans collectively spend 6.5 billion hours preparing and filing their taxes each year. This must be simplified.

On Nov. 20, the parody X account “@realdogenews,” boasting 776,500 followers, stirred the pot with a playful post: “If you could only choose one agency to abolish, which would you choose and why?” The Internal Revenue Service (IRS) emerged as the primary target of discussion, with widespread support for its removal. The proposal also sparked many conversations about adopting a flat tax system and simplifying the notoriously complex U.S. tax code.

“I feel IRS and Dept of Education are the two big ones that do the most overall damage to ALL American citizens,” one person said. “IRS. Flat tax across the board. That agency is responsible for a lot of deaths, suicides, and prison time, over something that could be and should be simplified,” another person remarked on the thread. Chamath Palihapitiya, a prominent Silicon Valley entrepreneur and venture capitalist, also talked about the thread.

“DOGE asked what people think of the IRS and a lot of people said to wipe out the tax code and give us a flat tax,” Palihapitiya stated. “People were flexible in the amount of tax they were willing to pay.” He further added:

Can you imagine the implications of just having a simple tax code? … It allows entrepreneurs to spend their time focusing on building … The idea of cutting all the tax code down and finding through the process what we really need… It could create an economic renaissance.

Many people in the thread felt that a flat tax has advantages over progressive taxation. A flat tax could reduce the complexity and compliance costs inherent in a progressive tax system, which involves numerous brackets and deductions. Government interventions that impose unnecessary burdens on economic calculation and planning can be and are very costly to the American taxpayer. Moreover, progressive taxes create disincentives for productivity by penalizing higher earners disproportionately.

A flat tax, by treating all income equally, would mitigate this distortion, though not eliminate the inefficiency caused by taxation. While many people are clamoring for a simpler tax system, the concept of taxation itself fundamentally clashes with the ethical principle of voluntary interaction. At its core, moral rules rooted in universality and non-coercion highlight that taxation—being inherently coercive—cannot meet this standard. For many, though, the current progressive tax system has ballooned into something beyond absurd, morphing into a monstrous entity of its own.

The spirited discussions on X reflect a growing public discontent with a tax code many see as bloated and counterproductive. Calls for simplicity resonate deeply, not just for the practical benefits of reduced bureaucracy but also for the philosophical appeal of fairness and freedom. The clamor for reform signals a broader yearning for a system that empowers, rather than entangles, its citizens. Last week, Coinbase CEO Brian Armstrong talked about the issues with the American tax code saying that “getting rid of individual income tax entirely would be ideal.”

Whether or not the flat tax gains traction, the debate underscores a critical shift in public sentiment: a rejection of inefficiency and coercion in favor of clarity and equity. By reimagining the tax system, proponents envision not only economic efficiency but also a cultural recalibration—one that prioritizes innovation, productivity, and trust. The conversation itself highlights a profound moment of societal reflection.

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