[RayChuang88]

That's why I'm flummoxed why the Federal Reserve hasn't considered this idea: fix the income tax system.

When the current income tax system costs around US$304 BILLION per year in compliance costs and drove almost US$16 TRILLION in American-owned liquid assets into the illegal underground economy or to offshore financial centers to keep these assets out of the hands of the IRS, no wonder why we have such a bad economy.

If we can clean up our national taxation system, we could cut that US$304 billion in compliance cost substantially, and bring back most of that US$16 trillion in liquid assets back to the US financial system--the world's largest "private bailout." That much liquidity returning to the US financial system would easily kick off the next American economic boom.

[danielmryan]

Here's a "fun fact" for you: The first income tax, although rudimentary because income data-gathering was too, saw its day arrive in Bourbon France; it was called the capitation tax. It was sold as a tax-reform measure to eliminate the overhead of the taxes it was supposed to replace. (!)

Sadly but predictably, the capitation tax didn't replace anything. It ended up being imposed on top of the taxes it was supposed to replace.

[andy58-in-nh]

Fixing the income tax system in any meaningful way would entail reforms that almost no one in Congress, as presently constituted, will abide. Why? Because the Federal income tax code is not designed to raise taxes. It is designed to control behavior by alternatively rewarding and punishing billions of minute decisions made by taxpayers every day.

All of the rules, regulations, requirements, exemptions, deductions, and schedules that go into those 65,000+ pages of the IRS Code are the result of lobbying efforts on behalf of business, agricultural, labor and legal interests. Once again: it's not about income: it's about influence and power. And Congress today craves those things more than anything, even at the expense of our nation's economic health and productivity.

[Old Teufel Hunden]

"That's why I'm flummoxed why the Federal Reserve hasn't considered this idea: fix the income tax system."

You sir are under the false impression that the politicians think the income taxation system is to be used for the purpose of raising revenues to run the government. Au contraire my good friend. They look at the income system as a way to re-distribute wealth for the benefit of consolidating their own power. The Federal Reserve can't do anything about the income tax system. Look at article 1 section 8 of the constitution. This is the purview of the Congress.

[DManA]

Federal Tax Code is exhibit 1 in the evidence that we are no longer a self governed republic.

[BfloGuy]

That's why I'm flummoxed why the Federal Reserve hasn't considered this idea: fix the income tax system.

It's not up to the Federal Reserve -- the tax system is the responsibility of Congress. Need I say anything more?