I just want to thank you for this nuanced comment. I had never considered #3.
It seems to me that there are many conflicting interests. We want simple taxes but we also want special protections and carve-outs.
It seems to me that there are many conflicting interests. We want simple taxes but we also want special protections and carve-outs.
> their pet things that are obviously worth complicating the tax code to do
I agree that this is at the root of the problem but I think that can be addressed by making it easier to file taxes or by reducing the complexity of the tax code. The child tax credit is a relatively common type of benefit across rich countries. The tax code could be simplified by administering this benefit via direct cash transfers through a different government agency. I think from this perspective, the IRS is _extremely_ efficient at benefit administration.
My personal opinion is that the tax code is not always a bad way to administer benefits but the paperwork burden is the problem and the experience of filing taxes needs to be made easier.
That's why all the covid stimulus checks were done via the IRS and the PPP loans were done through commercial banks.