You (hopefully) finished filing your federal income taxes. Now see how the system works and the need for reform.
The tax code has grown in length and complexity over the years as more tax breaks have been added. This is not surprising since the last time the tax code was reformed was over 30 years ago.
Meanwhile, revenue is not keeping up with spending, which will result in increasing deficits. In fact, by 2027, revenue will only be sufficient to cover mandatory spending, namely Social Security, Medicare, Medicaid, and interest on the debt. All other spending will be added to the national debt.
A big reason why the gap between revenue and government spending is growing is because of the numerous tax breaks and loopholes in the tax code. These so-called tax expenditures are essentially spending through the tax code because they are very similar to spending programs. They account for $1.6 trillion annually in lost revenue.
National Debt and You