Simplicity?

The tax code is too complex, we say. However, let us take a step back and ask ourselves — is it? My guess is that nature is just too ruthless, too uncaring, and too unforgiving. We have complicated structures because we have conflicting desires and differing points of view. However, even if we disregard this diversity we still can't simplify the tax code as much as we'd like. The issue at hand is that we want to create incentives so people to do certain things and create disincentives so people don't do certain things. Taxing carbonated soft drinks or tobacco products is a way to signal people: don't do this. It is very crude but we are unwilling to outright ban behavior we find not beneficial. Funding research in renewable energy is one way to help lower our emissions. However, another way is to provide tax credits when you buy an electric car.