The tax code is too complex and riddled with loopholes. This causes the following problems:
(1) rich, sophisticated taxpayers often pay very little since they can take advantage of all sorts of special exemptions and deductions;
(2) the tax code causes everyone to make economically inefficient investment decisions--instead, it should tax people the same regardless of what they choose to do with their money;
(3) politicians are less politically accountable since the system is inscrutable; and
(4) the cost of compliance imposes enormous drag on the economy.
Eliminating all deductions and credits would solve these problems, but would also increase effective rates on everyone. Thus, this dramatic simplification should also include decreased nominal rates on the poor and middle class.