I guess the flat tax idea is resurfacing again.

[Jeff In Milwaukee]

11. Here's the thing...

Full Disclosure: I'm a Tax Professional.

A certain amount of the complications that arise from personal taxes is that there has been an effort to keep taxation equitable, and to avoid creating an undue burden on taxpayers.

Example: You and I are both the same age (30) and we earn the same income ($40,000) per year. We should pay the same amount in taxes, right?

But what if you have two kids and are struggling to pay off student loans? What if your elderly widowed aunt comes to live in your house because nobody else in the family will take her and she can't afford an apartment on her own?

And me? I'm single with no financial responsibilities at all. In fact, your $40,000 is earned from wages and all mine comes from a trust fund. All I have to do is cash the checks (actually, with direct deposit I don't even have to do that).

Now the tax code does create exemptions and deductions and credits to prevent your tax burden from being a financial hardship -- what with two kids and an aunt to provide for. It only makes sense that some taxpayers with identify income should pay less than others, depending on their individual circumstances.

And that trust fund thing? Perversely, the code taxes income from interest and dividends (and capital gains) at a lower rate than income earned by people who actually work for a living.