Statement of Richard M. Lipton on the Subject of Tax Simplification
April 26, 2001

SPECIFIC PROPOSALS

The Code is replete with numerous provisions, the complexity of which are much greater than the perceived abuse to which the provision was directed or the benefit that was deemed gained by its addition. Furthermore, the Code contains many provisions that at the time of enactment may well have been desirable, but with the passage of time or the enactment of other changes, have truly become "deadwood." Despite the lack of utility of such provisions (whether in a relative or absolute sense), analysis of the effect of such provisions may nevertheless be required either in the preparation of the tax return or in the consummation of a proposed transaction. Thus, the elimination of such provisions would greatly simplify the law. The following are examples of provisions, that when analyzed do not justify their continuation in the law. Obviously, these are but a few examples, and an extensive analysis of the Code would undoubtedly uncover many more. We have separated our recommendations into categories for alternative minimum tax, individual items, business and administrative.