Tax Reform

The IRS regulations, that tax payers are supposed to know, and the IRS uses to prosecute them, are 75,000 pages long.  Nobody can read or understand that much legal gobble-de-gook.  It's time for a complete change. 
Step 1.  Revoke every single IRS rule, and all the court rulings.  Repeal all existing income tax laws. Start with a clean slate.
Step 2.  Break the income tax into two taxes, personal income tax and corporate income tax. Write a separate law for each tax.
Step 3.  Corporate income will be taxed at 20% of corporate profits.  Period.  No exception, loopholes, depletion allowances, or special deals favoring one kind of corporation.  Profits are computed by subtracting legitimate expenses from corporate revenue.  Revenue is all money from sales, fees, investments, tax rebates, everything.  Legitimate expenses are:
1. wages
2. raw material 
3. repayments and interest on corporate debt
4. state and local taxes
5. salesman's commissions
6. advertising
7. tools, jigs, molds, and machinery,
8. utilities, electricity, water, telecommunications services
9. insurance (including employees health insurance)
10. dividends
11. contributions to charity
12. Other expenses necessary for producing the corporate product.
13. research and development 
The following are not legitimate expenses and must be paid out of after tax profits.
1.  Bribes
2.  political contributions
3.  company cars
4.  company aircraft (unless the company is an air carrier).
5.  bonuses
6.  stock purchases.
7.  Excessive wages.  Wages greater than 50 times the lowest yearly wage at the company are excessive. 

Small corporations, those with profits of less than $500,000 a year are exempt. Buildings and production equipment with a service life greater than 5 years must be capitalized and depreciated over the expected service life.  Land may not be depreciated.
Step 4.  Pass a personal income tax law.
Step 5.  Disband the Tax Court.  The government can sue taxpayers in regular federal court.  The Tax Court knows too much about taxes and too little about real law.  Repeal the IRS power to seize money out of bank accounts.