The Tax Code Confusion: Why the System Feels Broken—and What You Can Do About It

By Dr. Jose G. Cardenas, Chief Tax Strategist | The C & R Group, LLC

Let’s be honest—the U.S. tax code doesn’t exactly come with an instruction manual written in plain English. Whether you feel it’s “just fine,” “a little too complicated,” or you don’t understand it at all, you're not alone.

The tax system has evolved over more than 100 years into a maze of rules, deductions, credits, and exceptions. For business owners and high-income earners, navigating this system without expert guidance is like sailing without a compass. It’s not just frustrating—it can be costly.

So let’s break it down.

🤯 Why Is the Tax Code So Complex?

Here are just a few reasons why it feels like the IRS was designed by a committee of lawyers with a caffeine problem:

• Thousands of Pages: The federal tax code spans more than 70,000 pages when you include IRS guidance and tax court rulings.
• Frequent Changes: Laws are updated constantly through legislation like the Tax Cuts and Jobs Act, SECURE Act, and Inflation Reduction Act.
• Different Rules for Different Incomes: The more you earn (especially through business ownership or investments), the more rules you have to follow.
• Layered Taxation: Federal, state, self-employment, capital gains, payroll, excise—the list goes on.

If you answered “C – It needs major simplification,” you're in good company. But instead of waiting for Congress to overhaul the code (don’t hold your breath), let’s focus on what you can do now.

🛠️ How to Navigate the Complexity

1. Work with a Tax Strategist—not just a Tax Preparer
Tax preparation is reactive. Strategy is proactive. When you plan throughout the year—not just during filing season—you gain control over your liability.

2. Use Tax Codes to Your Advantage
There are dozens of legitimate tax strategies hidden in plain sight. The Augusta Rule, accountable plans, S-Corp salary planning, cost segregation, and retirement contributions can dramatically reduce taxable income.

3. Separate Personal and Business Finances
Messy books mean missed deductions. Whether you use Xero, Patriot, or Gusto for payroll and accounting, clean financials simplify everything.

4. Plan with the End in Mind—Retirement
Tax planning doesn’t stop at filing. It should extend into tax-free retirement vehicles like Indexed Universal Life (IUL) insurance. IULs can create a pool of tax-free income in retirement while protecting your legacy.

🧠 Most People Don’t Know What They Don’t Know

If you answered “D – I don’t understand it at all,” that’s not a character flaw—it’s a result of the system. This is why working with a trained professional who lives and breathes the tax code is a game changer.

💼 Final Word: Simplification Starts With You

The tax system may not change overnight—but your approach can. Whether you’re a veteran, a business owner, or a high-income professional, the path to clarity starts with a tax strategy tailored to your life.

Stop letting complexity dictate your finances. Take control. Get a plan.

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com. 

📌 Disclosure: This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.