Let’s turn again to Webster:

PORK: government money, jobs, or favors used by politicians as patronage

Many of the wrinkles in the tax laws are there because some special interest benefits from them. I also believe that another reason our taxes are kept so complicated is the same as why investing is made to appear complicated. Namely, because lots of people make lots of money with the current system. As with investing, there are thriving industries built around interpreting tax laws and offering paid guidance to the less informed multitude. But as with investing, we can pull aside the curtain, blow away the smoke and break the mirrors. Because the truth is that very few of those 2.8 million words apply to your situation, and you don’t need expert help, especially now that personal computers are on the scene.

That being said, you do need to understand the broad strokes when it comes to income taxes, or more specifically, reducing your income taxes. When it comes to taxes, a 60-minute money manager invests a few minutes a year on strategy, then hits the sofa, leaving the details for their computer.

Even if you know next to nothing about income taxes, you probably do know that the taxes that you pay in April are a result of money made and spent the preceding calendar year. This is factor one in determining how much income tax you’ll pay. You probably also know that the more income you report, the more taxes you pay. This is factor two. Finally, you’re most likely aware that you’re allowed to reduce your income by subtracting certain allowable expenses, called deductions. This is factor three in determining your personal tax burden. So if you understand these three factors, you’re already 90% of the way to becoming an effective tax planner. Because the term “tax planning” is really nothing more than a fancy phrase describing the process of reporting as little taxable income as possible and reporting as many tax deductions as possible. No big deal.

The first broad stroke you’ll want to master is exactly what the heck tax brackets are all about.