Skip to comments.The Best Argument EVER For Tax Reform
Posted on 01/12/2010 7:54:08 AM PST by Shellybenoit
Some people are fighting for a fair tax, replacing our income tax structure with a VAT, a Value Added Tax(country wide sales tax). Others argue for a Flat tax, one tax rate on income for everybody, no deductions etc. Both sides are fighting for the same basic concept. simplify the way the federal government collects taxes. America's Tax Structure is just so complicated and is getting more complicated every day. The best proof for this argument was made by IRS Commissioner Douglas Shulman on C-Span (video at bottom of post).
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The best way is a combination tax. But you also have to limit the amount of money government can collect through any and all taxes: http://pushbackuntil.com/Mandates.htm.
It's "complicated" because tax policy contains so many giveaways to this or that special cause. When you attempt to simplify it, you have to cut programs, eliminate credits and handouts and givebacks, etc. The political ads write themselves--"voted to cut school aid, voted to cut medical aid, voted to cut student loans. And each little group of beneficiaries gets pissed. And by the way, for most of those people, the system is EZ, if you get my drift.
Hence, simplification, when you get down to specifics, is bad politics, and so it doesn't happen. Observe the GOP right now fighting AGAINST medicare cuts. Politics comes first--always.
The BEST reform to try to enact now is very simple:
Let people keep ALL of their money, and then have them write quarterly checks---everyone. I believe this is a sellable idea.
This one little logistical change would do more than anything else on earth to change the attitudes of American taxpayers who still don't "get it."
The author is in error on one key point: the Fair Tax is NOT a VAT.
Still, to his larger point.....he’s dead-on.
Excellent idea. My pet dream would be to have all annual tax payments due on October 31. That way, it would be fresh on their minds the first Tuesday in November.
Nah. Back it out to Oct 15. That way there’s still room to run a couple of ads highlighting particular candidates’ high-cost programs: “Sen. Blowhard supports spending more money on (insert wasteful gov program here). Remember that painful check you had to write to the IRS last week? That’s the money Blowhard is counting on for his pet program. Vote Me in Nov. I’ll make sure the gov is more fiscally responsible”.
“Let people keep ALL of their money, and then have them write quarterly checks-—everyone. I believe this is a sellable idea.”
I’m already doing this and have been since the beginning of last year. I even went so far as to do up an Excel spreadsheet that calculates what I owe in taxes based on the current tables.
I would much rather see one payment per year. I like Oct 15.
People (who pay taxes) wouldn’t be too quick to vote for someone who makes them write a $10,000.00 to $20,000.00 check. People would be delinquent, end up in tax prison. We would see a lot of changes.
It sickens me to see the average pay of government workers at $91,000 per year and the rest of America average at under $60,000.00.
Because there is no pain in paying our taxes we just don’t seem to care. Once we start spending our money and then start having to come up with the taxes it will change rapidly.
I like the story my Dad tells of his days in the Marine Corps.
On payday, all of the Marines would line up to get paid.
At the first table, they would be given their pay in cash.
At the second table, they had to give back what they owed in taxes.
Many pissed off Jarheads at the end of the line.
I am very afraid of a VAT. We already have income, property, and sales tax. By introducing the VAT, we will badly ratchet up total tax with no offsetting gain to wealth creation. Better to argue for a flat tax on income. This reinforces the concept of “equality before the law” and makes everyone aware that they have a stake in how large or small government is in their lives. Finally, it is simple to understand and administer. VAT is a dark hole full of snakes.
Agreed. The problem with the income tax is that, while it should be either, it is both. By that I mean we have to decide whether the tax is strictly a revenue measure or strictly a social tool. As long as it is both, "complications" will continue to grow.
Under the current set up we also have the corporations threatening to withhold campaign donations unless some freebie is granted them and the politicians "suggesting" that a corporation contribute or have some unfavorable law passed. (I have seen this on a local level.)