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A certain failure : When 'income' is uncertain at best (why tax reform is certain to fail)
Washington Times ^ | 4/22/2009 | Richard Rahn

Posted on 04/22/2009 8:37:47 AM PDT by SeekAndFind

Do you know what the word "income" means? My large Webster's dictionary is able to provide a clear and comprehensive definition in a mere 52 words. The shortest definition the Internal Revenue Service could provide in response to my request for its definition was 140 words - but the word income was included 10 times, missing the point that you do not include the word to be defined as part of the definition.

You may have read that President Obama has just appointed former Federal Reserve Chairman Paul A. Volcker to head a panel to make recommendations for tax reform. Its mandate is to simplify the tax code, raise more revenue, close loopholes, reduce the so-called tax gap - and not raise taxes for American families making less than $250,000. The panel will fail!

It will fail for the same reasons former President George W. Bush's efforts and other presidents' attempts at tax reform failed, and that is because the complexity in the tax code cannot be lessened without a reduction in rates and the overall tax burden. It will fail, too, because the income-tax code and regulations contain many inconsistent and even contradictory explicit and implicit definitions of the word income, leaving taxpayers both confused and endlessly at risk legally.

(Excerpt) Read more at washingtontimes.com ...


TOPICS: Business/Economy; Editorial; Government; News/Current Events
KEYWORDS: taxreform
His CONCLUSION :

That is why many of the tax- reform proposals being floated, such as higher marginal tax rates on small-business owners and even more restrictive depreciation limitations, are tax increases on the most productive and entrepreneurial people in society who have not yet amassed sufficient wealth to be part of the nonproductive political class.

Even though American corporations pay the highest corporate taxes in the world, the Washington political class wants to further restrict the deferral of foreign-source income and make it harder for them to operate across the globe. The result of these reform efforts will be to force more companies to downsize or move to other countries in order to become internationally competitive. The people who will be most hurt by those tax attacks on business will be the workers who will lose their jobs or face more limited future job opportunities. In the meantime, the Washington political class will continue to amass a larger share of the nation's income for itself - a sign of a nation in decline.

Knowledgeable people know the present income-tax system is irreparably broken and must be replaced with a more consumption-based tax system. More Band-Aids on the present income tax system will only result in more complexity, requiring even more police-state tactics in a futile attempt to enforce it.

1 posted on 04/22/2009 8:37:47 AM PDT by SeekAndFind
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To: SeekAndFind

The ‘command and control economy’ the ‘progressives’ desire cannot be achieved without a police state.

Small business are under attack. Guess how they will react (and cooperation ain’t on the list).


2 posted on 04/22/2009 8:42:29 AM PDT by griswold3 (a good story is more compelling than the search for truth)
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To: SeekAndFind

The IRS definition which amaze me are earned income and unearned income. Take a look at them.


3 posted on 04/22/2009 8:43:36 AM PDT by Citizen Tom Paine (Sun Tzu "The Art of War")
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To: SeekAndFind

I am beginning to have misgivings that the tax code will ever be meaningfully ‘reformed,’ though it may one day be destroyed and rebuilt.


4 posted on 04/22/2009 8:45:52 AM PDT by RobinOfKingston (Democrats, the party of evil. Republicans, the party of stupid.)
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To: SeekAndFind

Its becoming more and more obvious that the people are going to need to get out the pitchforks....


5 posted on 04/22/2009 8:47:42 AM PDT by mo
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To: SeekAndFind; Taxman; Principled; EternalVigilance; phil_will1; kevkrom; Bigun; PeteB570; FBD; ...
Knowledgeable people know the present income-tax system is irreparably broken and must be replaced with a more consumption-based tax system.

I couldn't agree more. it is time to pass The Fair Tax Act(HR25/S296) that will replace all federal income taxes with a national sales tax and abolish the IRS. It's time to end a tax code that is included as one of the planks in Karl Marx's Communist Manifest. Fair Tax ping!


6 posted on 04/22/2009 8:52:37 AM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D

Manifest=Manifesto


7 posted on 04/22/2009 8:53:14 AM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: SeekAndFind

“Knowledgeable people know the present income-tax system is irreparably broken and must be replaced with a more consumption-based tax system”

I’d like to see taxes disappear altogether, and watch the government bleed and die. Not that I think it’d necessarily work out. But I’d like to see it.

People seem to forget that, despite all the various interventions in the marketplace by various levels of government, the greatest period of economic expansion in U.S. history came in a period when we had no welfare, no income tax, no central bank, no real national defense, and very little police force.


8 posted on 04/22/2009 9:09:31 AM PDT by Tublecane
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To: SeekAndFind

Quit being an enabler for the state.

As for liberty, the present racket couldn’t be better. Every year more and more people become enemies of the system. It is the best recruit too there is. Why would we want it to stop? Liberty needs more rules, more taxes, more burdens. The more poor, miserable the people are, the more they will, slowly, painfully, dimly begin to question the system.

Pain is a great educator.


9 posted on 04/22/2009 9:32:27 AM PDT by Leisler ("It is terrible to contemplate how few politicians are hanged."~G.K. Chesterton)
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To: Tublecane

bump!


10 posted on 04/22/2009 9:33:31 AM PDT by Leisler ("It is terrible to contemplate how few politicians are hanged."~G.K. Chesterton)
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To: SeekAndFind
An income tax is the most intrusive kind of tax devised by man. That's why statists like it so much, it gives them an excuse for huge numbers of privacy violations that would not normally be tolerated by a free people.

Actually, the mileage tax, using a GPS to track everyone's car, would be even more intrusive in some ways.

11 posted on 04/22/2009 9:43:36 AM PDT by 3niner (Hoover turned a recession into a depression, FDR turned it into The Great Depression)
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To: Man50D

Hugh Hewitt and his colleague at Chapman University, Hank Adler have a new book out entitled “The Fair Tax Fantasy.”

See http://hughhewitt.townhall.com/blog/g/607c7589-1005-4b18-bfa5-e6c1e1398bb9

I would like to see a good refutation of the points made in it. According to them it looks like the fair tax has some major problems in practice.


12 posted on 04/22/2009 10:58:23 AM PDT by Rockitz (This isn't rocket science- follow the money and you'll find truth.)
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To: Rockitz
Hugh Hewitt and his colleague at Chapman University, Hank Adler have a new book out entitled “The Fair Tax Fantasy.”

Oh I know. A thread was posted about the book. http://www.freerepublic.com/focus/f-news/2233747/posts
13 posted on 04/22/2009 12:12:40 PM PDT by Man50D (Fair Tax, you earn it, you keep it!)
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To: Man50D; Rockitz
Hugh Hewitt has had as his main sponser on his radio program, from its inception, the Mortgage Minute guy.

Anytime in the past, prior to writing this book, when a caller advocated the Fair Tax, Hewitt would always disparage it and bring up the mortgage deduction.

Hewitt is compromised, so I can't accept his analysis with any credibility.

14 posted on 04/22/2009 12:40:21 PM PDT by happygrl (Hope and Change or Rope and Chains?)
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To: Man50D
The best reason for FairTax comes down to this: we no longer have a tax on earning money. As such, it could bring in over US$20 TRILLION in liquidity from repatriated assets in offshore financial centers and new foreign investments because putting liquid assets in bank accounts, investment accounts and investments in capital and labor have no more tax consequences. We could see a GIGANTIC boost to the economy as closed factories reopen from millions of blue collar jobs coming back to the USA and office space snapped up as millions of white collar jobs also return to the USA.
15 posted on 04/22/2009 9:36:56 PM PDT by RayChuang88 (FairTax: America's economic cure)
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