Close it...all of it. Go to flat tax...problem fixed...easy-peesy.
The problem of taxing income lies not in the rates or the progression of rates, or even with “exceptions” intended to reduce the burden on the “poor” (whatever that means).
It is with the very definition of “income.” Wages? Capital gains (long or short)? Dividends? and on and on. And what about the notion of “imputed income”? What is the value of all those welfare freebies and handouts?
The solution is a consumption tax applied to all end-use purchases, with a rebate to every person (not “family”) each year of a fixed amount.
Taxing only end-use purchases prevents multiple taxation. Taxation at points prior to end-use are necessarily paid by all subsequent purchasers, not by the producer, because the producer must make a profit net of taxes.
A fixed rebate eliminates the tax burden on everyone below a certain consumption level (yes some very low level consumers might actually make a net profit), and rapidly causes the net tax rate to reach a fixed, flat level once consumption exceeds the threshold represented by the rebate.
A household pest.
The IRS should be treated like pantry moths or earwigs.
Squashed.
By no longer taxing the process of earning money, that means income, pensions, bank account interest, capital gains and stock dividend payments are no longer taxed--and it means our banks will be fully-funded, the stock market will be WAY stronger, and there is WAY more incentive to operate a business here, since you don't have to factor in income taxes as the cost of running your business. And that means a roaring economy.
The irs is the engine of income redistribution.
First, by who it hires. Overwhelmingly affirmative action.
Second, by what it does. Takes money from those who earn it honestly, and gives it to those who faithfully vote democrat.
No mention of the FAIR TAX which would eliminate the need for the irs.FAIL.
Abolish withholding. Problem solved.
Why do we continue to be saddled with an income tax, at all? Switch to a consumption tax, ala the Fair Tax (less the prebate garbage, unless you are also going to dump welfare), and scrap the IRS completely.
The collection mechanism is already in place via the current sales tax and state tax collection processes, and the control remains much more local than the current fedgov mess.
Dump the tax code as we know it, and no more income tax filing.
Just sayin’
And, save the flames. I’ve heard them all, and it still is not more sensible to tax income rather than consumption.
Tax reform (while good for its own sake) is a half assed measure for reigning in government overreach.
The A9 Ace to bulldoze most of this crap away is simply to remove non jury courts in their entirety. Thus jury nullification is restored to its proper role as a counter balance.
No tax courts.
No traffic courts.
Nada.
That's a start, as the cost of compiling with the income tax runs into the dozens of billions of dollar, which is a total dead weight loss to taxpayers.
Of course, taxes are too high, the income tax is propably unconstitutional and there's a sketchy approval history. The Federal Government should have no role in taxing individuals.
The goal has to be the elimination of the income tax and the IRS. Reforms toward that goal are good, but keep the goal in mind.
Every IRS “reform” effort has resulted in a more intrusive, more oppressive, mind-numbingly complex agency. It’s obvious that our elected officials don’t really want to rein in the monstrosity known as the IRS. If our senators and representatives really wanted to do the right thing they’d abolish the IRS and replace it with a National Retail Sales Tax. The inherent simplicity and fairness of the NRST, however, is repulsive to our masters. The IRS enables our masters to control the peons while the NRST would bestow freedom upon American citizens.
How about using a consumption tax,but revenue is distributed from the bottom up,instead of top down? Tax revenues would go to local needs first,then state,& finally to feds. The 3 tax entities could fight it out amongst themselves as to who gets what. Why tax at fed level & then filter it back to state/local? Money going through all those hands creates waste.
How many of you live in a state where the residents are abused for their political actions by their state sales tax department?
That should give you a clue as to how to reform the federal tax system.