Tuesday, August 14, 2012
My Views on Tax Reform
My Views on Tax Reform
Politicians may talk of taxes but few have the guts to advocate completely overhauling the US Tax System. The income tax is unfair. It is the Robin Hood effect. Take from those who earn and give to those who do not. The tax code as currently written includes thousands of pages of special taxes, special interest exemptions, special interest deductions, rewards for those who beget children, and imposes an undue burden on business to collect the various taxes on income, Medicare, Social Security, and to file the necessary W-2 and W-4 and 1099 forms.
The income tax needs to be completely eliminated. It is punitive on those who earn. Those who work hard should not have to work several months every year just to pay their taxes to pay for government subsidies and unnecessary programs. The USA should convert to consumption or use tax. This idea is more than ripe for serious consideration. But the accountant lobby and tax attorney lobby, and IRS workers lobby are against anything that would simplify the whole process.
With a consumption tax, nobody would be able to avoid paying taxes using off shore accounts, tax shelters, or huge deductions or exemptions. It would eliminate the ungainly bureaucracy that does nothing more than process income tax forms, give wrong answers to those who call with questions because they can’t figure out the ever changing code, and issue refunds for those that over pay every year! Proponents of the Fair Tax would tax items only once. If one buys a previously owned item – like a used car or refurbished computer – no tax. Opponents argue that a consumption tax is regressive. But they are just pandering to those who fear change.. If one wants to purchase an airplane – one pays the federal sales tax. If one buys a used car there would be no consumption tax. It is fair because those who buy more expensive items will pay more taxes. The till would forever be filling because it is the American way to purchase. Online shopping could be taxed and people wouldn’t bitch because they have more money to spend! We would have the choice to buy a more expensive item or not!
I will vote for any candidate with the balls to stand up for real change. Unfortunately, there appear to be none running for election this year.