The U.S. tax code is still a mess, and has always been a mess, because it lacks American ideals. Our President keeps touting a “tax the rich” plan that has little chance of success (do the math) — and more importantly, is about as un-American a proposal as one can come up with because we are (or want to be) the land of opportunity and fairness — does anyone want to live in an America where you only want to strive to be mildly successful?
It really is not as hopeless as it seems, if more of us voters start supporting core American ideals of fairness and the logic of simplicity.
If we are the land of the free, free to make our own choices, free to succeed, free to shoot for the stars, there are only two plans that make sense:
1) Flat rate taxes – everybody pays their share.
Everybody pays 15% or 18% — period. No exceptions. No deductions. Most people don’t realize that at these kind of rates, we would get enough revenue to support the vast majority of government spending. We should also make the not-so-thrifty government look up what the words ‘balanced budget’ means in Websters and have our politicians figure it out. Why do few people realize that if someone is not forced to balance their budget, they never will.
Some people argue that the people that earn more should pay more. They would under this plan too — 18% of $1 M in income is a heck of a lot more “paid” than 18% of $35 K.
2) Federal sales tax – each person decides what he or she pays.
Same basic idea. You are free to buy whatever you wish. The more you choose to buy, the more taxes you contribute to the national coffers. Make thrifty decisions, reduce your tax bill. What’s not fair about have the choice to buy or not buy stuff?
Yet, our tax code that us citizens approved through are duly elected public servant representatives currently taxes the “richest 5%” for more than 90% of the U.S. tax bill, and the Obama supporters are mad as hell and want to tax them more. Given the lack of fairness of at all right now, why don’t we confiscate all the wealth at the top starting with the top 1%, then the next 1%, and so forth, until everything is paid for?
Better yet, lets redistribute the wealth of those nasty rich people (who, by the way, are also the most proficient producers of new goods and services, and the producers of most new jobs) and give it to the lowliest members of our society that need a big payday for not adding much if any value to our society and economy. I’m sure that these people would invest their newly found money wisely, driving new employment, smart innovations, and greater American competitiveness in the global economy. What’s the downside? Even if new generation didn’t invest wisely, the new car industry would be happy because there would be a lot of new shiny cars depreciating on the roads.
We could even blend #1 and #2 and still be fair and encourage the optimistic American dream.
Of course, unemployment would edge up temporarily, given the massive layoffs at the IRS (85,000 employees) and tax preparation companies (500,000?), but I’m OK with that, because America would ultimate have a fresh half million smart people to work on stuff that actually contributes to American forward progress and GNP, instead of paperwork friction.