Thursday, February 25, 2016

Fair Tax Now Is The Time

With all the hype about Trump,  Rubino,  Cruze, Felling the Bern and Clinton 2.0, I am really disappointed that there isn't more conversation and demand for the abolishment of the IRS and current Federal tax code.

It's not radical, or a Tea Party cause in fact it is mainstream throughout the EU.

I'm a very firm believer that the current way we pay for our Federal Government services is unfair, outdated, mind bogglingly cumbersome and totally inefficient.

Keep in mind we have twice the number of IRS employees that we have United States Coast Guard employees. Twice the number of people trying to take our hard earned money verses those who are trying to keep us safe.

My personal tax return and the corporate tax returns for the businesses I am a part of, has grown from 75 pages in 2005 to more than 300 pages in 2015.

My accountant charges a pretty fair price to complete these returns, but his price has increased from $950.00 in 2005 to more than $3,500 in 2015.

That said, my effective tax rate is still less than 7%.

But the majority of working Americans are paying more, much more as a percentage.

The poor pay nothing, and the super rich pay pretty much nothing again as a percentage. So the burden of paying for our Federal Government falls squarely on the shoulders of the middle class.

So who doesn't  pay for our Federal Government?

The Poor and....

Criminals, Drug Dealers, Stripers, Hookers, Little Old Ladies who hold garage sales, Farmers, Vegetable Stand Owners, Ticket Scalpers, Landlords, Hourly Laborers, Greek Restaurant Owners, Small Mom and Pop Business Owners, Charter Boat Captains, Waiters, Waitresses, Bar Tenders, eBay re-Sellers, Gamblers, Car Hops, Lawn Care Operators, Repairmen, Cleaning Staff, Illegals from everywhere, Junk Dealers, Scavengers, Gun Show Sellers, Horse Traders, Ski Instructors, Artists, Musicians, Event Planners, Wedding Officiants, Building Inspectors and Restaurant Inspectors who take bribes, Gamblers, Bunco Players, Bingo Players, Bellmen, Doormen, Uber Drivers and the Shoe Shine Guy at the Airport.

And the list goes on and on.

Our Cash Sub-Culture

There is so much trade and business that goes on in this country on a cash basis, that the GAO admits it has no way of accurately measuring it.

Gone are the days were the majority of Americans worked at the large factory for 40 years received a gold watch and nice pension at retirement. Today those who are left at Ford, American Airlines, and Bank of America are paying more than their fair share of Federal Taxes through payroll deduction.

Many Americans are working second jobs, some even work third jobs that are cash pay only. They have "side businesses" profitable hobbies, they own small businesses and fly low under the radar, trading cars, doing odd jobs, making a living anyway they can and no surprise they are almost always paid in cash.

Call a plumber or handyman and unless they are a big operation, they will offer a discount for cash. My dog kennel offers a cash discount, and its not to get around the credit card fees.

Fair Tax is a idea that is long over due.

Under Fair Tax Everyone pays the same rate on anything they buy. The tax is collected at the retail level. And the bonus is you don't need a social security card or a green card to pay it!

Instead of taxing us for working we are taxed for spending.

Our nation has become so addicted to punishing those of us who work, that we have long forgot how to think outside the box. Seriously, why should we be punished for going to college and taking out a massive student loan to go to medical school? Why punish those who are successful and give a free pass to those who steal their way through life?

So long IRS

Abolishing the IRS won't be easy, the accountants and tax lawyers will scream bloody murder. The tax shelter con-men and mortgage brokers will jump out of their office windows. The Federal Government will have to layoff 89,500 employees not to mention the recently hired 9,000 just to enforce Obama Care.

But it will save taxpayers 12 Billon Annually.

Employers will save as well. Imagine the savings created by being able to cut the back office payroll departments in half. The burden to generate the massive amounts of paperwork and complete endless IRS forms will allow employers to focus on what they do best.

Sorry ADP and PayChex your services are no longer required.

The Best Part

Not only is it simple, it eliminates tax cheats, refund fraud and it will increase the amount of revenue that is collected.

The Objection is that it penalizes the poor and fixed income seniors.

First of all the poor are already getting a free ride. Welfare and Social Security payments will have to be adjusted. But the increase in tax revenue more than offsets the additional costs to our economic safety nets.

The Politicians Will Want Special Rates

The beauty of Fair Tax is in its simplicity. Therefore we can't let special interests convolute the process and demanding special rates for food, or gas. If congress want to exempt certain items from the tax then so be it but the key is avoiding all the loop holes that the current system has in place. 

And It Wont Be EASY

Our Federal System of Taxation is broken. It is time for an intervention. Our government is out of control and much like a drug addict or alcoholic they are in denial.

Its time to get off the INCOME TAX DRUG AMERICA! 

1 comment:

Anonymous said...

The fair tax sounds great u till you realize that the federal government collects income tax due to the 16thh amendment and to stop them we would have to call a constitutional convention.. I don't trust the government of this age to change the constitution for anything but the worse. If you just trust the fed to stop collecting income tax without repealing the 16th then some future government is going to reinstitute it when the collected revenue drops below whatever threshold they think is critical... The only thing worse than the current system is a bastardized version of this and the fair tax both.