The country is about belly up NOW. But, I guess they think that changing it is too hard!
Our Tax Code Sucks!
Rolling around the internet is a letter to a newspaper’s editorial page entitled, "What Has America Become?" One line in it is particularly cogent regarding the current fight over raising taxes or not. The writer states, "Let's see: if we lie to Congress, it's a felony and if Congress lies to us it’s just politics."
Well, my friends, "just politics" sums up the bill of goods that this country was sold all the way back in 1913, when President Woodrow Wilson presided over the introduction of a "progressive" income tax.
Supposedly only to be applied on the wealthy of that era, it quickly expanded to include all wage earners. And, like Topsy, it grew year in and year out until today, as we are faced with a dizzying array of exemptions, exclusions and downright confusion that costs us billions of dollars annually in taxpayer fees in order to comply.
But fully 45% of Americans managed to avoid this ogre (paying taxes) last year and so we now sit here with more households receiving money from the government than households that are paying in taxes!
The last time this situation existed was during the Great Depression.
It's very easy for the Democrats to continue to beat the drum that we need to raise taxes on the "wealthy." But this is where the Big Lie from Congress comes in... If the Dems are successful in their call for higer taxes on those earning $250,000 a year ($200,000 for single filers), it is ONLY those "poor" suckers earning the $250,000 who will actually end up paying more.
The real "millionaires and billionaires" will continue to avoid paying their fair share because it is only this group of political cronies who have the cash and where with all to afford high-priced tax attorneys and accountants who scour the complex tax code, finding loopholes that allow them to pay far less than the rest of us and a whole lot less than their "fair share."
Thus, you hear and read about the Warren Buffets and Bill Gates of the country saying they're not taxed enough! No, I guess they're not because they’re using the system to their own benefit. The same can be said of corporate America when a company like GE can earn billions and pay nothing. DISGUSTING!
This is why we NEED a FLAT TAX!
One lower rate, no deductions, no smoke and mirrors.
I submit that those same billionaires would suddenly find that they're taxed enough!
Steve Forbes ran on the concept of a flat tax back in the 90's offering a standard deduction of $35,000 before a 17% tax rate would be applied. It made sense then and it makes even more sense today given the deficit.
We the "little people" would be able to file on a postcard by merely entering on line one how much we earned, putting 17% on line 2 (or whatever percentage is finally agreed to), doing the math and we'd be done.
There would be no need for drawers full of tax files, weekends lost to calculating taxes and no payments made to accountants.
But the biggest benefit, ultimately, would be the end of special interests in our nation's capitol that spend millions greasing politicians' palms to further benefits that are good only for them.
It is this process that has given us this tax code that NO ONE fully understands and has corrupted more politicians than we can ever imagine.
For me the Flat Tax is a far fairer solution than the "fair tax" being proposed by some Republican presidential candidates. A tax on purchases would most likely lead to an underground market or black market in commerce necessitating "tax police" making the rounds of stores and businesses as is done in Italy... more government employees!
Unless and until we finally rip this tax code out by the roots and replace it with a flat tax, we will continue to see the wrangling over taxes year in and year out until the country goes belly up.
Read More In: Taxes
Ken and Daria Dolan have hosted their own national radio program for 22 years, anchored their own television shows on CNN, authored six books on money matters, served as money contributors on CBS This Morning and have now launched a comprehensive web site and free e-letter at Dolans.com.
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Daria,
I've enjoyed watching you and Ken when you had your own show on CNN and still enjoy watching the both of you when you make an occasional appearance. I do agree with you that the current tax code is a monster. I, however, favor the FairTax (http://www.fairtax.org) With the FairTax, ordinary Americans would not have to file tax returns, just businesses. Tax evasion already widespread among businesses and individual Americans, and the IRS have to audit both to find it. Under the FairTax, the businesses collect the sales tax like they already do in most states and remit it. That allows the agents to focus on making sure that businesses comply and leave individual citizens alone. Also, the FairTax return that businesses file will only be one to two pages at most. Furthermore, businesses would only need to account for sales when preparing the returns, saving businesses time and money and reducing the scope of tax audits. The FairTax comes with a "prebate", which is an advance payment to households to help cover taxes paid on necessities (check amount is determined by the poverty level guidelines and tax rate). I've got dozens of other reasons to favor the FairTax over the flat tax. I hope you'll reconsider the benefits of the FairTax.
Daria,
U do understand that the 46% that pay no taxes or receive subsidies control 2 1/2% of the countries wealth. This includes their assets; equity in their homes, savings, etc.
Shame on you Daria!
I like the Flat Tax better than what we now have but am still in favor of the FAIR TAX. It not only helps the individuals (with the pre-bates) but also puts our factories and work places on a level playing field with the rest of the world. Many many reasons to favor the Fair Tax over the Flat Tax.
FairTax expicitly penalizes renters for the inability to buy a home and redistributes $300B annually from renters to homeowners. Because most low-income renters spend most of their income on shelter, low income renters generally would lose purchasing power and their spending and consumption must fall. At any level of spending, a renter would pay more FairTax than a homeowner while enjoying less consumption than the homeowner. How nuts is that?
FairTax would be collected by the states and your state tax collector would become the new IRS. Since the state would now collect the tax on rent, it would promote increased reguation of rental property - regulation that homeowners would never tolerate on their own homes.
Daria, Sorry to disagree with you, but the 45% that don't pay taxes are the low income people in our country. If you have children and make less than $25,000 a year, you pay no taxes and in fact get a rebate with EITC, CTC,AOC and a lot of other credits. It is the poor who wouldn't accept the flat tax. The Rich would love to have a flat tax of 10%, but try getting someone who makes $25,000 to pay $2500. You would have war.So the current system is more acceptable to the low income people, better for anyone with kids making under $30,000.
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