Posted on 08/13/2004 6:53:41 AM PDT by Isara
Taxes: President Bush caused quite a stir by saying a consumption tax is an "interesting idea that we ought to explore seriously." Well, why not?
Not that we advocate a consumption tax — also known as a national sales tax — but it's nice to hear some discussion about overhauling our tax code, which has become an absurd disgrace.
As the chart shows, there are now nearly 50,000 pages of federal tax rules. That makes our tax code larger than the Encyclopedia Britannica — and far more complex.
This is more than just a shame. It's an epic waste of time and money. In 2002 alone, U.S. taxpayers spent roughly $198.1 billion and over 2.8 billion hours just to fill out their tax returns, according to the Tax Foundation. It costs over 20 cents per tax dollar raised to comply with the tax code's seemingly limitless rules.
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By relying on income and payroll taxes for its revenue, the U.S. needlessly punishes those who save and work for a living.
Which is why one recent proposal, first raised by House Speaker Dennis Hastert in a recent book, would get rid of the IRS. Eliminate it completely.
In its place would be a tax based on consumption rather than income. But at least the waste of an income tax would be ended.
Of course, a consumption tax has its own problems — and costs.
And it would be a very bad idea to create a national sales tax and then not get rid of the income tax. It wouldn't be long before politicians started raising two sets of taxes, rather than one — sort of like in Europe, where high sales and income taxes have slowed productivity gains and cut into its best companies' competitiveness.
Still, something must be done to make our tax code simpler, fairer and less burdensome to all taxpayers. We need one that rewards work and saving and risk-taking, the things that make our economy go — and that make all Americans richer.
Worth repeating.
They are playing our song here!
And it would be a very bad idea to create a national sales tax and then not get rid of the income tax.
Absolutely.
Which is why John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information: http://www.fairtax.org & http://www.salestax.org
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Go NRST!!!
I like to think of myself as a relatively intelligent person. I can set up a file server, complete with full Internet email and web server access, as well as a configuring firewall in about 8 hours for a 20 user network. Last year, I spent nearly 18 hours organizing my paperwork, and then another 2 hours at H&R Block to do my taxes... My company bills my time at $150 an hour... Then add another $350 for the cost of the service.
Could I do my own taxes? Maybe, but it would be a real nightmare, and frankly I'm afraid of the IRS. I got hauled before them once before, and I was informed by a tax lawyer that since what they wanted from me was less than $2500, it would be cheaper to just pay the bill, rather than fight it, even though I was right.
Mark
Could I do my own taxes? Maybe, but it would be a real nightmare, and frankly I'm afraid of the IRS. I got hauled before them once before, and I was informed by a tax lawyer that since what they wanted from me was less than $2500, it would be cheaper to just pay the bill, rather than fight it, even though I was right.
An interesting factoid about the costs of dealing with the current tax system.
Relative to asset size, small corporations bear a compliance cost burden at least 27.2 times greater than the largest corporation. In 1992, as a group, these small corporations had to pay at a minimum $724 in compliance costs for every $100 they paid in income taxes.
--- "Compliance Cost of Alternative Tax Systems II," House Ways & Means Committee Testimony, Arthur P. Hall, the Tax Foundation, March 1996.
Surely IBD doesn't really think Bush would be thinking of a national sales tax IN ADDITION TO income taxes and payroll taxes. Obviously the income tax and the payroll taxes must be repealed if we are to "get rid of the IRS."
It cost me $300 to pay my accountant to do my taxes last year. I wouldn't dare attempt to do my own taxes, the whole procedure is mind-boggling.
It cost me $300 to pay my accountant to do my taxes last year. I wouldn't dare attempt to do my own taxes, the whole procedure is mind-boggling.I don't disagree. I was just clarifying their chart. Like I said, the truth is bad enough.
And if that isn't bad enough, some of my cients which are small businesses pay tax accountants that much per HOUR ! I was at a meeting last week and even the tax accountants thought it was a great idea.
That $198.1 billion figure understates the true cost of the progressive income tax system -- try $600 to $800 billion in direct economic cost!
Tipping point, at long last?
Das Pingie.
Based on what I heard from Boortz and Linder on his show today the phone wires are melting down in Washington about now.
I missed Boortz today -- busy preparing for Charlie -- but I have indeed heard about it.
All I have to say is that it is about time we get this done!
For FReedom!
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