Posted on 04/02/2006 3:10:12 PM PDT by Eaglewatcher
With millions of Americans once again struggling to complete their federal income taxes, it is a good time to reflect on the profoundly dysfunctional and highly punitive federal tax code that only gets more complicated year after year.
The patchwork quilt of tax loopholes, exclusions, adjustments and various forms and schedules that we all struggle to understand is a reflection of the wholesale auctioning-off of the tax code over the last several decades at the hands of an army of powerful, well-heeled lobbyists. The hallway in front of the tax code-writing House Ways and Means Committee where they practice their lavishly compensated trade has even been dubbed ''Gucci Gulch'' in recognition of the $1,000 shoes worn by many lobbyists.
Tax policy is big business in Washington. Members of the House Ways and Means Committee and the Senate Finance Committee and their staff are routinely paid signing bonuses of $1 million and more when they join powerful Washington lobbying firms. Recent revelations about the clout of some Washington lobbyists pale in comparison to the real and hidden influence of tax lobbyists on both citizens' responsibilities to the national government and the nation's economic well-being. It is little wonder that these staffers and their bosses so passionately object to efforts to win fundamental reforms.
Unfortunately, Americans have learned to fear ''tax simplification'' because the tax code always gets more complicated in the lobbyists' hands. The code is so complex that even the Internal Revenue Service fails about half of the time to accurately answer taxpayers' questions, and even H&R Block has been fined for getting its own taxes wrong.
This complexity gives rise to another staggering $265 billion a year in tax compliance costs by legions of frustrated citizens and busy auditors, tax preparers, lawyers and corporate compliance specialists. Compliance costs alone represent a greater sum than the combined annual revenues of Sears, Walt Disney, Microsoft, Rite Aid and McDonald's. That honest citizens must spend so much time and money to comply with a federal law is an indignity that seems lost on many critics of a national sales tax.
As the founder of a national campaign to replace the income tax with a transparent, simple and non-regressive national sales tax, I have seen firsthand the lengths that both elected officials and the entourage fed will go to defend their turf. In recent deliberations by the President's Advisory Panel on Tax Reform, for example, millions of dollars of top-level research by recognized economists supporting the FairTax proposal was simply swept under the rug. The panel was charged with suggesting fundamental reform but failed to deliver under the leadership of two former U.S. senators -- both of whom work in firms lobbying the tax code.
When we began our work at FairTax.Org, we naively thought our common-sense proposal of a national sales tax that eliminates the IRS, un-taxes the poor, favors American producers and is simple enough to be understood by a child would be welcomed by our elected officials. To date, more than 55 courageous members of the Congress agree. But, we have now come to understand that nothing less than a national roar of citizen condemnation will force reform.
Once upon a time our tax policy may have been intended to spur growth in segments of the economy while fairly funding the government. Today it is simply a lucrative Washington business that specializes in shearing taxpaying sheep while rewarding those wealthy enough to buy into the corrupt auction of taxpayers' wealth. This assault on taxpayers and the nation's best interests cries out for fundamental reform.
Leo Linbeck is chairman of Americans for Fair Taxation, a national organization seeking replacement of the income tax with a non-regressive sales tax.
My taxes are so damn obtuse that this year, in addition to hiring a tax preparer, I bought a copy of Turbo tax to 'preflight' it. That way I'd be sure not to miss anything. Can you imagine?
I'm self employed with a mix of 1099 and W2 income. My wife is a social worker. She has a small amount of 1099 income. We have business expenses. Some charitable donations, mutual funds and a mortgage.
We're nothing-- specks on the IRS radar.
Yet we spent $350 so we can sleep at night knowing we're not going to be hauled in for making a mistake on our taxes.
And we let the goddamn politicians that put us in this prison remain in office.
I swear it's enough to drive you to distraction.
http://www.givemeliberty.org/RTPLawsuit/CourtFilings/USCOA-Wolfgram-Amicus.pdf
Indeed those who were involved in the institution of the current tax system and the proposal of the 16th amendment, knew its burden on the individual as well as business very well. It was with good reason the income tax was the chosen vehicle of Karl Marx to bring free nations to their knees.
"A hand from Washington will be stretched out and placed upon every man's business; the eye of the federal inspector will be in every man's counting house....The law will of necessity have inquisical features, it will provide penalties, it will create complicated machinery. Under it men will be hauled into courts distant from their homes. Heavy fines imposed by distant and unfamiliar tribunals will constantly menace the tax payer. An army of federal inspectors, spies, and detectives will descend upon the state."
-- Virginian House Speaker Richard E. Byrd, 1910, predicting the consequences of an income tax.
A Taxreform bump for you all.
If anyone would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25) offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright and replace them with with a national retail sales tax administered by the states.
H.R.25,S.25
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.geocities.com/cmcofer/ftax.html
and
http://www.fairtax.org/
and
http://www.salestax.org/main.htm
and small businesses would not have to pay the matching funds - they would have more money to add jobs -
no more April 15th
and the very wealthy - the Kennedy/Kerrys would really be paying their FAIR share! NO loopholes! They buy another yacht, they pay the tax. They buy another limousine - they pay the tax. (I buy a good second hand car, NO TAX.)
This would bring the biggest equality, freedom and posterity this country has ever seen. And the Gestapo IRS would be history and no longer a tool, under threat of audit, to ruin or keep people in line.
The FAIR TAX could be the biggest vote getting issue ever. Print it out, read it, email it - if we don't get this in before the dimRAts have control again, it will never happen.
Someone needs to tell him that if there is a national sales tax without ENDING withholding and the national income tax we will end up with both.
Isn't the Chicago Sun Times a liberal newspaper...
The income tax does too. Were you unaware? Seems to me the only difference wrt persons conducting transactions is that the nrst makes the tax in the transaction visible, painful, and irritating. OTOH the income tax system's tax component in prices is invisible, painless, and unnoticed.
What about service transactions? Will then continue to be exempt?
Oh dear. Service transactions are not exempt from federal tax now. Service providers (just like producers of goods) include in their fee amounts sufficient to pay payroll taxes and anticipated income taxes. Hence it is trivial that service prices include federal tax.
What about food? What about medicine?
Same as above.
Will some things be taxed more? (remember the yatch tax debacle?)
The bill, HR 25 has a single rate for all items and services.
All good things. I just don't think the Republican Party will ever do a damn thing about it any more than they've lived up to any of their other "limited government" BS.
Undocumented businesses do not participate in any tax system.
SEC. 101. INCOME TAXES REPEALED.
Subtitle A of the Internal Revenue Code of 1986 (relating to income taxes and self-employment taxes) is repealed.
SEC. 102. PAYROLL TAXES REPEALED.
(a) In General- Subtitle C of the Internal Revenue Code of 1986 (relating to payroll taxes and withholding of income taxes) is repealed.
That will happen immediately after the immigration situation is resolved to everyone's satisfaction. IMHO.
Do you see how this bill may ameliorate the immigration problem? Illegals would pay a higher rate than anyone else.
Businesses and states are overwhelmingly opposed to a national sales tax. An NRST is pure snake oil, on par with Specter's "Magic Bullet" theory.
If I had known the quarterly and annual paperwork involved, despite having a CPA firm do much of it, I would never have started a business.
I am so disgusted, I think unconsciously I almost welcome an audit just so I have an excuse to shut it down.
Those are the first two sections of the nrst bill. How is that related to today's code?
I like the flat tax much better. Seems like it's much easier to cheat on than a sales tax.
Ahh, State taxes are already being collected by the same........
What about food? What about medicine?
What about reading all the information on the FAIR TAX. Educate yourself.
For example, the figures for a family of four, would give you a prebate ckeck at the beginning of every month of about $479 ($5,745 a year) - that would equal the amount of tax you would spend IF you spent every cent of your first $24,980 a year on purchases....which wouldn't be the case.And remember that purchases of second hand merchandise - second hand car, for ex, wont be taxed. So the taxes wouldn't start coming out of the hosehold income until long after the $24,980 level is reached. And even aftger that=, you'll still be getting the GROSS on your pay check...NO DEDUCTIONS
but if you are an illegal - you wont get the rebate and you'll be paying taxes, finally, and from the get go. Ditto, the millionaires wont have the loop holes that allow them to pay a smaller % now than we do.Myself, I'd sure like to keep the GROSS on my paycheck - NO deductions, - and get the rebate check, to boot every month.
Here are some links. I challenge you to print them out and study them. It could mean a lot more money in your pocket - and NO MORE APRIL 15th
http://www.geocities.com/cmcofer/ftax.html
http://www.salestax.org/main.htmand
http://www.fairtax.org/
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