Posted on 04/17/2006 5:42:10 PM PDT by SirLinksalot
Behold the simple virtues of a fair national sales tax : Tax code is a disgrace that needs an overhaul
By LEO LINBECK
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. ADVERTISEMENT
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 into 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 a million dollars 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, not less, 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 in order 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 first hand the lengths that both elected officials and the entourage fed by the tax code 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 that 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 taxpayer's wealth. This assault on taxpayers and the nation's best interests cries out for fundamental reform.
---------------------------------------------
Linbeck, a Houstonian, is the Chairman of Americans for Fair Taxation (FairTax.org), a national organization seeking replacement of the income tax with a non-regressive sales tax.
Count me on board for Fair Tax after filing my Income Tax today.
Democrats would applaud the killing of tax reform just as they applauded the derailing if Social Security reform..
I have always advocated a national experiment for those who are skeptics of the fairer tax system.
Say we followed the Steve Forbes model of a flat tax ....
Let's allow an experimental 5 year period where people in the USA get to CHOOSE between filing the flat tax way (which is $24,000 income tax free for singles and 20% above that, and $36,000 income tax free for couples and 20% above that ) and the traditional way.
After 5 years, let's see how many people opted to file the flat tax way and how many opted to file the traditional way and may the best method get ultimately adopted.
I am more than confident that the flat tax will win and the traditional method with all of its intricate deductions and tax shelters will whither in the vine.
Just getting rid of the IRS auditing you will be a strong incentive to file the flat tax way.
I am pro-choice in just about anything except the killing of innocent babies. THIS IS ONE OF THEM.
I do better with Fair Tax then Flat Tax -- taxes go way up under Flat Tax.
One thing that is painful is how many people we have employed as accountants of all types and their staff, just to deal with the complexity of the tax code. Which is an unneccessary complexity.
It would be better to take that human potential and put it towards satisfying human needs and desires.
Its about control over you and your life. The gubberment has to have it in order to usher in the new world socialist order.
I signed the petition for the fair tax......for all the good it will do.
www.fairtax.org
If they would just repeal the withholding tax which was put in around WWII ( before that people had to write out a check at tax time ), then maybe people would finally be outraged enough to see what they actually are paying in taxes. Right now it is "invisible". Most people think it is a great year when the government gives them money back - like it was a gift - when in reality it is there money to begin with that the government grabbed from them for a years worth of an "interest free" loan to the government. However, Congress will never do that. It would be killing the goose that laid the golden egg.
Mark
"If they would just repeal the withholding tax which was put in around WWII ( before that people had to write out a check at tax time ), then maybe people would finally be outraged enough to see what they actually are paying in taxes."
No kidding! I recently began doing contract work with no withholding from my checks. I am absolutely outraged at the amount this greedy government grabs from me!
Right. It reminds me of my college days when students used to protest the schools administrations policys. The admin would never listen to them of course, because the students would line up and pay their tuition every semester. I would tell them to organize a fee boycott and then they would see change.
If their were a national organized tax boycott you can bet politicos would change.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
That's exactly how the 16th amendment passed -- tell the majority it will only affect the minority.
Debating how we will be taxed an outrageous amount is simply rearranging chairs on the Titanic
Yeah, it is even worse for self employed people like you. Taxes have to be filed quarterly. So you have to go through this crap 4 times a year !!! It seems like all you are doing is filing forms to the IRS.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.