Posted on 02/05/2009 5:40:24 AM PST by Man50D
If we take the former Health and Human Services nominee, the secretary of the Treasury and the chairman of the House Ways and Means Committee at face value, federal taxes owed but not paid by each are really an indictment of the income tax system itself.
Given the complexity of the tax code, their explanations are not entirely without the ring of truth.
But when the chairman of the congressional committee that writes federal tax laws, the man responsible for running the IRS as the secretary of the Treasury and the nominee to head the agency responsible for Social Security and Medicare say they failed to pay owed taxes because they misunderstood our tax laws, where does that leave the rest of us?
House Ways and Means Chairman Charles Rangel, Treasury Secretary Timothy Geithner and former Sen. Tom Daschle have officially joined the ranks of millions of Americans who are befuddled at the almost indecipherable 67,500 pages of tax rules that accompany the U.S. income tax system.
The tax code is so complex that Americans will pay an astounding $300 billion this year in tax preparation costs alone. The amount we spend just to obey — or game — our tax laws is about $150 billion more than the entire cost of the taxpayer stimulus checks mailed out last year.
Our tax system has become an expensive and confusing collection of thousands of political favors, ambiguous rules that invite all manner of tax avoidance strategies and ham-handed congressional attempts to manipulate citizen behavior.
Under the income tax code, debt is more favorable than wealth, married people pay more than singles and business decisions are commonly made on the basis of tax consequences instead of sound practices and growth.
The alternative minimum tax, once designed to squeeze taxes from a few hundred very wealthy people who figured out how to legally underpay millions of dollars, now threatens to add more than $2,000 a year to the tax bills of 20 million middle-class Americans because of an error in the way the law was originally written and because the government now counts on that revenue.
Even the IRS cannot guarantee that the advice it gives confused taxpayers is sound.
Worse, the income tax system gives foreign producers a price advantage over domestic producers in U.S. markets, the payroll tax that tripped up Secretary Geithner is highly regressive and most of what we pay the government either in taxes “embedded” in the price of goods and services or withheld from paychecks is hidden from plain sight.
Supporters of the FairTax believe there is a better way. The FairTax proposal is a comprehensive plan to replace federal income and other taxes with a progressive national retail sales tax, with a rebate to ensure that no American pays such federal taxes up to the poverty level.
Based on $22 million of peer-reviewed research, FairTax supporters believe that eliminating income tax withholding and payroll taxes could allow millions of distressed homeowners the ability to satisfy mortgage obligations.
They like the idea of the universal monthly “prebate,” which would entirely reimburse taxes paid by the poor and help the middle class make ends meet.
The potential to restart investment by eliminating both the corporate tax and capital gains taxes is compelling.
And a simple, transparent tax that is paid without exception by every consumer, including the poorest workers on one end of the spectrum and billionaires on the other, is far fairer than a system that invites manipulation by “insiders” who can afford a tax lawyer, tax lobbyists or a special relationship with a member of Congress.
Our convoluted and expensive federal tax system invites both deliberate cheating and innocent mistakes and has now snagged three top national leaders.
Worse, no economic recovery effort can be fully effective as long as we continue to tax what goes into the economy instead of what comes out of the economy.
As the nation’s economy teeters, it is past time for this public policy to change to actually favor the public and our nation’s economic health.
I have read the books published by Neal Boortz and Rep John Linder....and they pretty well laid out everything regarding how the Fair Tax would work....and how it would benefit the economy
what I really like about the FairTax is that it truly will stimulate economic growth...and would entice manufacturing and industry to set up shop again in America. 0% corporate tax would have this economy booming.
My older brother, who is real keen on finance, just will not stop talking about how great the FairTax is....he always asks me if I read the “FairTax” book (uh, yes, and I have been to the rallies, too)
I would like to got to DC for the Million Gun March, but work and family commitments will have me tied up....but getting the word out on the FairTax closer to home is something I will do.
Come on, Bob - how can "ordinary peoples"TM-Barack like us REALLY understand the "tax whoopsies" of "prominent peoples"TM-Barack like Timmy, Tommy & Charlie?
Points well taken, however, if things keep going in this economy the way they are, don’t be too sure that work will keep you away. You may not be able to afford to stay away.......
Someone on a thread yesterday mentioned buying a stamp that says “Tax Cheat” with an arrow on it. He then mentioned that when the new bills are printed with the new Treasury Secretary’s name on them, to stamp said bills with the arrow pointing to his name.
I just received 6 “Notice of Intent to Levy” letters from the IRS. Each one was sent certified mail.
The amount shown in the Amount Owed box was $0.00 and $0.00 was added in penalties and interest.
So basically they are going to attach every thing I own becasue I don’t owe them anything.
Go figure. Perhaps I need to change my party affiliation.
The Fair Tax is a GREAT place to start. However, tax reform without spending reform is a fool’s game, IMO.
We need to rein in the Federal Budget and get Washington back within its Constitutional bounds.
Where's Timmy? bump
This type of article took three days longer to come out than I had expected.Try three years when they could have actually done something if they weren't so attached to their deceptions and outright lies.
These men and women have the obvious obligation, the intelligence and the wherewithal to comply with the tax code they impose on citizens with lesser means who do comply everyday of our lives.
The only mistakes made were when these lowlifes were elected to begin with.
And while we're on the subject of fraud. Daschle for example had to pay $100,000+ back taxes. The Fairtax being revenue neutral would mean, under the Fairtax he would have to spend the equivalent of about $450,000, since that's not realistic where do you think the difference would have to come from? Any guesses?
You are the liar. So, your having gotten that puke out of your system you may now retire to your DU Sewer and tke a bath.
Technically, the law (read: The IRS) makes no distinction between a tax ‘mistake’ and deliberate fraud. You don’t pay taxes you suffer the penalties, no matter the reason you didn’t pay them.
Just another reason we need the Fair Tax.
tke=take
I've always said that you couldn't read -- that's what happens when you flunk out of pre-K.
I beg to differ! It WILL happen when we fire so many of them for their failure to to implement the Fairtax that those remaining get the message!
I agree 100% for this reason: the amount of new liquidity coming into our financial system because we no longer impose taxes on earning money would be mind-boggling. Between a huge fraction of that US$10 to US$16 TRILLION in liquid assets legally offshored by American citizens and companies just to avoid the IRS returning to the USA and several trillion more coming in from foreigners wanting to take advantage of our now tax-haven status, the amount of new liquidity could exceed a breathtaking US$17 TRILLION! That much money entering our financial system would stop the stock market slide faster than an F-22A Raptor doing a high-G turn, since it would instantly provide a gigantic amount of money for new loans and lines of credit.
Looking forward to it, but it’s gonna take a revolution to see it to reality.
You are the liar. So, your having gotten that puke out of your system you may now retire to your DU Sewer and tke a bath.You can really make a fool out of someone with just your intellect...yourself.
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.