6. Government uses the tax code as a political instrument to favor or punish political constituencies as little as ONE taxpaying entity. The recent scandal using the IRS to target conservative 501(c)(3) and 501(c)(4) groups is clear proof of this.
7. Because the IRS needs to know intimate details of personal and business financial records in tax return filings, there are potentially serious issues with invasion of privacy. Care to explain why former Presidential candidate Mitt Romney's private tax returns ended up in the offices of Senator Harry Reid (D-NV)?
The very fact we know know the IRS abused its powers on behest of the Obama Administration for political purpuses proves me right in these two assertions. This is why in the end, the only solution is to get rid of the income tax and replace it with this:
It would be the most liberating thing to happen to the USA since the American Revolution itself, in my humble opinion.
It would be the most liberating thing to happen to the USA since the American Revolution itself, in my humble opinion.
Agreed RayChuang88.
No business taxes.
No withholding.
No forms for private citizens to fill out
No gov agency knowing how much tax you pay or what you own or how many kids you claim, etc
Everyone paying the same marginal rate. Everyone from us citizens to illegals to tourists... everyone pays the same marginal rate. Everyone.
Exports become more competitive with removal of tax costs. Manufacturing becomes more competitive by having imports pay the excise.
The Fair Tax is better than what we have.
The **best** plan would be the 50 state plan.
The federal government sends our 50 tax bills, one to each state. The size of the bill is set by the number of people over the age of 18 ( determined by the census) living in the state.
Let the states figure out how to collect the tax. With 50 state, eventually, the most efficient, least intrusive, economy friendly, and least expensive to collect for the citizen and the state, would emerge. In fact, the states would compete with each other to have the most efficient, least expensive to administer and collect, and compassionate plan to collect the taxes.