Posted on 04/22/2006 5:39:00 AM PDT by Eaglewatcher
EDMOND— How much of your time and money did you spend getting your taxes filed this year? Your time is worth something even if you use a software program to do your taxes. Your time is worth something gathering up all the information to give to your hired tax preparer.
Multiply that by the number of taxpayers and corporate taxpayers and you can plainly see how much a burden our current tax code is on the taxpayers of America. You can get mad, just like I do each middle of April, but the inevitable has to occur. Did you know that a portion of our tax money goes to pay the salary of some 113,000 IRS employees? What a large number of employees. Yet, it probably takes that many employees to administer the thousands of pages of tax code.
A 2001 press release from Sen. Chuck Grassley indicated that 51 percent of the hours IRS employees spent on the Internet were for personal usage; some 47 percent of the e-mails sent to the IRS were personal; that 25 percent of taxpayers calls to the IRS went unanswered; during the 2001 filing season, an Inspector General employee made contacts at walk-in assistance sites and seven times they were denied service, got incorrect answers 49 percent of the time and insufficient answers 24 percent of the time. Calling the toll-free assistance line found no one could be reached 37 percent of the time and did not receive the requested service 47 percent of the time. Finally, it was determined that in fiscal year 2000, the IRS spent $1.3 billion for contractors to the IRS. While that is an older release, it is clear taxpayers are not getting what they are paying for. The IRS is a failure by any measure.
All this caused me to seek a better method of delivering my money for the federal government to use. Obviously, the current method eats up too many resources that could be better used by our government. I found there has been a bill filed by Rep. John Linder as H.R. 25 (see his Web site http://linder.house.gov).
Here’s a brief overview of The Fair Tax Act: “1. Repeals all corporate and individual income taxes, payroll taxes, self-employment taxes, capital gains taxes, estate taxes and gift taxes. 2. Imposes a revenue-neutral personal consumption tax on all new goods and services at the point of final purchase. Business-to-business transactions and used products, which have already been taxed, are not subject to the sales tax. 3. Rebates the sales tax on all spending up to the poverty level.
“Results of the FairTax: Dramatically reduce the costs of goods and services by 20 to 30 percent. Allows you to keep 100 percent of your paycheck, pension and Social Security payments. Gross Domestic Product will increase by almost 10.5 percent in the first year after enactment. Compliance costs would decrease by 90 percent. Real investment would initially increase by 76 percent relative to the investment that would be made under present law.
“While this increase would gradually decline, it remains 15 percent higher than under the existing tax structure. Exports would increase by 26 percent initially and would remain more than 13 percent above the level under the current tax system. Real wages will increase. Increases incentives to work by as much as 20 percent in many households, leading to higher economic growth and efficiency. Interest rates will fall 25 to 35 percent.” This is a much better choice than our current method. Any change has to be better than we have now. Since lobbyists have been partially responsible for the convoluted tax code we now have, getting this passed may be a challenge. It seems to me that taxation based on spending is more fair than any other method. If you don’t spend, you don’t pay.
Take a look at the Fair Tax Web site for answers to all your questions, http://www.fairtax.org/. I found many articles about how the tax would work in detail, and how this tax proposal handles families at or below the poverty level. It appears about every question or issue is addressed in the Fair Tax legislation. Being responsible to properly fill out several pages of forms just plain stinks.
In today’s world, we need and deserve a better method, a more efficient method. Gains in efficiency alone will be a great benefit. Eliminating paperwork, employees and delivering that money to the federal coffers more efficiently is an idea that is over due. We must eliminate the IRS as we know it today. We are too modern an economy and people to continue to be burdened by antiquated tax methods that favor some and not others. We need fairness in our taxation. The FairTax is that method.
A final point is made by Yahoo News: “Sen. Ron, D-Ore., did not prepare his real tax returns, but he was able to prepare a hypothetical tax return in 30 minutes based on his proposed simplified tax system. This last fact is truly revolutionary because no one can remember the last time a member of the tax-writing Senate Finance Committee actually completed their own tax return.” Need I say more?
Just as people marched over pending immigration law, if we marched over taxation, we can assure a change will occur. Our politicians need a loud roar from the taxed to change what is being done. When you have a method of taxation that makes you pay a penalty for paying too little or too much, you know something has to be done. Everyone should pay their fair share. But that share should not be wasted on bureaucracy and paperwork. Let your representatives in Washington know how you feel. If you don’t, we will be filling out the same pages of forms this time next year. Remember, it is up to us to see that they get it right.
(Bob O’Bar can be contacted at rto4nmm@sbcglobal.net.)
Excellent Post! Fair Tax ping!
Like, reducing spending? Limited government? Government agents being volunteers (as in public service)?
The communist inspired income tax, in ANY form, is unworthy of a nation which calls itself free. We CANNOT be free for so long as we have an income tax as the very nature of the beast precludes freedom!
"-- The socialistic and anti-social character of the income tax is inherent.
Embedded in the philosophy of the law is the destructive principle, so that once it is in effect the economic and political consequences are inevitable. The principle of the income tax is the denial of private property.
There is nothing in the Sixteenth Amendment, there is nothing in the principle of the income tax, which puts a limit on the amount the State may demand, and hence the implication is clear that the individual's absolute right of private property is denied.
The theory of republican government, that its powers are derived from the will of the people, is no safeguard against this denial of private property.
Assuming that the Sixteenth Amendment at the time of its enactment did express the will of the people, every one of them, the substance and effect of income taxation was to destroy the will of any subsequent generation for modification or revocation.
It is unlike any other law. For the denial of the right of private property is in essence the denial of the right of the individual to himself. He is no longer a free person if he is not free to keep and enjoy the products of his labors. --"
Excerted from From Solomon’s Yoke to the Income Tax by Frank Chodorov
They are not going to change the tax code - not ever.
That is how they lord over the rest of us. It's where the true power lies in Congress.
The chance of them reforming the tax code are about as good as them actually doing something about illegal immigration.
The sooner we do as you suggest; "end this little dalliance with Socialism and return to the vision of the Founders" the sooner we will be a free people again!
I'm sorry to say that you are correct in your assessment. I believe we need to revolt...peacefully at first.......by refusing to play along....refusing to file and remit our taxes. That will require careful preparation however, so that your property is not confiscated in satisfaction. And ultimately, they'll confiscate anything they can find to make an example out of us, even if you've taken pains to protect it.
And many of us are afraid and have much to lose....but what is freedom worth? Do we acquiesce and accept the chains of slavery?? Do we sentence our children and grandchildren to the same slavery? At what point do we stand up and say, ENOUGH IS ENOUGH? IMHO, we're quickly approaching the breaking point.
This tax season was the worst I've endured in 20 years. The number of amended 1099's was staggering...necessitating amendment of tax returns that had already been filed. The law is so complex that even the brokerage houses can't comply in a timely and accurate fashion. The system is starting to implode. We need to help it along. And IMHO, GWB did just that by signing an additional 20,000+ pages of tax legislation into law.
It's time to reassert our 4th Amendment rights: "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."
Our banks, brokerages houses, Houses of Worship, employers, business partners, routinely divulge the intimate details of our financial lives to the government....in direct violation of the above. We are not secure in our "...houses, papers and effects..." because they are effectively searched, without a warrant, without probable cause, to enforce the income tax.
The income tax is a pox on this country. Time to end it...peacefully if possible.
Yeah, right. I'm really getting tired of these same old arguments -- if your time is worth $50/hour and it took you six hours to do your taxes, it's costing you ....
If the average Joe didn't have to fill out tax forms every April 14th, he'd be plopped down on the couch watching Wheel of Fortune.
"They" work for YOU my friend! They are YOUR employees and mine. If we don't properly supervise them we richly deserve what we get!
One or the other, not both. If the employer gives you your whole paycheck rather than sending a portion of it to the IRS, his "cost" of business remains the same.
He may be able to reduce prices somewhat due to decreased compliance costs, but even that is overrated.
"Bob has a great grasp of the situation!"
This guy grasps nothing, other than the ability to bull$hit. He'd have us believe that costs decrease 20-30%, our paycheck increases 20-30%, AND we all get a monthly stipend from the government.
And I got a bridge in Brooklyn.
Conservative Goddess had it right -
"The income tax is a pox on this country. Time to end it...peacefully if possible. "
Yeah ... sort of like giving wimmen' the right to vote, eh?
But that's Joe's choice ... which he doesn't have now as a tax option.
Then again, he might write the rest of "The Unfiniswhed Symphony" - or start the newest Microsoft.
Keep your bridge, robert. No buyers here.
You'll also get all your wages under the FairTax (not counting other than present income/payroll tax withholdings) AND prices will decline. the only real question is the amount of the decrease. Some think 20%, some think more, some think less - but they will decline and by enough to notice.
Not only do compliance costs enter in, but the employer's portion of payroll taxes as well. Some part of those (if not all) will no doubt go toward reduced prices.
The key thing is that the FairTax will give most people increased disposable personal income and will greatly assist the US economy PLUS if offers much more individual freedom for all taxpayers than at present.
As I said in my post, pigdog, one or the other, not both.
According to the article, I get to keep "100 percent of your paycheck, pension and Social Security payments". Now, here you are, telling me that the employer probably won't do that.
You guys and your lies. No wonder no one supports this scam -- we can never get the straight story.
Or work a second job to pay for the increased costs of imports.
According to you, domestic employers will use retained payroll taxes to reduce their prices. Foreign manufactureres obviosly can't do that, and their prices rise. Most of what we consume is imported.
Imagine everthing rising like oil is rising. That'll be fun, huh?
Well, robert, the ER portion of payroll taxes is not presently in your paycheck so what I said was exactly true. There IS no lie and you Squirrels making continual claims of such are childish. My post #15 is correct as written.
Read what I said more closely - some part of the ER portion may be used to reduce prices as well as the business income taxes no longer paid and the compliance costs involved.
Those of you who can't understand that are in for a shock.
Imagine the price of a gallon of gasoline without the hundreds of billions of $ paid by oil companies in corporate income taxes and their associated costs included you dunce!
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