Happy Tax Day!
Before I vent on the evils and horror that come every April 15 (except when the benevolence of our overlords grants us a day or two or reprise for weekend tax days), I want to acknowledge that the day is slightly redeemed because when marrying my wife I gained an adorable nephew whose birthday just happens to be April 15. He turned three today.
Also, Jackie Robinson debuted for the Brooklyn Dodgers in 1947.
Also, insulin becomes available for diabetics in 1923 (thanks!)
That about does it for good things that have come from April 15.
Now I am not an anarchist. I recognize that taxes are necessary. For example, I like my country having the best military force in the world (even if I occasionally disagree with how it's used).
But let's not kid ourselves. Too much is taken and it's done so in a really confusing way.
I would love to see the income tax replaced with a consumption tax, often referred to as a fair tax. I know there are legitimate objections to it, such as revenue being less predictable. Of course, that would mean the government's spending would need to be more disciplined and actually linked to it's income. And who wouldn't like that?
Another idea floated out there is a flat tax. Everyone pays the same rate. I honestly don't know what a good number would be, but for the sake of an example, let's go with 10%. Someone who makes $50,000 a year would pay $5,000, while someone who makes $500,000 would pay $50,000, and someone who makes $5,000,000 would pay $500,000. Pretty simple, right? I would argue that along with being flat, it is also fair (which is why flat taxes and fair taxes are often confused...by me).
A fair tax won't ever happen, and while in theory it'd be great, it's not a battle worth fighting. You would have to repeal the income tax prior to implementing it. There would be too much outcry to the whole process to make it happen, and a flat tax would probably work just as well to simplify things (Herman Cain's famous 9-9-9 plan had one glaring fault: it allowed feds to take money from you both through an income tax and through a national sales tax; no thank you.).
But isn't simplifying the tax code something we can all agree on? Even if Democrats want taxes on "the right" higher and Republicans want taxes lower, we should all be able to look at the tax code and say: "you know, that's kind of ridiculous."
How do we simplify it?
Eliminate deductions. All of them.
All.
Of.
Them.
Now I know there are a lot of people who would argue that retaining deductions for dependents, education, and charitable contributions is good. While those things are great, the problems start when we question where to draw the line.
"If this deduction is good, why not this one? And if we add this, why not that one?" etc., etc., etc.
Also, no deductions = no loopholes. People were furious at GE the other year when they paid no taxes. If that was you, you were mad at the wrong entity. Don't be made at the company for taking advantage of the tax law, be mad at the politicians who created a tax law that could be taken advantage of. When we get angry at "corporate welfare" that's a very legitimate anger, but if the anger is directed only toward the corporation and not those providing the welfare, nothing will change.
I would also create three tax brackets for individuals.
1) If you at or below the poverty line, you pay nothing.
2) If you make between the poverty line and $5,000 above the poverty line, you pay a minimal percentage (perhaps 5%).
3) Everyone else pays the same rate. I would toss out there 20%, but I'm flexible on this number.
Also, if the rates change, it needs to be done by Congress and signed the the president. But the framework of three brackets remain. This offers simplicity, transparency, and eliminates loopholes.
Anyway, just some ideas. Probably not perfect, but I think this is a good place to start.
Enjoy the remainder of your Tax Day with The Beatles and some fun meme/quote things...
Also, Jackie Robinson debuted for the Brooklyn Dodgers in 1947.
Also, insulin becomes available for diabetics in 1923 (thanks!)
That about does it for good things that have come from April 15.
Now I am not an anarchist. I recognize that taxes are necessary. For example, I like my country having the best military force in the world (even if I occasionally disagree with how it's used).
But let's not kid ourselves. Too much is taken and it's done so in a really confusing way.
I would love to see the income tax replaced with a consumption tax, often referred to as a fair tax. I know there are legitimate objections to it, such as revenue being less predictable. Of course, that would mean the government's spending would need to be more disciplined and actually linked to it's income. And who wouldn't like that?
Another idea floated out there is a flat tax. Everyone pays the same rate. I honestly don't know what a good number would be, but for the sake of an example, let's go with 10%. Someone who makes $50,000 a year would pay $5,000, while someone who makes $500,000 would pay $50,000, and someone who makes $5,000,000 would pay $500,000. Pretty simple, right? I would argue that along with being flat, it is also fair (which is why flat taxes and fair taxes are often confused...by me).
A fair tax won't ever happen, and while in theory it'd be great, it's not a battle worth fighting. You would have to repeal the income tax prior to implementing it. There would be too much outcry to the whole process to make it happen, and a flat tax would probably work just as well to simplify things (Herman Cain's famous 9-9-9 plan had one glaring fault: it allowed feds to take money from you both through an income tax and through a national sales tax; no thank you.).
But isn't simplifying the tax code something we can all agree on? Even if Democrats want taxes on "the right" higher and Republicans want taxes lower, we should all be able to look at the tax code and say: "you know, that's kind of ridiculous."
How do we simplify it?
Eliminate deductions. All of them.
All.
Of.
Them.
Now I know there are a lot of people who would argue that retaining deductions for dependents, education, and charitable contributions is good. While those things are great, the problems start when we question where to draw the line.
"If this deduction is good, why not this one? And if we add this, why not that one?" etc., etc., etc.
Also, no deductions = no loopholes. People were furious at GE the other year when they paid no taxes. If that was you, you were mad at the wrong entity. Don't be made at the company for taking advantage of the tax law, be mad at the politicians who created a tax law that could be taken advantage of. When we get angry at "corporate welfare" that's a very legitimate anger, but if the anger is directed only toward the corporation and not those providing the welfare, nothing will change.
I would also create three tax brackets for individuals.
1) If you at or below the poverty line, you pay nothing.
2) If you make between the poverty line and $5,000 above the poverty line, you pay a minimal percentage (perhaps 5%).
3) Everyone else pays the same rate. I would toss out there 20%, but I'm flexible on this number.
Also, if the rates change, it needs to be done by Congress and signed the the president. But the framework of three brackets remain. This offers simplicity, transparency, and eliminates loopholes.
Anyway, just some ideas. Probably not perfect, but I think this is a good place to start.
Enjoy the remainder of your Tax Day with The Beatles and some fun meme/quote things...
Comments
Post a Comment