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Doable Economic Solutions |
 AUGUST 2010 There is absolutely NO need for tax increases or a VAT tax. What part of STOP THE SPENDING does Congressman Cooper, and ALL of Congress not get! King George III would be envious of our current oppressive taxation! |
Tax Simplification"To compel a man to furnish contributions of money for the
propagation of opinions which he disbelieves and abhors is sinful and
tyrannical...A wise and frugal government...shall not take from the mouth of labor the bread it has earned...Congress has not unlimited powers to provide for the general welfare but only those specifically enumerated...
Would it not be better to simplify the system of taxation rather than
to spread it over such a variety of subjects and pass through so many
new hands?" It has become apparent that our "Do as we say not as we do" Congress never studied the history of our American Revolution. Nor have they apparently read or if they have understood our Constitution, to which they take an oath to uphold. We are once again faced with oppressive taxes with more to come and no representation. The time has now come to shred the 60,000 plus page monstrosity known to us as the tax code. Following are the (2) most favored solutions along with the pros and cons of each. Remember, our current tax code as it stands is just another part of "Redistribution of Wealth." One more time we will point out that neither the Democrats nor Republicans have acted to change this. They ALL like spending our money too much! "FREE CHOICE FLAT TAX"The "free choice flat tax" option would apply one single tax rate of 17% to all individual and corporate taxpayers. It would also include a standard exemption of $13,200 for each adult ($26,400 for a married couple) and a $4,000 exemption for each child or dependent. The current $1,000 tax credit for each child age sixteen or younger would also apply, as would the current earned income tax credit (EITC.) This would mean no federal income tax on the first $46,165 in income for a family of four. The "flat tax" option eliminates all loopholes that could allow higher- income people to avoid paying taxes. But the personal exemptions, the child tax credit, and the EITC would free 42% of taxpayers all low income and moderate income households from paying federal income. Many tax filers would receive net tax rebates from the EITC. The "flat tax" would eliminate the "death tax," "capital gains tax," and the "alternative minimum tax." There would be no tax on retirement benefits or on social security benefits. There would be no tax on dividends because corporations would have already paid tax on that income at the corporate level. The "flat tax" option would require just one form on one sheet of paper. In a nutshell this option is called "free choice" because it would allow individuals and corporations to pick the "flat tax" or still file under the current ridiculously complex tax system. Many would actually pay a little more in taxes in return for CERTAINITY AND SIMPLICITY. Most feel they would save so much money in record keeping and compliance, which costs are estimated at $200 Billion a year, that they are thrilled by the optional flat tax. The "Free Choice Flat Tax" could be adopted immediately by Congress at little risk to the taxpayer or the government. (Source- "Real Change" Newt Gingrich) "THE FAIR TAX"I personally like the "fair tax" idea; however it does have some challenges. First the good things. The "fair tax" would for the most part eliminate the IRS and replace (income tax) with a (national sales tax/ consumption tax.) There are varying opinions as to what the actual percentage should be, probably anywhere from 25%-35%. We would be on a fairer playing field in regard to the world market. My favorite part is; NO ONE escapes paying their "fair" share of taxes including illegal entities such as, drug dealers, prostitutes, bookies, loan sharks, etc. No more "redistribution of wealth" everyone pays! And no more "loopholes." Now the challenges: 1.) People must learn how their personal spending habits would be affected. I personally don't see this as a bad thing. Americans would have to be convinced that they gain more from abolishing the income tax and social security tax than they lose in the consumption tax. 2.) We would have to amend the Constitution to remove the right to impose a personal income tax. We would NEVER want Congress to have an ability to tax both our incomes and our spending. Amending our Constitution is no easy task and would have to have the full force of "we the people" behind it. 3.) Enforcement is required, because people will always be tempted to find a way not to pay. What would still be left of the IRS would be looking at every business as an indirect tax collector on every sale. However many states in their own way (currently nine of them) already have somewhat of a "fair tax" approach. Tennessee being one of them and along with the other eight has no state income tax. We pay a higher sales tax rate. All nine of these states experience higher economic growth and more rapid growth in jobs. (Some sourcing, "Real Change" Newt Gingrich) More recently there is the idea of an across the board Flat Tax. The percentage is debatable, something between 10%-13%. This would be an EVERYBODY pays into the system. In other words a person makes $33,000 a year at say 10% $3,300 gets sent into the IRS. One piece of paper. No more deductions and mounds of paperwork. (This is my personal favorite.) (Of course simply repealing the 16th. amendment would enable us to have no need for any of the above). However good luck! With the greedy politicians we currently have in Congress getting that accomplished!
I sincerely suggest that each and every one of you do more homework on these, as we only touched on them. With one cautionary note however, be careful where you look for information. We must and just as importantly, hold our city, county, and state representatives in check with oppressive taxing they are so often equally guilty of. One thing we can all agree on, our current oppressive system of taxation must come to an end. As we will state ad-nauseum, if we do not get spending under control in Washington and hold our Congress ACCOUNTABLE for every penny, no amount of solutions will work!
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Paid for by Jackie Miller for Congress |
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