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Taxation in the US

Published:

Last Edited: October 13, 2005, 6:17 pm

The middle class and the lower-middle class have been victims for years in our economy and tax-paying obligations.

The solution, contrary to Abraham Lincoln's income tax, is a consumption tax as opposed to a production tax.

Similar to a "state tax" on your purchases, the federal government should eliminate income taxes and should establish a flat rate tax on your (and other country's)  purchases, or consumption of goods purchased in the U.S.

This has several advantages, among them,

1)  The elimination of tax breaks, deductions and loopholes.

2)  The complete simplification of the current tax codes that would save us billions of dollars a year on the IRS, not to mention the time for the American worker to figure out his taxes.

3)  The software implementation is already in place in every single cash register in the US that collects sales tax via state and local sales taxes.

4)  Most important of all, the person consuming more pays more and the person consuming less pays less.

My point is that if a person can afford to buy a Lear Jet he should pay the equivalent percentage of taxes on that purchase as a person buying a pair of work boots.

The current tax system is not only extremely confusing and unfair, it encourages consumption and discourages production (and savings...note that we are one of the lowest of the industrialized nations in this regard).

When a millionaire pays less taxes than a middle class worker, something is wrong.  If the millionaire and the money launderer were to be forced to pay their taxes at the cash register, it would eliminate loopholes, deductions and "laundering".

Am I the only one who sees this?

Entry #24

Comments

1.
Comment by pacattack05 - October 13, 2005, 6:09 pm
Bravo!!!!!   I couldn't even think of any more words to add to that.....COOL>>>
2.
Rick GComment by Rick G - October 13, 2005, 6:25 pm
Thanks, Pac...it's about time that the government's goal of simplifying the tax code take on the real issues that all of them are making more money than most of us and protecting their interests are not in the the interests of those of us who elected them into office.

Can we include "crooks" in next week's lesson...lol
3.
Comment by pacattack05 - October 13, 2005, 7:06 pm
LOL Rick G.....The powers be couldn't give two #$&!s about us. It's the fundamental breakdown of society, as we are seeing it. Here's an off topic analogy of the government hypocracy and the shame that would follow.
There's a reason why the supreme court ruled against the ten commandments being posted in federal buildings.....Can you imagine........

Imagine putting up a sign that says ...thou shalt not steal, lie, and murder in a building full of lawyers, judges, and politicians? They would be scrambling for the exits..........LOL
4.
ToddComment by Todd - October 13, 2005, 8:30 pm
For an example of consumption tax, see Europe's VAT tax. It's no picnic. I'm not sold on consumption taxes, because they bring their own share of headaches, and you can have loopholes with them also. I think there are many cases where they slow economic development. I would prefer a flat tax on income.
5.
FRANKIE89520Comment by FRANKIE89520 - March 25, 2006, 8:03 am
Although a consumption tax is a great idea, you'll never see it happen. Government has created a tax industry full of lawyers, accountants, and its own employees. The lay offs would be staggering. No matter the gov't in power they all share the same ideals. Keeping their hands in our pocket. Its a control thing, and they love it. The U.S. fate was sealed December 24, 1913 with the introduction of the banking act that was passed in the house. Unfortunatley we're stuck with an antiquated income tax that accomadates the haves, while it turns us into have nots.
FRANKIE89520
6.
Rick GComment by Rick G - March 25, 2006, 11:09 am
Frankie,
Good points and I'll have to look up that Bank Act because I'm not familiar with it. I spent 12 hours doing my taxes this year....but I mailed my state tax forms in before I realized I made a mistake on my federal tax. I had to re-do my federal tax forms and then had to get an ammended state tax form and submit further info and rigamarole, another 8 hours of my life wasted.
The instructions are so complicated that I think they do it purposely to force 50% of us to make mistakes and therefore eligible for audit and further intrusion.
To take taxes from the point of purchase would put a lot of this created bureaucracy out of business but when you multiply 150 million taxpayers and x amount of corporations by the amount of time and money THEY spend on doing their taxes, it exceeds the amount of time and money the bureaucacy spends on processing it and hassling the American workers. The money and time wasted could be used for a lot of other far nobler causes.
This definitely is bad and mark my words, there will be a taxpayer revolution in this country opposing this antiquated method of collecting revenue.
I could go on all day about this but the bottom line is KISS. Keep It Simple, Stupid!
Thanks for your input.

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