Friday, February 26, 2010

My answer to taxes...

Ask any one person about the ten most things that they dislike about America and I can guruantee that paying taxes is in the top five; right after the malice feelings towards congress. Well, after much thought I have decided that federal income taxes as they are now are unfair and un-American. In truth, all taxes I feel are un-American, but realize that they are a necessary evil.
However, if this new means of taxation passed, we would see the elimination of the IRS (for the most part) and major down sizing of other government entities. Here is my idea: Instead of having to pay taxes from each pay check, you now would pay based on how much you spend. That's right, after much thought and research, I think that a federal tax on spending is fair and would be efficient.
Take for instance that last year consumer spending alone was 8.5 thousand billion dollars (8.5 trillion), from which the majority of this money is taxable as current law is written.Now if you apply a .03 percent to ever dollar spent the federal government would be able to collect 2.5 trillion dollars annually. This would cover the current government expidentures and money collected from income taxes in 2009. According to the Heritage Foundation's website total tax revenue for 2009 is expeccted to be around 2.14 trillion dollars, and will contiue to grow unless major change takes place.
Many opponents of this type of taxation will argue that consumer spending would decrese because people, especially poor people, will spend less as a result of the increase taxation. True, to a point. As it stands now, over 25 states have a sales tax and many of these states poor purchase goods. If you are concerned for the poor population than grocery purchases could be excluded with a .005 increase in the federal sales tax on other goods.
Like I mentioned before this would create a equal standing for the population as a whole and the middle class would not be hit the hardest with income tax expenditures like we are currently seeing. In my opinion it is unethical to tax the population on a scale based on your yearly income. The federal government seems to have forgotten that 100,000 does not spread as far as it did two decades ago, and taxing 30% of the middle class income, because they are considered the 1% of the wealthiest Americans is wrong. Not only wrong, but immoral; especially seeing how the federal government has other means of creating tax revenue that is equal across the population base.
Another argument for many would be tax returns, here is where a somewhat liberal idea will be put forth. As we all know you must please liberals to get something passed in congress, since the majority are babies. To please liberals I would suggest that anyone making under 50,000 per year receive some type of tax rebate. How to determine this amount would be open to debate.
The second method I am for is the flat tax, which would create a tax base that has a ceiling for all of the population. Just to recap, after much thought and consideration a federal sales tax, I feel be the best means and equally means of taxation. This would allow the removal of taxes needing to be taken away in your montly paycheck and allow you to take the money home to spend it on consumer goods. For businesses I will follow-up after some more research.

3 comments:

  1. Fairness in taxes through a flat sales tax? I like it. But it will most likely never happen.

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  2. Federal income taxes are theivery pure and simple. The feds should have no right to tax us in any way. States should be able to tax and then send the money to the feds, not the other way around. End the federal reserve...end the IRS.

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  3. I thought that I mentioned this in my post. I do agree that the states should collect the money and then send it to the feds. This was the norm prior to 1934. Wilson, in his "greatness" decided to change this with many other wonderful things.

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