Tuesday, May 5, 2009

Tax Simplification Plan

Here's a thought: Let's simplify the Tax Code.

If taxation is really all about revenue generation for Government, let's make it as simple as possible. First, kill all of the deductions, exemptions, set-asides, and credits. Next, define that the tax is only on new income or new profits, and eliminate taxation on capital gains, inheritance, and interest generated with after-tax dollars. Set the rate at 10% Flat for all income earners regardless of income level (because equality of treatment before the law is the only true equality).

The revised 1040 would look like this:

A) How much did you make? $________.__

B) Multiply by 0.10 (10%) $________.__

C) Send in amount on line B

Of course, the Democrats tax form for would look exactly the same, except you would send in the amount on line A...

All humor aside, the tax code is NOT about income generation to support government function. It is instead a spoils system whereby the government can favor some groups over others, punish success, reward indigency, and pry into the affairs of all the citizens. If the tax code was about revenue, then it should be as simple as possible to comply with, and would allocate the tax burden fairly.

A flat tax does this to some degree. A consumption tax (like the FAIR TAX) does this in a much more equitable manner still.

Since neither of these proposals allows for the Master Government to screw with the Slaves manipulate the code to favor some constituents over others, they will not happen unless the Slaves citizens revolt and make it so.

Feeling revolutionary today? Call your congress-critter.



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