"Taxes, should we apply a new paradigm?"
Taxes are the fuel on which a government runs. And
no government brings in as much revenue as the United
States does. But despite this fact each year our
government modifies existing tax code to bring in
more revenue.
To most of us this seems like a never-ending trend that
must continue else the business of government will stop. And if taxes were a drug, our government would either
have over-dosed, or been in drug-rehab by now.
I believe, like many other citizens, that we have to make some dramatic changes. Changes in how we tax, but more importantly, changes in the theory of taxing in America.
Today, when our elected officials see the need to bring
in additional revenue they either raises taxes, or imposes
a new tax. If the word creative is ever used, it usually
describes a 'new' way of collecting taxes.
Well, I think it is time for a change. And as I sit here writing this, I'm beginning to smile. With the thousands
of tax experts in our country, what chance would a suggestion from an ordinary citizen have? But, I am
taking the time to write this. For I believe that by approaching this subject from a different perspective,
or paradigm, we have a great opportunity to create a new, and better way to provide the fuel to run our country.
From a strictly revenue vs. spending point, if our government needs $ 1 trillion a year each person would
be taxed $ 4000 based on 250 million people.
Taking the number of citizens who do not have income,
such as children, homemakers, senior citizens, this
simple equal tax method would not work. A tax base
of only citizens is not sizeable enough to run our country.
An expanded method of taxation, one that includes a
different tax group, businesses, would provide government
with an additional source of revenue. And that is the
how our country and other nations operate.
However, at this point I leave the traditional 'wisdom'
of our elected officials. I think we should eliminate
all the tinkering of tax code that's sole purpose is
to cater to particular groups, whatever reason. Even
after tax reform too many loopholes still exist that
aid some citizens and businesses at the expense of
all the rest.
Although the above may seem like wishful thinking, it
is the only fair to go. We have continuously changed
tax code to provide incentives in one industry or another,
or benefit some group. And we follow these changes with other that are counter the first changes. It is so bad
even employees of the Internal Revenue Service are
uncertain when giving advice to taxpayers.
Friday, December 18, 2009
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