Simplify The Tax Code NOW!
Posted: Wednesday, January 13, 2010
by Richard Vail
Chisel & Plane
Is the American Tax Code too complicated? Is it too long? Just how long is it? Well, the length depends upon whom you ask, but taking a look at various sources on the internet, you can find various answers.
The complete Internal Revenue Code is more than 24 megabytes in length, and contains more than 3.4 million words; printed 60 lines to the page, it would fill more than 7500 letter-size pages. Or in book format, 16,845 pages in FY2006. A few others have this to say, U.S. Rep. John Hostettler (R-IN), "the Internal Revenue Code and regulations add up to one million words and is nearly seven times the length of the Bible" And then there's this, U.S. Rep. Rob Portman (R-OH) says, "The income tax code and its associated regulations contain almost 5.6 million words -- seven times as many words as the Bible. Taxpayers now spend about 5.4 billion hours a year trying to comply with 2,500 pages of tax ...and George W. Bush, the 43nd President of the US chimes in with, " The tax code is a complicated mess. You realize, it's a million pages long."
The same can be said of Mr. Tom Daschle, the former Majority leader of the US Senate and South Dakota Democratic Senator, who admitted he had not payed over $100,000 in taxes for the car and driver while he was working as after he left the Senate. This all came to light when he was nominated as Health and Human Services Secretary.
If people as august as these can't figure out the tax code, what chance does the ordinary person sitting at the kitchen table have when they are trying to crunch the numbers...not much I'd say. So, has the time come to finally eliminate all the nooks and crannies that exist in a tax code that is several million words long? Yes.
The easiest way would be to eliminate the system all together, but that won't happen, it makes too much sense. My suggestion would be to simplify it to this extent. If you make more XXX dollars per year (the poverty line, depending on size of household), then you pay XXX dollars, up until you reach a maximum rate of 20%. No other exemptions would be allowed.
The same rate would apply for business...and NO exemptions. That way the tax is spread all the away across the board, EVERYONE pays exactly the same rate. So if you make (for simplicity sake) $10,000.00, you pay $2,000.00. If you make $1,000,000.00, then you pay $200,000.00. Is it fair certainly, everyone pays the same amount.
Businesses would be treated the same way...there would be no more exemptions for any business. Every business would pay at the same rate. A flat rate, with no exemptions. Additionally, until the national debt was paid off, a national sales tax of 2% would be implemented. The funds from this tax would be put solely against the debt. No other diversions would be allowed.
However, to make a plan such as this to work, Congress would need to be forced to NOT spend beyond our means to pay. What I mean by that is that Congress would not be permitted to execute any more deficit spending. All increases in spending in one area, must be offset by cuts in another area.
If we as a country, we could eliminate the national debt, which now stand in the area of $11,000,000,000,000.00...that's roughly $11 TRILLION dollars! How could we do this? easily by eliminating the exemptions that are now available, even the super wealthy would have to pay their fair share, something many of them don't do now, by hiring tax lawyers and accountants to hide their income. That would no longer be permitted under a system such as this. Therefore, even as the top tax rate is reduced from the present rate of 35%, without any of the myriad exemptions those in this bracket would end up actually paying more, since those exemptions that in the past permitted the wealthy far less would no longer be allowed.
Under this system, within a period of 50 years, assuming that Congress could be convinced not to continue spending beyond our means to pay, this country could eliminate the national debt in less than 50 years. Imagine that, we could give our great grand children the gift of national solvency! Something that seems impossible today, with a deficit that will reach nearly $2,000,000,000,000.00 this year.
BUT! Perhaps we can impose some fiscal responsibility on our spendthrift Congress this November by electing Representatives and Senators that put the good of the country above the selfishness that pervades the earmark waste that this and previous Congresses have tolerated. This pattern of fiscal irresponsibility cannot be suffered any longer. We cannot afford it, our children cannot afford it, nor can our great grand children. We cannot be so reckless as to continue spending and allowing those who should be paying, to escape through exemptions and loopholes.
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Top-level comments on this article: (5 total)I agree that simplification is needed. I'm in the $50 to $75K income bracket. 20% would be a substantial increas over what I pay now with my deductions. Add on the health care tax, the energy tax, the value added tax stae and local taxes etc, and I'm now hurting. What do you exactly mean by "my fair share"? My share of the debt caused mostly by constitutionally questionable programs that waste and squander? What will assure the 'extra money' they get in DC won't be squandered and stollen too?in a perfect world, there would be NO tax on health insurance tax, no VAT, no energy tax either. this would actually reduce yor tax burden. this plan isn't perfect by any stretch of imagination...but eventually, it would be reduced by 25-50% with the pay off of the national debt. of course it also is predicated on the concept that there would be NO deficit spending either. It's a wish list, and imperfect, but it could work, and in doing so would reduce everyone's tax load, because everyone would be paying the same percentage...which would greatly increase tax revenue...that increase would be put toward paying down the debt, and thus reduce the tax burden on everyone.
I mention that I am supposed to be working on taxes and then I get to rate this - are you going to run for something in the Tea Party? Just wondering. I got a CD from H+R Block to do my own and can't bring myself to put it on the computer (we had the same tax lady for 21 years and she retired so decided to do it myself this year.... oh, boy!) thanks again for this timely piece - MarijoFINISH THE PEICE!I WANNA KNOW WHAT HAPPENS NEXTJUST posted it and there is more to come! a BODY and other excitement.LOL, thanks, you took way too long on this one dear....lol, love you anywayRichI just posted the first part last night.... I was thinking and my hubby said "wait a week to build interest...." GRINNOT! besides...what does HE know? LOLSO you can read it now? GRINoakies. thx
Excellent article Richard, absolutely on target and your plan would work. You ought to run for president. If not, we need to seek out those with similar ideas.Thank you sir. I have way too much baggage to be a sucessful pol.
Good idea! But looking at the miserable morass of "Healthcare Legislation" by Congress, I can't even imagine what their "Tax Reform Legislation" would be.Well, perhaps it will die the corrupt death it deserves...after today. Call and write your congressman and senators let them know what you think. Use snail mail, sspend the stamp, they give much more importance to snail mail than either to phone calls, or email.
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