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Tax Day Blues

April 15, 2015

The American Federal Tax System is an example of what is truly wrong with America.

So many of our programs have been kludged together, bolted on, and mangled by committee, by politicians who are either out for themselves or just flat out incompetent.

I’m sure I’ve posted this before, but it’s tax day, I had to pay a lot and I want an outlet. 🙂

Our Federal Tax System has been worked, reworked, bloated and ruined since it’s supposedly temporary inception. It’s enforcement agency has been given way too much budget and power. It’s a monster by any definition.

So some bright people thought, “Hey, let’s get some really bright people with no investment in preserving this system and have them figure out solutions.” They pulled together a group of college students and tasked them to fix the tax system.

They couldn’t do it.

So they scrapped it and came up with a solution that was simple, elegant, transparent and a blessing to the poor.

They couldn’t figure out a fair way to tax income. Why penalize people for working? Seems counter-intuitive. They also realized that corporations simply built the taxes they paid into their cost of goods sold, passing it on to their customers and thus taxing people twice.

So they figured, why not tax purchases of new items and services and eliminate all other federal taxes? And since we don’t want the poor to bare a burdensome tax, they wouldn’t tax purchases equivalent to the poverty line. That got unwieldy, so they hit on the idea of just giving a monthly tax rebate to all citizens equivalent to basic living expenses.

Because all Point of Sales systems have the ability to add sales taxes, and most states have a sales tax, tax collecting becomes easy.

No tax returns, no withholding, no IRS, saving billions of dollars a year, lowering cost of goods sold, so lowering prices…

Accountants would take a hit, but somebody still has to prepare a company’s financials, so it wouldn’t be that bad. Fraud would be a problem, but it already is.

It encourages savings, lends transparency to the taxes (if the sales tax needs to be 30%, then people will scream at Congress to lower spending).

I see no downsides to this. None at all. So why won’t our politicians do it?

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