Taxes

[Dave Olson]

The first income tax code ever passed in Washington was 14 pages long. Today it fills 4 volumes, with 20 volumes of additional regulations and instructions. Americans spend more than 5.4 billion hours each year filling out their income tax forms, more hours than it takes to build all the cars that are produced each year in the United States.

Will Rogers said, "The income tax has made more liars out of the American people than golf." Ogden Nash wrote, "Indoors or out, no one relaxes / In March, that month of wind and taxes, / The wind will presently disappear, / The taxes last us all the year."

 

[smittie1984]

I figured up one time that we loose close to 1trillion dollars each year. 8billion to run the IRS. 250Billion in False Claims or mistakes, 250billion to comply, and 80billion lost in offshore accounts. And I forget how much lost from illegal workers who are getting paid cash and not filling taxes. But I think it was also near 250billion. And you thought we lost a lot of money in Iraq.

I believe we should have a National Sales tax. What you buy is what you pay. Something like 20-30%. But no income or anything else. It would also bring our Government closer to it's roots. As in the Federal Government would stay out of our business. Also it would make the Immigrant problem a less of a deal because they all would be paying taxes.

I would also be O.K. with a flat tax. It won't matter wether you make $100 a year or 100trillion. That is a step into the right direction. But I hate the graduated level. It allows the government to gain access that it should not have. And is a communist ideal.

 

[Dave Olson]

Hello Smittie1984,

It has been said our system of government is the best on the planet. I'm not sure about that but I do know, I'm sure glad I was born on this side of the pond!

Dave Olson

 

[RJTravel]

Which planet? I too am glad to be an American, but know better than to believe all the glib quotes about 'best', 'most equitable', 'most free', etc. An example would be down under - both oz and NZ have some form of vat tax at time of product manufacture or service, thus no sales tax. If you buy a store item and the cost is $10, you then pay $10 - not $10.68. It is much, much more efficient, and is just one of many examples why they are light-years ahead of us. I have found the manner and mode of living to be a much higher level. Perhaps the lack of fear of the largest police agency in the world (IRS) allows this freedom.

 

[JFife]

Smittie, I've also been a proponent of a Sales Tax, but recent thoughts have me questioning that. One, how would it effect the economy's production, since people would wear the guts out of everything they had. No longer would we keep up with the Joneses', we'd try and figure out a way to make our stuff last longer than the Joneses', so we didn't have to buy new. You'd have to ask an economist how that would effect our economy, but I think people spending a lot is probably good, and we wouldn't want the discourage that. Take me or you for example, if it is coming to the end of the year, and we are straddling a tax bracket, we would buy a work item to get us down to the lower bracket, thus supporting the economy and helping us as well. I think our system works to be fair, it just isn't efficient. The negative about the brackets is that they discourage success, and reward you for going around the system.

 

[smittie1984]

Jon I'm not sure exactly what you are saying. Are you saying quality stuff is a bad thing. If that is the case then Honda and the Japanese markets should be in the gutter because it's nothing for their stuff to last 500k+ miles. Yet somehow they are beating the Big 3 up in Detroit.

Also with that said people will always buy new. They want the new Chevy Truck or New Viper or the New Computer etc. Mainly because technology will always grow. So you don't have to worry about people using stuff forever. Also I hope that isn't GMs marketing plan. Build stuff that won't last. No wonder Toyota is beating the crap out of them.

One of the benefits to a sales tax is the money we will recieve from Tourists. Think about all the people who visit New York, Florida, D.C., Atlanta, etc. etc. etc. If we had a sales tax Peurto Rico would be an excellent choice for becoming the 51st state. Not to mention all the new flags that would have to be ordered. More sales tax. Then when the Flag people make more money they'll buy that new Vette they've been wanting. Or new Machinery to provide more jobs. More sales tax. It's an endless cycle.

Those illegal immigrants you see on those construction sites and lawn trucks will have to pay taxes too. And since the owner of the company doesn't have to worry about taxes he will have no need for paying cheap labor opening the job markets. Meaning people will buy more stuff. And more sales tax to pay for our Gov.

Any economist who doesn't have a socialist agenda will tell you that Capitalism in it's purest form will run it's self. We don't need Greenspan messing with the rates. And the least amount of Government intervention as possible the markets will work themselves. Now true we'll have downtimes. That is the way stuff works. But it will always rebound and for the better.