A Tax Rant

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A Tax Rant

Posted 3/2/2011 @ 6:11:11 pm by rainboreview.com

The original tax laws introduced in 1913 were a very simple affair. They began with tax brackets ranging from 1 to 7 percent – a far cry from today’s levels. The IRS tax codes, regulations and guidelines now have well over 9 million words. No wonder there’s so much confusion and no one actually understands the behemoth our tax code has become. Let’s put this into some form of prospective. The Declaration of Independence has a little more than 1300 words. The Constitution which has served us well for more than 200 years comes in around 5000 words and the Holy Bible makes do with less than 800,000 words. The amazing thing to me is that there are Congressmen, Senators and a President who are daily trying to think up more to add to this monster.

Sometimes, even the IRS has a sense of humor… NOT.

There are thousands of tax lawyers across the country pouring over the tax changes and additions each year in order to help their clients. Meanwhile there are thousands of IRS tax lawyers pouring over those same tax changes and additions to be prepared for your audit. If the audit is big, I strongly advise you to retain a tax lawyer for your trip to the auditor’s office.

It seems like this sometimes

The annual tax accounting due on April 15 isn’t the only taxes we encounter in life. From the moment we wake up in the morning we are being hit by taxes. Just think about it…Wake up and turn on the light, electricity taxes, Take a shower, utility taxes. Eat your breakfast, embedded food taxes and then the big one, Gasoline taxes for your commute to work. Make a phone call, telephone taxes. Eat lunch at a cafe, more embedded food taxes and sales tax. There are also taxes on that morning newspaper, the cigarettes at your smoke break, the coffee or soda while you work, Every tool or computer or ink pen you use and taxes on the power to heat or cool your workplace.

Taxes are all around you.

Many people now long for a simple Flat Rate Tax, something we can all understand. There are many countries all over the world who have used this simple to understand and cost effective way of collecting taxes to revitalize their economies. Let’s just imagine for a moment what it would be like if we could complete our tax returns on one simple piece of paper. A Flat Rate Tax for individuals and a Flat Rate Tax for businesses.  The same rules apply to all regardless of size of income. We all pay the same rate. Most of the successful countries have levied Flat Rate Taxes of less than 17%, with a starting level that protects the lower income groups.

A survey showed that many Americans would
rather face death than face an audit by the IRS

More and more people are now looking at HR-25, The FairTax. To state it simply, you would never have to file a tax return again. You would get your entire paycheck, without any deductions for Federal Income Tax, FICA, Medicare, Medicaid or whatever. New products in the stores would remain about the same price. A $100.00 blender would still cost you $100.00 but with no sales tax. The receipt would show;

Blender: $77.00,

FairTax: $23.00,

Total: $100.00

Then, to make it even better, everyone gets a Prebate based on the size of your family. Say a family of four would get a deposit of a little over $400.00 at the beginning of each month. This enough to cover the taxes on the basic needs of a household of four for one month. The  government would actually make even more money because we are being taxed on what we spend instead of what we earn. The underground economy of thieves, drug dealers, pimps and prostitutes and such would suddenly be taxed. These people don’t pay tax on their income now, but they do buy things with the money they make and that would then be taxed.

Used items, even cars and houses, would not be taxed.

OK, so maybe you can see which system I prefer, The Fairax. But whatever way it goes in the future, remember that people often say death and taxes are the same, but this is wrong. Death is a taxable event, but taxes never die.

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