There is a wide consensus regarding the complicity and inefficiency of America’s current tax system. Sixteen times longer than the Bible, the United States tax code is filled with loopholes and complications that the average person can not be expected to adhere to all the time. As a result, the average tax payer is hit with fines and interest that can many times, exceed the tax that the IRS states was not paid in the first place.
When the average tax payer receives a notice in the mail stating that, due to his error, he did not pay $2,000 in taxes and now, three years after the fact, that person now owes $5,000 as a result of mounting interest and penalties, who can really expect that person to be able to pay? The current tax system is in place, some say, as a result for their hatred for the rich, successful and hard working who shall dare not even attempt to pay one dollar less than their “fair shares.
” As a result, thousands of extra provisions are included in the tax code every few years. However, their motives backfire as those who are rich and successful, have the knowledge and means necessary to bypass many of those loopholes through crafty equations of their incomes and expenses. There will always be a segment of the population that hate the rich and want to see them taxed to the degree that even a socialist government would view as excessive. A fair tax would help to combat the loopholes that the rich use on an annual basis.
However, due to the fact that the majority of Americans are not rich, it is not that elite group that should even be considered when attempting to compel Congress to enact the Flat Tax or Fair Tax as it is rightly identified, in the end, a fair tax would help nearly rich person pay less taxes. However, a fair tax with help all individuals who pay more than 17% or perhaps 20% of their income to taxes. This constitutes most individuals in America. Let the Fair Tax make the rich richer.
Those who are members of the upper, middle and lower middle classes, would be content to let the elite further distance themselves from us if in turn, the majority of Americans, with the aid and benefit of a fair tax, pay much less of our money to the government and to once again, tell the members of Congress that America is a capitalist country, built on capitalist beliefs and the financial freedom that comes with hard work and personal fiscal responsibility. A true flat tax is one where a flat tax rate or percentage is applied to all tax payers, regardless of their income.
A person, who made $35,000, would pay a constant percentage of their income to the government in the form of a tax. This percentage has ranged anywhere from 15% to 20%. In 1996, Republican Presidential Candidate Steve Forbes announced his plans for a 17% flat rate tax. He did not receive the Republican nomination and the Democrats won that year. As a result, there was literally no hope of a flat rate tax coming into effect in Congress. On the contrary, the Democrats continued to raise taxes up until they left the White House in 2001.
Also, if the Democrats win the White House in 2008, as it seems likely that they will, one can safely assume that taxes will continue to rise again. Democratic Presidential Candidate, John Edwards, has pledged to raise taxes $150 to $200 billion to pay for the first big step towards universal health care. Other Democratic candidates have pledged more of the same. Steve Forbes commenting on the reason for the push for a flat tax stated: “Our plan allows us to have a lower flat rate and produces results that should appeal to conservatives as well as liberals.
What conservatives want is an uncomplicated system that taxes only once at one low rate. Liberals are more concerned about progressivity. They want the rich to near more of a burden than the poor. ” The difference also lies in the belief of where the problem is located and how it can be solved. “”We would use a flat tax proposal to urge people to solve these problems on their own. ” A flat tax would be the power back into the hands of the people, limit government and compel that institution, by hitting it in its pocket book, to spend our money more wisely and efficiently.