Pay your taxes

A man in New Hampshire had a daughter attending graduate school at Cornell, where the yearly cost was nearly $54,000. He took up a second job to help cushion the debt she would incur. The income he gained in his second job placed him in a new tax bracket, where he was spending most of the income from his second job just to pay taxes. If he were to save the money he earned the government would tax the interest, if he bought and sold something we would tax it as a capital gain, if he invested we would tax his dividends. And on top of that if he died we would hit him one more time with the inheritance tax. This a story told in Mike Huckabees book, Do the Right Thing. This unfair and complicated tax system is why the United States should enact Fairtax, a national sales tax based on consumption not income. Under fairtax, Income taxes would be zero, corporate taxes would be zero, everything that you essentially gain money on would have a tax of zero.

1. The Current Tax System is very complicated

There are over 60,000 pages in the current federal tax code, compared to the 132 page fair tax act

Tim Giethner, the secretary of the Treasury even struggled(or even outright intentionally cheated) with system

2. The Current Tax System is difficult to enforce

Former IRS Commissioner Charles Rossotti (2002) reported to the Committee on the Budget for the House of Representatives in 2003 that the IRS assesses almost $30 billion of taxes that it will never collect.

$30,000,000,000 In avoided taxes in 2003

Gross State Product (Value of all Goods and Products created in the state) of SD in 2008 was $32,300,000,000

Forbes estimated that the NY Yankes were worth $1.2 Billion (25 teams)

You will pay $21,000 for a 2010 Ford Mustang (1 428 571 cars)

3. The Current tax is progressive on success

According to the Tax brackets issued by the IRS in 2007

If you make $7,825 you pay 782.50 in tax (10%)

If you make 77,100 you pay 15,698.75 in Tax (20%)

If you make 349,700, you pay 101,469.25 in Tax (29%)

1. The United States Congress will pass a law levying a 23% national sales tax

2. The government will then pass a constitutional Amendment to repeal the 16th Amendment

3. In the law permitting the national sales tax there will be exemptions for Necessities of living such as Food and Medicine

4. The IRS will focus on collecting outstanding income taxes while slowly downsizing its personnel and budget

5. A pre-rebate will be given on the tax of purchases up to the poverty level

To wrap things up, the American tax system punishes people for hard work, is so complicated that the Secretary of the Treasury cannot even figure it out, and leaves 30 Billion dollars in outstanding taxes per year. Buy something new and the tax is paid, it is as simple as that. The United States government should and must enact fairtax. I challenge you to call the IRS Tax Hotline with the same question three times, more often than not you will get three separate answers, and once you have your separate contact your representative to protest the current system. Taxation ought to be as blind as justice.


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