Current tax system is broken
April 15th, it is not just another spring day; it is "Tax Day"! Feel proud to be an American on this day, to send your hard-earned dollars to our cumbersome and misguided government to waste on inefficient programs. The tax itself is not the problem. Taxes are necessary to operate our country. However, today's tax policy disregards the American Dream.
The American Dream is based on the fact that through hard work, personal responsibility and ingenuity you can earn a better life. This ability for improvement should continue for future generations. However, today's tax laws do nothing in the way of supporting such a vision. Though it may not be obvious with the current recession, America is still the strongest economy in the world! We have come to this point through our past achievements and work ethic; but Congress seems to believe it would be better to tax our way to prosperity in the future. A nation can tax its way out of prosperity, but not into it.
Take the "death tax", for example. This tax is called the Estate Tax and it actually smothers the benefits that ought to be provided for within the American Dream. The majority of assets one has accumulated during a lifetime will most likely end up in the hands of the Feds. U.S. Congressman and Republican Presidential Candidate Ron Paul says: "The power to tax is the power to destroy, and we are making strides towards destroying prosperity but expanding the welfare state." American citizens no longer feel secure in their independence since most of their earnings will be stolen by the government at death. Why work long hours and restless nights when its results will disappear at your death? Instead sign up for a free lunch at your local welfare center.
Most detrimental to the American Dream is income tax. It is a disincentive to living that American Dream because it creates less incentive to work, actually punishing those who should be rewarded for what they have worked for. Under the current system, anywhere from 10% to 38% is taken from the individual's gross pay, depending on the amount of money earned. With the addition of state income tax, an individual can pay as high as 48%. Who would want to work when half of one's paycheck is spent by our inefficient bureaucracy? This is obviously a poor manner in which to fund our governmental obligations.
A possible fix for our chaotic tax system is the Fair Tax. The Fair Tax replaces all income taxes (federal, personal, and corporate) and payroll taxes (gift, estate, capital gains, alternative minimum, Social Security, Medicare, and self-employment) with a 23% national sales tax. This provides a prebate that ensures no American pays federal taxes on spending up to the poverty level. Furthermore, it warrants dollar-for-dollar federal revenue neutrality; and through companion legislation, it repeals of the 16th Amendment. Americans can ultimately choose what they are taxed on and how much by what they decide to purchase. No longer will Congress dictate where Americans spend their money through tax policies. This is a system that adheres to the American Dream and the mission of the United States and its Founding Fathers.
Americans will now be able to keep their entire paychecks! They can take their money and decide where it goes. Obviously, there are basic needs that everyone has and the tax on these purchases would be refunded. Retirees will also be able to keep their entire pensions so they do not have to rely on the undependable Social Security system.
Basically, the Fair Tax will clean up the entire tax system. No average person can begin to understand the complexities of the thousands of pages of tax law. This new proposal allows precision and accountability, while abolishing the costly and ineffective IRS, including 1040 forms and payroll withholdings. There are also hidden benefits within this system. For example, illegal immigrants who have avoided being taxed are to pay their dues through the national retail sales tax.
Whether you support this proposal or not, it is necessary to examine those for whom you vote, because they create our tax laws. We as taxpayers must be aware of where our money is going; what we are supporting. Taxes are there to pay for infrastructure, national defense, and security. Taxes are not to be collected from hardworking Americans and donated to those who choose not to work. Taxes are not to be collected to pay for windmills in India. Taxes are not to be collected to fund the UN so they can internationalize U.S. laws and thereby, infringe on its sovereignty. Next time you work an hour, think about how much of that wage you will actually receive and then think if it was worth it. Maybe you will agree with me that it is time to make a change.