Tuesday, June 13, 2017

Do I support a flat tax?

Today's mail brought a thick envelope marked "New Federal Tax Reform Information Enclosed".  No return address, no indication of the organization doing this mailing.  I didn't really believe it was from the IRS, despite the effort to make you think it was an IRS letter.  So I opened it, and it was one of those "take a survey, send us a donation" letters that have been popular with the fund raisers.   
   This outfit, The Conservative Caucus, or perhaps Americans for Constitutional Liberty, I'd never heard of either before.  They are advocating for a flat 10% income tax for everyone, no deductions except charitable contributions and mortgage interest.  And they denounced the length and legalisms of the humongous Internal Revenue Code and the existence of the IRS
   Thinking about it, I cannot go with them.  The way I see it, we have three groups of people in the US, the well off, the ordinary working stiffs, and the really poor.  And I think we ought to tax the well off somewhat more, and the really poor something less.  In other words have three tax brackets.  I think everyone ought to be liable for taxes, unlike the current setup where half the population owes NO tax, and the well off pay most of the Federal government's expenses.  I think it is important that all citizens, even the very poor, pay something in taxes, just to let them know that the government benefits, of which we have so many, have to be paid for. 
   I do like the no deductions for anything, except charitable contributions.  I'd even go so far as to  eliminate tax breaks for dependents (children) and being married.  I'd dump the mortgage interest deduction, especially deductions for mortgages on second homes.  I'd get rid of capital gains.  Income is income, doesn't matter where it comes from.  I'd dump the earned income tax credit.
   I'd declare all 75,000 pages in the Internal Revenue Code null and void, along with all rulings of the tax courts over the years.  I'd abolish the tax courts.  If the government has a beef with us taxpayers, let the government go to regular courts, like everyone else.  
   They advocating getting rid of the IRS. Well, we ought to skin 'em down a bit, but we have to have some government office to mail our tax forms to.  Someone has to open the tax return envelopes and cash the checks.  So we have to have something.  On the other hand, we should remove the IRS's power to garnish your wages and seize your bank account.  If the IRS has a beef with us taxpayers, they can take us to court, a real court, not a "tax court" where the judge is getting paid by the IRS. They don't need the power to bankrupt us on just their say-so.

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