Money is going to Government fund for public benefit.
As the national debt grows solutions not rhetoric is what is needed. First we must make substantial spending cuts from the budget. That will be a good start to lowering the debt but, the cuts alone will not be enough. We must also raise revenues that come into the Federal Government. Some say we should raise taxes. That would raise funds streaming in. Is that a good way to go? Economists believe that would hurt the growth of this recovering economy.
Instead of raising taxes perhaps we should look at the tax system itself. The one issue all Americans agree on is fixing the tax code. The tax code is complicated and grows every year (see the chart at the bottom of this article). Today the tax code is 72,536 pages long. It has grown more than 3,000 pages in the two years of the Obama Presidency. So much for the President’s claim of cutting taxes. What needs to occur is an overhaul of the current tax code. Some say the code is fine; all we need to do is raise the taxes paid by Americans that earn over $250,000 per year. While it would increase revenue, the amount would not make much of a difference. Some say a flat tax is the way to go. While there is some merit to that proposal, it would not be a fair system since all workers will pay the same taxable percentage. So why not combine both proposals, raising the taxes on the wealthy as well as tiered flat tax system based on income. Think about it, No more itemized deductions. No more loopholes (everyone pays no more paying nothing!!!). No more pages and pages and pages of forms. No more tax attorneys (!) A lot fewer to no audits. A much less powerful as well as much smaller IRS. (We can all agree on that, right?). The percentage in a flat tax tier system would be the same as currently in use by the IRS.
Single Filing Status
· 10% on income between $0 and $8,375
· 15% on the income between $8,375 and $34,000;
· 25% on the income between $34,000 and $82,400;
· 28% on the income between $82,400 and $171,850;
· 33% on the income between $171,850 and $373,650;
· 35% on the income over $373,650; plus $108,421.25
Married Filing Jointly or Qualifying Widow(er) Filing Status
[Tax Rate Schedule Y-1, Internal Revenue Code section 1(a)]
· 10% on the income between $0 and $16,750
· 15% on the income between $16,750 and $68,000;
· 25% on the income between $68,000 and $137,300;
· 28% on the income between $137,300 and $209,250;
· 33% on the income between $209,250 and $373,650;
· 35% on the income over $373,650; plus $101,085.50
This would be a tax on income that everyone can agree is fair. In addition to the revenue this raises, the IRS budget could be slashed significantly. We would not need as many employees, office space, overhead,etc. This would be a considerable saving for the budget. So how would Americans report their income yearly? Here’s one way it could work. , a postcard system sent to them from the IRS..
Families get the postcard. They have two choices. Write their labor income and tax withheld from their W-2 form. Multiply the labor income by the percentage based on their income bracket. If it does not match the withholdings the taxpayer would pay any shortage or get a refund on any overage. If the withholing is exact, simply mail in the completed return. Once complete the card could be mailed back to the IRS or go online and file the tax return.
That system takes care of those who have enjoyed not paying taxes at all taxpayers’ expense. Next, there needs to also be a flat tier tax system in place for businesses. Again, no more not paying taxes. Finally, the last item that needs to be addressed to bring in more revenue. If your company operates, sells products, or generates income in any way within the United States, it does not matter if your company is based in the United States or abroad, YOUR COMPANY WILL PAY TAXES! In addition, if your company has received jobs that have been outsourced from the United States, those employees will pay an income tax to the United States as well ! Wonder how many jobs would return to the US and put Americans back to work?
This is one idea. It would make a good dent in the budget by way of savings in the IRS, and it would generate a good deal of revenue to be applied to the deficit. Not to mention how much it simplifies the tax code. Sound like this could work.
I don't think that anyone wants to pay taxes,but they have been around for a very long time.
by hottopics 7 years ago
As the national debt grows solutions not rhetoric is what is needed. First we must make substantial spending cuts from the budget. That will be a good start to lowering the debt but, the cuts alone will not be enough. We must also raise revenues that come into the Federal Government. Some say we...
by safiq ali patel 5 years ago
From January 1st 2013 Taxes in the United States of America go upwards. People in the United States of America will pay higher taxes from this day. What is your opinion of these Tax Rises?
by taburkett 6 years ago
The current tax code is detestible.Herman Cain recently introduced the 999 plan.Other politicians have introduced many plans previously.We have gotten nothing from the self-serving politicians.Do you believe we need a solid citizen centered plan?A plan has been formulated called the TRUE TAX that...
by Paul Swendson 8 years ago
I'm no economics expert, but I've noticed that people from all sides of the political spectrum don't like the American tax code. Republicans always want to cut taxes, and Democrats want to close loopholes.It also seems to me that taxes on both businesses and individuals could be lowered if the...
by GA Anderson 2 years ago
Much is heard of a demand that corporations and the wealthy pay their "fair share" of taxes, but I have heard little of what that share should be.With only a single restriction; that the discussion is about legal tax actions, what should that "fair share" be?One could say that...
by SparklingJewel 6 years ago
I don't claim to be a big financial, economics know it all (how could anyone, frankly, but the link here is a conservative version of the current presidents tax creation scenario for next yearcan anyone that monitors similar information from the liberals post a comparison for us all to learn...
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