Flat Tax, It Could Work!
By Carl Hampton
With great expectations for the coming year, I have begun
thinking about that great annual past time, the dreaded Tax
Return!
Like so many other good citizens from this great country of
ours, I will leave it to the very last moment to mail off this
year’s tax return. Last year I promised myself that this year
would be different. I would make a conscious effort to get them
off before that last minute rush.
In this day and age, is this really the best system our great
and wonderful leaders can come up with? After all, we now live
in a world that allows a satellite, miles above us, to read a
licence plate. We can get the worldwide web on our cell phone;
download TV programs that we may have missed (or just want to
save onto our iPods).
Our original tax laws were introduced in 1913; they were simple
and very easy to understand. We had tax brackets ranging from 1
to 7 percent; a far cry from today’s levels. The IRS tax
codes, regulations, and guidelines, now have well over 9
million words! It's no wonder there's so much confusion. Is
there anyone out there who really understands this monster?
Let’s put this into some form of perspective:
The Declaration of Independence has a little more than 1300
words, The Constitution, which has served us well for more than
200 years, comes in around 5000 words and The Holy Bible makes do with less than 800,000 words.
The Office of Management & Budget estimated in 2004, that as a
nation we spent over $200 billion on compliance cost. At a time
when the nations manufacturing industries, (the foundation of
any good economy), are all struggling against cheaper imports,
shouldn’t our leaders be using that money to create “Jobs” for
their citizens? Most experts agree that $200 billion would
create well over 3 million jobs, which of course creates sales
of consumable goods, which creates more jobs, and sales taxes,
at the state level.
From the moment we wake up in the morning we are being hit by
taxes. Everyone wants some of our hard-earned money. Turn on
the lights (electricity taxes); run the shower (utility taxes);
and my personal favorite, the telephone taxes, all 6 million of
them, (that's what it seems to me every time I receive a
telephone bill). We are so programmed to paying them that we
really don't take any notice any more.
Has the time come for a simple Flat Rate Tax, something we (the
people) can ALL understand? There are many countries, all over
the world, who have used this simple-to-understand, and cost
effective way, of collecting taxes to revitalize their
economies. Let's just imagine for a moment: what would it be
like if we could complete our tax returns on one simple piece
of paper?
A Flat Rate Tax for individuals, and a Flat Rate Tax for
businesses. The same rules applying to all, regardless of the
size of income. All of us paying the same rate. Most of the
successful countries have levied Flat Rate Taxes of less than
17%, with a starting level that protects the lower income
groups.
Could life ever be that simple again? The real question here
is, would our leaders really want us to understand what they
were up to? And then, there are the lobbyists’. Oh well, the
daydream was nice while it lasted.
Benjamin Franklin once said “In this world nothing can be said
to be certain, except death and taxes.”
About the Author From “Your” Money Matters by Carl Hampton, the author of “From Credit Despair To Credit Millionaire.”
Visit Carl at www.CarlHampton.com.
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