A lot of people are getting fired up talking about significant income tax reform. Everyday there is someone posting on Twitter about income tax being unconstitutional or that the founders would be rolling in their graves about it. While that may be a fair point, no one seems to offer a viable solution.
It would be nice to have a more transparent tax system that is easier for individuals and businesses to comply with. That’s where the fair tax and flat tax supporters start their argument. However, neither of these taxes would get a broad base of support when most taxpayers realized they would be paying significantly more than they are now under our convoluted system of deductions, credits, and income exemptions.
The truth is, everyone would like the total tax burden to be lower than it is now. However, they don’t want to give up any government spending programs to achieve this reality. That fact has made it almost politically impossible for any politician to be elected with a platform based in reality. Everybody wants to go to heaven, but no one wants to die to get there.
It’s going to take a national awakening and a big shot of reality to restore fiscal balance to our current system. There really are only two options to choose from: less government support and lower taxes or continued mass welfare programs and acceptance of significantly higher taxes to fund those programs.
So are we hooked on government programs like a crazed addict or can we have an honest discussion about the necessary functions of government and be willing to cut anything that doesn’t fit that definition? I don’t think we can cut enough to make a significant difference without cutting something that hits too close to home for most taxpayers.
I think we need to prepare for significantly higher tax rates in the future just to support the program levels we currently have, and increasing tax rates as the government continues to bloat. Then we need to figure out the rules of the bloating system and figure out how we can get our piece of the taxes back through programs that are increasingly applying to much of the middle class. Big brother wants to hold your hand, and he’ll push you down just to prove you need that hand.
- Tax overhaul should begin with (second) home-related tax breaks (dontmesswithtaxes.typepad.com)
- Tax policy for late sleepers (rothcpa.com)