Friday, January 27, 2012

fair taxes

In his State of the Union speech the other night, President Obama called for "fair taxes."  Everyone should pay their "fair share." 

I agree (one of the few things with which I agree with him about, finding pretty much everything he said to be a bunch of rally around the flag fluff with no substance to it, sidestepping all of the things mentioned in the republican rebuttal), but just exactly how do you define "fair share?" 

Because everyone's idea of "fair share" is going to be different and essentially it boils down to what is fair for them and to heck with everyone else. 

Me, I think everyone should pay a flat percentage of their income, with no deductions whatsoever. Of course if they did that, said no DEDUCTIONS, then you'd have all the weasels who make our tax laws redefining the word "INCOME" and you'd just wind up with the same mess you have now. 

Without delving too deeply into semantics, my plan would be for income, and the definition of income being in the broadest sense, to be taxed at one rate for everyone, regardless of their income level. And there would be nothing allowed as a deduction.  

Now homeowners might applaud this but add that this is a great plan as long as the deduction for mortgage interest is retained.  That's the problem - there's way too many exceptions and that is why this country is in a mess. 

Should we have a graduated/progressive tax system?  That is, those with lower incomes pay a smaller percentage of their income for taxes (or maybe below a certain level pay no tax at all), while those with higher incomes are taxed at higher rates?

No.

Everyone pays the same rates. Why should I pay a higher percentage of my income for taxes just because I make more money than someone else? What is fair about that?  And just because you make less income, why shouldn't you pay your fair share?  Maybe doing something like that would have the effect of people investing themselves more in this country because they knew that they were paying taxes just like anyone else and they would be concerned about how that money was spent. 

Sales taxes aren't progressive. Why don't we have different rates of sales taxes for people depending on their income level? They can be certified each year as to their level, and then that card would be presented at the store to determine the tax rate. 

That's dopey and so is a progressive income tax rate. Just pay a flat percentage - you make more money, you pay more money but person A would pay he same proportion of it as did person B.

If you aren't paying taxes, then why should you care about how the money is spent (although the tax money that other people are paying is probably being used to subsidize you, the non-tax paying person in some way)? So as far as you are concerned, politicians can just keep spending away - who cares?  It's not YOUR money they are spending.

Will we ever get to that point of having truly fair taxes?  Of having a simple tax system?


No.


There are just too many special interest groups and bribes out there to prevent such a common sense thing from happening, same as how the health care system will never really be reformed. People want change as long as the change is favorable to them.

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