April 15 is a day to reflect on our tax system. So here’s an anecdote that should give us pause:
The commissioner of the Internal Revenue Service, Douglas Shulman, said on a 2010 C-Span Newsmakers program that he uses a tax preparer on his returns. “I’ve used one for years,” said Shulman. “I find it convenient. I find the tax code complex so I use a preparer.”
Some people might find this amusing and even maddening. But this is par for the course. This is why we need to abolish the Internal Revenue Service entirely, which can be done easily, with one simple piece of legislation.
The tax code is a monster. It is now more than 60,000 pages and 9 million words. It did not even exist 100 years ago. Nobody can understand it, not even the commissioner of the IRS. Tax forms are nothing but nonsense – if this figure is less than that, add in the column Y total from sheet X and subtract 60% of the number in Line 88…. It is a nightmare. So why should every American be subject to it?
They should not. We need genuine tax simplification like a National Sales Tax (NST), also called the Fair Tax.
But Democrats will fight NST every step of the way because they like to use the IRS to harass the citizenry, harm political opponents, instill fear of the government, and employ tens of thousands of bureaucrats.
The current tax system is like a door with 10 locks, with the government controlling all the keys. Conservatives want to use NST to simply open the door to total tax simplification. But Democrats fear simplification because they would lose their power through the IRS. And because they know NST will actually work and will show them for who they are.
This current tax collection system costs huge amounts of time and money just for tax preparation itself. According to the Heritage Foundation in 2007, based on figures from The Tax Foundation, “All taxpayers, not just small businesses, face rising compliance costs. Americans spent billions of hours and an estimated $279 billion filling out their federal income taxes last year alone.”
$279 billion! Not in taxes but just to pay the preparers, accountants and lawyers and for taxpayer time! In other words, it costs you more and more money just to pay more and more in taxes. Imagine what $279 billion could do to spur economic growth if it were directed toward investment in new businesses rather than to lawyers and accountants and in your personal time.
Said The Tax Foundation:
‘The full cost a tax system is more than the amount of tax paid. It also includes the cost of tax planning and paperwork. Economists call these “tax compliance” costs, and the IRS estimates Americans spend 6.6 billion hours per year filling out tax forms—including 1.6 billion hours on the 1040 form alone. In 2002 Americans spent roughly $194 billion dollars on tax compliance. That amounts to 20 cents of compliance cost for every dollar collected by the tax system.‘
20%! So not only is so-called tax compliance a monetary cost, but a huge expense in wasted time and productivity, and months of anxiety for millions of Americans. Then the same Democrats who have entrenched this awful system talk about how America needs more jobs and more growth. Which we easily could have if we were not wasting all that time and money just to prepare our tax returns, and paying all that wealth to the government instead of keeping it in the private economy to create new wealth.
The National Sales Tax is so simple that Democrats literally fear it. Because liberals always fear simplicity. They embrace complexity to bamboozle, confuse, intimidate and imprison the people.
NST would free Americans from the tyranny of the current tax code which liberals now use to fund all their programs and employ millions of underworked, overpaid government bureaucrats, most of whom vote Democrat.
NST would be a federal sales tax on every product and service, like a state sales tax. NST must be implemented across the board, no exceptions, no government tinkering with every detail, no waivers. Everybody would pay the same tax on every product and service. It would work like this:
A) The Internal Revenue Service would be abolished, along with its $11 billion annual budget. This would help reduce our budget deficit.
B) No more payments would need to be made to the nonexistent IRS and the tax code would be scrapped. No more April 15 deadline. No more forms to fill out, no 1040, 1099, W-2 etc. All federal taxes would be collected through the NST. In other words, you would pay a part of your federal tax automatically every time you made a purchase, like a state sales tax.
C) The $279 billion annual savings for tax preparation would be a huge boost to the economy, as well as all the time and energy saved.
D) All goods and services should be treated equally. Let’s say that the National Sales Tax rate was set hypothetically at 8%. That means that a can of soup would be taxed 8%. Car repair would be taxed 8%. Yachts would be taxed 8%. Roofing shingles would be taxed 8%. Paper towels would be taxed 8%. Bread would be taxed 8%. Computers would be taxed 8%. Lawyer fees would be taxed 8%. Haircuts would be taxed 8%. And on and on. No exceptions. Because the moment you start to make exceptions for this and that, it becomes a spoils system like the current tax code.
E) Therefore all people who pay for goods and services would pay the taxes. The more you buy, the more you pay. Even the poor would have to pay a small amount in federal taxes. Today they don’t pay anything, which is unfair to those who do pay. Everyone should contribute something.
What could be simpler. Another advantage is that people could not evade their taxes. They would be forced to pay with every purchase. This in itself would be a huge bonanza for the government.
It is truly time to scrap the current tax system as part of the clean sweep that is going to remove Obama and the Democrats from office in the next few years.
Abolish the Internal Revenue Service!
Please visit my website at www.nikitas3.com for more. You can read excerpts from my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.