Take three steps back to go forward – The Commercial Appeal
The next step is to raise tax revenue. The best way to do this is to enact the “Fair Tax” and eliminate the federal income tax. This approach taxes the underground economy, whether it is from illegal aliens, drug dealers or people who barter their services. Everyone pays his or her fair share. Also, the Fair Tax would eliminate Internal Revenue Service employees for additional savings. Finally, a domestic (only) consumption tax will lower the cost of our goods on the international market. A temporary consumption surtax could also be enacted to pay off the debt. As the debt is paid off, the annual interest payment is lowered.
Tom Wheeler, Memphis, TN
Are you ready? Your taxes are due in two months. Good luck because as FairTax spokesman Denis Calabrese, said on FOX Business yesterday, “The current tax code is easy to cheat if you’re dishonest and it’s impossible to comply with if you’re honest. The IRS cannot literally tell you how to comply with its own code.”
Also consider: Our parents and grandparents have watched our nation grow, get buffeted, then come back to move forward once again. But would the past generation expect us to be dealing with the same, although ever expanding, embarrassment of a tax code today, in 2011, that started the 20th century? Would they have predicted that over 20 years after the Communist system in the USSR fell, Americans would still be submerged in a system that taxes our production? Or, that the IRS admits most citizens have to pay for tax assistance just to send their money to Washington?
Fair Tax will cure our ‘ruinous’ tax code – Alamogordo Daily News
There has been a great amount of discussion about the jobless rate, outsourcing of manufacturing jobs, lack of financing and shortages in state budgets from coast to coast. After all the back and forth, no one even mentions both the culprit and the answer to all of it… Industry is burdened with every conceivable tax our bureaucrats can dream up and they work at it constantly.
Taxing productivity and savings is counter-productive… Multiple billions are spent each year by the IRS and our tax system, stocking our treasury, when we should be using a system that is simple and painless. The Fair Tax will replace every dollar being collected by our ruinous tax code. It will remove the nightmare of the April 15 deadline, bring billions of dollars from offshore to our banks, billions that are presently hidden from the prying eyes of the IRS. It would relieve a too-heavy burden of taxes on all domestic industry and improve their competition with foreign manufacturing.
Don Omey, Alamogordo, NM
Slow-Growth U.S. Now Ripe for Consumption Tax: Kevin Hassett – Bloomberg
…Those who today decry the irrationality of the tax code and advocate fundamental reform are ignored by elected officials. Rather than a simple-to-understand code, politicians prefer the current mess, a tangle of exceptions that makes it easy to pass out favors without being noticed.
Just figuring out what you owe is so complicated that few Americans dare do their own taxes. Talk about busywork: In her annual report, the Internal Revenue Service’s national taxpayer advocate, Nina Olson, estimated that American taxpayers and their hired preparers spend 6.1 billion hours annually complying with the law. That’s equivalent to the hours of 3 million full- time workers.
What might we accomplish by dedicating the work of these hypothetical 3 million people to something more productive? Persistently slow growth has become the kind of problem that calls out for a big idea, one that can produce steady improvement, not just a short-term jolt. Moving toward a consumption tax would encourage investment in capital, potentially increasing future growth…
Chairman Camp Opening Statement: Hearing on Fundamental Tax Reform
Thursday, January 20, 2011
Washington, DC – Ways and Means Chairman Dave Camp (R-MI) today delivered opening remarks at the Committee on Ways and Means Hearing on Fundamental Tax Reform. Below are excerpts, followed by the full remarks.
The Tax Code
“Clearly, the tax code is too complex, too costly, and takes too much time to comply with. All this adds more burdens on families and employers – making it more difficult to create jobs in this country.
“I am under no illusion that the task before us will be easy. To really reform the tax code in a way that lowers the tax rate, broadens the base, and promotes the competitiveness of American companies, we will need to make some tough choices.”
Tax Reform Requires both Bipartisan Effort and a Conversation with American People
“I don’t think this can be, nor should it be, a partisan exercise. And it cannot happen just because one Chamber passes a bill. It will require the active participation of all Members of this Committee. It will require us to work with the Administration. And yes, we will even have to talk to the Senate.
“More importantly, we will talk to the American people – individuals, families, employers (large and small) – who are actually impacted by the laws we pass here in Washington.”
Read the rest of Camp’s statement at: http://waysandmeans.house.gov/News/DocumentSingle.aspx?DocumentID=220636
The tax code has changed 4,428 times in the last decade!
What is fundamental tax reform? It certainly is not merely tinkering with the rates and pruning the dead wood from old deductions. That exercise can more accurately be likened to rearranging the deck chairs on the Titanic.
Rather, fundamental tax reform is about changing the structure of the tax system so that the following adverse economic trends are addressed:
1. the crisis in SS & Medicare,
2. the trade deficit and the ongoing erosion of our manufacturing base,
3. the federal budget deficit, to the extent that slower economic growth is a major contributing factor,
4. our low personal savings rate, a source of concern for almost all serious economists,
5. the AMT
6. the ongoing spiral of increased complexity and higher and higher compliance costs
In addition to being exacerbated by the current tax system, all of these have one other thing in common – they are all unsustainable.