Federal Income Taxes pt 2

I've thought about taxes lately. If you read my post from 2008 on taxes it'll help to understand how I think the tax system should work. So if a person makes the Federal Minimum wage of $7.25 / hour then he makes $15,080 / year. So 10% income tax would be $1,508. If you know that that will be your obligation to the government then instead of a payroll deduction in an amount that only GOD knows if it'll be enough, people can put that 10% in an interest bearing account with the financial institution of their choice and actually make money on their OWN money!

The money that people set aside to pay their taxes will then be used by the financial institution to make loans to businesses that then in turn can hire and pay employees that will then pay their 10% to the government. Not sure how this could be a bad thing. Because the interest is income you would still have to pay 10% on that as well. With a 12-month flexible CD account $1,508 won't increase much, but it will be an increase for the individual, not the government!

Businesses will still pay quarterly taxes, and would pay 10% on all revenue (just like individuals!) what a novel idea!

This means that after a couple of years the government would have a pretty good idea of how much money they have to budget. The next step would be to dump all the crap we keep spending money on in this country. Here's how you trim the budget. If it doesn't fall under the category of life, liberty, or the persuit of happiness. We shouldn't be wasting our money on it! Here's how it works. Defense = liberty, so we pay for it. Education = persuit of happiness, we pay for that too! FDA = life, we pay for that too (however I think we need to look inside to get rid of all the stupid stuff the FDA does.)

So there's this guy that had some TV commercials for a while where he wore a coat of question marks and he touted his book of thousands of grant programs that would give people free money for stupid stuff. Here's a novel idea uncle sam. GET THAT BOOK AND SHUT ALL THAT WASTFUL SPENDING OUT! could save the government MILLIONS of dollars EACH year. Think of how that could help our education system! Think of all the teachers throughout the United States that could hire to help our children become the best in the world!

Once you've got a handle on how much money the government would have to spend each year. Year to year if the revenue goes up then the economy improved! If it goes down then you trim the budget! Really if everything is paid for then the left overs could pay off our deficit! Or invest that additional money on short term projects like upgrading the ageing infrastructure in this country. The only way to invest in America is to quit giving the government all our money and keep it in circulation of average americans.

Federal Income Taxes

The federal income tax system is the most convoluted thing on the face of the earth. I don't believe that there is a single person that fully understands it. Most people can't figure their own taxes, and the wealthiest americans can afford to pay someone to make sure that they pay as little in taxes as possible. The wealthiest americans pay less than the poorest! It's insane! The IRS is this massive money sucking government entity.

Here's what I propose: First, abolish the current tax code in it's entirety. If the average citizen can't figure it out, then it's too complex and complicated. Making changes doesn't solve the problem it only makes it worse. The only way to have complete tax reform is the start with a clean slate.

Second, institute a flat tax of like 10% for all individuals and businesses. Everyone would be able to figure out their own taxes. What a novel idea! Set up a simple payroll deduction and April 15th would just be another day of the year! The best part of this is that low income famlies would get a tax beak and the wealthy would finally pay their fair share!

With a flat tax when the whole econemy grows so does the federal revenue. I realize that there would be many tax attorneys and tax accountants that would be out of a job, but if they can't find another way to make money then maybe it's time to retrain for a new career.

I'm not opposed to paying my fair share, I just wan't everyone else to do the same.