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Section A: General News


Editorial: Fair Tax: Why real/true tax reform is needed




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Guest Editorial
February 13, 2013 | 1,239 views | 9 comments

By Glen Terrell and Paul Livingston

We all know what taxes are, but what does tax reform mean? It means removing abuses, eliminating bad practices, and change for the better.

According to Wikipedia: “‘No taxation without representation’ is a slogan originating during the 1750s and 1760s that summarized a primary grievance of the British colonists in the Thirteen Colonies, which was one of the major causes of the American Revolution.”

Today our taxes are determined by elected representatives of the people, but it seems as though those elected representatives do not conduct the nation’s taxation affairs (or its spending affairs) with the best interests of their constituents in mind.

The matter of taxation was a huge concern as our Constitution was being written. In particular, our Constitution was written to prevent the tax system of tyrants, the direct taxation of income. Thus, our present form of taxation, the income tax, was expressly forbidden by the Constitution.

Article I, Section 9, Paragraph 4: “No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or Enumeration herein directed to be taken.” Perhaps unknowingly, the wisdom of our Founding Fathers was overridden with the passage of the 16th Amendment on Feb. 13, 1913.

According to Americans for Fair Taxation, “That 16th Amendment was simply worded, the tax return consisted of only one page, and the entire tax code itself consisted of only 14 pages.” At the ripe old age of 100, this cute baby in bath water has grown beyond 74,000 pages to become an ugly monster in sewer water. The most recent case in point was the fiscal cliff drama on stage in Washington, D.C.

The federal tax code drives jobs, companies, and capital out of our country. High business taxes have driven up the prices of U.S.-produced goods and services to the point they may no longer be competitive in the world markets. The exportation of our high taxes no longer works in today’s markets and we, the final consumer, pay over 22 cents per dollar in hidden taxes on goods and services produced in this country.

We have regressive taxes on jobs, called payroll taxes, which are paid by both the employer and the employee. Want less of something, tax it more; we have a 15.3 percent tax on jobs. It’s no wonder the number of jobs in the United States has decreased.

Tax lobbyists in Washington, D.C., outnumber elected officials 32 to 1. The tax code is used by politicians, lobbyists, and special interests to their advantage to gain tax breaks, reward their friends and campaign supporters, punish their opponents, and fund their pet projects.

As a nation we spend $450 billion per year to comply with income taxes. The IRS budget is $13 billion and it has 110,000 employees. An IRS study found code complexities alone lead to 16 percent noncompliance.

The underground economy, estimated to be $1 trillion to $1.5 trillion, goes untaxed. This makes no sense at all!

The present tax code punishes good behavior with taxes on incomes, savings, and investments and rewards bad behavior with tax deductions for debt.

We need real/true tax reform that complies with the principles of tax reform as developed by the American Institute of CPAs. The principles for tax reform call for a tax code that is fair, simple, and transparent, supports economic growth, and collects the same total revenues as the current tax system.

Our present tax code violates the first four of these principles, but there is a solution called the Fair Tax Bill. More about that next week.

This is the first in a series of articles about the FairTax Bill. Read more at www.fairtax.org.
 

Your Opinions and Comments

 
MyOpinion  
Floresville  
February 21, 2013 7:35am
 
I am all for cutting out a lot of this welfare and cut back on fraud.. for one, why are illegal aliens getting medicaid and big fat welfare checks? I don't understand that one.. I refuse to call them undocumented workers because ... More ›

 
MyOpinion  
Floresville  
February 21, 2013 7:32am
 
You can't just blame the President. What about all of the members of Congress who want tax cuts, just not in their back yard? They are all guilty, the Dems and Repubs.. Case in point,there are Republican Congressmen who get ... More ›

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
February 21, 2013 6:05am
 
Can't tell the difference between a Democrat and a Republican piglet. Both of them depend on government sow.

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
February 21, 2013 5:01am
 
The farmer does not fill up the slop trough unless the piglets are there to devour it.

 
Senior Citizen  
Wilson County  
February 20, 2013 2:58pm
 
Not blaming anybody, but just saying that this president refuses to cut spending and does not allow a choice. Vote sequestor -- or else.

 
Facts only please  
TX  
February 20, 2013 2:51pm
 
Senior, don't blame this on the president...how about those 174 GOP members voted in favor of the "Obamaquester" S 365 - Budget Control Act of 2011 - Voting Record Also, the 2 GOP senators too.

 
Senior Citizen  
Wilson County  
February 20, 2013 8:33am
 
Spending obviously must be cut -- something this president refuses to do. There are plenty of programs that are bloated or not needed, making a good starting point.

 
PRAIRIE GROUCH  
GRAND PRAIRIE TX  
February 20, 2013 5:24am
 
A "fair tax" that collects the same amount of revenue as the present system collects does nothing to pay down the national debt. It will not fix the entitlement mess. Either the benefits will have to be reduced ... More ›

 
Harold  
Equatorial Guinea, West Africa  
February 20, 2013 3:41am
 
Working overseas I see advertisements you will never see in the US, eastern European and Scandinavian countries are courting businesses with low corporate tax rates and relatively inexpensive skilled labor forces, Income tax ... More ›

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