By Jeff Orvis
Ever had the thought that if you could
just stop time for an instant and fix things, life would be better?
If you had the power to stop killing, find a cure for deadly diseases
or perhaps go back in time and say some things to people who have
come and gone from your life, things would be better.
Each year at this time, I think these
things whenever I hear an ad on the radio for income tax preparation
or see an interview with a tax consultant on what to do to ease a
person's tax burden.There are even some misguided individuals who
advocate the end of the Internal Revenue Service completely.
I'm a proud, card-carrying liberal.
Many of us have been typecast as being in favor of taxes, as long as
it's others who pay them. We are also supposed to be in favor of
attorneys and accompanying lawsuits, as long as they are working for
us. So I guess I don't exactly fit the mold of what others believe
liberals are all about.
I am in favor of taxation and for more
than 35 years, I paid my share of state and federal taxes while in
the workforce. But even as I mailed off my tax returns and then
anxiously watched the return mail for the next couple of months for
that expected tax refund, I wondered what it would be like if I was
rich enough to hire lawyers and accountants to shield a lot of my
wealth from the government. Unfortunately, over the years, folks who
thought the way I did were elected to state and national office,
where it seems every year, they spend much of their time trying to
decide not only how to spend the tax money collected, but how to cut
taxes for some at the expense of others.
So I wonder what would happen if for
just one moment, we could stop time and start all over with how we
pay for the necessary services our government must provide. Yes, I am
talking about a flat tax with no deductions. Anyone in the workforce
making a minimum amount of money would pay the same percentage for
taxes. There would be no deductions for medical expenses, mortgage
payments, business losses, etc. If you made $500 in a week, the
government would get the first cut. If you owned a store and you sold
widgets, whatever those are, whatever profit you earned on the sale
would be taxed the same as a factory worker, school teacher or
corporate president. Although many members of Congress would like to
dispute this, I'll bet if we suddenly had this system, we would all
be amazed at what percentage we would all pay.
Many of us have had the dream of
winning a big prize in a lottery or other such contest, with the
thought that finally we might be able to help our less fortunate
friends or relatives. But as I understand the current tax system, you
are limited to how much you can give someone else before the
government will come collecting an additional tax. If you pay the
same percentage as if it was earned income when you first won the
prize, isn't requiring an additional payment when you make a gift to
someone double taxation?
Although I've made my case for equal
taxation, there are two groups that come to mind that I would exempt
from paying. Anyone on active duty in the armed forces should not
have to pay income taxes. And anyone in retirement should also be
exempt from income tax. Social Security payments should not be taxed.
And anyone who has invested some of their money they have earned
while working should not have any interest earnings taxed.
I realize that strict simplification
of the tax system might cut into the profits of thousands of
attorneys and accountants. We still need those people. I have had a
couple of occasions to have contact with attorneys in the past few
years and have been served well. And if I ever won the lottery, I
would want to hire a good accountant to help me spend my winnings
wisely. But I would still know that my winnings would be taxed
fairly, without anyone trying to find ways to shield any of my
winnings from government.
I am also not in favor of abolising
the IRS. The agency would be drastically cut if the tax code was
whittled down to a page or two. But there would still be need for a
strong enforcement branch to make this theory work.
So I guess that's my “If I ruled the
world” thought for today. Sometime I will entertain you on thoughts
on what it would be like if I had the power to stop violence. But
those theories are still a work in progress.
