The KISS Principle
Everybody knows the KISS Principle… Keep It Simple, Stupid.
I would like to see that applied to our federal income tax system. No, I’m not calling for the elimination of taxes… somebody has to pay the government bills (though, lowering taxes would be great! But that’s a topic for another discussion.)
I would like to see our tax system significantly SIMPLIFIED. It has become so complex, even the IRS will provide different answers to the same question posed to them… so how can us regular citizens be expected to understand it? In 2006, the Tax Code was about 17,000 pages and MILLIONS of words in length!
There is an entire industry that thrives in supporting those who pay for their expertise in understanding (and minimizing/avoiding) the rules and regulations that make up our taxation system. The usually charge very high rates for their services, so only those with big tax bills and deep pockets can afford them.
WHY is the tax code so complex?
The answer is simple: special interests. Certain factions have worked very hard to obtain special exemptions or deductions that will give them an economic advantage, either directly (perhaps a tax write-off of some kind) or indirectly (by encouraging/discouraging some behavior in the marketplace). And when one industry becomes favored over another, you can count on the disadvantaged one to respond with increased lobbying to gain back their edge.
In addition, the politicians use their influence to reinforce their power. The special interest groups must gain the support of politicians to get the tax advantages they want… and the politicians definitely like that power. This is why THEY don’t want to change the system… they would lose some power!
In the end, everyone (individuals and businesses) must spend time and effort (and money!) to ensure they prepare and file their tax returns correctly. We need to apply a large dose of KISS to the tax code. Here’s the very best alternative I have found:
This group has done comprehensive studies to arrive at their proposal. Their recommendations have been sponsored in Congress, too (HR 25, S 1025). Essentially, it would eliminate the federal income tax and replace it with a consumption-based tax (sales tax).
The sales tax approach works well for the majority of states, why not for the federal government, too? I like this because:
- Everyone would KNOW when they’re paying the tax… and exactly how much they were paying.
- It would be very difficult for the tax rate to be changed without EVERYONE knowing about it (whereas changing a tiny part of the current tax code can increase your taxes but go largely unseen… until it’s too late!).
- No need to prepare tax returns… that would be gone. Imagine the savings in time, effort, and money (estimated to be BILLIONS every year).
- Enforcement would be far simpler… only businesses that collect the tax need to be watched (just like current sales tax oversight) instead of having to watch over more than 100 million individuals.
- The “underground economy” would suddenly become exposed to taxes: those who fail to file their tax returns or are involved in illegal activities DO spend their money… and it would be taxed at that time!
The FairTax plan does not change the amount of taxes raised… it is revenue neutral (it doesn’t collect any more or any less than is being collected now)… it just changes the WAY it is collected.
Does this sound good to you? Do you have questions? Chances are, your question is answered in the FairTax FAQ (Frequently Asked Questions). You’ll be impressed with how sound this idea is! After you’re convinced, let your representatives know that you support the KISS form of taxing: the FairTax.
