If you listen to the Left and Right arguing over taxes it's quite funny. The Left thinks the rich need to pay a larger share and the Right thinks the Left can "go to hell." Many scream for a flat tax, but when this comes up there are always two problems: a) what percentage should the flat tax be? and b) what percentage of the poor should be exempt from it?
What seems to be over looked is the reason we are having these tax problems -- the fact that we are violating two primary tenets of the U.S. Constitution:
1. We are supposed to have a limited government.
2. Taxes are supposed to be uniform.
Article I, Section 8 of the Constitution states that "... all Duties, Imposts and Excises shall be uniform throughout the United States." The word "uniform" means everyone pays the SAME and no one escapes -- is exempted. This is the idea of a so-called "fair tax" -- everyone pays the same tax, apportioned throughout the states. So where does the Constitution mention an Income Tax or a Sales Tax, or an Employment Tax, or any other Tax? It doesn't specifically; it basically calls them Duties, Imposts and Excises. A Duty is a kind of tax often associated with customs, a tax on certain items purchased abroad. An Impost is a tax levied on imports, in essence a tariff and an Excise is a tax on the manufacture, sale, or consumption of particular items within a country, such as gasoline, liquor, cigarettes, airline tickets, tires or trucks. The Excise tax is usually included in the price of the item.
All of these taxes are uniform, because again everyone pays the same and no one escapes payment. The rates are not progressive in that they get higher or lower depending on whether you are rich or poor. The idea of making someone pay at a higher rate just because they happen to be richer, is not fair. Thus the games the rich play with deductions -- have to play -- are CAUSED by the fact that they have been charged unfair, unconstitutional rates, rates that progress ever higher as their income rises. A Constitutional tax requires no deductions or credits the rich must engage in in order to effectively counter their unfair higher tax rate.
This is the way the Founders meant things to be. No games. No endless accountings and 200,000 page tax code. The U.S. Constitution, which was ratified in 1789, gave the "central government" the power to "lay and collect taxes, duties, imposts and excises, pay the debts and provide for the common defense and general welfare of the United States."
So where does it say a "progressive tax" is authorized? Where is the WORD "progressive" even IN the U.S. Constitution? It isn't. Clearly a progressive tax rate, as we see in today's income tax, is totally and completely illegal. It simply is not authorized by the U.S. Constitution. So why do we have it? Simple, the government started spending beyond its means -- mostly on wars -- and had to come up with a way to raise more money.
This has morphed into the ridiculous tax code we have today, complete with endless deductions, tax credits, loopholes, rebates and refunds, exceptions, special privileges, subsidies, classifications, ad nausium. In other words:
THE U.S. TAX CODE HAS BEEN MADE SO COMPLEX AND LENGTHY IT IS IMPOSSIBLE FOR THE CITIZEN TO UNDERSTAND IT LET ALONE COMPLY WITH IT, THEREFORE HE IS FORCED TO OUT-SOURCE THE PREPARATION OF HIS TAX RETURNS TO TAX ATTORNEYS.
A tax attorney is an esquire of the State. This is why attorneys have the abbreviation Esq. after their name. This Esq. means they pretend to work for you, the "client," the "citizen," but in actuality they are agents of the State. They work for the State. And like any and all States, they too are mini blood-sucking parasites. Just like other attorneys (except for a small list of attorneys that are unusual), the tax attorney gets rich by contributing to the anti-Constitutional complexity of the tax law. The citizen, above a certain income level, is thus forced to hire them to fill out the very tax forms the attorney consulted the government in creating.
WHAT NEEDS TO HAPPEN; IS THE ENTIRE US TAX CODE SHOULD BE TOSSED OUT ALONG WITH THE IRS AND CONSTITUTIONAL TAXES REINSTATED.
This means we would have a uniform tax on goods being shipped into the $15 trillion U.S. market; a uniform tax on all final products at the RETAIL point of sale and a very small flat tax on personal income. And that's it. No other taxes. No income tax on corporations to suppress production, no tax on capital gains to suppress capital formation, no incredibly suppressive "Value Added Tax" on products at every stage of manufacture and no property taxes to pay for public schools.
It is totally unfair for people who have no kids, or who send their kids to private school or homeschool to have to pay for the forced-education of other kids. Property taxes and school taxes are government rape and pillage at its worst. Taxes on any kind of production, whether at the corporate level or the worker level are suppressive to a nation's general welfare.
People should be taxed on what they CONSUME -- not what they PRODUCE.