Taxes are a necessary evil to pay for another
necessary evil, government. Article I,
Sections seven and eight of our Constitution gives our representatives power to
“lay and collect Taxes, Duties, Imposts and Excises” to pay for the machination
of government. Machination may be a more
modern definition attributable to our government in the past one hundred, or
so, years. At the founding it may be
more suitable to say that taxes were needed to run government for the common
The Founders had no idea their grand scheme of limited
government would be so perverted over the years. We are now in a new age of “Taxation without
Representation”. There are some who say
the Sixteenth Amendment was never truly ratified and income tax is therefore
illegal. Don’t look to the government to
try to figure that one out.
But, if we are to have a federal income tax, why can’t
it be a fair, flat tax? No loopholes
that only provide employment for tax lawyers and accountants and confuse the
general population. Set the number, be
it one percent or ten of your income. If
you made twenty grand, you owe two (if the percentage is ten).
Since nearly half of American households pay no federal tax, this should bring more money to the federal government and level the playing field for us rank and file voting taxpayers. If we all have a stake in how Ameica’s money is spent, we may be more conscious of how we cast our votes. This isn’t being cruel to the poorer of us, it’s simply an idea to help make us more interested and involved in what’s happening.
Corporate taxation would need to be altered so the
owners and other bigwigs can’t claim they make nothing, yet get ‘bonuses’ of
more money than the regular folks will see in a lifetime. They need a set salary that has a paper
The tax rate scale can still be sliding, but the max
needs to be set at either ten percent (for argument’s sake) or a specified
monetary amount not to exceed ten percent.
The corporation’s tax burden is a tougher
situation. We need to encourage business
of all types, from mom and pop stores, internet commerce, service, to heavy
manufacturing. Each type has their own
particular needs and overhead. Machinery
needs to be obtained and maintained to make refrigerators and cars. Cost of this should be able to be written
off. The tax burden on corporations
can’t be so great that they find it to be cheaper to outsource their
manufacturing or service, thereby taking jobs away from able and willing
Outsourcing is a big can of worms in itself. Taxation, Unions, and environmental
regulations put such a burden on the corporations that it is actually cheaper
to make things in China and have them shipped back home to America than it is
to just build them here.
And when you call for tech support, can you understand
the person you’re talking with? They
usually have an Indian accent and we are required to keep asking, “What?” And those Indians that get those jobs are the
ones that have the best grasp of the English language. God bless ‘em for their help but I always
thank the American, on the rare occasion, for being understandable on the phone
when I call for help.
How does this relate to taxation? Partially because whatever wages an American
employer pays the American worker, money must be paid to the government in the
form of unemployment insurance, disability insurance and social security. Good causes, true, but if you were an
employer and found a cheaper way to do business, wouldn’t you take it?
Patriot or not, the goal of business is profit, and if
hiring Americans has been put out of reach by government regulation, you either
go out of business or find a cheaper way of staying in business. California is a good case in point. The liberal mindset of “woowoo-dom” dictates
that taxes need to be high so we can save the environment, save the whales, pay
for the uninsured and illegal aliens, or in P.C. terms, undocumented
immigrants, and breathe clean air and sip lattes while watching the beautiful
Wow, guess what happened with that idea? There are more people leaving California than
entering. And those folks who are
leaving are taking good jobs with them.
Even Hollywood has seen production move to Canada and elsewhere. Gosh, can ya wonder why? Why do the liberals refuse to remove their
Of course we all want a clean and sustainable
environment, but there must be a balance.
Killing American enterprise by taxing and “feeing” it to death is not
the answer. We’re Americans for crying
out loud. We can fix anything. Give the companies some wiggle room and
compromise and even tax breaks for coming up with leaner and “greener” ways of
doing things. If there’s a profit to be
made, an American will find the answer.
If it’s left to the government, there’s going to be nothing but
problems. The free market works if it’s
given a chance.
And how is it that an inanimate object (a corporation)
came to be taxed anyway? Does the
company have a social security number?
It’s understandable that the people who make up the company earn money
that is taxable, but where do you draw the line on taxing profits? Too little corporate taxation and the people
howl, as in the case of oil company profits being in the billions of
dollars. (Although the executives would
surely tell you that they pay more than their fair share of taxes.) An excess of corporate taxation and those
same oil companies will have no capital for research, development and
exploration. Gas prices would go so high
we’d probably be forced back to the horse and buggy days.
Corporations also donate to charity thus lowering
their tax burden. And that’s all a tax
loophole. Do they give for purely
humanistic and kind reasons? Maybe some
do, but really, if there’s a tax break to be had, then a company accountant is
going to find it.
Loopholes are great and an American way of life for
corporations and individuals, i.e., all taxpayers. Why were the laws written with such
exemptions? It has to be due to the
lobbyists/special interests and the politicians who are on their payrolls.
What if we stopped all loopholes? The onerous tax code will be replaced with
something that stated, “There is no more income tax. Taxation will now be based
on a sales tax of ten percent.
Everything that is purchased, publicly, will have a tax of ten percent.”
Not grand enough, to be sure. What about the corporations? Surely they need loopholes/write offs for
research and development and for the cost and wear and tear on their
machinery. These are the basic costs of
doing business. If the corporation had
to pay tax on all of its profits then there would be scant money left to
expand. It would become stagnant.
The tax code could read to the effect of, “Corporate
taxes are ten percent of monies earned after costs of machinery and facility
upgrade and maintenance; monies paid for employee disability and unemployment
insurance; interest on corporate loans.”
Such write offs would keep the tax attorneys, or at
least some of them, employed and have a better chance of winning government
And what about homeowners and other landowners? We’re taxing property, too. Does property earn a living? Or is it the property owner who earns a
living? And isn’t that property owner
already taxed on income? If he has a
job, he pays taxes. If his land
ownership generates income, he pays taxes.
Kill the property tax. The family
farm that has been passed down from generation to generation is being sold to
pay taxes. We’re killing our food
Subsidies to not grow or produce need to be
killed. Giving the producers a chance to
live, thrive, and grow needs to be encouraged, not stifled. Why are tax dollars being used to tell a
producer not to produce? Let the free
market dictate which commodity is useful and profitable. The producers will adapt and, given the
Our current underwater housing market needs a hand
up. Cut some taxes. Too many of us were given mortgages on a
feeling rather than a reality. Promoted
by the all-powerful and all- knowing government, of course. And those without Social Security numbers and
provable illegal aliens getting mortgages?
Really? And tax dollars going to
help them get the American dream?
The American dream is for Americans. You want part of that? Get in line and play by the rules and we’ll
welcome you with open arms.
Return to the Founder’s writings, i.e., the Constitution. Collect tariffs. We have a serious trade imbalance. Balance it…