Federal Revenue Options

Many American citizens, including myself, are concerned about where our country is heading in regards to the budget deficit and our every encroaching increase in spending. In Washington D.C., our elected representatives appear to have a standoff with ideological solutions. They do not truly desire a real remedy, or they are so out of touch with the reality of the majority of citizens, that they are unable to see the answer. Usually, and more likely, they are consumed with the desire to take that compromising middle ground rather than to think out-of-the-box, for fear of not being re-elected, which is not necessarily a bad thing if we, the electorate, keep pushing reform.

Some of us, the American voters, should feel ashamed for allowing this for far too many decades. My proposition, regardless of your political persuasion, is to think out-of-the-box for them. Persuade, by any means, your locally elected representatives of your dissatisfaction. Give them ideas along with your opinions. Instill in them your perseverance. If necessary, work against their re-election or for their opposition and inform them of this intent.

Grassroots efforts can insist on change with details. We are not stupid and do not need professional politicians to befuddle the legislative records with unenforceable legislation like the Health Care Bill. Let us take our individual ideas to them and make them thrash them out within the legislative process, or vote them out. Simple! It is just that simple.

Okay, the flat tax idea verses the fair tax. Both sound really good. As I talk with those around me, in real time and on the virtual plain, both are good plans, yet everybody has different opinions and ideals about each plan. There is nothing in print or proposed with any finality for voting on in the legislature. Why? Because none of our elected representatives are wishing to risk their career (political career) to sponsor, let alone write one.

First, let us investigate the Flat Tax. Many think that 10% of everyone’s income, no exceptions, as income tax to be paid to the federal governments coffers. Sounds really good and fair. Okay, I agree that this sounds good. Now, let us define the word income. Is this earned income, or are we including all monetary funds that are being paid into a family's coffers? If so, then that would include SS benefits for all (including dependent children). Should we also include counting a family's food stamp or assistance benefits? What about any one-time utilities aide? I guess that we should also included government grant funds, alimony or child support collected. In addition, there is capitol gains, interest and dividend income. Should we also then include charitable assistance? I say yes! If we exempt one item, than other special interest groups, in Washington, will add their own.

Now, let us discuss the Fair Tax, a consumption tax on final end sales of tangible products. This would be more desirable, in my opinion, as it would do away with the bureaucratic expense of the IRS. For all items purchased the retailer would collect the tax, pay their individual state, and the state would remit the federal portion to the federal government. Easy right. Well, let us say, it would at least make those that are working under the table, or better yet, those illegally collecting money, pay their fair share. How, you might ask! Well, even the drug runner, or illegal coyote, will spend those illegally collected funds and hence pay a tax. It might definitely help with clearing up much of the money laundering crimes. Do away with sales tax exempt organizations. Now, everybody pays their fair share and we do not have the complicated task of defining classifications of what is or is not income.

I am sure there will be those geniuses that will find a way around a Fair or Flat Tax. Yet, with the collection duties falling within the scope of the state or local officials, rather than a federal agency, it is more likely to be easily enforceable. There are always drawbacks or unintended consequences to all legislation, but allowing those unintended consequences of badly drawn statutes, of the past, to continue to deplete the resources of our exceptional citizenry is unacceptable.

Let us Reform American Now! Let your voice be heard and do not let any politician tell you that you do not understand how it works. I am tired of being told or talked down to by the elite Washington professional politicians.