The Current Tax System and The Cry for a Tax Relief

No one complaints that they are paying too little tax except for Warren Buffet. Even Buffet would never say that he is paying too little tax if he were to be taxed on his deferred gains. The poor definitely are not complaining that they are paying too little tax. To be sure we pay taxes because we must. But do we have to pay taxes the way it is imposed on us? The answer is no. What we need are two things. We need courage and imagination. 

But the basic question is why do we need to do away with our current tax system. There are several good reasons to trash our system. The first reason is what we pay. We pay too much taxes. Even at 20% tax rate which some are billing to us as dramatic, is too high a rate. The rate is pegged to our social, political and economic policy., That is to say the high rate is hopelessly high because of the default legacy of inevitability that what we do has to be done and cannot receive a makeover. 

We have a military budget pegged at certain level because we think the Lower level jeopardizes our security. Welfare, unemployment and other social benefits are determined by the fear that people would suffer and we will endure an untenable social dislocation. The same thing goes for Medicare. 

Let us tinker with some of the ideas for a change. How about cutting military budget by fifty per cent immediately to three hundred billion. That will make our military spending three times that of China. As for Medicare can we remove the people who don't need the system totally from the system? 

Why would people who can easily afford to pay their private insurance be on Medicare. If a guy can afford to pay three thousand dollars a month out of a retirement income of fifteen thousand per month for his health insurance, why subsidize that guy? 

The same goes for Social Security. The system was originally invented for the poor or the middle class, at best. Why would I give Social Security benefit for a guy retiring with five million dollars in his account? Why do I give Social Security to the guy of  fifteen thousand dollars of monthly retirement. Why when we need desperately to pay our debt. 

Social security should be for the people who have only Social Security income and possibly if we want to be generous, for people who have up to an additional five thousand dollars a month of retirement income. That is eight thousand dollars of monthly retirement income between Social Security benefits and private retirement. We would love to give more if we have it. But we are borrowing it. 

We need to continue to talk about the current system and the other tax problems it creates in the life of the citizens such as IRS collection actions and the desperate clamor for tax resolution or tax help that do not come cheap anyway. 

IRS tax attorneys or CPA's charge substantial amounts that adds to the cost of administering the tax collections including the defense of IRS audits and audit appeals, tax resolution cost for IRS levy, tax liens and others. It is hard to live with back taxes and tax debt. The new system will provide tax relief from all that intrusive and painful.