Tax Resolution for Our Current Tax System

We discussed previously the high tax rate of our tax system. We believe that our rate is driven by the economic and social allocation of our resources. Those in turn are propelled by political motives and the arrangements of power and pressure centers in our society. Our tax rate is high because we made our needs require a high tax rate. 

We found that we can have a tax resolution or tax help if we have both the imagination and the courage to implement honest, original and rational ideas. Basically, we need to cut everything that can be cut. We pass the savings to the taxpayer or in the interim period to pay down the national debt. 

We suggested that Medicare and Social Security benefits be cut for those who don't need those social benefits. We are even suggesting that care should be rationed for terminally ill or the very old. 

You don't want to do a two hundred thousand dollar surgery for a ninety-nine year old person who is not expected to live much longer anyway. Some may clamor that this is not humane. But ask them if they would pay for their parents such an amount if the parents are getting ready to die. We need honesty. 

These things will provide tax relief from high tax rates. But we need all the tax help that we can get. We must eliminate all the tax perks for all groups such as farm subsidies, mortgage interest deductions, child tax credits. Everyone should fend for himself. The only exceptions are the elderly who cannot work and the sick who need our help and do not have the resources. No healthy American body should be subsidized. This is a prelude and possibly a prerequisite of a new tax system. 

That system will abolish income tax as we know it. There will be only sales tax. No IRS anymore. No collection actions such as IRS levy, tax lien, wage garnishment and large sums paid to CPAs and IRS tax attorneys to prepare taxes and defend IRS audits and possibly additional expenses for audit appeals and tax courts. 

The state will collect the taxes on behalf of the federal government instead of the IRS. The rate should not be more than fifteen per cent. On a fifteen trillion dollar economy, the federal revenue should be about two and half trillion dollars, which equals what the IRS is currently collecting. But this collection is done without the need for aggressive actions that beg for tax relief. That amount of sales tax collection should afford us to pay our debt in ten years if we cut the federal expenditure by a trillion dollars annually. 

Again, let us start from zero. Determine the poverty line, the dignified life and leave the money to those who earn it and give the money only to those who need it. In general, national security (not foreign wars), the sick and the elderly should have priorities. 

Defense because it is meaningless to have wealth in a society that can be destroyed by an enemy. The sick and the elderly must have a priority if they have no other means because a society that does not care for the helpless should rank among the scoundrels and the wicked.