Tax Problems Associated With Our Tax System

We said previously that our tax rates are high and our code reflects the power center's arrangements. Now, we discuss the complication of the code, the fairness issues and IRS collection practices that come with the territory. 

No one needs to explain how complicated the code is with thousands of pages and the annual changes and modifications. It takes the highly specialized knowledge of a CPA or an IRS tax attorney to navigate through the maze of forms and complications in order to provide the tax help that citizens need. 

An example of the complication is the alternative minimum tax system. It is almost a parallel system to the existing one. They figure the income tax under the regular system. Then, if you are a person who is making certain types of income, they scratch their heads and, humming, they decide that maybe we can find a way to get that person. 

Then they recalculate the income all over again and low and behold, now you owe some tax debt. The system was originally designed for the wealthy but now its tentacles are creating tax problems for the middle class. 

Now Mr. Obama, in his message of the state of the union, wants to have a thirty per cent minimum tax on people who make over a million dollars. That is another alternative minimum tax. 

So, we have the regular system, then alternative minimum tax, then Obama alternative minimum tax. If they cannot get you with the original system, then they have the alternative minimum tax. And here he comes, Obama has the third tier. Come on guys, this is a declaration of lack of vision. 

Politicians, lacking imagination, play with the code partly because of their inadequacy and partly to accommodate a certain constituency and thus by trial and error they keep changing. As though they administer lashes and then monitor. If it does not hurt maybe we can whip some more. A new tax system is in order indeed. One that eliminates political posturing to address the benefits of one group or another. The Democrats do it and the Republicans do it. It is about the personal political future of someone. It is not about the American people. 

We need an honest resolution to our economic problems including the elimination of the tax code and a new start with a system free from patronization, free from subjecting the future of the nation to the personal ambition of politicians who will do anything, tax code or otherwise, to get elected. We need a system free from IRS collection actions such as IRS levy, tax lien, property seizure, tax court and the temptation of violation that lands people in jail. 

We need a sales tax system, no end of year filing, no deadlines, no delinquent returns or back taxes, no IRS settlements such as installment agreement or offer in compromise. A system that will set the citizens of this country free from the tyranny and fear visited upon them as a result of the collection apparatus.