I shouldn't be, but I am. Word started leaking out that the President's Tax Reform Panel will offer suggestions that merely tinker with the current code. More of the same.
I'm shocked because the Panel didn't do what the President specifically asked them to do:
1. The proposal should simplify the Federal tax code so as to reduce the costs of tax compliance.
2. The proposal should promote home ownership and charitable giving.
3. The proposal should promote economic growth, job creation and encourage individual saving and investment while strengthening the competitiveness of the US in the global economy.
And I'm amazed that I actually expected that they would follow Bush's mandates. What was I thinking?
The Panel has not addressed any of these mandates. Not one. Basically the Panel suggeses "business and usual" with just a few minor adjustments. I shouldn't be surprised because the co-chairs are current or former Congressment. I'm so disappointed and annoyed, that I won't even name them. And that one is a Floridian is just downright infuriating.
1. A tax increase for the owners of more expensive homes. Right now home owners are allowed to deduct the interest on the principal balance of home loans up to one million dollars. The panel apparently will recommend that this deduction limit be lowered, perhaps to $350,000. This would mean that taxpayers with loans on more expensive homes will be hit with a tax increase. Admittedly, this reform proposal will resonate with a good many Americans who wallow in wealth envy, so we’ll give the panel some credit for carrying the banner of class warfare.
I have no problem with taxing another group of people. I'm a middle American in the middle tax bracket. We pay what the upper brackets (who pays far more than anyone else) and the lower brackets (who generally pay little or nothing) don't. What is wrong with everyone paying the exact same rate in taxes?
2. To require businesses to pay taxes on a portion of the cost of any health insurance or health care benefits provided to employees. Right now employer can deduct those costs. The panel wants to put a limit on what can be deducted. Result? A tax increase for businesses.
And who pays taxes? Not businesses. If you think that, you go to the back of the class. All business expenses are passed on to the consumer. You pay it in the form of higher prices.
3. The panel proposes to spend the tax money gained from these two tax increases to cover the cost of eliminating the hated Alternative Minimum Tax.
I have no problem with getting rid of the AMT. The main reason? I don't benefit from it and I pay higher taxes because of the millions who do. Joe Sixpack doesn't make enough money to get a refund, but through the generousity of Uncle Sam, he gets to use the AMT and voila! he gets a tax refund. My other half used to benefit from this prior to meeting and marrying me. Because we file jointly, he no longer qualified.
Did you know that the costs of complying with the current Tax Code costs somewhere between $300-500 billion each year? That's just to comply with the Code, let alone paying "your fair share".
Did you know there is a way to eliminate the costs of compliance? Did you know there is a way to completely eliminate the tax burden on the poor? Did you know that you currently pay about 22% in hidden taxes? Did you know there is a bill in Congress right now that will eliminate the income tax, give you back in every paycheck what you now pay in FICA and withholding taxes? Did you know under this bill everyone will pay the same tax rate? Did you know that under this bill you will not have to file a tax return every year?
This bill was introduced into Congress as HR25 and S25. It's known as The FairTax bill and it will work. However, it doesn't stand much chance of making it through Congress because it would give you, the American citizen something that Congress doesn't want you to have: Freedom of Choice.
Even more than giving you Freedom of Choice, it would take away from Congress the ability to take money from you. You see, right now, Congress can pass a bill to raise taxes. It may sound as if the "evil" rich or "big bad" business will have to pay more in taxes than you or me. But, who really pays those taxes? As I said before, businesses don't pay taxes, their tax liability is passed on to their consumers. That's why you pay higher prices for gasoline, food, medicine, housing, clothing, electronic devices, cars, electricity, power, lights, phone services, and cable just to name a few. There is nothing that I can think of that the price isn't effected by taxes. And who do you think owns thoses businesses? Well, it aint the poor. Do you think the "evil" rich will pay those taxes? Hell, no! They pass it off to you and me in the form of higher prices.
Congress wants to keep all of us virtual slaves to taxes. The only way to stop this is to pass HR25 S25. This bill is actually scheduled to be voted on sometime during the spring of 2006. That means that in 2007 we will no longer have FICA and Withholding taken from our paychecks. We will never again have to file an income tax refund after 2007 (yeah, I understand, we will have to file on income received in 2006, but that would be the last time.
Everyone I talk to says, this is a great idea! Why can't it pass? Well, as I said, Congress doesn't want to give up the power the ability to take you money and spend it the way they want to. So you have to become an activist and let your congressman or woman know that you want your money! That you are their boss and that unless they do as you want, your vote will go to someone else. You have to let them know, time and time again that your vote is for sale, or that you are their boss and you are interviewing for a replacement. Do they want to continue in their current position or do they have another position in mind?
It's up to you, my fellow Americans. Will we succeed in the Second American Revolution?
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