Reinvent the Tax Code
With the fiscal cliff looming and tax hikes on the inevitable rise it would seem that the most rational solution would be to revise the tax code rather than raise taxes. Now policymakers are trying to decide on whether or not they should extend 100% of the tax cuts or only 98% for a majority of Americans.
As a result of the fall elections President Obama has been insistent that we should raise taxes on the wealthiest of the American population, or those making $250,000 dollars a year or more. Republicans are completely soured by the idea of breaking their precious “no new tax” pledge to Grover Norquist. Republicans are stuck on the idea that if the wealthy pay a dime more in taxes then they have to they will stall the economy, lay off their employees, and screw the American people over in any way they can. They insist that taking away entitlements from the middle class and poor is the only way to fix this mess…even though the rich pay lower taxes than the middle class and poor and could easily afford it.
Nobody, I mean nobody, Republican or Democrat, is talking about reforming the tax code to make it fairer to the population. I mean a lot of the wealthy exploit loopholes in taxes to negate paying their fair share. This would only seem fair as the tax code is rigged so that only the very wealthiest can take full advantage of the loopholes.
Tax reform is a great option. But with a tax serviced based economy and the entire branch of the IRS being dependent on a complex tax code
Is this the right approach?
There was an attempt to fix all of these loopholes and deductions by implementing the 1986 Tax Reform Act. This act was passed in good faith but it didn’t work. Eventually the tax loopholes and deductions slowly crept in as lobbyists made their way to Capital Hill.
So what if we fixed the tax code by closing loopholes and eliminating deductions we could lower tax rates on the different income brackets. Also we would have a simpler tax code that will make taxes easier to understand and simpler to pay. Also this may encourage businesses to engage in better corporate behavior as they won’t have an incentive to exploit the tax code for their own gain. This will also lead to an overall sense of fairness amongst all individuals.
Wouldn’t this simple solution bypass all of the nagging and stonewalling in congress and make everything a bit easier for all of us? I sure would enjoy it. Wouldn’t you?
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, federal tax, fiscal cliff, income tax, tax code, tax law, tax reform
A gloomy outlook
With the fiscal cliff looming tax hikes on the wealthy are becoming more and more popular. One by one the Republican rank and file cower to the might hand of the popular vote until tax hikes on the wealthy become a reality. But what happens next?
Tax hikes will take into effect on the wealthiest of Americans and as a result they will no longer be interested in making money. They will sell all of their goods and assets and give up their wine and caviar. Their fancy cars, houses, and boats will be sold for pennies on the dollar to avoid paying any more taxes. The servants, errand boys, pool boys, and yes men of the wealthy will find themselves unemployed. All of the brands that you love will no longer be produced because taxes are too high for the wealthy to want to become independently wealthy. The once elite will now fall into the ranks of the blurred anonymity that is society. No one will prosper and we will all wallow in our demise. Because their is no incentive to make money the economy will stagnate and unemployment will skyrocket. We will truly follow the way of Greece. The political framework will slowly collapse as political supplemental incomes will dry up to nothing. Populations will explode because there are no wars to keep them under control. The world as we know it will end. Paris Hilton and Justin Beiber will be left to begging for their meals. All because now the wealthy have to pay taxes equal to 98% of the world. Hard to believe? I think so.
Taxes will rise on the wealthy and the world will still go around. Nothing will change except the balance of power may be shifted a bit more in the common man’s favor. If you are ignorant to believe that by asking the rich to pay their fair share the world will end you have been drinking too much kool aid.
Categories: Federal Tax, Income Tax, Tax Law Tags: federal income tax, fiscal cliff, income tax, republican, Republican Tax, tax code, tax reform
Republican Crash
The election message should have rang out loud and clear to top ranking Republicans that the American people would much rather prefer to let the wealthy make a sacrifice this time around to divert falling off the fiscal cliff…seeing as how we have one of the largest income gaps in US history. President Obama hears this message loud and clear and he will be darned if he gives them an inch on what the American people want. Now the GOP facing the blame game for this issue and beyond must walk on eggshells to determine the best way to avert a whitewash of their party and a political comeback for the forthcoming elections.
Now it seems as if the republicans are backed into a corner left to the will of Mr. Obama trying to save face under the public eye while trying to fight for tax cuts for their constituency. Mr. Boehner has felt his ranks falling out from under him as rationality takes over conformity. It seems as if the only chance the Republicans have to recoup their losses is give up on the tax hikes for the wealthy and try to look amiable when entitlements are on the table without looking like the bad guy…which is quite a tough sell since they are rallying against the popular vote.
One by one the rank and file slowly fall out of line and realign with the American People. Bob Corker, a Tennessee Senator just recently made his case on Fox News that these tax cuts will allow for congress to ” shifts to entitlements and maybe it puts us in a place where we actually can do something that really saves the nation.”
Is this just wishful thinking on the Republican’s part? Now with Republican’s on the run maybe Mr. Obama won’t back down on entitlements needed so desperately by the middle class. Maybe, just maybe, he will turn his laser focus on trimming the bloated defense budget that has been growing for too long. Maybe with his newfound power he will finally revise the tax system further refining the tax brackets for the wealthy. The Republicans hope that this small sacrifice will make them stronger in the long run but I say that Grover and all of the anti tax Republicans will take note of this fact and the party will hurt as a result. F
But what of the Republicans threats of raising the tax on the wealthy will only lead to economic demise and the fall of the great United States? Well with the rich paying their fair share we will finally see the reality of this statement. If raising taxes on the wealthy doesn’t hurt growth or small businesses..what argument will the Republicans have to stand on. Even their own party is beginning to question the very foundation the Republicans sit on. Because we all didn’t fall in line with the Romney vision of servitude does that mean that the core principles of the Republican party are at stake. Only time will tell.
Categories: Federal Tax, Income Tax Tags: buffet rule, federal income tax, federal tax, republican, Republican Tax, tax code, tax reform