The Top 7 Reasons (and One Promising Way) to Abolish the IRS for Good
Posted on January 30 2011 9:00 am
In the true spirit of the kind of bipartisanship that led members of Congress to “date” across the aisle for the State of the Union spectacle, we take a look now at an issue that SHOULD be bipartisan. After all, didn’t our Prez use part of his SOTU to argue for some type of reform of the tax system? Why, yes, he did:
“Over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change. So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years – without adding to the deficit.”
(I don’t think I’ve ever quoted the Anointed One in an article before. See, even I am feeling warm, fuzzy, civil, and bipartisan!)
Anyway, a reform such as he described would benefit not only business but us little guys filing individual returns, as well. While the pundits argue about how complicated all this would be to sort out, one interesting proposal deserves the highest consideration.
This proposal is very attractive due to its relative simplicity. Abolish the Internal Revenue Service. Shut it down. Close the doors. Unplug the phone. Send the whole stinkin’ IRS bureaucracy to its eternal reward (and something tells me that the IRS has earned a trip south, not north). Anyway – END IT.
Crazy, you say? Impossible? Well, legislation to do EXACTLY that is currently before Congress. H.R. 25 and S. 296 are the latest incarnations of the so-called FairTax. And here are the top 7 reasons to put the IRS out of its (our) misery for good – and I do mean FOR GOOD. For the good of our country and every single taxpayer and business in it.
A quick note, first. This truly can be a bipartisan issue, in the sense that it is not really about how the government is spending its money. Conservatives still need to battle to drastically cut spending and greatly reduce the size of government. But this proposal isn’t about that, per se. In fact, the FairTax is said to be “revenue neutral” with the present income and payroll tax system, meaning it would fund the federal budget at current levels. So what IS it about? It’s about how to collect the money the government would need – in a more fair, less intrusive way: A carefully crafted plan that shifts the tax burden from the earner to the consumer. In a nutshell: The FairTax people figure a 23% tax would do the trick (see their website for detailed and convincing explanations). Certainly, when you add up all the hidden tax you currently pay, it’s easy to see how any given individual would come out ahead.