Fran Freedle: It’s time for a fair tax
Every April as we hunker down to struggle through the tax maze, enduring the misery of the hopelessly complicated tax code, I wish we had a simple and fair flat tax.
The Internal Revenue Code is 3.8 million words, over 11,000 single spaced typed pages and one of the most complicated in the world.
Over two dozen countries have already adopted a single-rate flat tax system. Nearly all have tax rates below 20 percent; nearly all of these nations have experienced economic growth and lower unemployment rates after implementing a flat tax.
Instead of the hundreds of forms required by the IRS, the flat tax uses two simple postcards, one for families or individuals and one for business.
All we have to report is our labor income that we find on our W-2 forms. Then we subtract an allowance based on family size and the remainder is our taxable income based on a flat rate, anticipated to be 17 percent.
For businesses, the process is the same. Start with total revenue, subtract wage costs, input costs, related business expense and investment costs. The business pays tax based on the remaining amount, or revenue less expense.
More and more of our elected federal representatives are signing on in support of the flat tax bills HR 25 in the House of Representatives, S155 in the U.S. Senate now making it through Congress for the third time, but it is an uphill battle.
You can log on to http://www.popvox.com and express your support. Special Interests pay a lot to lobbyists to protect their tax treatment. Who knows, we may even displace a few Capitol Hill lobbyists, which I consider a good thing.
Special interests hate the flat tax because they will lose their unique loopholes, shelters or special preferences. All income is treated equally under the flat tax system.
Most Americans support tax reform because they have lost confidence in the IRS; the tax code has become too onerous and they basically want fairness for everyone.
The current system is riddled with corrupt provisions that, if removed, will create an equal playing field for everyone.
With a flat tax there are no preferences or special penalties based on income. Bottom line, the more income you have, the more you pay.
The tax is not regressive as those with less income will pay less.
The real benefits are the removal of the multitude of hidden taxes we pay for a product as it makes its way to the shelves for us to purchase.
We will be able to spend this money for products generating a boost to the economy.
This will be a win-win for most of us except the special interest groups that will bear the same tax burden as the rest of us, finally.
Fran Freedle lives in Grass Valley.
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