Wednesday, April 13, 2005

Magic Bullet to Fix Income Taxes and the Economy

Last night on ABC World News Tonight with Peter Jennings (April 12, 2005) there was a segment exposing the small amount of income taxes paid by corporations. By 2003 Corporations were only paying about 16 percent of all income taxes taken in by the U.S. federal government.

Specifically mentioned was Wachovia which saved 3 billion dollars by purchasing a sewer system (or something like that) in Germany then immediately leasing back the sewer system to Germany. The only purpose of the transaction was to reduce Wachovia's income tax burden.

What we have here is a complicated, unfair system in which corporations waste enormous time, money and resources just to reduce their income tax burden. At the same time, the naked truth is individual people pay most of the income tax to the government and corporations pay very little. All the effort corporations put into reducing their income tax burden is simply national productivity down the drain. It does nothing healthy or good for our country.

There is a simple magic bullet that can fix this problem: change the system to tax ONLY individuals and ONLY on gross income with no deductions and no loopholes. For example, change the system to tax individuals at a rate of 25% of their gross income over $40,000. No deductions for home ownership. No deductions for dependents. No loopholes for rich people. No unfairness at all anywhere in the system. And corporations can forget about income taxes and get back to the business of making better products leading to an improved economy and higher wages for all Americans.

The Economist reports that Russia discovered making income tax simple and fair increases both productivity and compliance, a win for both government and the people.

I've written about this idea for fair, simple income taxes here in this blog:
Magic Bullet to Fix Income Taxes and the Economy 1
Magic Bullet to Fix Income Taxes and the Economy 2
Magic Bullet to Fix Income Taxes and the Economy 3

3 Comments:

At 4/19/2005 06:58:00 PM, Anonymous Anonymous said...

people complain that evil corporations do not pay their fair share of taxes, without stopping to figure out where corporations get money to pay taxes. the truth is -- consumers pay all taxes. i say again, consumers pay all taxes, regardless of the method used to collect those taxes. It is simply not possible for anyone other than consumers to pay any tax! think about it. Why not, then, have the simplest system possible?

 
At 4/26/2005 12:51:00 PM, Blogger ~greg said...

The description under your blog mistates reality. Under Stalin, who was trying to build an atheist state, Russian suffered horrible repression and there were millions of deaths. See the writings of Alexandr Solzhenitsyn. I am not defending Christians and the history of death by them. Rather, I am merely trying to be a moral informer of the complexity of human life.
"If only it were all so simple! If only there were evil people somewhere insidiously commiting evil deeds and it were necessary only to separate them from the rest of us and destroy them. But the dividing line between good and evil cuts through the heart of every human being, and who is willing to destroy his own heart?" -- Alexandr Solzhenitsyn

 
At 4/26/2005 05:25:00 PM, Blogger David said...

Greg, I've heard that one before - "Stalin was a communist and communism is atheistic and therefore the evil Stalin perpetrated was atheistic evil." It's nonsense. Communism itself is really a religion. Like religion, communism's philosophy is based not on reason and logic but on some kind of twisted thinking, basically religious-like anti-reason. Like religion, communism does not tolerate dissent against its teaching as evidenced by Stalin's murder of eleven million Russians. A person living under a communist dictatorship is not allowed to offer logical arguments against the system or for improving the system; he will be jailed or executed. This has been true in every communist dictatorship and is still true in every communist dictatorship today.

Communist doctrine purports to be based on science and atheism but just because it says it doesn't make it so. People who believe in the power of crystals and other nonsense often say their beliefs are scientific. The truth is, communism is just another form of religion. If communism truly had any respect for science and reason then you wouldn't get killed or jailed for doubting it.

 

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