We see three compelling reasons for dismantling the IRS and replacing the tax code with a national sales tax system. The first reasons is intrusion of the collecting body (IRS) on the freedom of the average citizen.
Even if the IRS employees have lived by the spirit of the law (assuming that the law is fair) the way the system is designed does not yield itself to justice. People will owe back taxes to the IRS. IRS will issue bank levies, wage garnishment, and seize assets.
The system basically entice the citizens and then punish them for falling into temptation. The system is voluntary in reporting even though they will punish you if you don’t file and if you file the wrong numbers.
It is voluntary to the extent that the original numbers you put on your tax returns are yours. They remain your unless you are visited by a tax audit. The system cannot rely on a human self discipline. To that extent we need discipline. Some of us are disciplined and some are not. To destroy a human being’s life because he or she fell prey to the erroneously designed system is not justice.
If we can collect the same amount of taxes without hurting either the citizens or the treasury of the United States why not do it. If the Gross Domestic Products is say fifteen trillion dollars, then a fifteen percent national sales tax is sufficient to provide about two and half trillion dollars which should be enough for the government budget including some waste. This should address the second concern about the ability to collect enough taxes to meet the government budget.
The third concern is the regressiveness of the tax. A regressive tax is one that presumably discriminate against the poor. This can be corrected by giving rebates and credits to rectify any biasness against the poor.
This should eliminate the need for negotiated settlements with the IRS for their tax debt. No need for happy tax resolution such as the headache of an installment agreement and offer in compromise. The new life is free of bank levies wage garnishments and asset seizure. There will be no need for CPA’s or tax attorneys. They can keep busily doing something else other than negotiating IRS settlements and have crying people wear our T-shirts.
Similar Posts:
- Tax Problems Associated With Our Tax System
- Tax Help Offered By Retirement Plans
- Is IVA Company The Right Choice For Settling Your Debts?
- EU Bank Stress Tests to Show 15 Banks Need Cash
- Canadian Finance Minister Reproves IRS
