A Taxing Problem And A Simple Solution.

“Fight Against Stupidity And Bureaucracy”

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The Sunday Sermon

sermon

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Taxation is a perfect example of how the politicians and the bureaucrats have made things go haywire.

Such a monstrous collection of tax regulations has been accumulated over the years that even qualified accountants cannot properly decipher them.

There are allowances for this…. but not that…. except you can have it for that too…. but only if you do this first……

There are ‘eliminated items’ which may not be the same as ‘excluded items’, which is different from ‘excluded income’, not to be confused with ‘exempt income’, all of which you can have as deductions as long as everything has been ‘apportioned’ and/or ‘allocated’ according to the precise rules………  and on and on and on and on it goes.  

US Tax Code size

Just to give you an idea of the scale of the problem and to prove that I am not exaggerating in the slightest, the current US Tax Code is now well over 70,000 pages long. That’s about 185 times longer than it was in 1913, when the code was 400 pages and still far too long and complicated at that!

If you are an Apple or a Google or an Exxon and have a multi-billion dollar war chest you can buy the best professional experts and end up paying little or no tax at all. On the other hand if you are Joe Average you’ve got no chance!

irs-taxes-cartoon

Is there a better way?

I think so. For sure there isn’t a worse way!

It’s not a new idea, but as the system gets more and more complicated, it makes more and more sense to change it.

So why don’t we have a certain tax free allowance of $30,000 or $50,000 or whatever for annual exempt income, and pay 10 cents on every dollar we earn above that (or 10p a pound or 10 cents per euro) and leave it at that?

If that was the rule, and the only rule, everyone could do their tax returns easily, everything would be transparent, there wouldn’t be any complicated loopholes and no one would feel aggrieved because we are all being treated equally. And I think the governments would actually net a lot more revenue at a much reduced collection cost.

Too easy? Can’t be done like that?

That’s what the bureaucrats say, but as usual they are lying. They just don’t want their little empires reduced.

Of course it can be done the simple way. If fact although we don’t notice it, we see it done every day like that with sales tax. You buy something for a dollar and you pay your percentage of sales tax. (VAT they call it in Europe).

Easy. Simple. Everyone knows what they have to pay and why they have to pay it.

Sales-tax-calculator

It will never happen of course. Not while the bureaucrats remain in charge and the politicians are bought and paid for.

Not until the revolution – if there ever is another one.

American Revolution

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