Sunday, March 31, 2013

Real tax reform: return responsibility to voters

Chicago Sunday AM 3 March 2013

Editors, The Wall Street Journal


The Wall Street Journal addresses a serious subject in its
column “The GOP Takes Back Tax Reform” [Friday 01
March]. Not addressed is the Statistical Abstract of the US
annual disclosure that 73% of all federal taxes come, not
from citizen voters, but from employers.  

The employer regularly informs the employee that if he wasn't
forced under jail threat to send this money to DC, he would
give it to the employee.  The first step in tax reform should be
returning the monthly responsibility of writing checks to the
federal government to the 90% of wage earners who are voters.

 This could not be done overnight, but if a small randomly
selected group of citizens were informed quarterly of their
responsibility to send checks to cover their federal tax
obligation every month under jail threat, we would soon see
a whole new set of federal law makers elected.

The Journal column also discusses tax rates.  There is a
widely held opinion that the wealthy should pay higher
tax rates.  The problem here if you raise rates long enough,
you end up with everyone paying the same rate.  Examples
of  this being tried are the Soviet Union and North Korea.
How about trying a single rate of 20%?  To protect the very
poor, replace our forest of exemptions with a single
exemption for all:  The first $30K is tax free.  

Our Constitution says we can tax individuals' incomes.  What
is income?  Money an individual has today that he didn't have
yesterday.  If the individual joins a group  (AKA corporation)
formed to make a profit, taxing the corporation is taxing the
same income stream twice.  Stop taxing corporations.

Arnold H Nelson


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