TAX NEWS - JUNE 2010

U.S. Tax: Government should tax only consumption

by KEVIN WELCH, 02 June 2010 -- Irecently read where governments are contemplating a 1-cent-per-ounce tax on sodas. Will this be enacted? You betcha! In a never-ending quest to continue plundering citizens, governments will leave no stone unturned to increase revenue and spending.

Will people ever get the stones to finally put a stop to pilfering politicians? People no longer own property or homes. They merely lease. Each year governments issue a bill that must be paid or the government, or another investor will take the property. Do you think you own your vehicle? Well, technically you do, but if you want to drive it you must pay fees for licenses, tags, etc., or you will find yourself in legal troubles. In addition to these fees, aka undeclared taxes, you must pay for the fuel, which includes — you guessed it — more taxes.

Taxes are everywhere today. When a person works for pay, their income is taxed. The residual money is then taxed when it is spent. Any savings that accumulates will be taxed when the person dies. All of these taxes are very taxing, to say the least.

What exactly are taxes? They are a redistribution of wealth. Essentially, money is taken from hard-working people and given to other people or entities. The government is permitted to do all of this redistribution of wealth because people have slept on their rights. The systems used for taxation are extremely biased and unfair.

Is it fair to punish a property owner for working hard, saving his money and buying land or a home? Local and state governments are funded with property taxes. These are used to pay for everything from pork projects, labor, schools, etc. In the meantime, non-property owners reap the benefits. The majority of young families with school-age children do not pay property taxes because they don't own property or homes.

What about the federal income tax? Everyone who earns a paycheck is forced to pay the income tax. That money is then given to people who don't work in the form of assistance. What about the different tax rates that are based upon the amount of money a person earns? Why should someone who worked hard for an advanced education in order to get a higher-paying job be taxed at a higher rate than a slacker working in menial labor? Why should the low-income worker be forced to subsidize people who refuse to work? Why should the able-bodied non-productive be given free housing, food, energy subsidies, etc.?

The voters need to revolt. We need to demand that politicians eliminate taxation that is based upon the premise of too few paying for too many. I am suggesting the complete elimination of property taxes, income taxes, estate taxes and all other taxes that discriminate. These taxes will be replaced with a national sales tax. I think this would be much more fair. People who strive for education and a higher-paying profession will typically spend more and therefore pay more taxes if they choose to consume more. People who lack ambition will essentially earn less, so they will spend less. This means they will pay less in taxes, since they consume less. Frugality will be rewarded to those who consume less.

Consumption taxation will also work well in the corporate world. First, all tax loopholes will be eliminated. No longer will giant conglomerates be able to avoid paying their fair share. After all, big companies consume more. More supplies, more energy, more everything that it takes to run a business will be proportionately taxed through a system based on consumption. Small mom-and-pop companies will no longer have to subsidize deficiencies due to a large corporation's ability to find loopholes.

In addition to altering the government's revenue, we need to alter its expenses. Why should taxpayers subsidize large corporate farms? Farmers are paid not to grow. What is wrong with this picture? The small farmer is almost extinct. He can't compete with corporations that are given taxpayer money that allows them to keep prices below the actual value of what is produced. Have you ever gone to a local farmers market? The cost is typically higher than large corporate grocery stores. Why? Because the price reflects the actual expenses that are incurred to produce food.

We need the government to get out of the grocery business. In fact, we need the government to get out of all businesses. Elections are coming in November. Voters need to get rid of all incumbents and send a message that we are tired of living under the status quo. Each election we must continue to take back our country until all the vermin have been eradicated.

This is just my 2 cents — well, actually 1 cent, because my 2 cents was taxed one penny.