Paying Taxes is a Privilege And the Simple Tax Plan

Paying taxes is the price we for the privilege of living in the USA. Tax revenues pay for infrastructure, security, safety nets, and countless other resources from which citizens generate income and/or benefit. We should proudly pay our fair taxes for using these resources that are among the best in the world. Thus, every entity should pay taxes proportional to the degree of use of the country’s resources. This seems the only fair way to tax.

Value added taxes is the fairest way to assess use of national resources but Americans have not seen their way to this system like many other countries. Instead, Americans use a progressive income tax schedules for individual as a surrogate for proportional use of the countries resources. It is reasonable to posit that more income means that more resources were utilized to generate it.

Avoiding paying one’s fair taxes is Un-American since one is not paying for the resources used to generate their income. Also, tax cuts for the wealthy and corporations means some pay proportionately less for the resources consumed to generate their income. A Flat Tax is basically unfair since it taxes someone who makes $10,000 a year the same rate a someone who makes $1 million a year. There was definitely a big disproportionate use of resources to generate these incomes. The Bible has a parable about proportional alms-giving.

So, is there something between a value added tax and the current incomprehensible morass of tax laws. The answer is yes. It is the Simple Tax Plan(STP)

The STP would have only four tax rates: 10%, 15%, 20% and 25%. The plan is simple because tax deductions would be limited to Charity/Political/Church Contributions (capped at 25% of income) and Property Taxes and Mortgage Interest (capped at $100,000). With STP, the tax form would be one page and the expense of tax preparation would be slashed. Governmental costs for collecting taxes would also be slashed.

Corporate taxes would also be simplified thus making more than the 50% of the corporations that don’t pay taxes pay. Their deductions would be limited to Federal Tax payments and Health Care costs.

In conclusion, a value added tax is the best and fairest way to tax for the use of national resources. Barring this the proposed Simple Tax Plan would improve on the current systems.

Leave a Reply

You must be logged in to post a comment.