The Income Tax prevents the U.S. economy from being competitive in world markets, penalizes wealth production and is easily manipulated to suit current political power.
Our tax structure — 72,536 pages increased by almost 1,000 pages from 2010 to 2011 — is growing at an annual rate of 3.28 percent.
Changing levels of taxation doesn’t address global competitiveness.
The Government Accountability Office estimates compliance costs equal 1 percent of Gross Domestic Product each year. In 2010, compliance costs plus efficiency costs (costs incurred when investments, work and savings are changed in an effort to meet compliance costs) amounted to about $1.165 trillion of the tax bill to our citizens and that did not include the taxes due.
Our tax structure is a violation of the purpose of law:
“It will be of little avail to the people that the laws are made by men of their own choice if the laws be so voluminous that they cannot be read, or so incoherent that they cannot be understood; if they be repealed or revised before they are promulgated, or undergo such incessant changes that no man, who knows what the law is today, can guess what it will be tomorrow.” — James Madison in Federalist 62.
A flat tax still taxes payrolls and exports but not foreign imports. Migration of jobs and industry overseas continues since income earned overseas isn’t taxed. Class warfare continues as middle-class tax cuts and tax hikes on the wealthiest are presented as answers. They are not. Closing loopholes is ineffective. As one loophole closes, cronyism opens another.
Fair Tax HR 25 is the only bill before Congress that stimulates the economy without increasing government spending and lowers the unemployment rate. Ask Dave Camp, chairman of the House Ways and Means Committee (202-225-3625) to include the Fair Tax in tax restructure discussions.
Beverly Martin is a Fulton resident.