Time: Opinion-Cass Sunstein- How To Simplify The Tax Code: Give The IRS Less Power & Responsibility

Tax Collector

Tax Collector

Source: TIME: Opinion-Cass Sunstein- How To Simplify The Tax Code

If this debate is really about how to control the Internal Revenue Service and make it leaner so it’s less intrusive, rather than how we get on the side of people who hate the Internal Revenue Service and United States tax code, while we still keep our special interest tax breaks that benefit few people at the expense of many others that the IRS and tax code protect again at the expense of the many to protect the few, then tax reform would be pretty simple. Because most of the country understands that we have a bloated tax code that most of the country doesn’t understand. If you are not great when it comes to taxes and you can afford an accountant or a tax attorney, why try to figure out how to file your own taxes especially if you get a lot of money back in tax credits. Why not pay someone to do that for you which won’t cost you a lot of money in the process. And save you a lot of time and money as well. But this is not really what this debate is about. This debate is about how to attack an organization and tax code that probably most of the country hates. Or seriously dislikes while at same time leaving that organization and code in place to protect your tax breaks.

I’ve been blogging a lot lately including this week about where America should move economically. And what type of economic system that we should have and tax reform is sort of the last part of my plan. How to reform the system and create a new system the incentives success and productivity over dependence. So people would want to become as economically free as possible and do whatever they can to make that happen. And tax reform is part of that so people are encouraged to do well and be productive and not taxed on that. But instead taxed based on what they consume from society rather than what they produce for society. In other words scrapping the current tax code and income tax and replacing both with a what I call a Progressive Consumption Tax. Where we would tax people base on what they consume not what they make. And where we would tax basic necessities at low to moderate rates like 5-7% and luxury items at higher rates. Let’s say 20-25% so the rich would still be paying more as a percentage and in pure numbers. But where they wouldn’t have the benefits of tax loopholes, but have the freedom to decide what they pay in taxes. Along with the rest of the country base on what they consume.

If you are a Progressive if that is how you define your politics who is truly interested in real tax reform and that’s fair for the whole country rather than being more interested let’s say in how to raise more revenue for the Federal Government and raise taxes on everyone for the Federal Government to spend more on social programs and you believe that rich get off easy when it comes to taxes, then you should be for the Progressive Consumption Tax. Because the rich would pay a hell of a lot more in taxes than they do today if they continue their spending habits. Without any evidence to suggest that they wouldn’t and not have the benefits of tax loopholes to avoid those. tax breaks that most of the country doesn’t benefit from.

Brookings Institution: Cass Sunstein Previews New Book

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About Derik Schneider

Blogger on everything that interests me and that I'm knowledgeable about.
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