I suppose with today being tax-deadline day, a lot of people are thinking about the tax system, and if there's anyway to fix the problems we have now. On the radio today (I usually listen to KXYL 96.9 fm here in Brownwood) someone mentioned the national sales tax idea. Specifically they said that if people could see the exact rate that they were being taxed and had to feel it with each purchase, they would demand that the government reduce spending. While people really do need to realize what they're being taxed, I definitely don't think that's the way to go about it.
The chief problem with a national sales tax is that the burden would be evenly distributed. At first glance, that seems like a fair thing; everyone pays the same rate (the same is true, btw, of a flat tax). However, if you look closer, you'll realize that those less able to pay, especially those in the poverty tax bracket, would be paying relatively the same as someone in a higher bracket. In other words, those people who already struggle to provide the basics for their family would have an even harder time.
Perhaps I lean a bit toward an almost socialist system on this issue, but the idea of "From each according to their means, to each according to their need" is a laudable goal. I'm not saying that we should milk the rich until their take-home earnings are the same as everyone else's. I'm also not saying that we need to continue rewarding people for not working even though they're capable. Rather, we need a progressive tax system that doesn't further impoverish those who are already struggling.
Furthermore, we need to reduce the tax burden on those in the middle bracket who are currently shouldering most of the burden (maybe it's because this is the first year my wife and I will be in that tax bracket ^_^). In addition, we need to reduce spending; the federal government needs to be reduced to its constitutionally mandated role. Finally, we need tougher enforcement of the current tax code, especially on those who earn plenty but aren't paying what they owe because they have an army of accountants helping them find any hole they can.
A national sales tax or a simple flat tax are not the answers; they simply punish those who are already less able to pay. At the same time, we must reduce the complexity of the tax code, tighten up the holes, and reduce government spending. While none of this is simple, it is necessary for the continued prosperity of our nation.
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