The Current Tax Code Needs to be Abolished

John Boehner jobs speech urges reform of tax code - Jake Sherman and Jonathan Allen - POLITICO.com

House Speaker John Boehner at the Economic Club

House Speaker John Boehner (R-OH) gave a speech at the Economic Club in Washington last Thursday on September 15, 2011.  He spoke about reforming the tax code.  Boehner dismissed President Obama's jobs plan as "a poor substitute" for the "policies that are needed to put America back to work," even as he echoed the president's call for a special congressional committee to exceed its deficit reduction goal of $1.5 trillion over 10 years.  Boehner calling for lowering the corporate rate and closing loopholes.  I have a better idea.  Instead of reforming the present tax code, the best thing to do is to abolish the current progressive tax code and institute either a flat tax or a national sales tax. 

Within the last several months, President Obama, the Democrats in Congress, and billionaire investor Warren Buffett have been calling for the rich to pay a higher percentage of taxes since they are wealthy and can "afford to pay more in taxes."  It's the same game of class warfare as usual.  The problem with our government isn't lack of revenue going to the government, even though there isn't as much revenue going to the government the last three years as it was prior to then.  The problem with our government is overspending.  There are all kinds of waste, fraud, and bureaucracy that needs to be eliminated from Washington.  Our elected elite aren't concerned about reining in the deficit.  That even includes Republicans.  They're all concerned about control.  The old adage says that "the power to tax is the power to destroy."  The elected elite can't ever seem to generate enough revenue to the federal government.  Much of the revenue that's generated to the government is squandered and wasted.  Then they have the audacity to tell us that we Americans aren't paying enough taxes to the government.  The problem is waste, first and foremost. 

It's time that we abolish the present tax code.  Prior to the Sixteenth Amendment to the United States in 1913, the American people never paid income taxes to the federal government.  Prior to the Sixteenth Amendment being passed by Congress, all the revenue that was raised to fund the operation of the federal government was drawn through tariffs and excise taxes.  It was through tariffs on foreign goods that helped generate the revenue needed to fund the federal government.  The Founders didn't intend for the federal government to be funded off the backs of the American people.  The Sixteenth Amendment was passed as a result of the Progressive Movement in the early part of the 20th century.  When income taxes were first levied by the federal government soon after the amendment's passage, the American people only paid a small percentage, which was probably around 2 to 3%.  Today many Americans whose earnings range in six-digit figures pay at least 30% plus more.  It's ridiculous.  Our progressive tax system hurts the middle class and the emerging rich.  The super rich always find a way through loopholes to not have to pay much in taxes.  The way the tax code is manipulated, those that are hurt the most are those who are least able to afford it.  Those that are super wealthy are able to bargain their way out of paying higher taxes.

Instead of the current, progressive tax code, we need to implement either a flat tax where every American regardless of income category pays the same percentage of taxes or Congress institutes a national sales tax where taxes are collected through sales of goods.  The only exception would be food and medicine.  The flat tax or the national sales tax is much better than the current tax code.  With the alternative tax options I've just given, the American people won't have to worry about filing taxes every Spring and loopholes can be eliminated through this method.  These two methods would make taxation much simpler and fairer.  However, the elected elite (including both Democrats and Republicans) won't go that route because our politicians thrive on class warfare.  They like to divide the American people by promoting class warfare.  The current progressive tax code gives our politicians the ability to control and destroy the wealth of the American people.  That's what our elected elite are all about.  They're all about power and control.