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Repealing the Sixteenth Amendment and its implications
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Would you like to have more money in your pocket? Most people believe that there will be more money in the packet if the worker’s paycheck is larger. Some people believe the solution is found in regulating the minimum wages paid to employees. There is a good reason you are earning more money, spending more money, but retaining less for personal use. There have been eleven recessions since the decade of the Great Depression beginning in 1929. We must do something about this national financial problem before it becomes a crisis. We may not recover from the next recession. This essay describes the attributes of the “Fair Tax” system, which many informed analysts will be in the best interest of the government of this country, and the people , who live here, especially you and your family. In this essay you will discover how we can alleviate the country’s major issues in financial management, enhance enforcement of immigration laws and improve the financial support of our education system. All this is proposed with change to just one government agency.
First, let’s define this proposal. The Fair Tax is a comprehensive proposal that replaces all federal income and payroll base taxes with an integrated three-fold approach: (1) a progressive national retail sales tax, (2) a “prebate” to ensure no American pays federal taxes on spending up to the poverty level, and (3) the repeal of the 16th Amendment (our current tax amendment). This proposal abolishes all federal personal and corporate income taxes, gifts, estate, capital gains, Social Security, Medicare, and self-employment taxes and replaces them with one simple federal retail sales tax that will be administered primarily by existing state sales tax authorities. The Internal Revenu...
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...g the deficit. As you can see, it would also cause our immigration problem to either go away or make it harder for employers to employ undocumented workers. It could even make illegals leave the country all together. This great tax proposal would make our education system stronger and the future of our youth stronger. So when is this tax proposal going to make it to the congressional floor? Well, to answer that, maybe never or maybe when our representatives’ congress gets out of the old way of thinking and are open to trying new things. Maybe or maybe it is when it does not hurt their wallets as much. Maybe it is when we the people of the United States of America stand up and say with a united voice, it is time for a change, because we are tired of having a recession every ten years or less. What do you think? Here is the real question: What will you do about it?
Leading up to the year 1981, America had fallen into a period of “stagflation”, a portmanteau for ‘stagnant economy’ and ‘high inflation’. Characterized by high taxes, high unemployment, high interest rates, and low national spirit, America needed to look to something other than Keynesian economics to pull itself out of this low. During the election of 1980, Ronald Reagan’s campaign focused on a new stream of economic policy. His objective was to turn the economy into “a healthy, vigorous, growing economy [which would provide] equal opportunities for all Americans, with no barriers born of bigotry or discrimination.” Reagan’s policy, later known as ‘Reaganomics’, entailed a four-point plan which cut taxes, reduced government spending, created anti-inflationary policy, and deregulated certain products. Though ‘Reaganomics’ was successful both at controlling “stagflation” and promoting economic growth, it has and always will be an extremely controversial topic regarding the redistribution of wealth.
..., while at the same time doing their best to heighten economic class warfare. The FairTax Act is not addressing anything other than tax collection and pointing out that the worker is already paying the brunt of the tax bill, the FairTax just lets the worker know exactly how he is taxed and by how much. More importantly the worker can choose how much tax to pay, giving them more power over government, a power balance that has been in favor of government since the 16th Amendment was adopted. The very advocates against this plan want government to maintain this overwhelming power over the citizens; it allows the politician to hand out favors and punishment in the form of tax cuts and increases. These same advocates preach equality while dividing the classes; it is this division of voting blocks that politicians can play to that will be eliminated with the FairTax Act.
In “The Way to Wealth” Benjamin Franklin writes, “We are taxed twice as much by our idleness, three times as much by our pride, and four times as much by our folly” trying to prove a point that frequently people are being taxed an outrageous amount and are taxing themselves extra by actions like spending excessive amounts of money (Franklin 237). Throughout Franklin’s “The Way to Wealth,” he explains how an American economy should work and maintain a stabilized economy for themselves. In the American realm today, about 5.0% of people find themselves facing unemployment, a time of stress and conflict (“Databases, Calculators & Tables by Subject”). With the unemployment rates rising for the first time since February of 2015, the American economy is also facing an increase in debt levels throughout personal households
I. You might have heard politicians in the news, talk about overhauling our tax system with a new fix-all idea, the flat-tax. This would simplify our overly complicated tax system and might seem appealing at first glance, however there are serious problems with it.
New Nationalism focused on eradicating economic inequality. In 2007, the top 1 percent of Americans owned 23.5 percent of the nation’s wealth (Pear, 2011). This problem has increased, not gone away, since Roosevelt addressed it in 1910. Unfairness in the tax code has become a prominent topic of political discussion. President Obama called for alterations to the U.S. tax system, which allows millionaires to pay lower rates than middle-class workers like teachers and firefighters, in his 2012 State of the Union address (“Remarks of President Barack Obama – As prepared for delivery State of the Union Address,” 2012.). In December, the president traveled to Osawatomie to speak. He echoed Roosevelt’s New Nationalism, saying he believes “this country succeeds when everyone gets a fair shot, when everyone does their fair share” (Fox, 2011). Although he spoke in Os...
What does every employee constantly complain about every single paid day? What is one of the main topics that the presidential candidates stressed while campaigning? How come people like drug dealers get a big advantage in this world when it comes to pay taxes? And again, what consistently holds down the hard working American? I have found a way to answer all those questions? This concept has actually found a way to tax everybody, not just the working ones. This concept also makes it fair and economical to our federal government, not just the individual taxpayer. Under the implementation of this concept an individual could receive a paycheck and have virtually no taxes taken from it. This 15% sales tax eliminates confusion, taxes everybody, and organizes the government in a way that has never been done.
...h; they have to think about the cause and effect of the situation. Most people are just very concerned that this tax is going to break them, which may be true because the dollar they pay everyday for a month could add up to 60 dollars; that 60 dollars can go towards groceries, or gas.
For the past eleven years, opponents from the left and right side of the political spectrum have lambasted the FairTax. Politicians who don’t want to relinquish the power given them by the current tax system are the proposal’s biggest opposition. They don’t want to give up the withholding system. They don’t want to give up the sixteenth amendment. They don’t want to lower taxes. They oppose the FairTax for the sake of their own greed and agendas. Despite all their baseless criticism, the FairTax is continuing to gain support on the grass roots and political levels. The statistical data and scientific analysis, compiled over the last eleven years, is overwhelming proof of the FairTax’s ability to bring transparency to the tax system, broaden the tax base and to fix the U.S. economy.
The United States tax system is in complete disarray. Republicans and Democrats agree that the current tax code is complex, unfair, and costly. The income tax system is so complex; the IRS publishes 480 tax forms and 280 forms to explain the 480 forms (Armey 1). The main reason the tax system is so complex is because of the special preferences such as deductions and tax credits. Complexity in the current tax system forces Americans to spend 5.4 billion hours complying with the tax code, which is more time than it takes to manufacture every car, truck and van produced in the United States (Armey 1). Time is not the only thing that is lost with the current tax system; Americans also lose great deal of money complying with the tax code. Resources that are currently wasted on record keeping, filing forms, learning the tax code, litigation, and tax avoidance. The cost of complying with the current tax code totals about $200 billion annually, or $700 for every man, woman, and child in America (Armey 1). The overwhelming consensus that the current tax system is inadequate has ignited the search for tax reform. There are numerous proposals for tax reform; one particular proposal brought forth by various conservatives is the idea of national flat rate income tax. The idea is to replace the current income tax with a single rate that everyone pays.
After about twelve years of the DREAM Act floating around in congress, many people on both sides of the issue are unsure of what will happen. For some, the fact that it has been around for long without much progress means that the DREAM Act will not pass. On the other side of this issue, the dreamers, continue fighting to keep the DREAM Act alive, so that all the immigrant students can continue to post secondary education, and not have to stop their education at the end of 12th grade. These young immigrants were brought here when they were younger and have lived in the United States most of their life. They are known as dreamers because many of them cannot continue their education due to the barriers placed on them because of their undocumented status. Those who wish to continue to a post secondary education have to pay higher out-of-state tuition rates. The passing of the DREAM Act will provide a path to legalization for educated and dedicated individuals who will continue to contribute a lot to the U.S. economy and in many other ways. The majority of undocumented students were brought to the U.S. when they were small children, and they “should be allowed to have the chance to stay in the country call home” (Bennion).
In "Stop Coddling the Super-Rich" Warren Buffett admits that very wealthy people like himself pay lower tax rates than the middle class, thanks to special tax categories for investment income created by our elected officials. Nevertheless, Buffet contends that the wealthy can and should contribute more tax revenue to the federal government. In addition, Buffet offers strong statics. Furthermore, Buffet argues that higher taxes will not slow down job growth.
Who doesn’t want more money to spend? With the lowering of federal taxes, there would be an increase to everyone’s check, whether it is social security checks, disability checks, veteran’s checks, or the check at the end of the week that represents all the hard work out in over the previous week. This increase of pay is something everyone desperately needs. Today’s taxes are at an all-time high with a minimum taxation rate of ten percent (U.S 4). With the lowering of taxes, not only would people get increased pay, but this increase of funds would give everyone the sense of relief. This is a relief of not having to struggle like we all have to in today’s economy.
Tax reform has undergone much debate in the political stratosphere recently. The tax system has been stigmatized because of a multitude of reasons that include corruption. Additionally, tax reform is a very complex issue. In addition, there has been an abundance of negotiations in Congress to pass some type of tax reform. Despite these talks, actual action has remained stagnant. This topic clearly reflects the collective action principle and the policy principle due to failed tax reform negotiations and the outcomes of various legislation.
As for me, I have been in favor of the "fair tax" initiative since the time I first read about it. The nice thing about the fair tax is that we are, in some ways, already participating in an abridged method, at least those of us who don't live in Texas or Nevada. I'm talking about a sales tax on consumption. Nothing will tick of the Federal government quicker than the realization that they cannot tax your income, savings accounts, inheritance, etc… It forces the lobbyists out of the tax realm, simplifies the notion of how the revenue is gained at the federal level, severely cuts the IRS, and hamstrings the IRS' ability to be weaponized by political parties. The nice thing is that it is a playing field leveler on steroids where everyone has skin in the game and the consumption rate is what is the controlling factor. Therefore, the wealthy will automatically pay more because their rates of consumption are
Taxes are unavoidable because government is needed and government operates on tax revenues. The FairTax is a tax-inclusive progressive national retail sales tax that replaces every other federal tax in America. The new national sales tax would be 23%. Although there have been some questions as to whether the sales tax rate is 23% or 30% and they stem from the meaning of tax-inclusive and tax exclusive. The sales tax in Florida is an example of an exclusive tax because it works of a preset base. If a person buys something for 1$ and pays a .30$ tax on it the sales tax is 30 percent because it is .30$ on the dollar. With the inclusive tax the item would cost 1.30 because the tax is included with the cost. The tax rate of 23% is calculated by dividing the tax paid by the total cost of the good or 1.30$/.30$ to get 23% of the cost as tax. The FairTax rate is inclusive so it reflects the rate of 23%.