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Tuesday, November 21, 2017

Thoughts on Tax reform

WHY IS DISCRIMINATION PRAISED WHEN IT COMES TO TAXES

ARE OUR TAX POLICIES IMMORAL?


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We hear all the arguments about tax reform, that it favors the rich, is unfair to the poor, does not raise enough money for the state.

How about looking at tax policy from a moral point of view.

1. In what other matter would it be alright to charge one group more than any other group.?

2. Why should some segments of society get a pass on contributing to the so called common good.?

3. What rate of taxation becomes downright immoral?

4.Where did the state come up with idea that they had the right to confiscate the assets of anyone at death?

I believe that income tax rates should be fixed and could only be raised during war or other catastrophes. 

The maximum income tax rate should be no more than 20 or 25% . Punishing hard work and success is immoral.

The taxing of any assets, including re-estate, negates the principle of private property. It should be a constitutional issue. How about a constitutional amendment to ban all asset taxes? You worked, earned the money, paid the taxes, now they want to tax your possessions. Enough is enough.

Is it moral to confiscate the accumulated wealth of someone when they die. Many business's and farms are built over generations. The wealthiest hire lawyers and accountants to minimize inheritance taxes, but the family of those who die suddenly or unprepared are often destroyed by the taxes. Inheritance tax is Immoral!

With fixed tax rates, government would need to manage their income, not just raise taxes to satisfy their wish list or buy votes by redistribution.

There should be a minimum tax of 1%, levied on everyone without deductions.
All citizens should contribute to the common good. 50% of citizens are now exempt from any income tax. Minimum tax on everyone who enjoy the benefits of our country.

Tax rate should be low and fixed without exemptions of any kind. Exemptions for interest is really a subsidy for the banks, encourages taking on debt and discourages savings. The government should not be manipulating behavior through tax policy.

Everyone agrees we have a stake in common endeavors, roads, defense, education. But it has become an unlimited extortion that always cries for more, more. Everyone looks to reap the benefits of the coffers of the state. From bureaucrats who never are paid enough, never have a big enough pension, to contractors hoping for the big contract. To those who spend unlimited time and effort qualifying for a new government benefit. Not to forget the suppliers of goods and services to the state who contribute large sums to politicians who will preserve their incomes. 

If we added up all the taxes that are levied, income, social security, real-estate, sales, taxes on and fees on all utilities and communications, taxes we pay through the taxes on producers, and many more, it would approach 50% of income.This is very similar to being a sharecropper or the  taxes in a fuedel system. There needs to be a limit on the total tax burden.

Again, governments need to have an income that is a fixed rate and need to be good managers. As the economy grows their income will grow and when things are not so good, they will need to adapt.

Yes, tax reform is needed, but we need to adopt a few moral principles as a guide as to what that result will be.

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