Taxes - the Answer is Less Government
Bob Barr on: Taxes
Americans pay far too much in taxes. In 2008, Tax Freedom Day was April 23, which means the average taxpayer worked nearly four months to pay all levels of government taxes. It is impossible for any one person to fully comprehend the U.S. Tax Code; each year billions of hours are spent by taxpayers trying to comply with the tax laws.
Tax reform is desperately needed in the United States; but before we can reform the tax code, we must sharply reduce the tax burden on Americans. Meaningful tax reform begins with reining in government spending. Second, we need a tax code that makes taxation fairer and simpler for all citizens.
There are several alternative tax reform strategies. One would be to create a flat income tax, while cutting or eliminating many other levies, such as the estate tax (or “death tax”) and capital gains tax. Another option would be to replace the income tax and payroll taxes with a consumption tax, such as the Fair Tax; but prior to which it would be essential to repeal the Sixteenth Amendment, which allows government to tax the earnings of all hard-working Americans. Initiating a consumption tax while leaving the power to tax income in place inevitably would result in having an income tax on top of a consumption tax.
There may even be good alternatives for tax reform that have not yet been proposed. All of these ideas are better than the present system, and must be debated to determine which would best protect liberty and promote prosperity.
However, tax reform should not end at just reforming the tax code. America’s corporate income tax is among the highest in the world, putting the U.S. at an international disadvantage. The estate tax takes advantage of a person’s death. The capital gains tax discourages investment and capital formation. All of these must be reduced and eventually eliminated.
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