Thursday, February 18, 2010

A taxing time of year

One of many annoying aspects of tax season is the barrage of ads for "help dealing with the IRS." Typical pitch:

"Do you owe thousands to the IRS? Has the government placed liens on your property or garnished your wages? Don't know where to turn? Call us! We'll be in your corner. Our staff of former agents will go to bat to ensure you're treated with dignity and respect... and we can often reduce your tax liability to a fraction of what you owe now."

This is wrong on so many levels I don't know where to start (not that it will stop me...).

1) Dignity and respect should be automatic from public employees, not something you have to hire muscle to obtain
2) How is it that hiring experts--often former IRS agents--gets your tax burden reduced? This strikes me as a protection racket: "Hey, we used to work with these guys... hire us, and we'll put in a good word for you..."
3) All of this illustrates that equality under the law is more illusion than reality in the US

I firmly believe this country made a fatal error in allowing the Constitution to be amended in order to establish a personal income tax. Once that door was opened, Uncle Sam acquired all sorts of motives and tools to reach into the daily lives of individuals. Payroll withholding? Seizing assets without warning? The Sons of Liberty certainly wouldn't have put up with it!

If we insist on so much government service that an income tax is necessary (and remember, we survived as a nation 130 years without one!), it should be a small, flat rate. Small, to keep the burden manageable for lower income. Flat, for equitability and to eliminate the government's chief source of social engineering.

After all, "the power to tax is the power to destroy." The complexity of the tax code is partly due to the connected creating loopholes for themselves, and partly due to agendas to influence public behavior. Why else do some things get tax credits and others incur penalties? Typical stick and carrot. And we put up with it. (Though I hope that's changing in the current climate. Not holding my breath, however)

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