Over the past four years, the tax code has
become even more burdensome and complex. Taxes now exceed the cost
of food, clothing, shelter, and transportation contained for the average
household. The tax burden should decline during times of prosperity
and peace. However, since World War II, federal taxes have risen to
their highest level and of the national economic output currently
consume more than 20 percent.
The American Voice Institute of
Public Policy believes that the vast majority of Americans that the
current tax code should be eliminated and replaced by a simple and
fair system like the flat tax that treats equally all taxpayers.
Incomes would only be taxed one time
by a flat tax and would eliminate confusing and discriminating special
interest preferences in the Internal Revenue Codes because of one
low rate. On work, savings, investment, risk-taking, and entrepreneurship,
it would reduce tax rates. The billions of hours that are currently
required annually to comply with the maze of tax forms, regulations,
rules, and other requirements would decline because of its simplicity.
Also, the potential for bureacratic abuses that led to the 1997 and
1998 widely publicized congressional hearings on the Internal Revenue
Service (IRS) would virtually be eliminate the potential for.
The most reprehensible aspect of the
current tax code for many Americans is that it allows powerful and
politically influential individuals to manipulate for their own advantage
the tax system.
Many taxpayers understandably want to
protect their earnings since the tax burden is at record levels. However,
a pervasive sense of unfairness is fostered by the system of loopholes,
credits, deductions and exemptions. And encourages lawmakers on any
income that does not enjoy special states to impose even higher tax
rates. A flat tax would uphold the moral principle that to everyone
the law should apply equally as a result of eliminating special preferences.
Growth and job creation have been rendered
powerless, and ineffective by excessive levels of taxation that stifle
incentives to work, save and invest in other nations, particularly
in Europe. This precedent should not be allowed to be followed by
the United States even though its tax code is far less onerous. This
only would add to this dangerously counterproductive trend.
To view the
Taxation Policy Report, Click