to turn it off.
One major problem will be to make sure that item sales are documented
accurately. Suppose there is a 40% tax and someone is selling a car for
$20,000. The seller could tell the buyer that he'll write it up as a
$10,000 sale to save $4,000 in taxes and split that savings with the
buyer. How will we stop them from doing this? We can't stop all income
tax fraud, but we do have a government agency investigating it. We will
need a new agency to investigate the new kinds of fraud that arise with a
new tax system.
This is pretty typical, throw out the whole idea because people might find a way to cheat the system. I have some news for you, this happens ALL THE TIME already. When you sell a car, the purchase price is included on the sales receipt. That purchase price in many states is taxed when you go into the DMV. When a car is bought by an individual I know for a fact that there are many times the actual purchase price is fubbed. I have done it myself.
WHen I was a kid in Missouri, it was standard practice to put down $1 for the sale price if you were giving the car to someone. If you did not put $1 for the sale price, then the DMV would use the blue book price to figure the tax.
What I am saying is that the chance of cheating on a particular tax code change should not be basis on whether that new tax code is viable or not.
I personally support a flat tax. That is a straight flat tax across the board of whatever the percentage is. How does that hurt anyone more than anyone else? Currently if I make below a certain amount, I would pay no taxes, very few people make less than $9,000 per year which is the cut off. But if I made $9,000 is that $108 I have to pay in taxes going to be that much harder on me? Not really. If I made 2 million a year, I would be paying $240,000 per year, again does that hurt me that much? Not really, but it is still a significant amount.
All in all, a tax system should not a punishment for making the most of your opportunities. Our current system is just that. The better you do, the more you pay, why do we have to have this sliding scale system?
Of course all this talk is worthless anyway, the lobby for the current tax system is very strong and there will likely be little change to the system unless a revolution takes place.
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Thanks
F Vernon Green
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