Steve Forbes on a little-seen cable TV segment with Stossel noted that it takes 979 pages by retiring Rep. Dave Camp, Chairman of the House Ways and Means Committee, to FIX the present income tax code.
In this day and age of fairness, exists the real problem of unfairness in that those who need tax breaks the least, the über wealthy, are the greatest beneficiaries of tax code breaks, income exclusions, and lower tax rates for unearned income. Notable on this list are Bill Gates and his “Population Control” foundation that is heavily funded by Warren Buffet. Actions of these two paragons of American business represent the dire warning of Jesus Christ, “No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.”
Previous attempts to solve the fiscal problem failed with no probability that Congress can ever successfully solve the problem, so Congress passed the buck to a bipartisan Super Committee which recommendations were to be accepted without amendment, which they were not.
The Joint Select Committee on Deficit Reduction, was headed by the Erskine Bowles and Alan Simpson Super Committee of Congress, created by the Budget Control Act of 2011, and intended to prevent debt default that could have resulted from the 2011 debt-ceiling crisis. The objective of the committee was to develop a deficit reduction plan over 10 years in addition to the $917 billion of cuts and initial debt limit increase of $900 billion in the Budget Control Act of 2011 that avoided a U.S. sovereign debt payment default.
Needless to say, recommendations of the Super Committee were never completed or approved, thus forcing automatic “sequestration” across-the-board cuts that would be equal to the debt ceiling increase of $1.2 trillion, thereby bypassing Congress to their chagrin.
Bowles and Simpson, co-chairs of President Obama’s Deficit Commission, released a broad plan to reduce the federal deficit by cutting spending and raising taxes. The plan included various options that would impose different changes on the tax side of the fiscal equation. The first option, “The Zero Plan,” would, among other things, pare away most tax expenditures (Note that tax cuts are considered to be tax expenditures), devote $80 billion annually to reduce the deficit, and use remaining revenue gains to cut tax rates. The Bowles-Simpson fiscal plan would reduce the Annual Deficit by $2.5 trillion over a decade, but it never came into being.
Congress cannot come to grips with reduction of spending, debt, or taxes absent the likes of the 979 page Dave Camp revision of the Income Tax Code that would no doubt require an accompanying 10,000 pages of undecipherable contradictory ifs, ands, or buts, that only lawyers can love.
According to the Federal Register, final ObamaCare ACA rules published by the administration comprised 10,535 pages approximating nearly 12 million words. More alarming than the impossibility of 100% compliance is the fact that the IRS, currently used as a tool against Obama enemies, will exercise compliance with ObamaCare with flagrant abuse of unfettered power answerable to no one.
Replacement of ObamaCare and revision of the tax code are thrown in the face of Republicans that are challenged to come up with something better to replace ObamaCare, and only the deficient Paul Ryan Tax Plan has been offered. The irony is that there exists a 3-page plan to replace ObamaCare while simultaneously reducing all income taxes, personal and business, to a graduated 20% MAX. The following is a less than 1-page 283-word summary of the combined plans. That is too easy for Congress that hates to read or acknowledge the plan, as they are accustomed to voting on laws they did not read. This ObamaCare and Income Tax Fix Politicians Hate to Read as they have been conditioned to not read anything proposed, but follow the lead of the professional incumbents.
SUMMARY (283 Words): Institute a 3% National Sales Tax with NO exceptions or exemptions for resale, charity, non-profits, religious, education, or government. The many cannot be continually supported by the diminishing few. NST may generate more than $7 Trillion annually, double current spending, reduce national debt, spread tax burden to ALL residents and income, legal or not. Allocation would be one-third each toward Budget, Reduction of National Debt, and Universal Medicare (UMC) for all legal residents of the U.S. UMC automatically eliminates most mandated State Medicaid costs, reduces State budget shortfalls, and State tax requirements.
MediCare has a proven superstructure, rules, regulations, is good enough for seniors, and UMC automatically applies to all legal US residents with Social Security Number, valid visas for work, students, etc., with no $Billions of ineffectual signup costs required. All 300 Million legal residents would automatically be covered with deductible and co-pay determined by a mandatory Income Tax Return that includes All income, earned, unearned, and welfare.
As to replacement of the Income Tax Code that is too tangled and complicated to fix, ALL income would be equal with no special treatment for any kind or source of income, earned or unearned. Income Tax rates would be equalized for Personal and Business with a single graduated tax rate table of 20% max. Low tax rates create jobs. Inflation increases NST collections precluding future necessity to increase rates.
Under the proffered Simplified Income Tax (SIT), Effective tax rate on Taxable Income of $100,000 is 2.74%. Effective tax rate on Taxable Income of $1 million is 7.47%. Effective tax rate on Taxable Income of $1 billion is 19.88%. The entire revised income tax code would sunset when National Debt reduces without SIT revenues.
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