The only thing certain in life is death and taxes.
Did Ben Franklin say that? I don’t really know because I wasn’t there. People seem to think he did, so I guess so.
In America we have to pay taxes. How much? Well for the working class, it feels like all of it. Imagine getting paid for a full 40 hours and seeing 25 to 35% of your check missing. If you like you can imagine spending 3-4 months of the year working just to pay the government for the privilege of working.
( At this time I got up to take a break and think about where I wanted to go with this post. I have several different issues with the tax system and government spending. Below is the final result.)
Now I know many people get a return every year and alot of them tell fibs on those returns in order to get the most money back. The remainder goes to federal and state governments in order to create their revenue for the year. The government then goes on to waste a sizeable portion of that money, leaving several important programs wasting away due to lack of funding.
But what about those hard working folks who somehow end up owing the government or at best like myself coming out dead even. We get to watch everyone else blow their proverbial cash load all over the town and make big name purchases.
Am I jealous? Not really, but I do see a problem. I see folks getting out more than they put in. That creates many issues on the other side that most folks don’t even think about. That money has to come from somewhere. Where does it come from?
Well there are 3 primary sources.
- Payroll tax. This is the money they take from your check every payday. It includes Medicare and Social Security.
- Corporate tax. Money taxed to large corporations
- Income tax. Not to be confused with payroll. This is taxes payed or owed at the end of the year based on income you received from all sources. Not just jobs.
That’s it. The government doesn’t create or produce any goods or services to profit. We, the citizens pay for everything.
So that money comes from everyone. Everyone pays in, many take back out, and some take out much more than they ever put in. If that wasn’t enough, we have one of the most confusing tax codes on the entire planet, especially if you consider all 50 states and the U.S. territories each have their own tax laws. Some cities even have income taxes!
2 things need to happen. The government needs to cut wasteful spending and then they need to do away with income tax in favor of a tax on goods and services as well as import tariffs.
Yes, I mean end the current state of the IRS as we know it.
If anyone could offer me a compelling argument otherwise, I would love to hear it.