Thursday, April 5, 2012

Muddled thinking............

The language used here makes one think they believe the money
belongs to the government.  If a taxpayer, whether corporate or
individual, follows the tax code and finds and applies credits
and deductions, thereby reducing their tax burden, how has the
government lost money?









The full post from Frugal Dad is here.  It is actually a fairly
interesting explanation of how the "monied interests " minimize
their tax burden, and could be used as a poster for the sanity of
a flat tax system.  Just think about the creativity and influence
peddling (now my bias is showing) that went into the creation of
 those tax credits and deductions.  It may seem counter-intuitive,
but surely, if the purpose of the Internal Revenue Code is to raise
revenue for the federal government (a rather large assumption), a
flat tax with a modest rate on net income with no deductions, no
credits, no havens, no exemptions, or no other loopholes will
raise more money.  As a side benefit, just think of the
 productivity gains for our country, as all those people who are
really smart about taxation and the mechanics of government
would have to find other ways of making a really good living.

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