Tuesday, December 13, 2011

A Practical Tax Plan: A Plan for Efficiency and Transparency

The income tax we pay to government is part of a system that produces the least accountability for politicians in Washington D.C.  The generic label "income tax" is a disguise  that hides from American citizens where there money is being spent.  So, what should be done?  Below, I outline a plan which returns more power to the citizenry and increases the accountability of elected officials.

Plan to Increase Transparency in the Tax System (PITT)

I will suggest to you that this is not a very difficult proposition.  Of course, it is up to me to convince you of this.

Suppose you receive your paycheck and on the check stub there is a list of taxes in decreasing order of the top ten expenditures of where that tax money will ultimately been spent, what would be the consequences on the American tax payer and on the federal government?

Scenario:

John Smith, after being in such a tax system for some time, picks up his paycheck.  He has noticed that on the news, the U.S. government has invaded a small country in Africa and realizes that, as a result, defense spending must increase. 

Well, in the PITT system, there exists a mandate that the tax appropriations represented on the check stub must necessarily fluctuate with government spending. 

Returning to John Smith, he notices all of the sudden that the category "Defense Spending" has increased by a large portion (although his actual tax burden may be similar as before).  A light bulb appears above Mr. Smith's head.

Hmm... Mr. Smith thinks as the rolls of news flash through his head of the new invasion. 

I leave you to imagine any particular outcome.  However, a large number of "John Smith's" would become concerned and take this information into account the next time he enters a voting booth.

The PITT system returns power back to American citizens.  We must hold our politicians accountable!

In addition, I will add that very few taxes should be levied as an income tax.  Taxes should be generated by user taxes as much as possible, such as tolls on turnpikes.  People that actually use the service pay for its convenience.  However, national defense is a tax that must be levied on the entire population because we all benefit (or suffer) similarly.

Do not allow the U.S. government to continue to disguise the taxes under the alias "income tax."

Please leave comments.  Your constructive criticism and suggestions are welcomed.



 

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