A few years ago I had the view that high taxes were not great but the government, state and national, had things that needed to be paid for and how else were they going to get the needed fnds. Taxes were not great but they were necessary.
In the last few years my views have slowly but surely changed. By recommendation I read the book Fair Tax. I highly recommend this book whether you think you would be interested in reading about taxes or not. It is an easy read and really makes you think. It is about a proposed tax system based on a sales tax. We would get taxes based on what we purchased. There would be no income tax, death tax, or any other tax, with the exception of state tax. But if the Fair Tax works as well as many believe it would, it would be likely that states would follow so that they have the same advantage. The benefits to us as individual citizens is that we would have more control over our money. If we were savers, we would have more money to save to put towards a house, retirement, etc. I will not go into depth about this tax at the moment but if you care about your money and income, I highly recommend looking into the Fair Tax.
Next, I did some studying on the history of taxation and Reaganomics. From what I understand, at the becoming of this great nation, there was not really any such thing as an income tax. In fact, there were not many internal taxes at all. A majority of the internal taxes were passed specifically to raise money during war time. The rest of the nation's income came for commerce with other countries. Jefferson got rid of all internal taxes and still managed to reduce the debt without putting a plug on spending. It wasn't until the Civil War that drastic changes occured. That's when internal taxation really began as the North needed money to fight the war (the South did not rely on this method as much for various reasons including a lack of strong government). The internal taxes were not necessarly suppose to be continued after the war was over but they did. And although taxes were not suppose to get much higher (yeah who would have known? There actually used to be a limit on taxes), they did. Technically, U.S. citizens have the right to fight back against such high taxes but nobody really seems to care or notice because high taxes are such a norm now.
The biggest problem facing our nation at the moment is the amount of waste and pork barrel spending that our hard earned money goes to. We would not have to pay so much in taxes if the government was honest, smart, and made good financial choices. If we ran our households like the government we would be on the streets. Just as we are suppose to take care of our families and make smart financial desicions with our money, so should the government.
The next biggest problem is the progressive tax. I know many Americans believe the tax burden on the poor should not be larger than the tax burden on the rich. But you consider the fact that most taxes are paid by the rich and the middle class. Also consider the fact that the more money the rich have, the more they will spend, invest, and give. That means a strong market/economy and a strong economy. We can not burden them to much or there will be no point in making large amounts of money, just as if we burden employers and employees too much there will be no point in running a business or working. For example, I know a lady who will not work because it would put her husband and her in a higher tax bracket so it would improve their over all well being by very little and thus not make it worth her while to work. If we burden employers too much they will leave to other countries where they will not be taxed. Higher taxes in general mean a slower and less strong economy.
And that is why Reaganomics was successful. And if anybody tells you it wasn't, they are telling you a lie. He deregulated and decreased taxes. This resulted in a higher medium family income, productivity rates increased, unemployment decreased, etc.
Finally, I have been studying the financial situation of many people. I come up to the same conclusion each time. If we did not pay so much in taxes, we would have much more income to put in our savings. My hubby and I can live off of his pay check after taxes. If we did not pay taxes, that would be thousands of dollars that would go directly into our savings. Virginia is a taxoholic state so between it and the federal government, way too much money is taking out. You add to that the cost of housing and the down payment needed, and financies become more than stressful, almost impossible. How are young couples suppose to save up enough money to make a wise fanancial move when buying a house, and to not go into deep dept when their money is dissapearing at high rates each month? If we could save up more each month, that would decrease the time we have to wait to buy the house. That would mean that our money would enter the system much sooner because we could purchase much sooner and we would be much more financially stable. Financially stable people means purchasing power. Purchasing power means strong economy. Sure the government needs money but what good is it if the economy is trashed because nobody has money to move around.
I do not believe that all taxes are bad but what I am saying is that this United States of America's tax system is out of control and needs major adjusments. So instead of wishing you a happy tax day I think I'll tell you how sorry I am that you are being robbed of your money every day of every year and how sorry I am that such a financial burden is being placed on you. And perhaps one day this country will realize that the tax system really does need to change.
(It is time for bed. So sorry if I made any major mistakes because I will not be editing this post).
I am old enough to remember Reaganomics. I pray we can repeat it.
ReplyDelete