Monday, May 9, 2016

Reforming Our Backward Tax System

The more I consider all the proposed tax reform plans, the more I'm beginning to think perhaps none of us have been looking at this issue the right way. We are going after the symptoms not the problem.

The Framers of our Constitution devised a federal system and never dreamed of such a top-heavy government requiring such burdensome federal taxes. The way our tax code has evolved, I have serious doubts that it can every be brought under control.

The federal government confiscates money from citizens from around the country so that Senators and Congressmen in Washington can fight over the spoils like pirates or a pack of jackals. Individual States have a nearly insatiable appetite for other people's money to spend on themselves and they reward those they send to Washington with re-election for bring home the "bacon". The 10th Amendment should have prevented this kind of tax and spend behavior. Under the current system, States can implement the craziest programs and get the rest the nation to pay for them.

Federal income tax brackets go from 10% up to almost 40% of one's adjusted gross income. State income taxes range from 0% in States like Florida and Texas to 13.3% in California. We should return to the Framers' original intent of the federal government only doing what the Constitution empowers it to do and leaving the rest up to the individual States. This would require reversing the tax rates with States having the higher rates and the federal government requiring a lower rate. This would accomplish several important things.

First, it would force those who demand services to pay for those services themselves. Second, it would also force Senators and Representatives to earn their re-elections by representing their States on truly national issues not by enabling a scheme to redistribute wealth. Third, it would force accountability for spending and the good stewardship of the people's money back to the State and local levels where it is much harder to hide fraud, waste and abuse. Forth, it would reduce the ability of a few very populous States such as California or New York from forcing their agendas on the rest of the country. Lastly, it would make the States less suseptable to blackmail by the federal government. No more, "You will do 'x' or we will withhold federal funds."

I have no illusions that this would ever voluntarily be done by Congress, After all, it would be a voluntary relinquishment of power since $=power in Washington. It could be accomplished at an  Article V Convention of the States along with some other issues I have previously advocated such as returning the selection of Senators back to State legislatures as originally intended.

Could any of this ever happen? Who knows but we can hope!

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