And the system of application
The tax system in this Nation is inherently backwards and the root of many of the problems we face today. It penalizes success and reward inefficiencies and unproductive activities.
The tax code today finds all the areas in the economy where money is being generated and ‘fines’ them for doing a good job. This causes four steps to happen:
- The taxed entity will look for ways to cut that tax cost.
- Change to an ‘abnormal business practice’.
- Taxes accumulate to a central government where lobbyists and congress salivate over how to use it ‘to their political advantage’.
- Resulting in more bureaucracy to enforce laws on ways to spend, trying to the solve symptoms of society, not the problems.
There are 5 basic problems in our society;
- National security
There are numerous symptoms resulting from these 5 basic problems:
- Poor health
- Unsecure boarders
- Decaying infrastructure
- Poor educational results
- Others to numerous to mention
The true purpose of any tax system must be to encourage activity that solves the problems listed above, not to cause a central government to continue to ‘throw our money at the symptoms’. The gridlock we have is because they accumulate money and then argue over how to spend it.
The new result would be:
- Smaller central government receiving as little as possible in tax revenue.
- The tax payer would be incentivized through the tax code to solve the problems.
- Money would not make the ‘round trip’, taken from the citizens then redistributed.
- Fewer lobbyist to influence spending because the money is not in a central location.
- Fewer agencies making regulations, instead of monitoring efficacy.
Problems are solved by everyone doing their part, continually. Not by one entity dictating to everyone what they must do, resulting in resentment and indifference.
The change to the tax code would be relatively simple. Currently, each section of the code starts with how much money was made, than a chart tells how much to send to the IRS. The revised code would still start at the same place, but money spent to address a problem would reduce the amount of tax paid. The current bureaucratic activity would monitor the activity for compliance. The private sector would now do that activity resulting in a reduction in taxes paid.