Thursday, July 25, 2013

Goal of Tax Reform

In my opinion, The United States does not have a tax problem. We have a problem with unprincipled government spending.

This main problem cannot be addressed with tax reform.

The tax reform effort should concentrate on mundane matters like finding the best way to collect taxes and reducing compliance costs for American businesses, while minimizing the disruption caused by the reform.

The American System of governance holds citizens in high esteem. I would add one additional qualification for a tax reform plan. The tax reform should be designed to empower and educate taxpayers.

Because we have an elected form of government, the tax collection system should provide clear and concise information on how much the government costs and how much taxpayers pay for the government.

The United States currently has an inefficient tax system designed to obfuscate the tax collection process.

Tax money is collected from employers. Employees must file an annual tax return to complete the tax payment.

The goal of the Object Tax is to introduce Tax Aware Accounts as an alternative to the current withholding system.

The program creates an alternative to the withholding system. People would switch only if they found the new system easier to use. Unlike the Fair Tax, the Object Tax has minimal disruption.

Tax Aware Accounts give taxpayers a full accounting of when they paid their taxes. The accounts will include a running tally of the total amount of taxes they pay. The account structure improves the taxpayers' understanding of taxes with no costs to the government.

No comments:

Post a Comment