Dear APS Forum Member _______________,
Congratulations!! You've been selected by unanimous decree of the President, Senate, House, and Supreme Court of the United States of America to become Supreme Ruler of the new and improved I.R.S.
Your job, whether you want it or not, is to update the US tax code as you deem appropriate. You, Mr/Mrs/Ms ______________, are solely responsible for, and the final authority on, the tax code that will generate revenue to fund the federal budget.
Please get to work immediately. Your proposal is due by 9:00am E.S.T. Monday, February 18.
Thank you for your continued citizenship.
Yours truly,
U.S. Federal Government.
The tax season is upon us. I'm getting my papers in order to do my taxes next week. This yearly review of how much money I've sent to the Federales, and how large a PITA it is to file taxes, has inspired me to fix the tax system. Coincidentally, President Bush released his budget proposal for FY 2009 last week. Luckily for you, you get to help run the country.
Rules:
1. Your plan must fund the US federal budget for 2009. FY2009 budget is $3.1 trillion.
2. To keep this simple, assume all revenue is derived from individuals. No corporate taxes, tariffs, or other sources.
3. You can't make Fistful pay for it all. Yes, it is his fault, but you still can't do it.
4. Don't get too picky, this is just for fun.
So, what will it be? Keep the staus quo? Flat tax rate? National sales tax, ala the Fair Tax? User fees for everything? Taxes only on capital gains?
To me, one of the jobs of the federal government, by way of the Constitution, is to treat each person the same in the eyes of the law. That says to me that the most equitable way to divide the tax burden is to take the federal budget of $3.1 trillion and divide it evenly by the number of residents of the US. Since we each get a equal piece (at least in theory) of the benefits provided by our taxes, we should each pay an equal piece of the burden. So, 3.1 trillion, divided by 300 million equals..... $10,333 per person. Yeah, it's a simple-minded idea, but it sounds reasonable to me.
Now, I know that there is no possible way for our very large and extremly complicated tax system to bill each individual for $10,333. So, as a back-up plan, I like the Fair Tax. At least most of it. Essentially, it's a national sales tax, a consumer tax, if you will. You only pay tax when you buy goods and services.
I'd change it so that there are no deductions, "prebates," loopholes, or other means of avoiding taxes. Now, I'm not trying to push the Fair Tax; it is just the one tax plan that I've heard that I like.
Since you've been selected to be Head Bean Counter, what's your plan?