Thought provoking Jennifer.  It totally cracks me up that we pay federal taxes, that are then given back to the states to fund certain state projects.  It does make more sense to pay the states and let them decide how the money is to be spent.  Maybe with a smaller federal tax there wouldnt be any money left over for wars?  Now that would be a good thing!

We pay so much in federal for 200k toilet seats and finishing daddy's wars, I like the sending more money to states even if it does go to high priced hookers atleast she was taxed, and helping the economy right? LOL

Not bad Jennifer. I would abolish the IRS. A sales tax on everything with a very distinct split between how much of it goes to the Federal Government and how much to the States. The savings from the abolition of the IRS would save a fortune on its own.

Simon- Abolish the IRS and there will be no one to collect our precious tax dollars that actually do go towards something good like paving roads, and building fences along our borders.

Sales tax Chris. You don't need a huge IRS to collect it.

In my mind, it would make the states more competitive- red states who whine about welfare for example could say' no more welfare checks'. Blue states, who favor education spending over blowing things up, could actually have a say in that as well. Taxing very little at the federal level would be a huge benefit, in my opinion.

Also, being that I'm from the northeast, I've noticed our roads are atrocious. It seems that the companies chosen to improve the roads aren't chosen based on skill or track-record, but instead on price. What good does it do the taxpayer if the state picks the cheapest guys, but then has to hire someone else to fix all the shoddy work? It makes no sense. If you are ever in CT, go up to Hartford on 84. Take not one, but TWO, spare tires. You'll need them :) And don't get me started on New York City- all those tax dollars, and they've got the worst roads EVER. Disgusting.

Terry- couldn't agree more. If the federal government spent the money on security HERE instead of fighting in a foreign country, I think we'd be safer anyway.

Chris, if the states had money to fund those projects, the IRS wouldn't be needed. Think of it this way-  The 'red states' will actually have to pony up the dough for their own projects! Connecticut would probably be among the more self-sufficient states, it's the states that don't have significant xax bases that would be in trouble though. And as republicans like to say- make the market competitive. Perhaps Alabama would abolish all business taxes and have the most corporate bases per capita than any other state. Maybe Vermont would have their own energy production system and residents of that state would pay little to nothing towards energy bills, just an in-state 'buy-in' to get infrastructure up and running. The possibilities are endless when you think about it, and it would give states a hell of lot more freedom.

Simon- maybe if you and your friends would stop with the immature attitude, we could actually have positive discussions. Just a thought.

I like the idea of a sales tax instead of a tax system like we have now.  It costs us about $700 just to have our taxes prepared.   I would love to see something simple & easy.

Brian Bartley

Jennifer - perhaps you should look at your own words here and take your own advice.

Brian- even if we had a system where our employers were taxed on THAT money instead of each and every one of us having to report/file taxes each year, that would be huge. Why we have to make things so complicated is beyond me.

Simon- You disagree that your buddies oftentimes make rational debate impossible? Sorry to have offended you, but I was just sharing a thought.

Jennifer - I made a perfectly valid point and you came back with something incredibly immature - which is a shame because the blog is really quite good. That is why I suggested you took your own advice.

Jennifer, I'm not sure what money our employers would be taxed on?  That's why the sales tax idea makes sense.  It is very easy, it is collected by the business owners and passed on to the appropriate agencies local-state-federal.  No screwing around with filing taxes, no IRS, what you make is your take home pay and it is easier to plan because you know what the tax is up front and you don't have to wait for an accountant to give you a nasty surprise in April.

Brian Bartley

The other thing it does is cancel out those who find creative ways of avoiding tax. If you buy it then you are taxed on it. Very simple, very clean, much cheaper to collect.

Brian- "even if we had a system where our employers were taxed on THAT money instead of each and every one of us having to report/file taxes each year"- obviously a sales tax would make this redundant, but this wouldn't be a bad option either. :)

Simon, not sure what I said that was 'immature'. I just pointed out that when you leave the con/lib immature attitude at the door, better discussions develop. Do you disagree? It doesn't seem that you do.

By the way- doesn't anyone know how much the IRS costs us to run? I think I'll go look it up. Very curious.

Almost $12 billion a year. Hmmmmm.

It sure would be nice to save $12,000,000/year.  That is money that could surely be better spent elsewhere.  In addition it would be nice to see the majority of the  money that each state /local governmantal unit collects stay more localized.  It seems kind of silly to ship it off to Washington DC and then have to pay people to administer bringing it back.  Might we get less money her in our state? Maybe, but I think most residents would be Ok with that because then we all know what we have coming and can adjust our local taxes appropiately.

Brian Bartley

Jennifer I am all for aboloshing the IRS. I don't think you are a very good liberal. Most of the lib politicians love more taxes.

Kevin- much like 'con politicians' love spending money. Perhaps you are a bad conservative. Get with the program- spend, spend, spend.... Debts Don't Matter! :)

Jen I hate the way the darn Republicans have increased the size of gov't. I am a libertarian. Not an extreme one, but I do want a much smaller govt with much more personal responsibility.

Kevin- from our recent meetings I would of sworn you were a full blown bush hugging republican. Glad to see you are not a cheney hunting partner lol

Talking about taxes... ever heard of no taxation without representation?? and no duel taxes (not being taxed multiple times on the same income)??

I do not feel the government properly represents me so why do I have to pay taxes? lol

Do we not pay income tax, then sales tax, and gas tax, etc then have to pay federal, state and in some places city taxes at the end of the year if we had a decent profit at the end of the year, or if we actually got money back from our tax returns we have to claim that "profit" on our taxes the following year.

Jennifer - Americans spend $265 billion dollars a year preparing their income taxes. I had a similar blog.

Jennifer, on the flip side, Denmark has just been designated the country with the happiest people, and they pay close to 50% taxes.  They're happy because when they have kids they know they can stay home a couple of years and raise them, not drop them off at some daycare center at age 6 weeks.  They're happier because they know if they get sick they will have available healthcare.  They know that their college tuition through graduate school will be paid for.  They know when they are old they will receive a pension that can actully support them.  They know when they are old they will receive a housing allowance.  And many more things that takes the stress and burden out of just trying to survive day to day.  I for one certainly wouldn't mind paying that much tax if I got something in return.  As it is I pay around 33% in taxes and all I have to show for it are thousands of dead Americans in Iraq, and many thousands more dead Iraqis!

Peter- the only people that benefit from the tax code the way it is now are CPA's and people who can afford them! :)

Terry- I agree WHOLEHEARTEDLY. However, we need a fair, transparent system in which people actually pay their dues- no weasling out. That will in turn make everyone else's share that much less. We know we have our priorities right! 50% in taxes and all of those benefits and add-ons sounds good compared to what we have now- a la carte charges for all those things you just listed off THAT ADD UP TO OVER 50% of our income! Why people don't see that is beyond me.   

Terry, we're gonna miss you. gotta love the Internet though. you can still be an AR member, to us, it'll be like you never left:-) PS bring warm clothes, I hear denmark gets a little cold in the winter.

Jennifer - I agree. you do realize that this will put a lot of people out of work. did you ever read my blog on "Oil Change Economics"? getting rid of the current tax system will have a similar impact.

Peter, your snide remarks aren't appreciated.  My comments were not gotten off the net, but from the news.  You know, the media that used to report stuff but now has a gag order and only reports fluffly stuff like how happy people are in Denmark.  Why you would think my comments about Denmark are not true are beyond me.  You ever live there?  You ever know anyone who lived there?  BTW my husband is from Norway, they have the same system but pay less taxes because they have their own oil and don't owe a red cent to any other country.  NOW thats novel isn't it?  Not borrowing from third world countries to keep a losing war going.  Why didn't we think of that?  Next time you comment Peter, how bout keeping a civil tone in your voice?

wow Terry! I didn't mean to offend you. I thought my tone was civil, using lower case and a smiley face to show that I'm kidding.

BTW, I've never been to Denmark, I would love to go visit one day. I actually would love to visit all of the countries of Europe. I would also urge all Americans to visit European countries. However, visiting these countries and having patriotism for these countries is great. For anyone who thinks that another country is better, I think they should go live there.

My comments were not gotten off the net or the news but from personal experiences. This is another great thing about this country, we can have different opinions.

Peter, apology accepted.  But actually many of us making comments, either here, or in conversation with others around us, have lived in other countries and we do know what its like.  You assume that we are on the outside looking in, when if fact, there are those of us who have  a very good grasp of which we speak.

Terry, if anything, i feel that too many americans don't know what is outside. I think people need to travel and experience other countries and cultures and then make their own decisions where they like or don't like. not every country is best for everyone. 

Peter, the great thing about the world today is being able to choose where to live.  Americans are so in love with their electronics, they think "traveling the globe" means surfing the web and watching high def TV.  Guess everyone doesn't have an adventuresome spirit.  But, those who don't know what its like elsewhere, might be surprised should they actually have to live where they "wish" they could.

I talked about abolition of the IRS today on the show. It elimintaes tax avoidance because if you buy something you pay tax on it.

On the other issue being discussed, it is interesting to note that Denmark has a very high suicide rate. According to the World Health Organisation, it has a rate of 27.3 suicides per 100,000 of population. As a comparrison, the rate in the United States is 22.1, the United Kingdom 14.1, Norway 23.1 and Sweden 26.6. I mention all the Scandanavian countries because I remember it being a yearly story on the news in the UK. All kinds of theories as to why these countries have such high suicide rates have been brought forward. One of the more popular ones is how much darkness there is during winter. I am curious to know whether or not suicide was taken into account when the happiness scale was done. Somehow that doesn't seem likely.

Simon- It has been proven that sunlight helps people be happy because of its effect on the body (I can't remember what chemical your body releases but yeah). Suicide rates are much higher during the winter months because of the darkness it is depressing. I know personally I am happier during the summer than the winter.

Yeah and the federal government publicly says there are less than 800 suicides amongst Iraqi and Afghanistan military veterans, while the latest information gleaned by invoking the FOIA Act, and retrieving VA emails, puts the number at around 12,000.  Seems to me unfounded war, and inaccessability to proper mental health care upon returning home is the reason our suicide rate amongst veterans is so high.  Those poor souls live in permanent darkness!

Most of the suicides around here are H.S.ers and young adults, nothing to do, no jobs, not much to live for. One of my really really good friends hung herself a few years ago in her boyfriends garage. We have also averaged 3+ homicides/week for the last few years.

I hear ya Chris.  I lost two cousins to suicide when they each had just turned thirty.  Last year my best friend's son committed suicide when he had just turned thirty.  I wonder if thirty is a turning point for people.  Some turn around, and others just give up. In my son's neighborhood, two mothers with young children, and one city cop committed suicide all in the same year.  All were around 30 years old. What a shame!

I like the idea of a sales type tax. But I am afraid that we would have some politician who would want to increase it way up to 30% or something. But then, according to Terry, we would be happier. I for one, would not.

Kevin, I think we can all agree that what we have currently is unfair and ridiculous. I think we can also agree on this- if our tax dollars actually went somewhere good, none of us would have a problem. The issue is, we have no control over where our own tax dollars go, and that leads to resentment. If taxes were 30% across the board, but we all had access to a doctor, our kids all had access to college, and our roads were kept up etc... I think I'd be more than happy to pay that 30%. You, I think, just assume that all that money will go to welfare or something- which wouldn't be the case. It's all in what we view as being a decent way to spend all those billions of dollars- and they are not doing it right, for ANY of us, currently.

Kevin, why is it always a question of the government taking "my/your" money away from "me/you".  I think you're forgetting that some of that money, that is before Iraq, went to actually help "me/you" or someone we care about, in the form of good roads, secure bridges, fire and rescue, schools, medical care, etc.  You make it sound like if your money is taken from you, you will starve to death.  Paleeeeeeeze!  why can't conservatives balance their thinking?  Oh wait, because you are able to take care of yourself and probably say "I've worked hard to get where I am", children born to people who are disadvantaged shouldn't get food or medical care because their parents could have done it if they really really wanted to.  Question, if you think you can completely take care of yourself, then why aren't you out there working to make the roads better, or volunteering to be a fire/rescue person, or whatever?  According to you, you don't need the government.  Bottom line is, you don't want to part with your money, but you want all the services your money provides to all of us.  Must be an awfully confusing world in which you live.

Terry, Coast Guard Auxiliary, Volunteer Fire Dept, Nat'l Gaurd. Probably not the correct organizations, but they do lots of good stuff. I'm in them.

I am all for a certain amount of taxes and helping people who need a bit of a hand. What I am not for is giving money to able bodied people just because they won't work. I am not for corporate or farm welfare. I am not for limos, gyms, big spending accounts for any politician, redundant bureaucracies, civil service workers who forget we are their customers, or new govt agencies. I am not for giving tax dollars to Planned Parenthood, Amtrak, the airlines, or NPR. I am not for paying some artist who can't make artwork that poeple want. I am not for feeding prisoners better than the taxpayers who pay for their food. I am not for letting foreign students pay lower tuition than Americans do. I do not think we need a few of the federal departments.

I am not confused. I do need some of the govt, but we have let our govt get way too big. We have some folks who think the govt can fix everything. I like a limited govt with very little control over us, especially federally. If we keep going down the socialist road, we will have people who think they cannot do anything for themselves. We are probably already there in some cases. France here we come. Daddy please pay for me because I can't seem to do it myself.

I would love it if I could get out of social security. It is a joke. Look at Galveston Employees Union as an example. They laugh at SS.

We have had a War on Poverty for 40 years. We regularly transfer wealth from achievers to the poor. We still have poor. It is not working.   Our Medicare system is a joke. I do not want to be in it. I would like to buy it in a free market with no govt involvement which will drive up the price.

You speak of your husband coming from Norway. I too have a spouse from a socialist country. She is constantly amazed at how people from socialistic countries come here and want to turn us into them. Why do they come here if their country is so great? 

Kevin, from the bottom up.  My husband usually doesn't express his opinions on either Norway or here.  He came here to go to flight school, something not available in Norway.  He met and married, and stayed.  There are really good things about a socialist society, and there are some questionable things, but the fact that they value human life more than we do, is a pretty important issue.

I agree with you about giving away money.  It would seem to me that at some point the government would have figured out a way to weed out the needy from the dead beats.  But I'd rather err on the side of caution there, especially since we literally give away billions to all those big no-bid contractors that bush hired.  So the two most burning issues for me are, helping people, and getting rid of the price gouging contractors.  There is no reason why the military cannot feed their own, for example.  They did it for hundreds of years till bush came along.  No reason why they can't do their own maintenance, laundry, whatever the hell services we pay contractors outrageous amounts of money to do.

As for Soc. Sec.  The Galveston Employees Union can afford to laugh.  They have their own safety net.  But for millions of people, just like me, I never had the benefit of working long enough to collect retirement from a company, and never had the opportunity to join a union.  I've been playing catch up with my IRA, but will never be able to accumulate enough money to sustain myself through my "golden years".  I will need social security, as will millions of others.  I do however think the government should give you the option to opt out.  With the express understanding, that if you lose in the stock market, and end up on the street, there will be no monthly check headed your way!

As for people thinking the government can fix everything, well when I entered the work force we were told by the government not to worry about our retirement, that it would all be taken care of.  There was a time when this country could manage the financial needs of its people, but as we've grown, the government has not kept up with the pace, and now all of their programs are in jeopardy.  We were sold a bill of goods by our elected officials.  I don't think any of us ever thought "gee the government should take care of me".

I do not plan on recieving a dime of my SS money because by the time I am old enough to collect odds are very good it won't be around anyways. Most of my clients are senior citizens that sometimes cannot even afford their medications. I would be a damned fool to think that it will cover anything in 40 years when I will be 65.

As far as welfare goes that is the biggest joke of the government because it doesn't often go to those that really need it, it is the ones that do not need it that actually get it. I do not have a problem with paying taxes to support those that really truely need it here in america, it is paying to support other countries that pisses me off.

As long as their is a sales tax, and an income tax there will never be a fair (or constitutional) tax

Gee Chris, sorry to hear you are so young!  I get to start collecting in two years.  Woo hoo!  That is if I live long enough )-:  But just to let you know, I've been hearing for the last 40 years that SS will be bust in X number of years.  Personally I think its been a ploy to keep us scared.  Hopefully we'll get an administration in that will actually protect the SS assets instead of raiding the account to pay for OIL wars.

Terry- Even if someone does protect SS so that there will atleast be a little there for my generation it doesn't even cover many seniors now so I doubt it would do much for me in 40 years lol. Also haven't you already figured out that everything the government tells us is to scare us lol

Yeah what the hell is the crap bush is already trying to allocate war funds for next year when he won't be in office. Id tell him to piss off lol.