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The Fair Tax

By James Monastero

Mortgage and Lending with Texana Bank

April 12, 2008 08:20 AM

Happy April, hope everyone got their taxes done already.

Wouldn't it be nice if the IRS didn't exist though?

Wouldn't it be nice if a salary of $60,000 actually meant TAKE HOME PAY?

When it comes to the fair tax, there are some drawbacks. But to my mind, having a fully transparent and no-loop hole system would actually mean a more efficient and user-friendly tax system.

Like everything, people like to pretend it's a left/right, conservative/liberal issue. Let's get that out of the way, and say it's more of a common sense issue if anything. I consider myself a liberal, but when it comes to taxation and how money gets spent, I like to think I'm fairly open-minded about people's complaints, and also very interested in alternative tax systems.

If conservative absolutists had it their way, we wouldn't pay any taxes and we would have an 'every man for himself' situation. Not to mention- who would pay for the wars???

My problem with the 'no tax' people is simple- we NEED certain things. Roads, schools, heck even prisons... Someone DOES have to pay for that. But why not have a very small tax at the federal level, and larger taxation in local communities? Wouldn't it make more sense for New York to KEEP more money instead of sending it to the federal government? Wouldn't it make more sense if STATES had more say in where their money was spent?

Just think about this- when people go to H+R Block to get their taxes done, the tax preparer is making sure that their client is getting every possible penny back. That person at H+R Block costs money. SO, a guy right down the street may be eligible for all those same deductions- yet not know it because he doesn't feel like spending 150 bucks to find out. In other words, one person gets their rightful amount back (argue about THAT one hehehe), and the other guy doesn't. How is that fair? How is that transparent? It's not. The current system is confusing and ridiculous.

How much does it cost to run the IRS anyway? Anyone know?

Now I'll get back to watching Red Sox/Yankees game 2!

Comments(33)

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James Monastero

Texana Bank - Fuquay Varina, NC

The Matchmaker

Almost $12 billion a year. Hmmmmm.

Apr 14, 2008 01:40 AM

The Bartley Group SouthEast MN Real Estate

Coldwell Banker Home Connection - Owatonna, MN

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

Apr 14, 2008 04:04 AM

Kevin Robinson

Twin Falls, ID

Fractional Developer

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.

Apr 15, 2008 02:44 AM

James Monastero

Texana Bank - Fuquay Varina, NC

The Matchmaker

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! :)

Apr 15, 2008 03:08 AM

Kevin Robinson

Twin Falls, ID

Fractional Developer

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.

Apr 15, 2008 03:22 AM

Chris Horton

Horton's Lawn Care L.L.C. - Burton, MI

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

Apr 16, 2008 02:55 PM

Chris Horton

Horton's Lawn Care L.L.C. - Burton, MI

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.

Apr 23, 2008 04:20 PM

Peter Nikic

Broad & Bailey Realty LLC - Valhalla, NY

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

Apr 24, 2008 11:46 AM

James Monastero

Texana Bank - Fuquay Varina, NC

The Matchmaker

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.

Apr 24, 2008 01:53 PM

Peter Nikic

Broad & Bailey Realty LLC - Valhalla, NY

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.

Apr 24, 2008 02:24 PM

Peter Nikic

Broad & Bailey Realty LLC - Valhalla, NY

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.

Apr 25, 2008 03:29 AM

Peter Nikic

Broad & Bailey Realty LLC - Valhalla, NY

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.

Apr 25, 2008 07:46 AM

Simon Conway

Orlando Area Real Estate Services - Orlando, FL

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.

Apr 26, 2008 03:44 PM

Chris Horton

Horton's Lawn Care L.L.C. - Burton, MI

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.

Apr 26, 2008 04:45 PM

Chris Horton

Horton's Lawn Care L.L.C. - Burton, MI

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.

Apr 26, 2008 05:09 PM

Kevin Robinson

Twin Falls, ID

Fractional Developer

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.

Apr 28, 2008 02:42 AM

James Monastero

Texana Bank - Fuquay Varina, NC

The Matchmaker

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.

Apr 28, 2008 03:56 AM

Kevin Robinson

Twin Falls, ID

Fractional Developer

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?

Apr 28, 2008 04:35 AM

Chris Horton

Horton's Lawn Care L.L.C. - Burton, MI

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

Apr 28, 2008 01:30 PM

Chris Horton

Horton's Lawn Care L.L.C. - Burton, MI

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.

May 02, 2008 03:04 PM