REPLACE the Bush Tax Cuts


The American taxpayer suffers under the massive cost of complying with the tax code, as well as having to pay the taxes, themselves...and the Bush tax "cuts" only made this worse

Republicans, Conservatives, libertarians, independents, and even Democrats who aren’t rabidly Liberal are all defending the Bush tax cuts, insisting that some or all of them must be extended…but it’s not because any of us like them.

In reality, even Conservatives and Republicans never really liked the cuts, except as a lesser evil versus no cuts at all…and the same is even more true, today.

Why aren’t the Bush “cuts” likable? Because they’re ridiculously bloated with rules, exceptions, special favors for special interests, bureaucracy, government winner-picking and other distortion of the economy, and therefore are insanely expensive to implement.

In other words, Americans have to PAY billions of dollars, in time and actual cash, to deal with the complexity it adds to the tax code.

Unlike the Reagan tax cuts, that may actually have saved taxpayers even more in compliance cost than in taxes reduced, the Bush tax cuts were estimated to add up to $114 billion per year in compliance cost, with its maze of tax credits, exemptions, and other economy-distorting favoritism and punishments. This nearly cancelled out the actual “cuts”.

It is estimated that simply complying with the overall income tax costs about $350,000,000,000 every year. That is a little less than ten times as much as the “tax cuts for the rich” that the Liberals are trying to block being extended right now. It is far more than the ENTIRE set of Bush tax cuts being debated now. It is over several times as much as ALL of the cuts, including the Stimulus welfare disguised as “tax cuts” that Obama is demanding be extended as well.

We could let the ENTIRE tax cut package expire…all of the Bush cuts for the “wealthy” AND “middle class”, all of the Obama stimulus “cut” handouts, including in both cases all of the tax credits that give free money to people who don’t pay real income taxes at all…and yet leave the taxpayer with MORE money in their own hands, if:

We simplify the tax code.

We could flatten it, while letting the overall revenue estimate INCREASE to eliminate all of those “cuts”, and people would still save so much that the economy would prosper.

This could be done by eliminating most exemptions, credits, and other economy-distorting favoritism, and reducing the number of tiers of taxpayers.

We should, as any real economist has insisted for at least two decades, implement a flat tax…everyone pay the same tax rate…whatever it takes to match the current income tax revenue. Exempt everyone’s income up to the poverty level, so nobody in poverty has to pay, but leave everyone else paying the EXACT same amount.

This would reduce tax compliance to less than one tenth of its current cost. But let’s imagine it leaves compliance as high as $100 billion dollars per year.

That means we’d save $250 billion next year. Inflating this over ten years the way tax cut estimates usually are, this would “inject” between three and four TRILLION dollars into the economy in the next decade.

We don’t need Bush/Obama “cuts” that cost us more in compliance than they actually save us per year. What we need is a simpler, fairer tax system that we can pay and then get on with our job of creating wealth for ourselves, and therefore the economy.

Why Steal $700,000,000,000 from the US Economy?


Robin Hood stole from the Political Class and returned to the taxpayers made poor by the government's burden

With the US economy suffering its first depression in sixty years, why would the Liberal Democrats in Congress want to suck seven hundred billion dollars from the economy?

But that is what they’re demanding, with their bizarre claim that we should raise taxes in the midst of this economic crisis.

When they say letting job-producing businesses and families making more than $250K per year keep their money “will cost seven hundred billion dollars”, of course that means that NOT letting them keep it will cost the private economy that same amount.

And, of course, the private economy is what creates wealth and permanent jobs.

We have seen that for the past year, when the government’s make-work “stimulus” jobs each ended, causing unemployment to worsen.

A “stimulus” job is a burden on the economy that must eventually end, leaving the worker unemployed again…but a job at at a real company pays for itself…as long as the worker makes the employer a profit, the business keeps employing him.

So, in order to save our economy, we need to leave money in private hands, to create wealth that sustains private jobs, that create more wealth, on and on.

Remember, the Political Class thinks that it owns the money it confiscates in taxes…but in the real world, WE own it, and the entire economy is robbed when it’s taken by the government.

The T.E.A. Party is correct: We are Taxed Enough, Already.

Where the Hell Are Medical Savings Accounts?


chained caduceusThe actual problem with our failing health care system is that consumers have no control over it. Already, too much is paid for by middlemen like insurance companies and government. If Americans only paid 5% of their food bills, a cheeseburger would cost fifty bucks, too.

Why are people handing off control of their health care to middlemen? Because government imposes massive taxes on them, and then “rewards” them, with tax breaks, for paying needless insurance companies to cover their well-care, checkups, and minor problems while charging them triple what those will cost.

If you say “screw that, boss, I’ll take the cash instead of the health insurance”, you’re forced to pay taxes on the money, when the insurance was pre-tax.

The solution? (aside from cutting the massive tax burden)

Medical Savings Accounts.

Instead of giving the money to a middleman insurance company, you get to keep it yourself, to save for any medical needs. It is not taxed, and once you accumulate enough to cover any predictable needs, you roll the rest over into a retirement account each year. Meanwhile, you by a very cheap catastrophic insurance plan, that only covers unexpected, rare disasters like cancer and falling in a wood chipper. These can cost only a fraction of a harmful full-coverage plan.

This gives you control over your own health care, the ONLY way to cut costs. It also allows you to save for your retirement, freeing you from depending on the ridiculous, doomed social security system that will NOT be there when even Gen X retires.

Why do we not have this?

Ask your congressman.

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