Real Tax Reform

[corplinx]

I have always heard republicans tout what they would do with the tax system if they were in charge. Its time for these guys to put up or shut up. I started doing my taxes the other night and I realized several things:

A. the government already has all the info they need to know how much I owe. In other words, I do not have more itemized deductions than the standard deduction. In other words, they could just compute what I owe and send me a return or a bill instead of requiring me to do this. Most people's relevant tax info gets sent to the IRS already.

B. Nobody pays what they are supposed to. Standard deduction, EITC, gambling losses, charitable contributions, college deductions, mortgage interest, and the list goes on and on. Its ridiculous to have all of this crap. Instead of having a 25 percent tax rate, why not just make it 20 percent and do away with all the deductions? Imagine not having to get a refund because they dont take too much in the first place.

Seriously, the tax system could be more efficient, with less loopholes, lower rates, and still make more money than it is now. Not to mention its time to start making not-for-profits (especially churches) at least report their finances.

[Pyrrho]

The idea of a flat tax never has gone very far...I'm too ignorant of tax history to comment beyond that.

What I really want to know is why I get taxed on my state tax refund...

[corplinx]

I also love the fact that social security income is taxed.

[Roadtoad]

Originally posted by pyrrho2000
The idea of a flat tax never has gone very far...I'm too ignorant of tax history to comment beyond that.

What I really want to know is why I get taxed on my state tax refund...

Because we are suckers, and we keep putting idiots back into Congress.

Here in Oregon, unemployment checks are taxed!

I think the theory behind deductions is to encourage people to invest or put their money in those areas. Behavior modification. ;)

Since the government doesn't actually know how much I put into deduction-worthy things until I show them, they can't automatically refund my taxes.

I agree it is time for the Republicans to put up or shut up. This is their big chance. And I am a Republican.

There will be resistance, though. And filibusters. Should be interesting.

I believe non-profit organziations are required to submit a financial statement to the government.