Part II: Cut Taxes, Tax Reform

NUMBER THREE PRIORITY - CUT TAXES

All contributors to the top ten had tax cuts right up there in third place. Many suggestions included closing down of several federal departments including Commerce and Education.

It has become a popular practice for our leaders to promise billions of dollars in aid to foreign countries. For example, President Clinton flew to Guatemala after the hurricane and promised billions of dollars to aid in their rebuilding. Hillary also flew down later and made the same promise to send billions of dollars to aid in their rebuilding. Vice President Gore flew down separately and made the same promise. If they had calculated the cost of these three trips, including three separate entourages, and just sent the money, right then and there, Guatemala would have been able to start reconstruction much sooner. But then, we all would have missed the feel-good-pain-sharing-tearful comments of our leaders. Every time the earth has a disaster, the Clintons/Gores feel they must appear in their "savior" mode and promise billions of the American Tax Payer's (ATP) money. Unless the budget committee sets aside this kind of funding, it should not be available for these last minute emergencies.

I have been watching the Congress attempting to unite behind a $792 billion tax cut that would roll back income tax rates for all Americans. Cutting 10% from the income tax, plus tax relief for married couples, another capital gains decrease and phasing out of the death tax is wonderful. We all know it won't make it past the President's veto.

The government should follow the business practices of down sizing overhead costs. How many committees and task forces are duplicating their expensive investigations that most times come to no conclusive ends? Every successful business has an efficiency executive that keeps tabs on duplications and time wasters. Until some effort is made to do this, every department within the government should be cut by at least 10% for starters.

NUMBER FOUR PRIORITY - TAX REFORM

Before any tax reform system is discussed by any candidate, it should be first brought to the attention of all candidates that the American voters are scared to death of any changes in their financial status. They want their safety nets firmly in place to take care of their kid's education, guaranteed loans for their homes, cars etc. and the ability to be treated equally by their government, as the government treats legal and illegal immigrants.

I spent weeks researching the flat tax and the national sales tax. Without first cutting the costs of government, they are useless. Everyone would like to see the elimination of the IRS. Everyday that Congress is in session, more money is requested that must be covered by the IRS to pay for all the "perks" promised. Our Congress sets the spending budget for all Americans. They have set up the IRS solely to tax us all to cover these costs. The IRS may, or may not have the right constitutionally to do this, but they have been issued the authority and until it is removed and replaced, we are all stuck!

The real problem lies with the American public. The American Tax Payer (ATP) is over taxed and subjected to a customer service attitude (IRS) that would never be tolerated in the business world. I have been reading that one third of the taxes due are either late or too high and therefore unpayable. Many in default are employed by the government. Adding high penalties does not correct the problem.

When an American business finds that their income from sales or services does not cover their expenses, they either find a way to increase their efficiency or they close up.

I am not going to list the budget costs that could be made more efficient as I am not an economist. I am a listener and can only report what I have discovered from talking to the average tax payer.

1. Basically the tax payers do not trust the Federal Government. We have been lied to, cheated on, our men and women are sent to foreign lands to die in an undeclared war. We ask ourselves "whose side is the government on?"

2. Corporate welfare is not a responsibility of the tax payer.

3. The ATP wants to work, buy a home, buy as many cars as needed to get to work, educate their children including college costs and, if possible, plan a vacation. All would like to be able to set aside a retirement plan to keep them comfortable and debt free.

4. The ATP should also be allowed to keep enough of their paycheck to cover the cost of their health insurance. As the larger manufacturing companies are moving abroad, there are fewer and fewer American jobs available that pay health insurance costs. According to my investigation, HMOs are not offering complete care (they can't afford to). The HMOs that are still in business will be cutting their services or quitting, as they did in my area. The obvious solution would to let the government take over the responsibilities. HORRORS!!! This is one big problem just waiting for a good honest discussion and a fix. (Oh, where are all the Conservative candidates, when you need them?)

5. The ATP does not want his Social Security or Medicare to be changed! Again, the lack of trust in their government keeps us from believing that any change would be a benefit. We agree that investing a part of the SS funds in the market would be profitable, but we do not trust any elected official to make the choice of where the money is to be invested. The political debate that we are hearing now is made up of name-calling and spins that pit both parties against each other with the ATP's future left on the sidelines. We all agree that SS and Medicare are going broke, but until a good honest discussion and fix is in place, leave it alone! None of us would move out of our home without a place to go.

6. Many ATP are involved in funding programs that enhance our schools, churches, health research groups, environmental programs and hundreds of organization that all add to the welfare of everyone. The incentives are many. We all desire to help each other locally and throughout the country. From the American Red Cross, the Salvation Army to the local homeless shelter we feel a need to do our part. We want a tax write-off for these 501(c)(3) groups. In reviewing the flat tax or national sales tax, these are not guaranteed.

Basically, the tax problems are fixable! It is in the hands of our elected officials. Every ATP must register and vote for the candidate who makes an oath to review the expenses that pass through their committees. Every ATP has periods of time when their personal expenses are increased due to some emergency or other. We handle this problem by cutting back on spending long enough to catch up with our income. It is time for the government to do the same. Everyone is worried about paying down the national debt. This can be done by congress cutting back on spending for a short period of time or as long as it takes to fix the situation. I'm not absolutely sure that this needs to be corrected at this point in time. We have too many people in debt trying to keep up with their taxes.

The Congress has the key to our tax problems. They should be made to explain every expense taken out of our revenue source. This means that every ATP should be aware of what their representatives are doing. I don't know why this isn't a campaign issue for all those "Conservatives" running for office. The congress has been lazy in their attention span when it comes to the Presidential Executive Orders. They should sharpen their responsibilities and work for us instead of smoothing out the unethical actions of their President. Its "feet to the fire" time.

Published in the August 1, 1999 issue of Ether Zone. Copyright © 1999 Ether Zone Online. Reposting permitted with this message intact.