Friday, November 11, 2011

Tax solution

Taxes, taxes, taxes! They loom over our heads like clouds before a storm. Most of us that is. Not everyone is concerned about taxes. Super rich people may scream they are paying way too many taxes but when all is said and done their everyday lives really aren't affected much, if at all. I mean, if I have to survive on 10 million dollars a year instead of 11 million my lifestyle won't be noticeably different will it? And then there are the permanently non working poor. No income from sources other than the government, equals no taxes. Then there are those underemployed that receive credits at tax filing time and get a refund more than ten times what they paid in. Technically that amounts to revers taxation, pay in ten bucks get back a hundred.

There are so many tax loop holes, even congress can't keep up with them. And the favoritism of those loop holes is scandalous. Its enough to drive you to believe some of those schemes that profess to stop the government from taxing you at all. I've met some of those folks, before and after they went to jail for tax evasion or conspiracy against the government. That's certainly not the way to go. Then there are the super independent souls who live in the rural areas that trade services, do odd jobs and otherwise keep any income invisible to the authorities. Modern day mountain people they are. Everyone it seems is fed up with taxes. Me too!

Most every politician, during their election campaign delivers some kind of speech on how they will overhaul the tax system and make it fair, lowering every ones tax rate, eliminating or creating loop holes to special interest groups and all the while reducing spending and paying off the national debt in the next four years. It sounds magical. It sounds fantastic. It sounds too good to be true.

Since the beginning of time, no one has been able to develope a tax system that satisfies most, let alone all tax payers. The writers of the bible describe tax collectors as morally among the lowest of the low. Being called a tax collector was a slur against your good name. I guess there is no answer to the problem. We're never going to be satisfied are we? Except of course, if everyone paid taxes at the same rate no matter their situation. 1% 2% 3% 4% what does it really matter? If the rate was set, without exception, for every conceivable transaction, and that was the sole financial resource for any and all governmental agency and they had to budget accordingly, we would all learn to live within our means right? No, it ain't gonna happen is it folks?

Taxes are determined by trial and error with each new generation. Greece is finding that out. They thought that they could all receive complete financial security guaranteed by the government for as long as they lived and they didn't have to pay much in the way of tax to get it. The process is, just receive, don't pay! The politicians went along with it so they could get elected. Now the entire country is broke. Japan is a very disciplined country and take care of their older citizens very nicely. They are running into some problems there now too.

It'll all work out. It always has. It's laughable that so many of us think the situation is unique and a solution is just around the corner. It is! We just don't want to be the one to start paying the tab.

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