Devising the best taxation

In the 2008 presidential election campaign, I have noticed that the issue of taxation has been a big topic.There are many different models for taxation. Given the seeming failure of the IRS in the United States, and the allegations that such an agency is unconstitutional, a new form of taxation seems imminent.But which one? What system or plan of taxation appeals to you most and why?I will only list one proposition in the opening segment, only because there are so many and this one is really piquing my interest. Please feel free to add to it and to give reasons for why you support it.The Fair Tax calls for the demise of the IRS, claiming that it is an ineffective and antiquated system.What is interesting about this tax is that it claims non-partisanship. This appears to be the case since Dems and Reps alike are approving it. Sen Mike Gravel (D) and Gov. Mike Huckabee (R) are two big proponents of this plan.The entailments of this proposition include empowering the citizen, rather than empowering the government. It promises to eliminate taxes on savings, dividends, personal and corporate income, and abolishes the Death Tax in favor of a consumption tax, where, essentially, the only real tax is drawn from one's purchases. In other words, from a sales tax. Have a listen and tell me what you think.Edited by Nemesis Juggernaut, : No reason given.

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“This life’s dim windows of the soul, distorts the heavens from pole to pole, and goads you to believe a lie, when you see with and not through the eye.” -William Blake

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Given the seeming failure of the IRS in the United States, and the allegations that such an agency is unconstitutional

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Any time a government taxes the hell out of you unnecessarily, makes it so that the people cannot pour money that should be going in to the economy. The US enjoyed a 5% taxation for years and years until in 1913(?) where it instituted an income tax.We now have approximately a 40% compulsive tax which is higher or the equivalent to most socialist nations. Well, if we are going to pay for taxes that high, might as well get the perks that the socialists nations do, like healthcare.But we don't. On top of paying these taxes, we still have to pay for our basic amenities. Most people struggle with even that in America. Any nation wants its middle class to dominate, otherwise we have a see-saw effect like we see in many South American nations where the people are either dirt poor, or filthy stinkin' rich. Something is broken with this system, and I believe it could be better for all of us by finding a new system. There is talk that there is no such income tax on the books. And under scrutiny, people have tried to locate such a law that legally forces anyone to pay the federal income tax. The IRS has evaded it repeatedly. It appears that no such law actually exists. There is no you guys about this, Crash. This is a non-partisan issue. If you want less government intrusion, you would support a proposition eliminating the IRS.Perhaps you are in favor of socialism and so you want to be taxed to death. But if so, you're still getting gypped because you're paying all those taxes with nothing to go along with it.

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“This life’s dim windows of the soul, distorts the heavens from pole to pole, and goads you to believe a lie, when you see with and not through the eye.” -William Blake

Thanks for the reply. This is the spirit I was looking for in the OP. Great job. I hope more will follow suit. Agreed. I'm not sure I understand what you mean here. Can you expound? Agreed. I think the value of the US dollar has depreciated enough to where more and more nations are switching to Euro's. However, under the Fair Tax, I believe that it will eat up the debt. I'm not familiar with this term. Can you expound? Under the Fair Tax you wouldn't have to file anything ever again. Its solely driven by revenue made by the economy. As it is, Americans pay up to 40% of their revenue to the government through Federal income taxes, as well as paying for sales tax. The goods we purchase is taxed twice. Why? Because companies don't pay their taxes. Instead, they imbed what they owe in to the cost of a product. So we essentially pay their taxes for them, plus our own.As it is currently, goods imported are not taxed in the same way that American manufacturers are required to pay. That means American companies lose in competition because their products are generally more expensive.Going to a Fair Tax would eliminate the middle man. Americans can enjoy an entire paycheck. That paycheck would be dumped back in to the economy. Under the current system, poor and middle class citizens, after taxes, generally can only really afford the basic amenities.If we had more of our own money to play with, the economy goes up exponentially. Its good for the government and its good for the average citizen. Agreed. The only real need of the IRS, or some derivation of it, is to account for the money and to allocate it properly. Beyond that they serve no function. But even this is complicating things unnecessarily. Ever wonder why we have to pay a Federal Income Tax only to get that money right back at a later date after taxes are filed? Why the complication? Why not just pay a flat tax that will inevitably make more GDP than what we currently see?

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“This life’s dim windows of the soul, distorts the heavens from pole to pole, and goads you to believe a lie, when you see with and not through the eye.” -William Blake

It probably makes no sense because that isn't true at all. How does it affect the poor or the rich since its a system that doesn't penalize someone for being either rich or poor, which the current system does?Its all relative in, if you buy more, you pay more taxes. If you buy less, you pay less taxes. We already do this with a sales tax, except that it will eliminate the hidden taxes embedded in to products.So now, your entire paycheck goes to you with no deductions, unless of course you direct deposit a certain percentage in to a 401k plan. But even then, its your money. And the IRS won't touch it, or a percentage of your 401k because they won't exist under this plan. What isn't fair about it? Under a progressive tax reform, it penalizes people with a Robin Hood effect. This keeps the welfare state going. Under a progressive reform, like almost social programs, there is no incentive to actually work for anything because Big Brother wipes our little bottom for us from cradle to grave.That is NOT the job of the government. The sole responsibility of the government is to protect its citizens. That's the genius of it. You won't be able to cheat anything because you don't fill anything out. If people don't generally get away with Sales Tax fraud, they won't get away with it under this plan either. Currently, the IRS practically spends more money trying to collect people's income tax than what people would pay ordinarily. What a waste, and a mark of complete inefficiency. You wouldn't have to file for anything... What are you filing for if it eliminates the income tax? All you have to do is go out and buy whatever you want. Where are you getting this information from? That's absurd and I can't believe this myth perpetuates still. Why would any nation want poor people but make rich people richer? Why? They wouldn't. What nations want is to make a very large middle class, with a small low and high class. And of the systems you claim do this, why do you think the Fair Tax, of all the systems, would do this?

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“This life’s dim windows of the soul, distorts the heavens from pole to pole, and goads you to believe a lie, when you see with and not through the eye.” -William Blake