The federal government really loves money. It borrows money. It prints money. And it taxes its people to get their money. The government has a lot of experience taxing people, and it knows that people don’t generally like paying higher taxes. The government makes taxation such a difficult process to understand that many people just don’t have the energy to look into it and do something about it.
Government legislators haggle over taxes all the time. They give tax breaks to some people and businesses but not to others, and oftentimes politicians will create tax loopholes for their supporters. This isn’t fair to people who don’t have the money to contribute to politicians in high places who can influence tax legislation. But I don’t believe wealthy Americans should not be “rewarded” with high taxes for creating strong businesses or advancing their careers. Is there a good solution?
No solution is perfect, but I think Americans should take a closer look at the FairTax plan (H.R.25/ S.13). Instituting the FairTax would eliminate the need for the Internal Revenue Service and would make it more difficult for the government to increase taxes without opposition from regular Americans. Under the FairTax, everyone would get to keep his or her entire salary—only consumption would be taxed.
The FairTax plan doesn’t take care of the main problem, which is that Americans are taxed too highly in order to support an inefficient and corrupt government. But it would bring some much needed transparency to the system while eliminating the IRS, getting rid of thousands of pages of incomprehensible legislation, and making tax evasion much more difficult. And that's a step in the right direction.