Tax Reform essays

Tax Reform essays When the American people think of taxes, the acronym that immediately comes to mind is IRS. Associated with these three letters are the audits and spools of red tape that Americans travel through each year to earn a temporary hiatus from government intervention into their lives. The permanent escape from this burden of record keeping and paper pushing is just one of the benefits reaped by replacing the current federal income tax system with a national sales tax. Simplification of the federal bureaucracy through a national sales tax would eliminate the need to even have an agency such as the Internal Revenue Service. The burden of individuals being forced to keep financial records for seven years and the nightmare of filing annual tax returns under a complicated system of rules few can decipher would no longer exist. In order for our country to institute a just and ethical means of taxation, establish a secure method for appropriating government funds, and to honestly save the taxpayer money; the United States should initiate tax reform by eliminating federal income tax and create an across the board federal sales tax. The government's reliance on the current income tax system creates a great emphasis on the appropriation of tax revenue. This collection mentality encourages taxpayers who are in high tax rate brackets to pursue avenues of tax avoidance by finding loopholes in the ever increasingly complex tax code. Extremely difficult for the everyday American to understand, the federal tax code can encourage tax evasion and avoidance by taxpayers of all rate income levels because nearly everyone attempts to "outsmart the system". This situation causes an economic loss by creating extra work for the government and lost tax revenue. With the cost of investigation and the cost of collecting money owed the federal government rising, the amount of capital needed from taxpayers to pay for th...