While the current spate of the U.S. Internal Revenue’s out-of-control machinations and scandalous partisan political activities have increasingly distressed the nation’s bi-partisan electorate, the drive for a greatly simplified flat tax seems to have suddenly gained new traction.
With former Presidential candidate and Forbes financial magazine owner, Steve Forbes, again taking to the hustings for an end to the current lobby-overloaded “Rube Goldberg” contraption, there is a better than even chance that the long-simmering federal tax debate will gain traction this time. It will not wait to become an issue on the mid-term elections. There are three salient factors that a fresh, unadulterated approach to a simplified tax plan would seriously be offering:
1) Annual federal tax collections, which will approach a record $2.5 trillion this year, have been increasingly criticized by the entrepreneurially revenue-generating public. They have been increasingly agitated by government entitlements (food stamps, debit cards, Social Security disability payments, plus seemingly unending unemployment compensation) to nearly three million out-of-work recipients. Because of such cumulate entitlements, they may not be motivated to take jobs that pay less than what they might get in the open job market today.
2) The explosive impact of Obamacare taxes that will encapsulate an increasingly larger scope of individuals and businesses. Many of these were not previously victimized by this ill-considered patchwork of taxes. Not the least of this added tax burden is a 3.8% surtax for those individuals and businesses generating an adjusted gross income of over $400,000 for individuals and $450,000 for married couples. This comes on top of an increase from 35% to 39.6%, which was levied at the first of this year. The vastly more expansive Obamacare taxes will embrace a much wider scope of U.S. taxpayers. It will be so broad as to necessitate 17,000 new U.S. Internal Revenue Service agents.
3) But worst of all, is the loss of faith among the electorate as a whole, who rightfully see the current Administration utilizing the punitive “auditing” fear of the government’s most authoritarian Praetorian guard for political partisan advantage.
It will depend on the intensity of the outcry of the American people-at-large to determine how soon and how effective the blowback from the potential U.S. voters will be. Be that as it may, tax policy has now taken a lead position in the issues weighing on the mid-term elections.
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