Skip to main content
  1. News
  2. Politics
  3. Economy

IRS revelations show need for comprehensive tax reform

See also

One of the things that the legacy media has been trying diligently to ignore over the last week is the revelation that the IRS has been targeting TEA Party groups for harassment.

But even when the occasional story about these IRS abuses does appear in the legacy media, they ignore the important underlying story. In fact, even outlets like Fox News and Newsmax seem to miss this important core story. So what is it that is so much more important than the fact that Obama has been using the IRS to target and harass TEA Party groups and conservatives for strictly political reasons?

The story is in what this abuse tells us about our broken tax system.

After all, even though this is the first time that the IRS has had to actually admit that they were politically targeting certain groups, this is certainly not the first time that the IRS has been used by a president, as a tool for political retribution. There is good reason to believe that both Bill Clinton and George W. Bush laid the groundwork for such IRS abuses, thus setting precedent for Obama to take it a step further.

The only difference is that Obama isn't as smart as either Clinton or Bush, which although isn't saying a lot, did result in his pushing the IRS so far that they got caught with their hand in the cookie jar and had to admit their complicity.

But the story here isn't about Democrat versus Republican, or even about the TEA Party. The real story is that a system that taxes income offers far too much of an enticement for abuse, for a weak, power-hungry president to resist; be he Democrat or Republican. It's just one more proof that taxing income is the worst possible form of taxation.

Taxing income gives the government an unjustified window into our private financial affairs, is easy for criminals and illegal aliens to bypass and it gives presidents of both parties a tool to use against their political enemies. Imposing high import and export duties, to replace the income tax would undermine both foreign and US business and cause artificial price increases, not only abroad, but also in the USA. Even property taxes are seriously detrimental; since taxing ownership means that you don't really own your home. If you have to pay property taxes, then you haven't really purchased your home, but only the right to pay a lease to the government for allowing you to live there, even after your mortgage is paid off. Miss a property tax payment on your fully paid off home and see how long the government allows you live there.

The only form of taxation that doesn't have a serious downside is a national retail sales tax, such as the FairTax (H.R. 25). By eliminating the IRS, the FairTax would close the government's window into our personal financial affairs. Furthermore, tax fraud and evasion would become extremely difficult under the FairTax, since the number of collection points (the focus of fraud investigations) would drop more than 70 fold, meaning that those who try to evade paying tax would be 70-times more likely to be caught. But to get back to our point, since retail businesses and the states would be in between the taxpayer and the federal government, the FairTax could not be used as a political tool by presidents from either party.

Problem solved.

Comments

Advertisement