Been following the IRS scandal? It got me thinking, but not about what everyone else is thinking. Sure, I know the drill. President Obama did nothing to bring affordable health insurance to the masses as he promised. All he did was levy fines to people who do not have any health insurance and the IRS is used as the media to collect the fine money by adding to the Federal Income Tax obligation. Now the IRS is accused of inequitable practices where the wealthiest Americans are targeted and penalized more heavily. And Obama is at the seat of controversy with respect to his stand on health care reform the liberal way. But ironically, that is not the crux of this blog.
The Federal Income Tax was introduced by President Woodrow Wilson in 1913. There was no 1040 form back then, just a form with the words INCOME TAX in red block lettering across the top and the tax was a flat rate percentage—sound familiar? Remember 9-9-9 and the proposed 1040 post card? Overall, Woodrow Wilson was one of our better presidents, most of his reforms were necessary at the time, and unlike FDR, his vehicle was statute law enforced by law enforcement—not creating new government agencies sovereign in their own rights resulting in higher taxes for all of us and the federal government accruing more and more debt. But the Federal Income Tax is nonetheless, Wilson’s boondoggle. The bill of goods sold to the American people in one-hundred years ago was that it would be a temporary tax. Temporary? Murphy got that one right—there is no such thing as permanent press or temporary taxes! With the first federal income tax being flat, the temporary one, there was no need to create a bureaucracy as elaborate as the IRS. You simply calculated 4% of your net income and sent the United States Treasury a check for that amount. The evolution of graduated income taxes and out of control government spending on superfluous items and government agencies that proved to be either pointless of futile led to the federal government keeping the tax and our obligation to pay it but getting out of the business of collecting the aforementioned tax and creating the IRS, a bureaucracy solely dedicated to the collection of this [temporary] tax.
Alas, immortality is not a virtue if it wasn’t intended to exist in the first place! The impracticality of abolishing the Federal Income Tax is obvious with $16T deficit. But do we really need an agency dedicated to the sole purpose of collecting this tax? Wow, the federal government could save billions if the IRS were closed. With a flat tax at a percentage reasonable for all income brackets, you won’t even need form 1040. Just set the withholding at the % rate and transfer that money directly to the United States Treasury. The most fundamental way to cut cost or pay less for something is to eliminate the middlemen. Without the costly overhead of operating this bureaucracy we call Internal Revenue, more tax money can be collected with taxpayers paying a lower percentage rate. No need to make the IRS immortal. And as far as health care reform is concerned, think about it. If the taxpayers’ obligation is lightened, the windfall in their paychecks can be reinvested into quality, private sector health insurance. Obama it backwards. Instead of levying fines and increasing their obligation to taxation without representation, as it were, do the opposite! Decrease their tax obligation, their tax burden, and health care becomes affordable. And if we take Rick Santorum’s advice on heath care savings accounts, we are covered for job loss or inability to work.
The Internal Revenue Service: immortality is not a virtue if it wasn’t intended to exist in the first place.