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Forum Post: What are the Flaws of the Tax collection system ?

Posted 6 years ago on Jan. 6, 2012, 1:12 p.m. EST by FriendlyObserverA (610)
This content is user submitted and not an official statement

The tax collecting idea was designed by a tyrant thousands of years ago, why do we still use it in modern day society?

And more importantly , why does the supposedly best economic system ever designed use a component designed by a tyrant ?

one big flaw of the tax system is that it limits what we can do. it places us on a budget at the government level and as a result we have unemployment when jobs are needed because with a budget we have no money to create jobs .. as a soveriegn nation we should be free to print as much money as we need to create jobs for everyone .. a better system is definitely needed



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[-] 1 points by infonomics (393) 6 years ago

End income and property tax discrimination against the childless. You breed'em, you deal with them.

[-] 1 points by jomojo (562) 6 years ago

Change tax laws, healthcare, while repairing the economy. Self employ.
Posted Oct. 25, 2011, 12:35

The payroll deduction system has not worked, except for the IRS, congress and corporations.

By changing to the below five point system, there would be thousands more small business start ups, creating more non corporate jobs. Full employment would increase wages and lower each person's taxes, while increasing tax revenues, which would fund social services.

One of the leading causes of new business closures is that the management must manage not only their own but also employees tax and benefits. Default of rules and payment of Income, SS, MC, sales taxes, permits and fees are reasons the IRS, state and local tax enforcements close many. Even without employees, the self-employed are threatened by the present system being a tax and healthcare minefield.

The production of products or services is what the entreprenuer should be spending their work time on. Business accounting would replace tax planning.

The new plan would:

1.Require that full earnings be deposited at a bank.

2.Eliminate sales tax collection by retailers.

3.Have federal, state, and local governments deduct their tax revenue from earnings when they are deposited.

4.Offer benefits desired by the worker/owner as an optional cafeteria plan. Insurance, retirement plan, education savings, charities, christmas club, etc, with payments deducted and fowarded from earnings.

5.Require that earnings and salaries from business be deposited/taxed the same as a wage earner. (larger deposits, larger tax %). Reinvestment in business would be therefore pretaxed.

This plan greatly enhances the freedom to quit a job, start a business, hire employees, with everyone having equal benefit availability. All employees would have to be lured with better pay and a more desirable job.

[-] -1 points by FriendlyObserverA (610) 6 years ago

interesting.. basically what your suggesting is place the bookeeping in the bankers hands for taxes and other deductions and remove the onus from the employer.. I can see where that paperwork could really pile up. seems like the government may have been getting a free ride on this ..? also with the benefit packages that you mentioned would certainly provide a unified availability ..

very interesting suggestion..

[-] 1 points by jomojo (562) 6 years ago

One of the real paperwork problems is the small business banking the governments' money. It helps with cash flow, until you're penalized or have your license revoked. All too easy to fall into that routine, since it's in your bank account, along with the cash for your payroll and groceries. I'd like to see micro businesses on every block. (buy local) I do wish I could get some interest in this idea somewhere. Thanks.

[-] -1 points by FriendlyObserverA (610) 6 years ago

ok, I see your additional point . Having that money on hand until it comes time to pay taxes .. it could easily get spent.. quarterly payments must really take a hit on things !

[-] 1 points by jomojo (562) 6 years ago

Social Security especially, but sales taxes add up even if you don't make a profit. You have to deposit payroll taxes to a bank anyway. They would love the short term deposits. The insurance companies, tax preparers, IRS and companies losing their best employees, would probably be against this system. It could be a system for which businesses could opt out, also.

[-] 0 points by FriendlyObserverA (610) 6 years ago

I would imagine banks would be hiring to handle the extra work load ?

[-] 1 points by jomojo (562) 6 years ago

They seem to like paying your bills online for free. I suppose the interest the make on their checking account customers' daily balances make it profitable. The ability to to get a start up going without the red tape would drive the "big companies" mad, since you might be around to compete. A garage "office", or no office, has its advantages.