by Ian Yusem
For weeks leading up to
the New Year, we heard nothing but partisan posturing regarding the fiscal
cliff. While a deal was eventually
reached, what seems clear is that Republicans and Democrats are no closer to
realizing that the uncertainly caused by ceaseless argument creates anxiety for
the average citizen and reduces confidence of our citizens in the two party political
system. What is the process by which we can have any confidence that our
elected officials have the capacity to address our economic problems for the
good of the majority of Americans? What measure can cause the Congress to come
together to achieve wide reaching economic change?
I think the answer is tax reform that avoids unfair
burden on any one group yet raises revenue available to the budget by
eliminating loopholes and tax advantages of special interest groups.
As it stands now, politicians are lobbied to
support tax subsidies for particular groups or activities. This process creates
complication, causes unfairness in the system and makes those who cannot take
advantage of the loopholes believe the system is corrupt. Making taxes simpler by removing
loopholes will avoid partisan politicking and reduce the influence of
lobbyists. Simplifying tax laws will
make it easier for people to comply with tax laws, and the average taxpayer
will stop questioning the fairness of the tax system.
Essentially, there would be no exceptions – all
income would be treated the same. Only
the rate paid by taxpayers would differ, with rates rising with income.
Congress needs to come
together in a bold and new direction by creating economic stability that can be
blended with public confidence in our government. It is no secret that the
youngest generation of voting age Americans is politically apathetic. Non-stop
political brinksmanship is to blame for the generational lack of confidence. Radical
tax reform would be an extraordinary measure that would be disruptive, but in a
positive way, by bringing predictability to the budget process and confidence in
government to average Americans.
I agree. We need a progressive tax system devoid of loopholes and which does not continue to yield to special interests and lobbying efforts. The plain and simple fact is that higher levels of income should be taxed at higher rates. That said, I do believe that there should be a trade-off which is that our National debt and our dependence on foreign investment (foreign countries buying our debt) should be significantly reduced. There must be a direct correlation between reducing the National debt and America’s tax policy. Tax rates should be lowered once we achieve a reduction in our National debt.
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