By: Robert S. Siegel
I launched Mind Your Own Damn Business Politics on Tax Day because taxes are one of the primary inspirations for this blog and this movement. Mind Your Own Damn Business is an online movement away from the current political parties and the current state of U.S. politics; U.S. tax law is the best evidence that both major political parties have failed our nation and that none of the potential third parties knows how to reach voters. Perhaps its time for politicians and voters to Mind Their Own Damn Business.
Today is the day taxpayers should question how any political party could claim to help “The little guy,” (Democrats), or support a strong economy and free markets (Republicans). According to IRS Taxpayer Advocate Nina E. Olson there has been “No significant simplification has occurred,” since 1986 to the complex, convoluted, and just plain silly tax law that burdens our nation. Neither party seems interested in representing the needs of constituents.
If government really wanted to help the hard working lower and middle classes, shouldn’t that government unburden those taxpayers from the work and expense of complying with a tax law that forces 80% of individual taxpayers to pay for help? There are, to be sure, many fine people that earn their livings in the tax industry but it is an industry built on a need created by a government on the backs of taxpayers. How can government enable those taxpayers to launch businesses or earn a little extra on the side when those actions require extensive knowledge and expense to manage tax obligations? How can lower or middle income taxpayers that attempt to earn or invest something beyond the most straight forward method of a single job and basic retirement investing be certain they are receiving all of the tax breaks the law entitles them to, unless they go to the significant expense of hiring professional tax help? And can they feel secure in that help when study after study shows different tax preparers produce different results?
Affluent taxpayers can afford professional tax counsel and preparation. For them, tax law has created a massive tax industry to plan and prepare taxes and to “Protect” wealth. Protected wealth is used in less economically efficient means than it would be under less burdensomely complex tax situations – back to our “Little guy” discussed above. Tax law interferes with the jobs and business opportunities that wealth would otherwise create if it were not taxed, and therefore, have to be protected from taxes.
Simple rules could lessen this need to protect. According to former Treasury Department economist Bruce Bartlett (Forbes, April 3) “the success or failure of his (President Obama’s) domestic agenda may depend on reforming the tax system in order to raise additional revenue at the least possible cost to the economy.” Simplification and rate reduction are reforms that can drive that additional revenue.
Today taxpayers are protesting with Tea Parties and other Tax Protest Events. These angry taxpayers want to do more than challenge Troubled Assets Relief Program (TARP), the American Recovery and Reinvestment Act and the Homeowners Affordability and Stability Plan. They want to put an end to what they believe has become the capstone to an era of out-of-control taxation and spending.
MYODB suggests that these protest efforts are missing an important step in persuading voters to act to end this era; we need to place far greater emphasis on education and persuasion to convince voters that lower taxes means greater opportunity at all economic levels. Low tax rates and simple tax rules mean a more dynamic economy and that means more and better jobs and opportunities to start businesses. Unfortunately, too many voters don’t recognize taxation as a problem so they are not looking for a solution.
This blog believes that the Fair Tax and the Flat Tax are ideas worthy of vigorous, intelligent, national debate (perhaps not implementation, but at least consideration). Plenty of other ideas exist to fix our tax system. Before we can convince voters to support a solution, we have to make those voters recognize that we have a tax problem.
We hope you’ll join us as a regular reader and commenter.
This blog will explore and challenge many of the ideas upheld by our current political structure. We’ll go well beyond taxes to encourage readers to think differently about the Constitution, the rule of Democracy, the environment, free markets, and other subjects that impact our lives. We’ll comment on some current events and how they impact our MYODB Principles. Our goal is to cause citizens (including ourselves) to seek more information, research and consider opinions they disagree with, elect better candidates, and ultimately receive better representation.
Until next time, we hope you’ll read the Principles of MYODB, and watch this site for more blogs, guest bloggers. Please add your comments and tell your friends. We want this conversation to spread.
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The complex tax codes we have today are needed to cover the variety of ways people have to make and spend money. The laws add some small cost and trouble to taxes but those are minor compared to the benefits of assuring the best outcome where people pay their fair share.
You wrote that the Fair Tax and Flat Tax are worth considering. I have found plenty of good information supporting both proposals but very little good information against. The opposition is mostly name calling rants. I suggest you write something giving pros and cons.
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