The IRS

[Fonze]

I was watching a show and someone suggested dissolving the IRS and instead raising the sales tax so everyone pays taxes, like drug dealers, under the table money and so forth. I actaully like that idea but think that poorer people might not be able to afford all the same things.

Do you think that the IRS should go or stay? Why or why not?

[Isaak Brodsky]

it should be razed to the ground.

[Asshat]

IRS= Government thugs.

Flat tax is the way to go IMHO.

[DocTurtle]

I hate it as much as the next person, but they have to be doing some good, no?

[Asshat]

I hate it as much as the next person, but they have to be doing some good, no?

No. This would quickly evolve into another political discussion. The employees are okay. Just people.

But the system of taxation is completely unfair for the middle income working person.

[ja_Patriot]

Good question, Fonze.

“In this world nothing is certain but death and taxes.” - Benjamin Franklin

So we do need someone to manage taxes.

But what is needed is tax reform.

A “Flat Tax”. According to a Harvard study tax reform would boost national wealth by nearly $5 trillion.

A flat tax would treat people equally. A wealthy taxpayer with 1,000 times the taxable income of another taxpayer would pay 1,000 times more in taxes.

The IRS would be downsized, some say by as much as 75%.

This already makes me feel good.

What Is a Flat Tax?

Unlike the current system, a flat tax is simple, fair, and good for growth.

Instead of the 893 forms required by the current system, a flat tax would use only two postcard sized forms: one for labor income and the other for business and capital income.
Link to read more (http://www.heritage.org/Research/Taxes/bg1866.cfm).

[Fonze]

Iv'e read that russia has a flat tax and is doing very well.

[P_chan]

In soviet russia, bike rides you!

[NaNaKo]

Aw, as an accountant, I feel bad that people dislike IRS so much.

On the other hand, at the college career fair, I got so bored with the people at the IRS booth that I had to run away from them! :w00t:

[ja_Patriot]

Lucky you. Sarbox guaranteed accountants jobs for life. Just need to know what you're doing.

[NaNaKo]

Oh, we call it SOX because we don't really know what we're doing. :w00t:

[ja_Patriot]

No one really does but thanks to Enron. You must be posting from the US to be dealing with Sarbox?

[NaNaKo]

I'm on Okinawa. I only know SOX enough to know that I don't want anything to do with it.

I like the idea of flat tax, but some accountants smarter than me might come up with new loopholes to get around it. So IRS may never really go away.

[okisteve]

I wonder why it has not become policy since it seems to be such a good idea. Are the tax accountants such a strong lobby? Who else opposes it? It has been floating around since the '80s if not earlier.
(I only found out a few years ago that my old college roommate was one of the original authors of the idea. Sucker was always studying while I was getting into trouble.)

[Go-Shay]

The rich do not want the flat tax and unfortunately they are the very people running the machine.

[ja_Patriot]

Not exactly. Very wealthy people like Steve Forbes are advocates for the flat tax.

The concept needs to be studied very carefully.

Will a flat tax subordinate the necessity of a social security tax (FICA)? How will it affect capital gains and the c.g. tax, and what types of exemption should be granted to long term investors? Homeowners? Will it discourage investment?

How about employer contributions? If a flat tax applies to companies, will employer FICA and FUTA (federal unemployment) amount to double taxation?

Tax reform. Better to leave things untouched until you're sure of what you're doing. In the meantime, the IRS stays as is.