Our tax code is in serious need of correction. And since our president has recently relented in holding tight to liberal legislation, perhaps he will proceed to do it by making further use of his newfound co-existence with Republicans.
First off, the two-year tax cut extension isn’t good enough. When businesses decided they are going to invest more in payroll and production, they don’t plan on doing it for just two years. That could be a losing proposition.
Tax cuts need to be permanent, at least until a time when a change is decided to be in order.
Another option for our governance is to change our method of financing its tax-supported programs.
Does everyone pay their fair-share of taxes? Absolutely not.
First off, people have different meanings of fair share.
The Bush tax cuts applied to all levels of income. The Obama effort to restore those taxes, however, applied only to the super rich.
Second, people have different ways to compute income tax as set out by the IRS. And there are many ways to hide income and not report it.
Third, maybe taxes paid should not be based on income made, which is so hard to prove. It would be much simpler, and in many respects more fair, to base taxes on the amount of goods purchased as we do for sales taxes.
Those who buy a lot can pay a lot, whether it is for their own personal use or in operation of their businesses. That method of taxation has been proposed in the past but Congress has not seriously considered going into such a complete turnaround. But in many ways, it would be fairer and much simpler to compute.
If President Obama pursues such a solution to our tax complications and makes it fair to all, he will certainly deserve a second term. He will have the entire country behind him in bipartisan fashion.
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