Happy Easter..now pay up bitches

Leave it to big brother to ruin a long weekend. Tomorrow Americans all over the world must take place in that yearly ritual whereby we are all told whether or not we paid too much, or not enough to our fabulously efficient state and federal governments.
It sickens me that former communist countries in the former soviet union have a better understanding of free markets than we seem to today. If you consider the amount of taxes you pay you are actually working for the government for anywhere from 3 – 6 months of every year.

Really think about that for a moment.

Where does that money go?
What does it pay for?
What services do you get in return?
Does the government get good value for your dollars?

Clinton raised taxes in '93, Bush lowered them after 9/11 but not since Reagan have we had any substantial tax reform. And even then Reagan's reforms were band-aids. We have not addressed (what i think) are the real problems in our tax system.

First, it's too complex. The government spends billions every year in paperwork and processing. This also means government jobs. Remember the government shutdown over the budget in the '90's that was “caused” by the republican congress? I remember news organizations reporting that all non essential government services were temporarily shut down until the issue was resolved. Did no one care to ask why the government even has such non essential services? If it's non essential, eliminate it!

Second, it's a tiered system. I'm a strong proponent of a flat tax OR a VAT tax. Decide on a reasonable income level, say 30,000, and tax all income at the same rate above that. Why does the government feel it's their job to redistribute income or bring high wage earners down to everyone else's level? Isn't America built on the premise of hard work and upward mobility. Do we really want to discourage this? If you earn it, great! You should be able to keep it. A simple flat tax on all income would save in preparation costs, processing costs and would decrease the benefits of tax evasion. A VAT tax is an interesting alternative because it would tax the people that spend the most.

Third, we have too many ghost taxes. Gas tax, water tax, phone tax, sales tax, sewage tax, the list goes on. From the moment your alarm clock goes off (electricity taxes) to the moment you brush your teeth at night (sales tax on the tooth brush and water tax on the water) big government is skimming off the top. Far too many of us don't realize it.

Fourth, income tax withholdings are paramount to stealing. I think all Americans should have to write a check to the government every month instead of allowing companies to automatically withhold taxes. Too many of us don't realize how much we actually pay and this would force us to see the true numbers. Take a look at your next pay stub and compare the gross to your net. Imagine if you had that money in your pocket for the year to invest, save, spend...it is your money afterall.

As an expat, you might think i don't have to pay US taxes. But no, the US is the only country i am aware of that requires citizens to pay US taxes no matter where they reside. Luckily my contract takes this into account. But think of the hindrance this creates for foreign companies to hire Americans abroad!

Taxes piss me off, plain and simple. I see government doing so many things that it should stay out of and taxes are the only way the government has the resources to complete such tasks. Where does government get it's power? From it's ability to tax the people. Lest we forget, the US didn't even have an income tax until the early part of the 1900's.

So enjoy your long weekend, Monday it's back to work for big brother.