Federal Taxes

I was planning a post on another subject, but heard a report on Federal Taxes and got sidetracked.

In fact, roughly 47% of households, or 71 million, will not owe any federal income tax, according to estimates by the nonpartisan Tax Policy Center. This is because our progressive tax system levies higher taxes on higer earners and lower taxes on those who make less. Is this right? I don't agree with it, but the decision is not mine to make.

One obeservation I will make though, is that taxes are used by politicians to direct public policy and as a method to generate votes through class warfare. This is just plain wrong.

The simple answer in my mind -- Cut the cost of government, pass a balanced budget amendment and install a flat tax with the following conditions:

5% of all earned income above 35K per wage earner to the Federal Treasury. This will be used to operate the federal government and if government has to grow smaller and programs dissolved as a result, so much the better. I think we will more faithfully follow the constitution if we leave it up to the individual states to manage the day to day activities of government. The states will still have the ability to levy taxes in any amount and manner their citizens allow. Those who are not comfortable with the taxes levied in their state of residence will have the option of moving to a state with a tax they deem more acceptable. I ask, why should the Federal Government, operating under the limitations placed by the founding fathers, require more than 5% of the American peroples wages?

5% of all earned income per wage earner to be set aside for entitlement programs. This will cover Social Security, medicare, medicaid and any other entitlement programs agreeable to "We the people". This should have a 10 year grandfather clause requiring no reduction in current benefit levels. Thereafter, if this set aside requires a reduction in current benefits those affected will have time to make other arrangements. Why should the American people give more than 5% of their income for entitlement programs?

5% of all earned income used to pay off the Federal Debt. This is self explanatory. I beleive that those who are most responsible for the cost of government have to help repay the debt they help to create. In this way, all will be less willing to allow the government to grow. At the point in time that the debt is repaid, the tax should be extinguished. This will give the taxpayer incentive to make sure the debt is repaid.

This seems both fair and progressive to me. Progressive because the highest wage earners will still carry the greatest tax burden and fair because it takes away our politicians ability to use the tax code for social engineering.

The battle for the Republican Party

The battle for the Republican Party rages on. The battle is to get real conservatives doing the business of government along conservative lines, which means they support a peaceful disintegration of the global American military empire, and a government that is out of your pocketbook, out of your bedroom, out of your children’s lives, and out of your life. They must have respect for a budget and work to reduce taxes and government spending. Real conservatives appreciate government that provides only the basic services put forth by the founders, and one that is properly constrained by, and wholly respects, the Constitution. Real conservatives love the ideas put forth in the constitution, and they like the idea of a constitutional Republic. They really do.

The battle is raging within the party itself and is being waged between the embedded professional politicians and republican legislators who listen to the conservative American majority.

The battle is not being fought over religion and a bottomless pit of debt. It is over the ideology of smaller government and a return to the principals of the founding fathers. I hope real conservatives will rise up to save their party, but it is going to be an uphill battle against the republican leadership. Unfortunately, the leadership won the battle during the 2008 election. This resulted in the nomination of McCain/Palin and the reactionary election of Barak Obama.

Hopefully the conservatives can win the war. If they can, great. If they are not successful, I can only hope that the rise in an independent party comes quickly enough to stop the liberal tide of socialism from becoming a Tsunami.