Wednesday, March 16, 2011

Two sides of the taxation coin

There have been two separate plans put forth by two very different people that outline a decisive difference in how our lawmakers view taxes.

One, put forth by Ron Paul is this:

"HJRES 50—The Liberty Amendment - Repeals the 16th Amendment"

 The 16th Amendment is the amendment that establishes the income tax. Not only that, but Paul's bill also wants to abolish estate and gift taxes, and keep the federal government from creating any program that directly competes with citizens. For example, this bill would make it illegal for the government to create a federal bank to provide competition to other banks and lenders.


On the other side of the tax debate, Jan Schakowsky, a rep. from Ill, has put forth a bill that would create new income tax brackets for the excessively wealthy, breaking up the top tax bracket. Schakowsky's bill would make it so that a person making $350,000 a year and a person making $350,000,000 a year are no longer paying the same percentage in tax.


Looking at these two proposals, it's clear that there is a wide range of opinion when it comes to taxes. Some want to get rid of them, some want to raise them on those who can afford it. I tend to favor the second plan of having a graduated tax curve that increases as income increases. Our current plateaued tax model is based on income ranges that go back over fifty years, before people were making billions a year as well as bonuses of several million dollars as well. 


Taxes should be set at such a level that the Federal government comes out as close to even as possible. Raising taxes on the most wealthy, the ones who can afford it, will help deal with the deficits. Once that's out of the way (and I do believe it wouldn't be such a problem if we used common sense solutions), we can then reduce the tax rate and force the government to operate as a nonprofit organization. Every dollar brought it beyond overhead costs should be reinvested in America and our interests. It's a long way to the green pastures of financial stability, but taxes are the way to get us back on track.

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