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The Real Problem with the Tax System
by Andy Obermann
There is a great deal of discussion these days about
how we American's should be taxed. In the past week or so, I have
been sold programs such as the Flat Tax, the Fair Tax and the National
Sales Tax all designed to alleviate problems with our current graduated
income tax system. The key problem that many seem to be missing
is the fact that no matter what tax system we have, it will take
a little more than a new name to remedy taxes in Washington.
Currently, a family of four (husband and wife +
two kids) making $100,000 a year in a major metropolitan area, living
in the suburbs, will pay nearly 30% of their income off the top
to the Feds. And, like magic, they are down to $70,000 net income.
Then the state gets their cut. Let’s say this family is living
in Kansas City, MO--knock off another $6,000 for state taxes and
between 5-7% for local ($6,000)--and you end up with about $58,000
net income. With a mortgage, car payments, everyday bills, and two
kids to raise, it hardly seems like enough for someone our government
think's is "rich."
In the 1950s, government operated on a budget less
than $80 billion. Today the budget deficit is nearly 6 times that
amount. The deficit! Granted, America has undergone some major changes.
Population increases must be accounted for, but, I ask, were the
needs of Americans a half century ago any less than those of today?
The reality is that they weren’t. The difference is they were
more self-reliant.
Prior to 1930, there was no Social Security. Even
in 1960 there were no Food Stamps, no Departments of Education,
Health, Energy, Housing and Urban Development, or Transportation,
let alone the hundreds of other government funded agencies set up
to promote our "best interest." And the departments that
did exist back in the '50s have been built-up and exploited to the
point of collapse. This is not what the Founding Fathers envisioned--they
knew that these avenues were better controlled by private industry,
but we have forgotten the truths they taught.
Today, we could hardly imagine a country without
government doing everything for us. Are we better off because of
all these agencies? Maybe, maybe not, but they have undoubtedly
led to the creation of a huge bureaucracy--a government monopoly
telling nearly every major industry what to do and how to do it.
To maintain such a monopoly force one has to feed
it. Monopolies are fed with money; government gets its money by
imposing taxes and extracting them from its citizens with the threat
of force and penalty to back them up, from the "Great Society"
to the "War on Poverty" to big spending today, government
keeps growing and drains society's resources.
Republicans are just as bad as Democrats. The only
difference is Republicans will take a little less of your money;
Democrats will take a little more. Democrats will institute more
social control and create more massive deficits, although Republicans
of late are trying their best to outspend them.
Complaints about the tax code and reforms do no
good unless we recognize the underlying causes of the problem. If
we, as Americans, really dislike paying so much in taxes, we must
begin by phasing out our dependence on the federal government as
the solution to all our woes. We have to cut the federal government
down in size to regain our personal economic liberty.
Will it hurt? Yes. Radical changes like this will
be felt nation-wide and will take time to accomplish. Yet, if we
are to maintain our liberty and the limited government the Founders
created to do so, we must stop our current drifts towards socialism,
even if we label it something else. If we do not start limiting
government spending now, we will wake up someday with all our liberties
gone.
Andy
Obermann is a 22-year-old senior at a small private college in Central
Missouri. He is majoring in both History and Secondary Education
at Missouri Valley College.
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