HR 5970: A Triple Threat to the U.S. Economy
August 3rd, 2006 by Sean FlynnIn a recent commentary, William Beach of the Heritage Foundation offers a good critique of expansive legislation the Senate is trying to pass before Congress goes into recess. Dubbed the “losing trifecta,” H.R. 5970, the “Estate Tax and Extension of Tax Relief Act of 2006,” looks to increase the minimum wage, reduce the death tax, and extend certain types of tax breaks. The bill currently has support from both sides of the aisle, which makes one wonder whether the conservative supporters truly grasp its implications.
While it is easy to understand the economic damage that would be caused by increasing the minimum wage, the other two provisions have left many conservatives mistaking this bill for good legislation. Although lower estate tax rates sounds good in theory, in practice, this bill would simply affirm the idea that individuals should be subject to double income taxation. In this way, supporting a lower death tax would be a huge step backward in the fight to repeal it outright. Conservatives should stick to principle on this issue and not be placated by a simple reduction in a tax that is unfair and immoral.
The third provision of the bill calls for an extension of numerous tax breaks, exemptions, and subsidies for various businesses, organizations, and other entities. This proposal is just as threatening as the first two, yet conservatives in Congress have supported it as well. In doing so, they are unwittingly damaging future efforts at true tax reform by making the tax code even more complicated than it already is.
The Senate is well on its way to earning a “do-nothing” label. Though the passage of a bill like HR 5970 may curtail some of this imminent criticism, the negative effects of the legislation would far outweigh any immediate political benefits. Conservatives should reevaluate their support for this proposal and look to the good of the economy, not the good of their reelection campaigns.
November 26th, 2007 at 1:17 pm
REAL FEDERAL TOTAL TAX REFORM
WE THE PEOPLE PAY ALL TAXES. REGARDLESS WHERE GOVERNMENT INITIALLY COLLECTS THE MONEY, ALL TAX MONEY ULTIMATELY COMES FROM US, THE PEOPLE. SINCE WE THE PEOPLE ARE THE ONE AND ONLY SOURCE OF ALL TAX REVENUE:
THERE SHOULD BE ONLY ONE TAX TO COLLECT ALL TAX REVENUE. IT SHOULD BE A SINGLE, SIMPLE, FAIR, DIRECT, GRADUATED, INDIVIDUAL, FULL-INCOME TAX LEVIED ON LIVING PERSONS FOR EACH LEVEL OF GOVERNMENT: ONE TAX AND DONE.
THE BEST THING THAT GOVERNMENT CAN DO TO HELP THE COUNTRY, THE PEOPLE, AND EVEN GOVERNMENT, IS TO REPEAL ALL OF THE MANY HUNDREDS, OR THOUSANDS OF EXISTING TAXES, FEES, AND CHARGES. THESE TAXES ARE THE FEDERAL DEFICIT. THESE TAXES ARE THE HIGH PRICE OF EVERYTHING. THESE TAX CUTS ARE SPENDING CUTS. EVERY TAX THAT IS ELIMINATED IS A TAX THAT WE THE PEOPLE NO LONGER HAVE TO PAY. THESE TAXES ARE THE DIFFERENCE BETWEEN THE PRICE WE IN THE UNITED STATES PAY MERCK OF VALLEY FORGE FOR MEDICINES, AND THE PRICE CANADIANS PAY MERCK OF VALLEY FORGE FOR MEDICINES. ELIMINATING THESE TAXES WILL REMOVE THEM FROM THE PRICE PAID FOR EVERYTHING BY EVERYONE, INCLUDING GOVERNMENT.
THERE IS NO LIMIT TO THE BENEFITS ONE TAX AND DONE WILL PROVIDE.
ONE TAX AND DONE CAN BECOME LAW BY WRITING A SINGLE BILL:
EFFECTIVE DECEMBER 31, 2007, ALL EXISTING FEDERAL TAXES, FEES, AND CHARGES ARE REPEALED, AND ARE NULL AND VOID.
EFFECTIVE JANUARY 1, 2008, ALL FEDERAL TAX REVENUE SHALL BE COLLECTED USING A SINGLE FULL-INCOME TAX LEVIED ON LIVING PERSONS. THERE SHALL BE NO EXEMPTIONS OR DEDUCTIONS.
A THREE-FIFTH (3/5) MAJORITY VOTE BY THE SENATE AND THE HOUSE OF REPRESENTATIVES IS REQUIRED TO INCREASE TAX RATES.
SIXTEEN PERCENT (16%) OF ALL TAX REVENUE SHALL BE PLACED IN A SEPARATE ACCOUNT NOT ACCESSIBLE TO CONGRESS, TO FUND SOCIAL SECURITY AND MEDICARE.
THE OFFICIAL DEFINITION OF INCOME IS THIS: INCOME SHALL INCLUDE, BUT NOT BE LIMITED TO, WAGES, SALARY, TIPS, ROYALTIES, STOCK OPTIONS, INHERITANCES (NOT INCLUDING PRIMARY FAMILY RESIDENCES BEQUEATHED TO SPOUSES; OR FAMILY FARMS OR SMALL FAMILY BUSINESSES BEQUEATHED TO FAMILY MEMBERS), ALL INTEREST INCLUDING THAT FROM MUNICIPAL BONDS, DIVIDENDS, CAPITAL GAINS (NOT INCLUDING INCREASE IN ASSESSED VALUE OF FAMILY HOME), PENSION PAYMENTS, WELFARE PAYMENTS, FOOD SUBSIDIES, CLOTHING SUBSIDIES, HOUSING SUBSIDIES, ALL BENEFITS AND PERQUISITES OF PUBLIC OFFICE, PROFITS RECEIVED BY OWNERS OF SMALL BUSINESSES, AND PROCEEDS FROM ALL CRIMINAL ACTIONS.