As I listened to the news a few weeks ago, my anger rose. The report suggested that the Obama Administration was looking at cutting or reducing the tax credit available for home mortgage interest credit. THAT’S MY DEDUCTION! I was furious.
That’s how the politicians get you! They dangle some little portion of tax code in front of you that “benefits” you and in order to preserve that tidbit you will probably accept most any “reform” as long as your deduction is left alone. That is how they maintain power. That is what our current tax code is…Power for the Politicians.
Our tax code has swelled to 7,500 full-sized pages. Reports about the Internal Revenue Service indicate that when you call for clarification on tax issues, IRS employees give the wrong answer up to 50% of the time. The complex tax codes have stymied such brilliant Obama Administration officials as Tim Geithner who now heads the Treasury.
I recently took my mother to her “tax guy” and as he clicked away putting her tax forms together, we talked about a number of issues. She has used his services for a number of years and likes him. This was the first time that I met him so I did not bring up the Fair Tax, but we discussed the IRS and other tax issues.
He related how he represents a number of individuals of a particular religious sect that has taken a vow of poverty and as such do not pay income taxes. They do not pay Social Security taxes and do not collect benefits later in life. They take care of their own people. He does their “tax” preparation, submits them, and is often astounded when the IRS recalculates their tax figures and sends them rebate checks. Many checks are for thousands of dollars. How can they get a refund when they did not pay any taxes?
These folks do not pay any income tax, they do not claim any refund, and do not expect any refund. The forms that they submit are accurate, but the IRS sends them money anyway. The accountant said that he has spent years trying to convince the IRS that sending the refunds is erroneous. He is concerned that when the IRS discovers their error they will come after his clients even though most tear up the checks.
Recent news is that the Obama Administration has formed a group, a team, a task force, or maybe even one of his “czars” to overhaul the tax code. How often have you heard a politician promise to simplify the tax code or make it fair? What this means is that Obama wants to add some loopholes for those who supported his election. All the politicians do it, but it is neither simple nor fair and that is what makes it wrong. There is an answer and it is rather simple.
It is called the Fair Tax. I had often confused the fair tax with the flat tax, but they are truly different. The flat tax is still an income tax, however the rate is the same for everybody. The Fair Tax in a sales tax on consumption. You would only pay federal taxes when you bought something new.
FairTax: The Truth was put together to answer the critics and the misinformation that they spread about the Fair Tax. Authors Neal Boortz, Congressman John Linder, and Rob Woodall take on all comers as they show every side of this new way of collecting taxes. They are quite straightforward that this is not meant to reduce taxes, but provide a better way to collect taxes.
I have decided that this issue deserves more that a book review and will post another column in the near future. If you cannot wait, go out and buy the book. If you can wait, go out and buy the book anyway. It is well written and understandable. The more you know about this Fair Tax, the more you will want it for America.
Now back to my home mortgage interest deduction that must be saved. The authors argue the subject this way:
“What value would a deduction for mortgage interest have to someone who pays no income taxes?”
That makes sense. Remember all of those forms you have to fill out each winter? They would be gone, finished, no more, eliminated, bye bye…
Let us finally take the power away from politicians and have fair taxation using the Fair Tax.