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THE U.S. INTERNAL REVENUE CODE-UNFAIRNESS DEFINED
April 17, 2007
Contact: Derick Corbett - (770) 232-3005
In “The Republic,” Plato wrote, “When there is an income tax, the just man will pay more and the unjust less on the same amount of income.” Even as we try to address this concern, I agree with Ronald Reagan who stated that “Most [tax revisions] didn’t improve the system, they made it more like Washington itself: complicated, unfair, cluttered with gobbledygook and loopholes designed for those with the power and influence to hire high-priced legal and tax advisers.” This tax advantage phenomenon occurred in the past, it happens today, and it takes place across the globe. Just this past summer, the rock group U2, led by Bono, who has been outspoken about the need for his government in Ireland to contribute more tax dollars to Africa, showed how strong the desire to avoid paying taxes can be. When Ireland eliminated a tax break for royalties, the band moved their music publishing division to the Netherlands to avoid taxes. One member of U2 stated, “Of course, we’re trying to be tax-efficient. Who doesn’t want to be tax-efficient?” There is nothing wrong with the desire to be more tax efficient. But it is clear that those who can afford to pay always benefit from having the power and influence to hire high-priced legal and tax advisers. We all know that this occurs here at home as well under the U.S. Internal Revenue Code. And while the overwhelming majority of Americans pay their taxes, the tax code leaves itself open to tax avoidance of another kind: tax evasion. A recent Senate investigation found that more and more U.S. citizens are seeking advice on “opening offshore accounts, establishing sham trusts and shell corporations, hiding assets offshore, and making secret use of their offshore assets here at home.” The Senate estimates that Americans now illegally evade between $40 billion and $70 billion in U.S. taxes each year through the use of these tax schemes. The Internal Revenue Code is driving people to make these decisions. While most Americans fret about whether they have correctly accounted for each wage, capital gain or dividend, the system allows others to utilize creative accounting to minimize their share of the tax burden. We need a system that is fair for every American. The FairTax will create a system that has no exemptions, no exclusions and no special advantages for one American over another. Instead of being at a disadvantage to those who can choose a team of tax attorneys, every citizen is treated equally because everyone will pay as much as you choose, when you choose, by how you choose to spend it. Because everyone would be subject to the same consumption tax rate, with no special tax provisions, every American would be in control of their own tax efficiency. Tax day is coming and it is only days away. It should be just another enjoyable spring day – not just for some, but for every American.
