TAXES the Bane of my existence!

As I sit here listening to the latest news about the expiration and possible extension of the “Bush Tax Cuts”, I find myself discouraged in my interpretation of the American dream.  Everyone who knows me well knows the taxes are the bane of my existence.  In fact taxes are largely responsible for our upcoming move to Tennessee. 

Surprisingly to many, I am not opposed to not extending the tax cuts but only if the extra monies is applied directly to the debt and there is a requirement for balanced budgets.  It is irresponsible at all levels of government to think every dollar taken in has to be spent and nothing can be set aside for a rainy day.  We live at the beach where real-estate values are down to half of what they were at their highs.  When people talk about how much this economy has cost people I can identify with them.  One would think that in an area that experienced such a surge in home values (with no reduction in rate) and values are locked in for 5 years, would have saved some money.  Not so, but we still have fireworks on the 4^th of July, a new park, a walkway for tourists, and a new community building, but no money for stop signs and road repair. 

Of the people I know well enough to discuss taxes with very few don’t cheat.  Some act like not paying their fair share is a badge of honor.  I pay my taxes because like not speeding I have enough in my life to worry about that I don’t need the stress.  I would like to see a law that would fine politicians who get caught cheating on their taxes have to pay fines of 100 times what they saved.  This might keep some of the wealthy out of politics.  I figure if the people in power to change the tax code don’t follow it they should pay dearly…and lose their benefits as well.  Representative Charlie Rangel, once Chairman of the tax code writing “Ways and Means Committee” was censured for in part, not paying taxes on rental property for 17 years.  If an ordinary citizen had done this the consequences would certainly had been worse than a punishment that means in effect, nothing.  He gets to keep his benefits and since he was re-elected, continue to serve in the Congress.  Afterwards he had the nerve to say, "In my heart I truly feel good." Time for term limits!

So it’s time for a fair tax, or flat sales tax.  The more you spend, the more you pay.  If you have a job, own your own business, are an illegal alien, get paid under the table, deal drugs, or have “family money”, you pay as you spend.  You can get back the taxes you paid on the first X number of dollars for which you have a W-2.  Tax return is adding up your W-2s you get back the taxes for the first X dollars.  Get paid under the table, illegal employee, drug dealer, no W-2, no refund.  It should be the only source of revenue for government.  Other services like licenses and registrations should be not for profit.  Let the consumer decide where to live by knowing what their true tax burden will be.  

The idea that Americans pay such low taxes is flawed.  Our income taxes may be lower but when you add in sales taxes, property taxes, personal property taxes, highway use taxes, ”hidden”  fees added to bills, license plate fees, fees for trash and sewer, volunteer fire protection etc. we pay a lot.  As it is, it is virtually impossible to find out the true cost of living someplace.  The property tax rate may be 1 percent in 2 locations but one makes you pay for trash, sewer, and fire protection, separately.  If our founding fathers saw this mess they would probably be very disappointed and call for another revolution.

What can you do when an administration looks at the mortgage interest deduction as “costing them $131,000,000.00” rather than letting the tax payer keep that amount?  My students don’t understand that things the government provides aren’t free.  It is time to stop punishing success and punish those who make poor choices instead.