The framers of our constitution and those who wrote in defense of its articles clearly intended to form a small but strong federal government. There were certain limited powers given to our national government to act on behalf of its citizens. However, all of the remaining powers were assumed by the States and subsequently handed back to “we the people.” To protect the people from a government that potentially could be overreaching in nature and in scope, our Founding Fathers decided to include the Bill of Rights.
This was another clear expression of the “individual” nature of protection that the contract between the people and our government agreed to. These were the first 10 amendments to our Constitution. Amendment #10 states, “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.” I believe that big government represents those who need to control power while small government represents those who seek to disperse individual freedoms and liberty. In view of the above, let us now take a look at the institution currently administering our tax code.
In FY 2018, it is reported that the Internal Revenue Service used 73,519 full-time equivalent positions (irs.gov) while spending a whopping $11.7 billion. We now have a 73,000 page tax code. Does anyone think that this is a little out of hand? Has the size of our government so exploded that we can no longer comprehend the magnitude of its intrusive nature? Are the bureaucracies of government so ingrained and we so beholden to lobbyists and other nonprofit benefactors that it reduces our capacity to act in the best interests of all Americans?
It is for this reason that I recommend a flat tax on income as a way of simplifying the tax code and ultimately drawing down the institutional bureaucracy, called the IRS. In what has become one of the most complex, inefficient, and incomprehensible tax code systems in the entire world, the need for change is now.
Congress must agree to band together and right-size this outdated institution and tax code. They must say “no” to the current lobbyists who want to preserve sections of the existing tax code that favors their client’s self-serving interests and not those interests that benefit the entire nation as a whole. I believe that simplification must be the cornerstone of any/all subsequent tax code change.
I believe that simplification will ultimately relieve the regulatory burden and associated administrative costs. Here are some additional highlights:
● Eliminates the payroll tax
● Eliminates the business income tax
● Eliminates the death tax
● Eliminates the capital gains tax
● Eliminates the dividends and distribution tax
I believe that this guideline to streamlining our tax code will unleash an avalanche of investment, spur economic activity, and create new jobs. I want our government to be small, efficient, and nimble enough to meet the demands of its citizens relating to our tax code system. We need tax code reform!