A Solution to Obama’s IRS Problem
- Posted by Jeff Carter
- on May 17th, 2013
The President’s IRS problem gets worse every day. It looks very much like the IRS used it’s power to quash one of our inalienable rights, free speech. The agency was used to intimidate opponents. They are also using it to enforce the horribly conceived and written Obamacare law.
One reason the IRS is so powerful is that it can invade every nook and cranny of your personal privacy. Dodd-Frank also gave the agency more power. If they perceive you to be a risk to financial markets at all, they can look at every single financial transaction that you have engaged in. Line by line on your credit statement, questioning you like some Stasi interrogator.
One quick way to make the IRS less relevant is to enact a personal flat tax.
No write offs. No exemptions. What ever you make, send 15% off the top in. This simple change in tax laws will shrink a lot of big government. The US will need less people to staff its most powerful bureaucracy. Because of the tax law change, it will be much tougher to use the IRS as a weapon against people that the President isn’t tolerant of.
Flat taxes end special interest lobbying. Flat taxes are emblematic of what America is about, treating everyone the same no matter what. Flat taxes give people better economic incentives to make more money and be more productive. The next dollar they earn isn’t subject to higher tax.
Hauser’s Law says no matter what the tax rates are, people pay about 19% of their income to the federal government. It’s time we started writing behavior into the code.
thanks for the link Eddy!
I thought Peggy Noonan put it very well here. This isn’t a run of the mill partisan trumped up scandal. This IRS scandal put in motion by the Obama administration is something bigger. Is this the straw that breaks the market camel’s back? Watergate did.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...)