Friday, April 5, 2013

Consumption Tax

  Now, although the concept of a consumption tax is simple, its implementation is not! There will be plenty of resistance, as some blood must be spilled, and some sacrifices made. One immediate benefit is that we can eliminate the IRS! Because it is a simple across the board tax, there would be no need for difficult tax codes with all of those loopholes and built in dodges! But there will be sacrifices in the beginning, as many would loose their current jobs. CPAs and accounting firms would have to focus more on bookeeping techniques, as there would be no need for hand wringing on April 15th, as the taxes needed to run the government have already been collected, and this money would come in daily.
Tax attorneys would certainly have less tax work to do, and these would have to adjust by working in contract law, or as a defense attorney. There are always going to be consequences, if only in the short run, and the loss of some jobs being the most evident. But the brightest of these newly unemployed, will adjust and assimilate quickly, though some kind of a safety net would have to be provided, possibly for as long as three years?
 As for the non professionals, training for a new career must be afforded them, for a new job depending on their education and their individual abilities! One of the ways that this could be paid for, is by some common sense means? For instance, The IRS has vast holdings in buildings and real estate, that could be sold or rented. This would be the end of that bloated bureaucracy known as The Internal Revenue Service! And as for the many thousands employed by them, an early retirement, with full benefits as agreed, should be paid to those who qualify, no matter how exorbitant that payout might be. We taxpayers would have to take that one on the chin, but again, only for the short term, as these would give way naturally, through attrition. Wouldn't it be nice to have the IRS pay into the kitty instead of taking from it? Simple my friends, simple is always better!

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