Tuesday, November 13, 2007

Assure Fair Taxes Leads To Spending Control

There is a recognition in America that our current tax system is broken. Tax policy is harming our nation and sabotaging the free enterprise system in the process. In the last generation, Ronald Reagan showed that when tax laws become riddled with loopholes, tax rates can be reduced by eliminating all the loopholes. We currently have a tax system in which a plumber who works hard and makes $100 thousand pays more than a rich man who inherited his wealth pays when he earns $100 thousand off investments. Is this fair?

Neil Boortz wrote a book about a proposed "fair tax" and it became a national best seller. His system is not about lowering taxes, it is about making them fair. That seems to be the major opposition in some quarters, where rigging tax exemptions is the focus. Some people obviously benefit from our current system where some pay no taxes at all. Why is anyone surprised these people would oppose making the system simple and fair. That would mean they would have to share in the tax burden.

While recognizing that you have to focus to accomplish anything in life, I am concerned that two other problems need to be addressed at the same time. There is recognition that a huge portion of our taxes are simply wasted, due to corruption and indifference. Some of the corruption is caused by an excess of zeal in giving a helping hand. What the courts have ruled as entitlements are given out frequently with no requirement that the citizen receiving the benefit contribute at all to paying for the help. That leads to indifference to the costs to government. It also leads to a second problem, motivation for the greedy to get in on the largess and bribe congressman for special deals. Some of these bribes are hidden as campaign contributions.

That corruption and waste, while two different problems, is the unintended consequence of a single motivation. Wanting to make the recipients feel indebted to the congress who votes them the helping hand. In too many cases we give out more than we have in tax dollars and fund the difference by borrowing.

Cutting taxes while spending money in excess of tax receipts is simply passing the costs on to our children. This generational warfare must end. There needs to be a real focus on fair taxes, reducing waste and eliminating special interest payoffs, so more help reaches the needy.

In program after program there is more than enough money to do the job. The problem is that government bureaucrats misdirect and waste so much that the spending does not accomplish the goal the people want. Rather than fix the waste and corruption, more money is thrown at the goal. In most cases this does not accomplish what is needed.

We need special focus on give away programs liberals will fight to protect. We must avoid using the unintended consequences of a helping hand for the needy becoming a free ride for the greedy. Citizens must start punishing officials who contribute to waste by participating in "earmarks" and other forms of pork. Let the country see who is really committed to effective government with lower taxes and who is committed to wasteful government with higher taxes.

However being right on tax policy, the standard Republican refrain, is not enough. All three problems need to be addressed in a balanced effort. Lower and fairer taxes. Eliminate waste and corruption, so more help reaches the needy. More effective spending.


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