Taxes

Taxes

I am not against taxes. Taxes are needed. I am against the waste of my tax dollars on ventures that make no societal or economic sense. Like most people, I am against the lack of control I have over the way my tax contributions are spent.

Let's face it: tax time is frustrating. Frustrating because of the complexity of laws, the paranoid accuracy required to comply, and the unreal severity of sanctions in case of non-compliance. Of course, this is only aggravated by the sheer amount of money most of us part with. I just realize I gave another brand new car to the IRS last year; meanwhile, I drive a used one myself. And to top it off, I do not perceive much gratitude. When I bring in as much a $ 1 to a commercial business, I get treated with the utmost respect. I sign over tens of thousands to the government, and I get treated with a priori suspicion. A minuscule note on the tax form, to the effect of "We appreciate your very generous, punctual and continued support of the Federal Government", could be a step in the right direction.

But the problem is more fundamental. While private enterprise has steadily become leaner, more efficient and more friendly, the government has gone the exact opposite way, to the point of dragging down the country's overall competitiveness. The tax system is a dinosaur. I agree with congressman Dick Armey: it is beyond repair. If one has to hire a professional to figure out one's dues, something is very wrong.

For some time, I have been perfecting my own proposal to solve the problem. And here it is: the "voluntary tax" (or "voluntary contribution"). Sounds unreal? Just wait. This is not heresy. It is not communism, not anarchy. The concept is not new to America. In the more enlightened times of the US Constitution, contributions were mostly voluntary. Even today, churches are financed by voluntary contributions. And the system I propose is very rigorous.

I realize that today, if given the option to pay or not pay taxes, many of us would not. That is because there is no perception that our tax money is spent in useful ways. We pay taxes because it is less painful than going to jail. Of course, citizens have voting rights, but most have long lost the feeling that their vote directly influences the way their money is spent. Recently, an otherwise intelligent friend told me that she considered voting for a candidate because he was good-looking. And these are times when beauty pageants are judged based on ideas!

The way to make people want to pay taxes, is to convince them their taxes are buying something. Give them direct representation. This sounds straight-forward; it is also what democracy should be all about in the first place. Let people decide how big the government should be. What the balance of authority should be between local, State and Federal governments. On what programs the money should be spent. In a way: restore the original spirit of the Constitution of the United States of America! Very soon, the government would become lean, efficient, useful and friendly again.

Here is how it would work:

Every individual, organization, or company files a monthly tax return. The tax forms consist of three sections: one for local (city and/or county) government, one for the State and one for the Federal Government. Every "level" of government includes a break-down of 10 to 20 major areas ("categories") in which it plans to spend money in the next month. For each category, it provides a short financial statement, and a proposed budget. Then, the taxpayers decide how much money to contribute, and they specify what percentage is to be allocated to each category of each level of government. This would be the only form of taxation allowed. No separate local or state taxes, no sales tax, nothing else. Each tax form would also contain one page for suggestions and feed-back. No mention of income is necessary, but the total amount of money contributed (not the break-down) would be made a matter of public record.

Within its budget, any level of government would be free to elect representatives and set policy in a matter consistent with the U.S. Constitution. However, enforcement of any legislation passed by a government entity would be the financial responsibility of the entity that passed the legislation. Deficits would be prohibited, although provision would be made to pay off all existing government debts in a preferential way. To avoid the temptation to pass unreasonable laws, any fines, forfeitures or judgments that a government entity may collect, would be applied to Education and Science, and not to financing ongoing operations.

Simple, Practical, Efficient! The premise is: the government exists to provide services to the public. If the government provides the services the public wants, then the public will be willing to pay for them. Just like the public will keep buying from a company that provides good value. Just like people do support their church. And since they would be paying directly for services they consume, they would be more likely to assume personal and civic responsibility, and less likely to demand unnecessary bureaucracy.

There would still be room for politicians. But they would be held to higher standards of accountability. The system is result-oriented, just like most industries. This may actually free up politicians. Their legitimacy would never be in doubt. It does not matter how many free trips they take; in the end, their governing budget only depends on the confidence of the public in the quality of their job. If they run a deficit, they get fired. Just like a CEO. Partisan quarrels would soon be a thing of the past. When budgets depend on results, deadlocks are highly unlikely.

The savings to the country would be enormous. The economy would boom. America would be swept by an unprecedented wave of freedom, optimism, dynamism, purpose and pride. In fact, I am convinced that this would be so spectacular, that a lot of chronic, previously unsolvable, societal problems would spontaneously disappear. I am talking about poverty, crime, drugs, despair. Finally under control. At zero cost!