As we have gotten waaaaaaaaaaaay OFFFFFFFFFFFF TOPIC, I'll add my 1/50 of a buck to this.
If you want to significantly eliminate most of the problems that Jan_Mike has just talked about, there is one simple solution, IMHO.
A NATIONAL SALES TAX. It would eliminate most all the grief about what is and what isn't deductible. Underground income, so what, who cares. Ultimately, you got to spend it somewhere. And only a small amount of purchases could be made black market. Besides that impact could easily be factored in to the rate. The tax would be applied to any item that is vended. Of course, it would be up to businesses to comply with the tax law, and those abuses would still abound.
But the wage slaves of the world, who have also done their/our fair share of skimming would no longer be breaking any laws. Of course, the realtor industry would be against it because homes would have that tax added to it and mortgage interest wouldn't be deductible. And other special interest groups would have their feathers ruffled as well.
But if you absolutely want to maximize compliance, tax consumption instead of income. And implement stiff fines for sellers of goods and services who fail to collect/pay the consumption taxes.
Of course, it will never, ever get implemented. The IRS would cease to exist in its present form and certainly its present size. The tax lawyers and accountants would be on the street. Home buying would be significantly affected, etc etc etc.
Just an idle thought.
TG |
