Wednesday, January 5, 2011

Our tax system is broke

An article published in the New York Times today, I.R.S. Watchdog Calls for Tax Code Overhaul, states that the tax code must redone.  It is true, the tax code is so complicated that it is impossible for the average person to know what to do.  As a matter of fact, the Wall Street Journal, 'Temporary' Tax Code Puts Nation in a Lasting Bind, shows us that many of tax codes are just a band aid that are renewed each year.
It is easy to see that something must be done to revise our tax code.  The answer is not a simple one, but it is an interesting discussion.  As Catholics, we are obligated to pay our taxes.  The Catechism of the Catholic Church in Paragraph 2240 states:

Submission to authority and co-responsibility for the common good make it morally obligatory to pay taxes, to exercise the right to vote, and to defend one's country:
Pay to all of them their dues, taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honor to whom honor is due.
[Christians] reside in their own nations, but as resident aliens. They participate in all things as citizens and endure all things as foreigners. . . . They obey the established laws and their way of life surpasses the laws. . . . So noble is the position to which God has assigned them that they are not allowed to desert it.
The Apostle exhorts us to offer prayers and thanksgiving for kings and all who exercise authority, "that we may lead a quiet and peaceable life, godly and respectful in every way." 
This is basically saying, what Christ said in the Bible "Give to Caesar what is Caesar's and give to God what is God's".  As Americans, we freely file our tax return each year.  Therefore, the question is not should we pay our taxes, but what does paying our taxes mean?  By paying our taxes we acknowledge that the government needs money in order to function.  However, that also implies that the government has a responsibility to its people since it is taking our money.  If we just paid taxes for the President to hoard all the money, nobody would pay.  We get somethings in return.  However, the bulk of the money ought to remain with us, the people.  The more we pay to government in taxes, the more the government controls our life and wastes our money.
Driving on Interstates, I have noticed that some areas have the green mile-markers at every tenth of a mile.  We all know that the mile-markers help us while driving to know when our exit is coming, how long we need to travel, and where to identify our location if we break down.  It is a useful tool I use daily.  If I break down, I can call roadside assistance and say "I am on I-95 North in Maryland between mile 45 and 46" and I will get help.  However, every one tenth of a mile is ridiculous.  This means there a mile-marker at 50, 50.1, 50.2, 50.3, and so on.  Now these are only in some areas; however, each of those mile-markers cost money.  This is just an example I have noticed during drives where I thought, "That is a waste of tax dollars."
This continues to bleed over in other areas.  I am sure there are tax dollars to pay for "safe" sex promotion and other areas that are against the teachings of the Catholic Church.  Therefore, as Catholics and Americans,   it our duty to pay our taxes; however it is also our duty to ensure we elect people who will use those taxes morally.  I am not saying that the government should use taxes to promote teachings of the Church, but we must fight against the government using taxes in opposition to the teachings.
We need a simple tax code.  It will take time to get there, but it is needed.  First, we need to get our spending under control.  If we try too much at once, it will be a mess.  However, tax code reformation is needed.  The larger the tax code gets, the more people the government will have to hire to ensure taxes are being collected which will only increase the amount of taxes we pay.  A government is effective when it is putting itself out of business.

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