Business

Ex-Treasury Secretary: We Really Need to Do Something About This ‘Monstrous’ Tax Code

[Author's note: The following is an article that originally appeared on CNBC.com]:

The U.S. economy needs a simplified and more “progressive” tax code that would abolish income and corporate taxes, while bringing in enough revenues to pay for the government’s obligations, former Treasury Secretary Paul O’Neill told CNBC’s “Squawk Box” on Friday.

“Our tax code proves we are not an intelligent people because no intelligent people would have invented this thing,” said O’Neill, who called the current tax system, often criticized as bloated and cumbersome, a “monstrosity.”

In the context of the overall debate about fiscal reform, O’Neill called for a “progressive … value-added tax” that could help boost economic activity by substituting for corporate, payroll, and individual income taxes.

O’Neill, who was unceremoniously drummed out of his job as Treasury Secretary under former president George W. Bush, described himself as unenthusiastic about either of the major contenders for the presidency.

The former head of Alcoa said he would “like to” support the budget proposals of either President Barack Obama or his Republican challenger, Mitt Romney.

However, he said that “none of the plans on the table would get us a balanced budget again until 2040. I would like there to be a balanced budget in my lifetime.”

–

RELATED:

© 2012 CNBC.com, Javier E. David. Front page photo source: AP

Comments (206)

1 2 3 4
  • Bobaz
    Posted on August 18, 2012 at 6:57pm

    As long as 47% of the population pays no taxes, the tax code can never be made fair. Why would someone who pays no tax and gets a free ride at the expense of the people who do pay taxes ever vote for anyone other then a Democrat? These people are parasites and the largest Democrat constituency.

    Everyone who earns money should have to pay taxes, no matter how small the amount they earn. The only way to guarantee that is either a flat tax or a VAT.

    Report Post »  
    • trinklefinder
      Posted on August 18, 2012 at 7:14pm

      i partially agree, i think people who are married and have kids should no longer get deductions those of us who are single with no kids do not. its just one way to start making it fair. right?

      Report Post » trinklefinder  
    • MCDAVE
      Posted on August 18, 2012 at 7:31pm

      Flat tax is the answer

      Report Post »  
    • lukerw
      Posted on August 18, 2012 at 7:33pm

      FIRST FIX; Only people whom pay Tax… have the Right to Vote for a Representative.

      NO REPRESENTATION without TAXATION!

      Report Post » lukerw  
    • stumpy68
      Posted on August 18, 2012 at 7:36pm

      I still think a federal sales tax would be a good idea

      Report Post » stumpy68  
    • soybomb315_II
      Posted on August 18, 2012 at 7:48pm

      i think the fairest tax code would be a direct tax on each American. Say $10,000 per person. Anything else is just a form of redistribution

      Report Post » soybomb315_II  
    • RJJinGadsden
      Posted on August 18, 2012 at 8:13pm

      LUKERW, You have no idea how many years that I have been saying the same thing.

      Report Post » RJJinGadsden  
    • WakingSheep
      Posted on August 18, 2012 at 8:19pm

      @Trinklefinder
      I agree! I worked 4 months for the government last year!!!

      Report Post »  
    • TheMajority
      Posted on August 18, 2012 at 8:28pm

      I can’t blame people for not working and paying taxes in the USA, when both parties have been redistributing our opportunity for 3 decades now to communist nations. “We the people” have been sabotoged.

      Produce or die as a nation. The only way to decrease poverty, is to increase opportunity. Nobody as a child, wants to grow up to be a worthless bum. But as you know, any group of people this 2-party system helps, stays inpoversed for as many generations as the eye can see.

      Report Post »  
    • grumpy77
      Posted on August 18, 2012 at 8:31pm

      Dude, every hour you work that you are not paid adequately for is a tax paid in to the system. I have no problem with transfer payments, because that means I can pay my employees less. I don’t want them getting sick too often, or having their kids chronically–it hurts productivity. If we yank what’s left of the safety net, I won;t know from week to week how many employees I have.

      Report Post »  
    • resme
      Posted on August 18, 2012 at 8:31pm

      Here’s a good article about the flat tax and fair tax, Neither are flat or fair.
      http://www.lewrockwell.com/vance/vance168.html

      Report Post » resme  
    • Mandors
      Posted on August 18, 2012 at 9:01pm

      Trinklefinder, I hope that’s sarcasm. Because it’s the children of parents who get the deductions, who pay the cost of raising the future taxpayers that will pay to support your barren, halfwit butt, when that dim bulb you call a brain finally gives out.

      Then again, that’s probably happening in the next three, two, one…

      Report Post » Mandors  
    • trinklefinder
      Posted on August 18, 2012 at 9:52pm

      mandors, i hope your kidding, because thats the most ridiculous argument ive ever heard. why are children getting tax deductions when they dont work. i pay taxes in real time, they should to.

      Report Post » trinklefinder  
    • richauthor
      Posted on August 18, 2012 at 9:52pm

      @ BOBAZ

      There ARE ways to fix the monstrosity Tax Code, but only the Tea Party-backed Representatives have the cajones to openly vote on critical issues like tax reform, SS solutions, and Medicare. Speaker Boehner has managed to hold them in check for the career RINOs and Libs, but the Tea Party has pressured him right along.

      The obvious solution is Term Limits… something I’ve always opposed, but I’m beginning to see that IT is the only solution.

      The Tea Party people know this, and they are all willing to accept it. They seem to be the only members in all of Congress who know WHY the public elected them. The cronyism in Congress between career RINOs and career Libs is sickening. It may take another election or two, but the Tea Party will eventually force them out.

      Report Post » richauthor  
    • Walkabout
      Posted on August 18, 2012 at 11:02pm

      Flat tax.
      Make it 15 or 20%. Iver the last 4 decades the government has rarely collected more than 20% on average. That seems to be people’s limit about how much they can bear. If a progressive complains about a flat tax ship them to a communist of socialist country (like Sweden where they can live under Sharia law).

      Make capital gains tax rate the same as the flat tax. On the principle we shouldn’t favor one activity over another.

      No mortgage deduction. Do not favor homeowners over renters. Phase it out very slowly. Do not penalize current homeowners. No housing bubble.

      No deduction for charitable giving. If you give to a charity pat yourself on the back. You’ve done good. Just like bush said 1,000 points of light. People who give should be able to KEEP given a low flat tax rate. A contribution to Ducks Unlimited should not allow a person to pay less taxes for defense or welfare. A contribution to Planned Parenthood should not allow person to pay less for defense or welfare.

      Your hundredth dollar should not be taxed at a different rate than the 1st dollar or the tenth dollar. A union guy should not be penalized because he is on forced overtime & that will put him on the next higher bracket. With forced overtime you start missing out on life (fishing trips, games, family events, sales. A salesman on commission should know exactly what he is going to make after taxes. Dollar X should not be taxes a ta different rate than dollar x+1.

      Report Post »  
    • Walkabout
      Posted on August 18, 2012 at 11:07pm

      A flat tax will encourage people to work to save money for a down payment, pay off a mortgage, save for college because there is not this diminishing return for working longer hours or taking care of more customers (sales people).

      Having a progressive tax is like having a rubber band around you the harder you push the harder it pulls you back. It is designed that way because a bunch of hoity-toity people says its is unfair if you work longer hours, makes more sales calls or have a job the pays more per hour.

      Hoity toity people who insist on a progressive tax (which is actually regressive on your efforts) need to be sent to Cuba, North Korea, Venezuela, China or Sweden (preferably Malmo), where they have fair tax systems.

      Report Post »  
    • Pontiac
      Posted on August 18, 2012 at 11:39pm

      http://www.fairtax.org

      Report Post » Pontiac  
    • Walkabout
      Posted on August 18, 2012 at 11:43pm

      I could go with no deductions for kids so long as the tax rate was 15 to 20%.

      Report Post »  
    • Walkabout
      Posted on August 18, 2012 at 11:53pm

      No deductions for
      -mortgages
      -children
      -charity

      Capital gains rate the same as income tax.
      15% to 20% flat tax, no progressive tax rate. So no marriage penalty.

      Watch people churn & burn, get richer & be happier.

      I have heard arguments against simplifying the tax rate as, we will put too many accountants out of work. We could hire them as IRS agents. People will still cheat on their taxes. They will hide income. But no longer will we have to verify mortgages, # of kids, etc.

      In 2007 they fixed the President Bill Clinton loophole. You can no longer write off used, dirty underwear given to Goodwill as a charitable deduction.

      Report Post »  
    • mharry860
      Posted on August 19, 2012 at 2:02am

      Trinklefinder, welcome newbie, you will get slayed here for comments like that. If your seriously that naive of the cost of having children and the benefits to society for doing so, then I’m sorry you parents made a mistake. They are now being punished for that mistake, according to our dear leader, der Fuhrer.

      Report Post » mharry860  
    • Bill Rowland
      Posted on August 19, 2012 at 6:44am

      Steve Forbes put forward his ideas when he ran for president. Sounded good to me then and still sounds good. A flat tax on everyone, no deductions, no exceptions, no loopholes for political contributors.
      Congress would necver approve it because it would take away their deal making power that keeps getting them reelected and makes them rich.

      OMG Nov 6, 2012

      Report Post »  
    • Trance
      Posted on August 19, 2012 at 8:03am

      WALKABOUT – Good post. I’m for a flat tax on all income, and no deductions for anything. I’d be for zero corporate tax as well, but I haven’t researched that much, so I don’t know what the effect would be. Also, term limits!

      Report Post » Trance  
    • WakingSheep
      Posted on August 19, 2012 at 9:02am

      @mharry860
      Who’s choice was it for others to have the children?
      Is it mine or Trinklefinders fault that others choose to have children or are irresponsible and have them?
      Why should single people be punished for being responsible?
      That’s a very socialist comment you made.

      Report Post »  
    • Bikkiboo
      Posted on August 19, 2012 at 1:05pm

      A VAT tax would kill us (see Europe). We need THE FAIR TAX (read the book for full info). That’s where Federal taxes consist of only a national sales tax, and NOTHING is taken out of your pay by the Feds. It means EVERYONE pays according to what they buy – companies, the rich and the poor. In that way, it is progressive. It also includes a monthly rebate, that covers the sales tax on food and meds. IMHO, this rebate could be placed in private (not government accessible) IRA’s for each person receiving it, and that could eventually replace Social Security. This kind of plan solves MANY problems, creates jobs and investments (no taxes on them), and saves huge amounts of money for the taxpayers, such as: 1) Social Security entitlements eventually would not be funded by taxpayers, 2) the IRS would be ELIMINATED except for a small part that collects the sales tax and disburses rebates, 3) tax prep times and costs for businesses and individuals would be eliminated, 4) the rich won’t hide money elsewhere and corporations would not leave the US due to taxes 5) Lobbyists will have nothing tax-wise to lobby for, 6) the government can’t enact “sneaky” taxes or taxpayers would know it immediately, 7) laws would have to encourage business, or the government wouldn’t get the sales tax money to function, and probably many more reasons. Some people think the cost of things would jump, but that they soon would come down because tax costs hidden in product prices would disap

      Report Post » Bikkiboo  
    • sarcasticus
      Posted on August 19, 2012 at 6:42pm

      Absolutely no VAT!
      The problem with the tax code IS THE TAX CODE! It needs to be thrown in its entirety and replaced with with the FairTax.
      The sooner the better.

      FairTax.org

      Report Post »  
    • archeng59
      Posted on August 19, 2012 at 7:43pm

      No matter what happens, that 47% group will never pay taxes. Politicians will revise the VAT so people under a certain income level get refunds of some kind. Same for a flat tax. This is how the crazy tax code with loopholes, Earned Income Credit and everything else was added to the tax code. Nobody wants to pay taxes but some want others to pay alot.

      Report Post »  
    • Sassyncmrs
      Posted on August 19, 2012 at 8:19pm

      The best way to reform the tax code is by scrapping the current one and implementing the Fair Tax. This idea has been around for a long time, and we have some 34 senators already in favor of the change. Check into it @ http://www.fairtax.org. Write you senators to support it!!

      Report Post »  
    • Truth4SureNuff
      Posted on August 20, 2012 at 8:57am

      We could be debt free in 5 years or less if they could collect a crack, meth and weed tax of 20%

      Report Post »  
    • dmerwin
      Posted on August 20, 2012 at 11:12am

      Yes we really do need to do something, and when HE had a chance he didn’t.

      Report Post » dmerwin  
    • dmerwin
      Posted on August 20, 2012 at 11:15am

      Walkabout
      Fair tax would do all the things you said regarding a flat tax and eliminate most of the IRS. Everybody would have a stake in the country. I really don’t care too much about the jobs of accountants and lawyers. There used to be a lot more livery stable workers as well.

      Report Post » dmerwin  
    • pdw
      Posted on August 20, 2012 at 2:43pm

      I do believe that most should be taxed to some extent but there needs always for a line to be drawn where no taxes should be as there are many people, hard working who cannot support their families even when they have nothing in the way of “extras” as we might call them. Not all have cars, TV, phones etc. There are the truly poor who no person in their right mind believe they need to be taxed. The tax structure needs to be overhauled and much of it gutted. I keep reminding myself that those who write them do it with themselves in mind. Truman once said you can tell the corrupt politicians, they are the ones who come out richer than when they went into office. Who ever heard of a newly elected presidents wife receiving $10,000,000 for a book no one reads? but there have been 2 so far and I keep wondering how long before this corruption stops. All the time pointing fingers at the rich while earning an extra million+ each year besides the presidential salary?

      Report Post »  
  • Excomunicatedmarine
    Posted on August 18, 2012 at 6:56pm

    The way it is right now really frosts my cherries……50%of America or more pay no tax and many of those even get money from the gov. yet they get to vote on the politicians who stand for the failing of our economic health.

    In fact they are Obums only chance of returning to his mission of destroying the hand that feeds these lazy slobs.

    Report Post »  
    • archeng59
      Posted on August 19, 2012 at 8:02pm

      Those of us paying the taxes can always back off, earn less and let the country go to hell in a hand basket.

      Report Post »  
  • Bobaz
    Posted on August 18, 2012 at 6:52pm

    April 15th should be a national holiday. On that day, you pay your taxes AND you vote in all National, State, and local elections.

    It’s not a coincidence that November 2nd is as far away from April 15th as possible.

    Report Post »  
  • watersRpeople
    Posted on August 18, 2012 at 6:44pm

    Haha. It’s just a proven fact that the less comprehension a person is capable of, the bigger the paragraph and column of instructions has to be.

    Report Post »  
    • trinklefinder
      Posted on August 18, 2012 at 7:35pm

      one of my favorite quotes…”intelligence is like a river, the deeper it goes, the quieter it gets” or somethin like that. ha.

      Report Post » trinklefinder  
    • Walkabout
      Posted on August 19, 2012 at 12:06am

      Deep rivers are placid on top, quiet, but deadly.

      Report Post »  
    • trinklefinder
      Posted on August 19, 2012 at 12:28am

      touche walkabout, you have a point with some rivers. i hadnt thought about that.

      Report Post » trinklefinder  
    • JACKTHETOAD
      Posted on August 19, 2012 at 11:08am

      Is it true ponds have more fun? Gentlemen prefer ponds, you know.

      Report Post » JACKTHETOAD  
  • egclark
    Posted on August 18, 2012 at 6:35pm

    Flat tax, not VAT tax. You know, I’d think that the USA could learn from other countries and their failures. Term limits might get politicians back to reality. Cut the fat, no VAT.

    Report Post »  
    • watersRpeople
      Posted on August 18, 2012 at 6:47pm

      The government would really like to simplify the tax code by just taking all our money and they give us what they think we need. I’d say that would simplify the tax code.

      Report Post »  
    • watersRpeople
      Posted on August 18, 2012 at 6:49pm

      Look at it this way. The average yearly income worker is a slave for the government half the year, and at the end of the year in the spring – they give you back what they think you need – of course you have to do all the paper-work.

      Report Post »  
    • loriann12
      Posted on August 18, 2012 at 6:52pm

      I was trying to prove a point to a family member about taxes…..it’s really complicated. You don’t just pay based on what you make, you actually climb the ladder. Meaning that your first $8,900 is taxed at 10%, then you get taxed on the next tier, and if you make more, you get taxed on the next tier, until you reach what you made. I’d be happy if they just lowered the rates and made you pay that on everything. Plus, if you make under something like 150% of poverty, you get everything back. There’s a separate chart for what you can make with the number of dependents in order to claim earned income credit. I only remember I’d need to lie and find two more kids to claim in order to qualify. That’s why people “loan” their kids to relatives to claim on their taxes.

      Report Post »  
    • watersRpeople
      Posted on August 18, 2012 at 6:54pm

      The truth of their view-point is that “If you have a business – you didn’t build that.” The truth of the matter is that they believe they created all that you were and are, and will be – therefore all you own belongs to them – but they let you believe you own property with lying deeds to keep you motivated to make them more [money] which is the vigor of your soul.

      Report Post »  
    • RJJinGadsden
      Posted on August 18, 2012 at 8:18pm

      I‘m all for those term limits too as long as the politicians don’t get a dime in retirement until they reach federal retirement age.

      Report Post » RJJinGadsden  
  • Stelex
    Posted on August 18, 2012 at 6:25pm

    Most reasonable people know that a flat tax is the fairest tax. 15% across the board. No IRS, comes out of your pay automatically. The current tax code is devised to confuse and rip off the average American. We all know it. GE pays no taxes on 14 billion, they have an army of accountants. I’m sure I could get my tax rate down to zero or 1% if I paid and army of accountants to scour the tax code. We The People seem to be very stupid……the fact that we allow this assinine tax structure to exist says so.
    Wake up America…….Wake up

    Report Post » Stelex  
    • lukerw
      Posted on August 18, 2012 at 6:34pm

      BS… When I made 6 figures, 15% Flat Tax would have gravey… But, the poor Slob on SS would have to buy the same basics as I.

      There has to be a Graduation Formula… based upon Income!

      Report Post » lukerw  
    • chips1
      Posted on August 18, 2012 at 6:45pm

      LUKERW:
      Isn’t that based on work ethics?

      Report Post »  
    • booger71
      Posted on August 18, 2012 at 6:46pm

      lukerw
      ============
      We already have that, straight out of the Communist Manifesto.

      Report Post » booger71  
    • RANGER1965
      Posted on August 18, 2012 at 6:47pm

      The answer is simple. Each year the Treasury department calculates the poverty level for different size familys. Current inflation and cost of living is factored in.

      You start paying the 15% or whatever it is for all money you make above that poverty level. If you make less than that, you pay no taxes.
      All taxes start at that level, and it’s the same % whether you make a billion dollars, or $1.00 over the poverty level.

      It’s fair and simple.

      Report Post » RANGER1965  
    • soybomb315_II
      Posted on August 18, 2012 at 6:52pm

      i completely agree – flat tax would solve so many of our problems

      but can ANYBODY tell me why Romney is against the flat tax??? He spent his own money to defeat flat tax proposal in the past
      http://www.buzzfeed.com/andrewkaczynski/when-concerned-citizen-mitt-romney-hated-the-flat

      Report Post » soybomb315_II  
    • Individualism
      Posted on August 18, 2012 at 6:58pm

      Because Romney pays allot less taxes than the average American does because there is way more deductions for the rich.

      Report Post » Individualism  
    • nzkiwi
      Posted on August 18, 2012 at 6:59pm

      Actually I disagree.

      The fairest tax is a sales or “value added” tax.

      Think about it. If young people starting out wish to save then they keep all of the money not spent. They are not taxed at source whether they spend or not. When they do spend, they get taxed.

      Some people say this will unfairly hit the poor. In that it does demand a tax from the half of your nation currently not paying it, I guess that they might be right. But let’s take a car purchase, for example: At 20% sales tax, aperson buying a $1000 car pays $200 of the purchase price in tax. A person buying a $100,000 car pays $20,000 in tax.

      If the companies are required to pay tax on cars sold, there is little possibility of getting around it. If you don’t want to lose your money in tax, then save. But eventually people will spend, because the only value of money is the use of it.

      Report Post »  
    • lukerw
      Posted on August 18, 2012 at 7:25pm

      @NZ…
      The 13% VAT increased Prices in Europe by 27%… and I still had to pay for Socialized Medical & Retirement… and Tax Returns became More Complicated by 10 fold!

      Report Post » lukerw  
    • nzkiwi
      Posted on August 18, 2012 at 7:42pm

      @ Luke

      VAT only works properly if all other taxes are dropped. You’re right, this did not happen in Europe, so they only compounded their problems.

      It is a completely different philosophy and it worries a lot of people because it cannot be partially implemented. Therefore, the natural prudence of sticking one’s toe in the water is not possible here.

      One cannot take two steps across the abyss. It will require courage; a quality of character present in a minority of politicians.

      Perhaps a small country, such as New Zealand, should try it first, as we already have a VAT included in our tax system. Unfortunately, the character of our politicians is typical.

      Report Post »  
    • underdog57
      Posted on August 19, 2012 at 4:19pm

      Why a graduated tax? If I make a million dollars, I pay $150,000 at a 15% rate. If you make $10,000, you pay $1500. I made a hundred times what you made and I paid a hundred times what you paid. Why isn’t that fair?

      Report Post »  
    • lukerw
      Posted on August 19, 2012 at 8:32pm

      @UNDERDOG…
      Because… the poor Slob on SS, maybe with a Pension, must buy all the Basics as everyone else… so there must be a CutOff to the poor… in a Flat or Graduated System… and VAT is Insane!

      Report Post » lukerw  
  • nzkiwi
    Posted on August 18, 2012 at 6:23pm

    All nations are in more or less the same situation.

    The reason is simple. Governments want to raise more money without jeopardising their votes, so they develop taxes that are less visible than income tax.

    Take company tax for example; it is sold to the public as a tax on wealthy entities that can, and should, pay it. With a little objective thought, however, it becomes apparent that companies don’t pay tax. Never have, never will. Their customers pay it. Most people don’t think of it this way, but as someone else paying the tax and not them, which is precisely what the politicians want them to think.

    This cynical philosophy is extended with taxes that are sufficiently hidden to prevent the average person from even noticing them.

    After that, politicians then offer rebates for various groups in order to attract votes.

    The whole thing becomes a labyrinth ing highly skilled specialists to negotiate. It is expensive and time consuming – with stiff penalties for making a mistake. The agency designed to gather taxes for the state ends up, in itself, pointlessly consuming enormous amounts of a nations productivity in compliance.

    As someone else mentioned, the only sensible tax is a sales tax. It is honest, visible, simple, and very hard to avoid.

    Report Post »  
    • nzkiwi
      Posted on August 18, 2012 at 6:45pm

      I shouldn’t take so long to write my posts. While I was away writing, I have managed to repeat some of the points made by posters in the mean time. Sorry about that.

      Report Post »  
  • chips1
    Posted on August 18, 2012 at 6:22pm

    I’m not sure, but I seem to recall a President that brought out the tax code on a fork lift and told us that it had to be smaller. I think it was Clinton. Why is it larger? Did he just lie because that’s what they do best?

    Report Post »  
  • OlefromMN
    Posted on August 18, 2012 at 6:21pm

    “We Really Need to do Something About This ‘Monstrous’ Tax Code”

    Ya think? Thanks for joining the party late Paul.

    Report Post » OlefromMN  
    • lukerw
      Posted on August 18, 2012 at 6:37pm

      Blah, blah, blah… I heard this for 60 years… and all they do is Pick Favorites for Votes!

      Report Post » lukerw  
  • doomytram
    Posted on August 18, 2012 at 6:20pm

    We don’t have a spending problem we have a revenue problem said nobody with half a brain, Obozo and the leftist‘s Attorney’s and IRS agent‘s mean job security in the new economy ie Obozo’s Amerika. 2+2=5

    Report Post » doomytram  
  • kimosd1
    Posted on August 18, 2012 at 6:15pm

    The government knows far too much about the individual anyway. The income tax should be replaced with a VAT or sales tax, not as some suggest making those in addition to an income tax. The higher income group would pay more of their “fair share” because they buy and spend more and the average earner would most likely pay less than they do now or be revenue neutral when you add up income, payroll, state income, state disability, and sales taxes that are paid now. Employers would in many cases be able to pay higher wages or benefits because they wouldn’t be forking over all the employer contributions to the fed and state. The entire income tax division of the IRS could be eliminated, the wasted dollars on tax preparation would be gone and we would even regain some small measure of the freedom we are entitled to. No gaming the system, less lobbying, and not having to worry about the IRS ruining your life because you didn’t get the absolutely incomprehensible paperwork filled out just right.

    Report Post » kimosd1  
    • wisehiney
      Posted on August 18, 2012 at 6:19pm

      VAT/Sales Tax would also better encourage savings and investment instead of borrowing and spending.

      Report Post »  
    • loriann12
      Posted on August 18, 2012 at 6:57pm

      I still think a VAT tax penalizes those who have worked hard all their life and weren’t able to retire with a large sum of money. I don’t think my parents (who only have a “retirement” fund of stocks that will run out in a couple years and they’ll be left with social security) should have to pay higher sales tax. Unless you don’t tax food items, like they do here in Texas. Tax luxeries at a higher rate, or things new that aren’t food. Tax new clothes. If you don’t want to pay the tax, shop at thrift stores. Tax new cars. If you don’t want to pay the tax, buy a used car. ad nausium.

      Report Post »  
    • nzkiwi
      Posted on August 18, 2012 at 7:07pm

      You’re right, Kim.

      The added advantage, if a “value added” tax were the sole tax, is that increases would be highly visible, requiring politicians to explain why they need the extra money.

      Politicians would finally be elected on their ability to manage their nation’s economics, and their judges, the voters, wouldn’t need an economics degree to determine the success or failure of their elected representatives.

      Report Post »  
  • johnpaulkuchtajr
    Posted on August 18, 2012 at 6:06pm

    O‘Neil didn’t say how important becoming energy independent is to ANY new tax plan!

    Let‘s pay ourselves the hundreds of millions of dollars per day that we’re paying other countries!

    Report Post »  
    • chips1
      Posted on August 18, 2012 at 6:29pm

      If we don’t pay other countries, they won’t like us any more and the murder rate could go up by as much as 3%.

      Report Post »  
  • SycamoreFan
    Posted on August 18, 2012 at 6:06pm

    “Our tax code proves we are not an intelligent people because no intelligent people would have invented this thing,” said O’Neill

    Our tax code proves our Congress is not so intellegent.

    ____________
    77% of Americans say Voter ID laws are a step in the right direction.
    Hussein says BACKUP!

    67% of Americans say our country is headed in the wrong direction.
    Hussein says FORWARD!

    Someone is out of touch.

    Report Post » SycamoreFan  
    • progressiveslayer
      Posted on August 18, 2012 at 6:33pm

      The Marxist POS currently dismantling capitalism is out of touch and our tax code was designed to be confusing to make people wonder if somebody isn’t paying their fair share. I like the flat tax even though I don‘t believe congress has the authority to tax our income since the sixteenth amendment wasn’t properly ratified. http://thelawthatneverwas.com/ If a miracle happened and our government stayed within the bounds of the constitution and recognized they actually don’t have the authority to tax our income you can be sure those bloodsucking bastards in DC would pass an amendment in record time to tax our income.

      Report Post » progressiveslayer  
    • chips1
      Posted on August 18, 2012 at 6:58pm

      Why doesn’t Obama push the Kenyan tax? Everyone pays 3 goats or 2 giraffs, which ever is higher.

      Report Post »  
  • cemerius
    Posted on August 18, 2012 at 6:04pm

    Fed Sales Tax and ONLY if there was a Constitutional amendment so these jack wagons in DC DO NOT raise the percentages!!!! 10% sales tax for EVERYONE Rich Poor and Middle Class we could even BELIEVE that the ILLEGALS were paying their “fair share” !!!!!!

    Report Post » cemerius  
    • Anonymous T. Irrelevant
      Posted on August 18, 2012 at 6:25pm

      I agree. Then everyone would be paying into the system and no one could say they weren’t paying their “fair share.”

      Report Post » Anonymous T. Irrelevant  
    • trinklefinder
      Posted on August 18, 2012 at 6:26pm

      i have a question, would the 10% sales tax be on new items or would you have it on estate sales, second hand stores, garage and yard sales? what about supermarket food, or pre packaged food. i guess im asking what the perimeters are as i buy nearly nothing new and do most of my shopping at estate sales and the supermarket.

      Report Post » trinklefinder  
    • trinklefinder
      Posted on August 18, 2012 at 10:38pm

      as i sit here and think about your sales tax….will this apply to the local municipality sales tax? in saint louis city im already taxed at 7% ish, so we can add another 10% to that then?

      Report Post » trinklefinder  
  • grayling646
    Posted on August 18, 2012 at 6:04pm

    Watched about 4 minutes. It’s as boring as the rest of the news has become.

    Report Post »  
    • nzkiwi
      Posted on August 18, 2012 at 6:48pm

      It’s an important subject…

      Report Post »  
    • grayling646
      Posted on August 18, 2012 at 8:45pm

      I agree. But watching three people argue about points I’ve heard a guzillion times becomes boring after about a million times.

      Report Post »  
  • azcowboy1
    Posted on August 18, 2012 at 6:04pm

    If I got 16000 on my credit card. I spend 500 a month more than I make. Choices choices.. I would really like to get 5 neighbors to give me a 100 each. Yep that would do it. But I got cheap neighbors, they have a problem with that idea. I could get a better job. Nope, not a chance with that.. I could get the bank to up my credit limit and just continue to put that 500 on the card. Nope, Bank said they don’t trust me. Damm, I guess I’ll have to do the unthinkable. QUIT SPENDING THE 500. Gosh I think maybe I might be able to Balance my checkbook. Cheeze us I’m smart
    jH…

    Report Post »  
  • Excomunicatedmarine
    Posted on August 18, 2012 at 6:02pm

    National sales tax is the only thing I see as even remotely enforceable . You spend and the gov. Gets some……..you spend big, the gov gets more. Simple, fair and enforceable. No loopholes, no BS. What is the percentage is the only question…….to match the governments take the way things are would probably surprise us all.

    Report Post »  
    • QuincySmith
      Posted on August 18, 2012 at 6:12pm

      I agree, a sales tax is desirable; but everyone is missing the point here. We don’t have an income problem, we have a SPENDING problem. It doesn’t matter what the percentage is, the bloated big-spenders will spend what we give them. We need to control spending – the rest is simple.

      Report Post » QuincySmith  
    • chips1
      Posted on August 18, 2012 at 6:42pm

      Number of people in the US divided by number of people in each state. How the individual state collects it is their problem. The Federal Government can’t spend more than they have. Balanced budget?

      Report Post »  
    • Excomunicatedmarine
      Posted on August 18, 2012 at 6:42pm

      That goes without saying……..I can only agree that as long as politicians can manipulate our money we are up the creek. But a sales tax will show everyone how exorbedent our taxes are. It is at least a start and all persons in America will pay ……rich poor middle……all , whatever they spend on other than food (?).

      Report Post »  
  • Individualism
    Posted on August 18, 2012 at 6:00pm

    Flat or Fair Tax would make sure everyone pays taxs like Romney. Also no terrorist IRS to harass you.

    Report Post » Individualism  
  • sawbuck
    Posted on August 18, 2012 at 5:58pm

    A balanced budget by 2040.….I highly doubt it..

    Report Post » sawbuck  
  • neiman1
    Posted on August 18, 2012 at 5:55pm

    There are more tax preparers employed in the US than firemen and policemen combined.

    This tax code costs us unmeasurable amounts. Not just in compliance but also in people doing things that would otherwise not make good economic sense except for tax favors.

    Report Post »  
  • Weiners Wiener
    Posted on August 18, 2012 at 5:54pm

    No business should be taxed. Taxing a business just creates an expense like any other that they then pass along to consumers. All that does is contribute to a longer and more complicated tax code for no good reason. Tax the portion of business profits that a business owner keeps as individual income, just like everyone else.

    Report Post »  
  • LuvntheBIGsites
    Posted on August 18, 2012 at 5:50pm

    The current Tax code is a 80,000 page culmination of both parties “reaching across the isle” since 1916. O’Neill needs to take his 80,000 to 85,000 page “progressive value added tax proposal” and shove it where the sun don’t shine. You want a consumption tax, Fine. Blow up the tax code and adopt the Fairtax.

    Report Post » LuvntheBIGsites  
    • Darmok and Jalad at Tanagra
      Posted on August 18, 2012 at 6:00pm

      They should just be honest and tell us, “We will let you keep 40% of what you make, the rest is ours, unless you donate to us, then we will let you keep more”. Just be honest Congress, we know that is what you want.

      Report Post » Darmok and Jalad at Tanagra  
    • Cat
      Posted on August 18, 2012 at 6:06pm

      Actually, the 1913 tax code was written to tax foreign corporations and some individuals when doing business inside the USA.
      Generally it was a tariff.
      As it stands now, the Federal Reserve is nothing more then organized crime using the IRS as their hit men.
      They are literally stealing from the workers to support a few banks using fiat money
      It is a scam
      It’s how the Knights Templar became so wealthy
      Print it, loan it, charge interest

      There are politicians who quietly want both an income tax AND a VAT
      They are beating their brains out trying to figure out a way to fool us into swallowing both types of taxes.

      It’s all about stealing everything …

      Report Post » Cat  
    • Cat
      Posted on August 18, 2012 at 6:38pm

      Read folks:

      http://www.fairtax.org/site/PageServer?pagename=about_main

      Even wrote Marco Rubio before he became Senator about shutting down the IRS
      His was response was typical …
      Aint’ gonna happen, Bucko

      Report Post » Cat  
  • Darmok and Jalad at Tanagra
    Posted on August 18, 2012 at 5:49pm

    Very simple. Businesses would be expemted their first 100k, and a flat 10% on everything else. Individuals would be expempted their first 30k for single, and 50k for married. Then, 10% one everything else. Who doesn’t like this idea? Lawyers, CPA’s, Congress, IRS agents. How else could Govt use their great big Attack Dog on us poor, stupid peons. If it was this simple, no one could cheat the system, and if 10% is good enough for God, why isn’t it good enough for Ceaser.

    Report Post » Darmok and Jalad at Tanagra  
    • soybomb315_II
      Posted on August 18, 2012 at 5:54pm

      why even talk about flat tax – Mitt Romney is against the flat tax

      Report Post » soybomb315_II  
    • Darmok and Jalad at Tanagra
      Posted on August 18, 2012 at 5:55pm

      Sorry, that should be “Exempted” My fingers are asleep today.

      Report Post » Darmok and Jalad at Tanagra  
    • Darmok and Jalad at Tanagra
      Posted on August 18, 2012 at 6:04pm

      @Soy
      He may be against it, but at some point, there will be more and more support for a flat tax. It is the most “Fair” system, but we know the Govt. isn’t about fairness, just punitive actions.

      Report Post » Darmok and Jalad at Tanagra  
    • Individualism
      Posted on August 18, 2012 at 6:05pm

      the reason why is because he doesn’t pay taxes with the deductions he gets.

      Report Post » Individualism  
    • QuincySmith
      Posted on August 18, 2012 at 6:09pm

      darmok;

      oblama said it best: everyone should have skin in the game, exempting the first 100K will not do that. However I like the flat tax idea.

      Report Post » QuincySmith  
    • QuincySmith
      Posted on August 18, 2012 at 6:15pm

      Sorry, darmok, didn’t correctly read you post the first time. 100K or 30K no difference. Business should not pay taxes. The individuals owning them should. Taxing businesses increases cost, gov’t control, freedom. Fewer taxes = more freedom.

      Report Post » QuincySmith  
    • Darmok and Jalad at Tanagra
      Posted on August 18, 2012 at 6:23pm

      @Individual
      Romney paid more taxes than Tim Giehtner did, the same guy that runs the IRS. And he paid more than Gephart, who also dodged taxes, and I think it would be most interesting to look at the Lefts Sugar Daddy, Soros, how much does he pay, if any. And what about Buffet?

      I don’t begrudge anyone from making money, I like making money and having a comfortable lifestyle, but I will tell you, a few years ago, right after starting a new job and retiring from the military, I got audited and the IRS came at me saying I owed almost $5,000 in taxes.

      First, it was an annual increase from about a $60k reported income to over $100k, but the IRS at first didn’t want to include or give me any of my rightful deductions, and seem to want to do my taxes on an EZ form. It took me 3 letters and hiring a tax attorney to get the matter straightened out. At the end of the audit, I owed 300 dollars, and it was a simple math mistake made by my tax program. The frustrating thing was in over the phone discussions, the guy I talked to, actually agreed with me, and said he couldn’t find any problems, but another dept. was the ones pushing it.

      But that is what we deal with right now, an entity, that comes down on the little guy with a strong arm, and has endless resources to make your life hell.

      Report Post » Darmok and Jalad at Tanagra  
    • Darmok and Jalad at Tanagra
      Posted on August 18, 2012 at 6:32pm

      @QuincySmith
      Why I agree with businesses paying on their profits, there are many people I know that run businesses, and don’t take a salary, but give themselves “Loans” , and it is legal, and their business has more deductions. They way they look at it, they only pay taxes on the money once.

      Not taxing businesses would exempt large Corp. from paying taxes? Of course we know GE didn’t pay any, and made Billions.

      If the Govt. can’t run off of 10% of GDP, there is something wrong.

      GDP for the US, 16 Trillion dollars, 10% is 1.6 trillion. Current govt. spending level, 3.6T.

      Keep Social Security and Medicare taxes seperate, keep them at the same rate and put it off to the side. Only deal with everything else in the budget, that takes the current budget to about 2 trillion, and at that rate, no one could tell me they can’t cut 400 million of spending and have a balanced budget.

      I guess that is what I didn’t make clear up front, In my proposal, SS and Medicare would be a totally seperate item from the budget. technically, they are self sufficient, if we pay the IOU’s back.

      Just Saying.

      Report Post » Darmok and Jalad at Tanagra  
    • Cat
      Posted on August 18, 2012 at 6:49pm

      “Render unto Caesar the things which are Caesar’s, and unto God the things that are God’s”
      Jesus may have intended the statement to mean, give Caesar nothing, because he can’t take something that is not his …

      Report Post » Cat  
    • QuincySmith
      Posted on August 18, 2012 at 6:57pm

      darmok;

      The reason these people take ‘loans’ is because of the tax structure, it is conceivable that a flat tax would remove that opportunity.

      Report Post » QuincySmith  
    • Darmok and Jalad at Tanagra
      Posted on August 18, 2012 at 7:20pm

      @QuincySmith
      I agree with you on that, a simple flat tax, get rid of loopholes and deductions, and I would go even further to create a “Swiss” type banking system that would entice other wealth to come to this country, Hello Rich French people.

      But even keeping business tax to 10% is a lot lower than they pay now, and they wouldn’t have to worry about creating shelters, and paying all those tax attorneys.

      What would we do with 100,000 mad lawyers? Well, we do need someone to pick up trash on the sides of the highways.

      Report Post » Darmok and Jalad at Tanagra  
  • wisehiney
    Posted on August 18, 2012 at 5:46pm

    How much did y’all tip your accountant this year? Everyone’s favorite thing.

    Report Post »  
  • Cat
    Posted on August 18, 2012 at 5:44pm

    Finally, Paul got my memo …

    Report Post » Cat  
1 2 3 4

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love