U.S. Tax System Burden on Business

We know we're just a business that sells two-way communication equipment and this is probably not the right place to talk about taxes. But we're a small business that is impacted by our tax system and the majority of our customers are businesses impacted by this same system.

So we do feel it is our duty to make our opinion known, as should everyone because that's the only way change can occur.

We created the infographic called U.S. Tax System Burden on Business so people could visualize just how utterly ridiculous our tax code has gotten. There is simply no way to fix it. Attempting would be equivalent to trying to raise the Titanic and put it back together.

Our current tax system penalizes businesses like ours for making, saving, and investing money. Wouldn't it make more sense to penalize people for spending money instead?

Our tax rate is already the highest among the Organization for Economic Co-operation and Development (OECD) countries. The result of that is big U.S. companies send jobs overseas and it limits foreign investment in starting businesses in the U.S.. There is already a plan in Congress that solves this problem and it would increase investment in new business. More on that in a bit.

As I write this, just yesterday the government implemented a new tax in the form of Obamacare. The current tax system lets the government create new taxes whenever they want often times in ways we don't even know about because the tax increases are so buried in the mountains of pages of tax code that no one can comprehend them.

Our tax code has gotten so complex that even the IRS doesn't understand it. Yet the government spends millions of dollars in litigation costs and audits against small businesses for making errors on our tax returns (I'm sure the IRS targets small businesses because they don't have the resources to fight back).

Instead of wasting money, time, and lost productivity on bending to meet the needs of the IRS, what if we could invest that same time and money on productive tasks? Think about how that could positively affect our economy. What if we could do away with the IRS altogether?

A plan for that has already been proposed and IntercomsOnline.com is a supporter. That plan is called the FairTax, which in contrast to the current 70,000+ pages of tax code is only about 131 double spaced pages. In Congress FairTax is also called H.R.25.

Under the FairTax income and payroll taxes are eliminated. Since these taxes are eliminated, there is no need for the IRS so it goes away too. It is a revenue neutral plan, which means the Federal Government still gets the same amount revenue, it just comes from a different source.

When you earn money under the FairTax, you get to keep every dime of it. You only get taxed when you spend money in the form of a consumption tax. Legal residents of the U.S. get a "prebate" or advanced refund at the beginning of each month so that purchases made up to the poverty level are tax-free.

With this program now illegal immigrants or anyone accepting cash payments become tax payers as well. So it not only solves our tax problem, but also the problem of illegal immigrants who are currently receiving federal benefits but not paying taxes to support these benefits.

Of course the FairTax is not a plan that's popular with most politicians since it takes away their power to increase taxes whenever they want (the Obamacare tax could not have happened).

Over 22 million dollars and many years were invested into research and development of the FairTax, but the President's Advisory Panel on Tax Reform conducted their own quick research to declare the plan unworkable as is. Most of the government is not going to help us get it implemented so it is up to the people of the U.S. to do it.

If you want to stop working for the IRS, I urge you to go to the FairTax website and learn as much as you can about the plan and ways you can support it: http://www.fairtax.org

Note: You may use the U.S. Tax System Burden on Business infographic anywhere you want as is as long as there is a link or reference back to our website.

Author: Tim Bruxvoort