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
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
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:
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.