Fixing the tax code is a popular political agenda item.
We Americans want everyone to have a good income, to be successful, to experience the "American Dream". But our current federal income tax system penalizes and taxes success. The current tax code taxes productivity rather than consumption, it stifles company growth.
NDAC has studied many alternatives to the current federal income tax system. Numerous factors contribute to the analysis of revenue systems*. They include "fairness" and equity to the tax paying population, cost of application, and performance; but the single most dominant public awareness factor is the role played by the collection agency, the IRS! In fact, it is this overriding aspect taken together with the public disdain for the IRS that leads NDAC to recommend a National Retail Sales Tax (NRST) to replace the income tax. No IRS needed!
Our current income tax system was derived from a Flat Tax. It taxes income. Fair Tax is a complete paradigm shift, it taxes consumption.
The National Debt Awareness Center (NDAC) recommends that all federal income taxes be replaced with a NRST and that the IRS be dissolved.
There's a bill in Congress (H.R.25 / S.13) to do just that, and it will repeal 16th Amendment. You will see the NRST on your cash register ticket; no more hidden taxes! You'll know exactly how much federal taxes you're paying. [The amount of the NRST will be about the same as the tax currently embedded/hidden in the price of what you buy. Big thing about it, you won't have to calculate your income tax any more. That bill; get it passed!
NRST gets rid of intrusive government involvement in the taxpayer's life by getting rid of the "income tax" concept with its complex "deductions" and "credits" structure, and filing process. Furthermore, prediction of national tax revenue based on sales statistics will be more accurate than prediction based on analysis of income. Analysis of personal income by a government agency would be a thing of the past.
Want details on how this would work? Here is a link: Fair Tax.
Bottom line: We Americans want everyone to have a good income. But our current income tax system and the Flat Tax penalize good income. Just doesn't make sense to us. Taxing consumption, as does the Fair Tax, makes sense because the more you spend on stuff, the more tax you pay.
* Revenue Systems... our federal income tax code makes it clear that it is NOT about revenue, it is about controlling social behavior; you get rewarded for certain activities, punished for others. Revenue is rarely mentioned in the current federal income tax code.
Go to National Debt Awareness Center web site.