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  (ARCHIVES)Back to Current
Government won’t reform itself (07/16/2014)
From: Mary Cichanowski

Pickwick

Sarah, I enjoyed reading your editorial on tax reciprocity between Minnesota and Wisconsin. I feel your pain! There is a solution — the Fair Tax (H.R. 25). This is a tax reform bill before the House Ways and Means Committee right now. The Fair Tax is a federal consumption tax on new goods and services (not used goods). It eliminates the income and payroll taxes. The states with income tax would hopefully follow suit, as they rely on the federal income tax laws.

Instead of filing three tax returns, federal and one for each state, you simply would purchase goods and services, just as you do now, and your taxes would be paid. There is a provision called a “pre-bate” which addresses the regressive nature of a consumption tax. No more waiting for tax day to see if you owe or get a refund of your own money.

The state governments could also change their attitude toward tax collection, i.e. trying to collect every penny from those lucky enough to be selected for an audit, while other people slip by. Right now the partnership between government and the taxpayers can be adversarial. Do this or bad things will happen; make an honest mistake and bad things will happen. How about they become business-friendly and work with business to create a business climate that will increase sales opportunities, which would result in higher tax collections?

I find one positive thing in the lack of a reciprocity agreement between Minnesota and Wisconsin. It aggravates the taxpayer. Hopefully to the point that they will elect politicians who truly wish to reform our tax code, and make it better for “We the People.” Government won’t reform itself 

 

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