I spent last night doing our 2006 taxes... Or at least pulling the information together into a spreadsheet for our CPA. (Who is terrific if anyone wants a referral in Georgia, Robert Skinner, CPA). I, like many in the States, put this off each year as a dreaded task.
I do prepare all year by throwing receipts into the "Yearly Tax Folder" to be kept safe until the day each year I pull them out to sort into Client expenses, charity giving, office expenses/home office deductions, investment income etc. Each year, I curse myself saying ... I know I gave more to charity... where is that damn receipt!!!
The last two years it has been even more tasking as I have been educated to the "FAIRTAX PROGRAM". A radio talk jock on WSB in Atlanta, Neal Boortz, is one of the prime promoters to this bill that has been introduced into the US Congress year after year. While our elected representatives boast they want to overhaul the tax code, most of them are .. well... Sissies! There! I typed it. It takes guts to say, abolish the IRS. The fact many IRS agents agree this is a fairer and better system is proof this can work! I was against it. I didn't understand how this would work. Real estate values would drop. I would be paying more ... 25% more every time I bought something, went to the doctor, or ordered something online Yikes!! That is a tough pill for a Republican.. but I continued to listen after all, Neal is a Libertarian and somewhat more conservative than Attila the Hun.
Well, I discovered a couple of interesting points. Take out that W2. Total up the amount of tax you paid last year to the State, Federal government, social security, medicare etc. What is the percentage of your income? Mine came to about 26% but that was in Georgia. I am scared to do it in CT.
Now, think about who doesn't pay that percentage but uses a ton of the services you just paid for and by the way you have worked for exclusively this week as we have hit tax freedom day yet.
- Illegal immigrants
- Criminals (drug dealers, pimps, thieves, etc)
- Tax evaders (including some very proper business people that think it beneath them to pay .. taxes - Yes, I am talking about GS.
- Foreign tourists (that stay for ever)
And the list goes on...
There is clear documentation that moving to a federal flat sales tax will also solve the social security issue. Check it out at Fairtax.org or read John Linder & Neal Boortz's book The Fair Tax Book" - Very - short, funny, and mind changing.
