Politics / Press Releases

We Need Comprehensive Tax Reform Now, says AMAC

Tax refrom taxesThe current way we pay taxes is complicated, onerous and downright unfair

WASHINGTON, DC – “Congress needs to give President Trump a tax reform law he can sign.  It’s long overdue and the country needs it if we are to succeed in giving the American people – especially the middle class – the kind of economic security we’ve been missing for eight years now,” Dan Weber, president of the Association of Mature American Citizens [AMAC], said in a statement issued today.

The fact is that there is widespread optimism that tax reform can become a reality in 2017 as long as lawmakers refrain from loading it up with a lot of self-serving elements.  Most Democrats will not support a tax measure on principle but the GOP leadership expects that there will be some who will be on board.

“And, we shouldn’t be put off by the so-called feud between the President and folks like Senate Majority Leader Mitch McConnell.  In my opinion and the opinions of many others in the know, Congress and Mr. Trump are in sync when it comes to comprehensive tax relief for individuals and for the businesses that are the engine that drives job creation.”

Perhaps Weber is right.  According to McConnell: “This is our once-in-a-generation opportunity to fundamentally rethink our tax code and make it more efficient.”  McConnell also said that he was looking forward to working with the White House and House Speaker Paul Ryan on tax reform.  As for Ryan, he put it this way:  “It is more important for us than anything that we get tax reform done because we think it’s absolutely critical for strong economic growth.”

Weber said in his statement that, “the tax code has become too complex to do anything else than make life miserable for individuals and businesses.  America has the third-highest corporate tax rate out of 188 countries—a fact that you won’t hear Senate Minority Leader Chuck Schumer mention.”

He explained that the IRS had a simple, straightforward purpose when the rules were established: to collect taxes in order that the government would have the money it needs to operate in behalf of the citizenry.  “Over the years there’s been a lot of tweaking, so much so that individuals dread the idea of having to file their individual tax returns.  It’s become a nightmare for those who try to go it alone and prepare their own tax returns and it’s become a big financial burden for those who use an accountant.  The current way we pay taxes is complicated, onerous and downright unfair.”

As President Trump pointed out in his tax reform speech on Wednesday: “In 1935, the basic 1040 form that most people file had two simple pages of instructions.  Today, that basic form has one hundred pages of instructions, and it’s pretty complex stuff.  The tax code is so complicated that more than 90 percent of Americans need professional help to do their own taxes.”

The president said he is in favor of cutting the number of individual tax brackets from seven to three, and setting the rates at 10, 25 and 35 percent.  Currently, middle class taxpayers can have a rate as high as 39.6 percent.

Mr. Trump also said he is in favor of cutting the corporate tax rate down to between 15 and 20 percent as a means of creating more higher paying jobs for American workers.

As for the impact the current tax code has had on business in the U.S., Weber said that it has had a far-reaching effect on American companies, “an impact that has stymied job creation.   The United States has one of the highest corporate-tax rates in the world.  Reducing taxes on companies would allow them to spend more on expanding their businesses.  That means more jobs and higher paying jobs not to mention the fact that it would make them more competitive in the global marketplace.

“The current tax code gives multi-national American companies an incentive to keep their earnings offshore and that has deprived us of taxes on the profits they make in foreign countries,” Weber pointed out.

The U.S. is one of the very few countries that practices double-taxation of overseas profits, he noted.  “Is it any wonder, therefore, that our multi-nationals are loath to repatriate those funds – hundreds of billions and maybe even trillions of dollars that could be used to expand business here and create jobs.”

According to attorney and financial columnist Frank Aquila, if the U.S. would get serious about repatriation and lower the corporate tax rate, it could be the most important economic stimulus this country has ever seen.

Weber said “It would mean multi-national companies would be able to invest more here at home in job creation and it would generate billions of dollars in additional tax revenue.”

ABOUT AMAC

The Association of Mature American Citizens [http://www.amac.us] is a vibrant, vital senior advocacy organization that takes its marching orders from its members.  We act and speak on their behalf, protecting their interests and offering a practical insight on how to best solve the problems they face today.  Live long and make a difference by joining us today at http://amac.us/join-amac.


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GAYLENEWTON
5 years ago

it is my opinion: senior’s should have a lower tax rate. our SS is not high enough to be high taxes, house insurance, property taxes. MY PROPERTY TAXES ARE $2000.00 FOR SOME BODY;S KID TO GO TO SCHOOL.

Gary
5 years ago

I expected tax reform to happen 10 months ago. The cronies in Washington are stalling for a reason: Complexity drives corruption. We need to grab this country back with both hands, and send those leaches scurrying for a new home (like Mars perhaps?). President Trump is by far the best man for the job, and that’s why I voted for him. All the negative brats need to get lost for about a year to give Trump a chance, and then come back to see this country beautifully transformed. But sorry, they can’t stay.

J. Arthur Melanson
5 years ago

Think out of the box. We do not need to tax if we do not spend.

Lawmakers will identify essential governmental services: military, FBI, IRS, Center for Disease Control, paying existing US debts, etc. All taxpayers will be taxed to fund these costs.

Two new tax forms will be printed: 1040C and 1040D.

The cost of all future spending bills sponsored by Republicans will be calculated by the Congressional Budget Office. The taxes needed to fund Republican laws will be added to the base rate for the 1040C. If the taxes collected are insufficient to pay the cost of new Conservative laws the proponents must solicit donations, borrow private funds, or have the laws go unpaid. Underfunded laws cannot increase the US national debt.

The cost of all future spending bills sponsored by Democrats will be calculated by the Congressional Budget Office. The taxes needed to fund Democrat laws will be added to the base rate for the 1040D. If the taxes collected are insufficient to pay the cost of new Democrat laws the proponents must solicit donations, borrow private funds, or have the laws go unpaid. Underfunded laws cannot increase the US national debt.

If a majority of Conservative lawmakers or a majority of Democrat lawmakers vote for another party’s bill, the cost to fund a resulting law will be split and added to the base rates on Forms 1040C and 1040D.

Taxpayers may choose to file Form 1040C or 1040D without regard to their political affiliation (i.e. members of the Democrat Party may file Form 1040C if they choose to do so).

J. Arthur Melanson, 4005 Altius Lane, Denton, TX 76210-0478 (940) 293 – 1230, – Cell (940) 453 – 2686

James Leatherman
5 years ago

I am a Bible believing practicing christian of 87 years of age. As such, I believe that no fairer tax plan has ever been devised than the one advocated by God Himself. That was the principle of tithing, which means 10% is given for supporting the ministry or, in this case, meeting the needs of the nation. That is the principle but not necessarily the exact plan as I believe that one tax rate, for individuals and corporations, should not exceed 18-19%. No person or corporation should be required to ever pay more than 1/3 of income to all government entities combined. Considering the fact that, in addition to federal taxes, states and other governing bodies also have legitimate taxing authority for their daily operational expenses, the federal rate should not exceed the 18-19% rate previously listed. As Ben Carson stated, all people should have ‘skin in the game’. I agree but have one small problem and that is, at some point the process of collecting the tax from an individual is not cost effective and it costs more to collect the tax then the amount that is collected. Do we stick rigidly to the original rate, let them off the hook, or strike a compromise at a point somewhere between zero and 18%? I’ll leave that up to the legislators. Other factors to the tax problem need to be addressed as well but that is something for another day. The big problem as I see it with the so-called ‘Fair Tax Plan’ is that it would hurt low to medium income folks when they purchase basic food stuffs and other essential supplies.

Bernie
5 years ago

It is so disappointing that the Republican who had 7 years to have a detailed Health Care Plan ready on the day President Trump’s took office. The Republicans have already shown they are failures and they need to be replaced in the next election. They are more concerned about their own positions in Washington DC than they are about our Country. With their failed performance to date I have little faith in them to pass real tax reform.
Bernie

Richard
5 years ago

Fair tax is my choice as it would make everyone the same. Rich or middle class or poor.

Bill Smith
5 years ago

eliminate ceiling on FICA of current % and income level used for paying FICA. Use new funds from eliminating income ceiling taxed and use funds for Social security or health care, revise % withheld on income earned lower if it is appropriate

Bob S.
5 years ago

Beware of the term “Comprehensive Tax Reform.” It’s the “open borders” crowd’s code for AMNESTY. President Reagan was the best in my lifetime but his big mistake was being talked into amnesty. It just encourages more illegal entry. The graduated income tax is not only regressive but unconstitutional because everyone should be taxed at the same rate. The best way to do this is the Fair Tax which is a national sales tax. It wouldn’t have to be set very high (maybe 10%) because everyone would pay it (no exemptions or deductions). What a concept! Maybe no sales tax on food or prescription medications. Poor people have less to spend and would pay less but at the same rate as everybody. Wealthy people spend more and pay more. Perhaps the truly poor could get a refund on taxes paid up to a certain income level but I think that everyone who enjoys the privilege of living in the U.S. should pay something and there should be no free rides (i.e. vote buying). Real tax reform would have to be coupled with a balanced budget amendment or else Congress would just keep using our money to buy votes. I don’t see this happening with the RINOs and Republocrats in office whose highest priority is getting re-elected and not what’s best for the U.S.. Maybe it should be coupled with term limits too. Now I’m really dreaming. Probably none of this will happen without an Article V Convention happening first in order to take our country back from the ruling class (who have no class).

Dave Scholl
5 years ago

I’d agree with “Fair Tax” – national sales tax – PROVIDED food and medical were exempt. Absolute essentials for life shouldn’t be taxed.
That would also that would negate the argument it would be regressive towards less wealth families.

Diane
5 years ago
Reply to  Dave Scholl

This is something I found on FairTax site, there was more, but this seemed to make sense: Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today. Those who have the money will send lobbyists to Washington to obtain special tax breaks in their own self-interest. This process causes unfair and inefficient distortions in our economy and must be stopped.

Rodney Terrell
5 years ago

Let’s dumb it down, so people like me can understand.
If we compare the Federal Government with another huge “business”, such as Wal-Mart…
Why does Walmart continue to build it’s stores with all the rarely, if ever used, additional checkout lanes? To keep revenues at a premium, customers often must wait a few additional minutes of their busy lives to check out. We, “oh so busy” Americans, often complaining and grumbling, eventually manage to get our hand held devices, (I mean our groceries) to the car, which a lot of us have remotely started from the exit door to cool it down.
This helps Walmart to keep prices down, although does nothing to explain the wasted space and expense of additional unused lanes.
Conversely, the Fed seems to generally fill every vacant chair of existing offices, and create new , fully staffef departments to study if that really makes the most sense.
I don’t understand the current tax system which is why we always pay a professional to prepare our taxes.
For purposes of eliminating debate over the word “work”, “work” used from hereon shall represent something legally done for an income.
I believe if you are able to work, you should work.
Assuming you are able to work, the following should apply…
If you choose not to work,you will not receive my tax dollars to support you.

If you are unemployed and diligently applying for jobs of which you are reasonably qualified, I believe you may apply for assistance while awaiting your next job. During this period you must provide regular specimens for mandatory drug screening, whether random or scheduled.
I believe everyone who is working, should pay tax.
I believe private sector, backgroud checked, thoroughly vetted, lobbyist unafiliated hatchet men, should routinely visit federal offices to insure our government workers…are working, and recommendations made and published.
I believe if you make millions of dollars a year,playing, instead of working, you too have to pay taxes, and you have to get off your crybaby butt and salute the flag that represents why you are allowed to play instead of work, if that pertains
I believe if you lose at something, suck it up and deal with it like an American, not like some spoiled bitter child.
I believe you have the right to be born, to work, to worship your Creator, and to die.
You want happiness? I aint giving it to you, only you can do that.
I believe employers should pay what employers choose to pay, you dont like it,quit and go somewhere else.
I believe children should be taught to respect their elders, to be led in prayer at school, to pledge allegiance to God and country…at school.
I believe activists that want to spew their antiGod, anticountry filth, in public, can do so at any privately owned property where no American Citizen residents are being disturbed, otherwise is illegal..
I believe anyone who continues to preach their anti God, anticountry views illegally, be deported or jailed ,long term.

I believe anyone who believes it is healthy for America, to allow such hatred of God and country,to be publically spewed, has their head in the sand.
I believe people who have been blessed with much wisdom from their Creator and have been placed within our government to serve it’s people, who are putting pride ahead of what is right, to be voted out of office.
I believe we are still the greatest nation on the planet…but, we are under attack from within, and unless we wake up from our spoliled lives,and remember how we got here, we may not be for long.
As far as taxes go, i dont know…Ill pay a little more if those paying nothing, would pay something. ..

Marilyn Regan
5 years ago

I like VAT, the Value Added Tax, but we need to eliminate income tax, federal and state in order to be fair. The Obamacare tax needs to be eliminated as soon as possible. These taxes are strangling the hard working middle class. The IRS needs to be abolished, as it is just another fascist method to unfairly oppress the middle class.

Dawn and Peter Lampar
5 years ago

Excellent article! Especially, in light of the preponderance of SPAM emails from AMAC.

George Malnati
5 years ago

FairTax is by far the best system. I have been in favor of it since it was first introduced as CATS. I did a number of radio shows years ago when I was in the Athens, Georgia area. The computer model done at that time showed huge positive gains for economic growth and decrease of the deficit. This is well researched and certainly simplifies taxes and benefits us all.

Linda
5 years ago

Relief for small businesses would be helpful Big corporations should show how tax relief helps provide jobs

Todd Kingman
5 years ago

America needs a “flat” tax. In other words, everyone pays the same percentage, wether you make $50K a year or $2,000,000.00 a year. No loopholes, No write-offs. And people who make less than $15K a year should be tax exempt. That is “THE” most fair way to tax the American people. It would give a big break to the middle and lower class and the upper class would have to pay more for their fair share. For Example: say the flat tax is set at 10%…A person making $50K would pay $5K in taxes but a person making $2,000,000 a year would pay $200K in taxes.

Pete
5 years ago

We need the Fair Tax no other plan even comes close to doing what needs too happen now.

Rob
5 years ago

Get real and stop talking about cutting the number of tax brackets! It’s a smoke screen. It doesn’t simplify any of the real complexities of the tax code like AMT, exempt and non-exempt dividends, long and short term capital gains, deductions, exemptions, tax credits, and on and on and on. Cutting tax brackets is the only thing I ever hear about on individual taxes.

Nan
5 years ago

Across the board flat tax rates include everyone. At 10%, 15%, 20% everyone contributes, no exemptions, when they purchase goods and services. No loop holes for business or individuals. My husband and I are now on a fixed incomes, our social security only, which I must emphasize we paid for during our working years! We must budget every expenditure. Everyone can and should be able to budget, cut costs, and spending. It is past time to economize! No welfare, disability only to those who are truly disabled. It’s time to get serious!

Judy Smith
5 years ago

Actually, I’m trying to think of everyone in our country. Of course, I like the idea of my paying no tax. I have had no employer for the last 19+ years, and I plan to live at least about 20 more years. I don’t mind my Social Security and pension being taxed (would like to think that I was the one person getting a free ride, but that’s not likely to happen) because I know that for the government of our republic to stay in business (and that’s the alternative to anarchy) it must have an income just like you and I have to have incomes. As I said, I would like a national sales tax; but I am curtailing my spending now to the bare bone and will be for the next several months. I am not paying enough right now in sales tax to keep one man in the military, let alone enough to be paying what I call my fair share. Before any of us were born, there was a time when no one had anything. In fact, the year I was born was just the very beginning of there even being enough children born to repopulate our country back to normal, or at least for our normal population growth. I just don’t want to say that I am for something until I know all I should know about it. I’m not trying to be negative, but I have had many of my questions answered in this discussion. Thanks to many of you for your help. That’s really why I got into this conversation. I just really don’t want to see anything like the time my parents told me about, and I surely don’t want us to not grow our military back to where it should be.

Judy Smith
5 years ago
Reply to  Judy Smith

Thanks especially for explaining the prebate to me. Sounds good if it works.

KRIS FISHER
5 years ago

Fair tax, flat tax, reform tax!! Its time!!!

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