Personally, I'd like to see the IRS as we know it completely abolished. But like others have pointed out, it probably won't happen because Congress really likes the idea of motivating social behavior (ie: power) with how they structure the tax code.

I'd like to see a flat tax that doesn't take INCOME into account at all. We shouldn't tax what we earn, we should tax what we spend. In my little universe, groceries, medicine, medical care and used items would be excluded - which helps make life more fair for lower income families. There wouldn't be an end-of-the-year filings and there wouldn't be any write offs for daycare or home mortgage interest. If you barter services or goods, no one is going to call the tax police. Your inheritance or investments wouldn't be taxed. All the talk of 401ks and IRA would go out the window. Social Security and Medicare would be funded with the same flat tax (a national sales tax) so EVERYONE pays into it. Unlike a VAT, if you're a foreign visitor, you don't get your money back.

The only problem with my plan is enforcement would be difficult. So much of the retail economy would go underground and would probably result in some kind of annual reporting requirement (what money did you bring in? How much money did you spend on food/medicine? We'll tax the rest!)

This is why the FAIR TAX would be a great deal - tax goods as they are sold to the retail market so the tax is already buried in the price of the item you're purchasing.

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"I've been rich and I've been poor but independently wealthy is where it is at."

I think the tax system needs to be redone in some way but I have no idea how. The idea of a flat tax sounds good to start with until you start asking the questions that have been asked here. I see any system as having it's flaws. Sure it sounds good for everyone to pay 10% of their income in taxes but that 10% is still going to affect everyone differently. A five person household making $50,000 versus a two person household making $50,000 will have less to live on after living expenses and taxes. Sure I want to pay my share to help my fellow American and my country, but not at the expense of my kids.

So I don't know what the best route is as far as taxes are concerned but I do know that I don't agree with the "spread the wealth" train of thinking.

Well I think we are basically agreeing with each other. I think a flat tax would be more fair, but I agree that it would never be implemented because "it's not how americans think anymore". There's too much "gimme" mentality. So even if a supposed flat tax would be put in place, then people would start with....Well, an exemption for this, and an exemption for that, and what about the earned income credit, and on & on.

So while I think I agree with it in theory, I don't think I'll ever see it in practice.

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My dh has mentioned having a national sales tax before. It really isn't a bad idea when you think about it. Cause big (expensive) purchases would pay more in taxes.

This is what we love.

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And the peace of God, which transcends all understanding, will guard your hearts and minds in Christ Jesus. Phil:4:7

I don't agree with a national sales tax. They are regressive and end up hurting the poor significantly because usually the lower classes spend majority of their income on consumables. However, something to be said for this is that it encourages people to save money instead of spend it. I DO agree with a flat tax with a personal exemption up to a certain amount of yearly income.

We have a progressive tax rate that only comes in after a certain amount. Which means - with my smaller salary I dont get taxed at all.