My investment advisor, Mr. Porter Stansberry – the editor and founder of Stansberry & Associates Investment Research, a private publishing company based in Baltimore, Maryland, investment advisory letter research company, in his editorial page has a customer feedback section where he exchanges ideas and opinions with subscribers.  Recently he posted request to readers to provide ideas for reforming taxation system in United States, so that there will be again system of common sense and law in it.  Yesterday I allowed myself to express my humble opinion on the subject.  However today I encountered his website strictly on this subject and I had a chance to read his manifest to the mission that all Americans should take part in.

I strongly recommend reading this article – link below.

http://www.theprojecttorestoreamerica.com/

Here however is my view:

Tax reform ideas.

Shouldn’t we just stick with original taxing formula given to us by framers of constitution?  Idea is that only profit should be taxed, which means mainly commerce.  This would insure accountability of politicians for spending because major companies in their own interest will be monitoring governments spending like hawks and sounding alarms since it will come from their pocket.  Corporations have legal department and lobbyists – people usually don’t.  On other hand politicians and administrations will have to work very hard to insure that commerce is thriving so that it would provide revenues.  Currently while enslaving individuals to paying government’s overspending, officials don’t care as they don’t face challenges of corporate lawyers to account for their extravaganza.  Wouldn’t this be nice if as result of corporations trying to minimize their taxes we could see lobbyists persuading officials to not spend money on pork projects, wars, military bases all over the globe ….?  Companies will not earn less on their products – it will balance out through pricing.  They also will not be any less competitive globally if we set this form of revenue sourcing to fund government as standard across world’s democracies.  I am sure that nations of democratic countries will applaud this idea.  Tax burden on earned income is a modern form of slavery where cost basis of your work, time given, education and training, experience, commuting costs is assumed to be worth $0.00 so the whole amount paid becomes profit.  Businesses can write off any related expenses incurred.  While I totally support need to fund society’s institutions and infrastructure an amount of collected revenue must reflect performance of commerce and through the same performance of administration and legislature of the country.  Currently they have no incentive to perform so we are witnessing grave results.

(starpilgrim         03-10-2011)