How to Junk the IRS

Corruption of the IRS cannot be denied now that the Fifth Amendment has been invoked. The most hated agency of the federal government could be nearly eliminated, its function radically simplified and its discretion drastically curtailed. A new approach, computed on a transparent base consisting of compensation to labor and capital, rather than on "taxable income," promises lower rates, clarity, and utter simplicity.  For many years conservatives such as Art Laffer, Steve Forbes, Newt Gingrich, and many others have supported a flat tax of some sort or other. Most of the detailed proposals are not really flat. They carve out preferences for investment income or charitable deductions, and fail to integrate the FICA (Social Security and Medicare) taxes into their plans. Currently, workers pay around 15% of their compensation up to a ceiling of $115,000 in FICA levies. Above that, a Medicare tax of some 4% still gets paid with no ceiling.  Technically, half of all that is...(Read Full Article)