Tax Season Thought of the Day

Thought for the day

As income tax time approaches, did you ever notice:
When you put the two words "The" and "IRS" together
it spells "THEIRS"?

ht Bret

Signs that = Your Holiday is Over

Yup... as good as it was to see the Welcome to Egypt sign... it was indeed a sign that meant you're going back to work on Sunday.

Streams in the Desert

We did a little off roading on the way out of town to a place called Ein Avdat... where a natural spring forms as water is running out of these rocks in the middle of nowhere... the water was SO COLD all your muscles just constricted instantly when you jump into it... but that was just part of going out there and checking it out... what was the terrain like getting here... see the picture at to the right

Isaiah 32:2 just came to life out here... "like streams of water in the desert and the shadow of a great rock in a thirsty land." This was that kind of place... and indeed... there weren't even any trees out here... so just shade from other rocks would have been a blessing in days gone by...

Steakhouse Outing

Well... for our last night in town we went out to eat at what is proclaimed to be the best steakhouse in the area... and we were all stuffed beyond belief so that was a testament to how good it was... this pic is us poking a little fun at the cow Maitre d' statue in front of the restaurant since his hoof was on his chin... we're all posing in a very thoughtful manner.

Tel Beersheva

So what else was there to see and do here in the desert town? Well... there was the old city that is nothing besides ruins and we visited... with it's pagan altar (ok... this one is a replica because the original is in a museum) and outlines of its city walls are still there... there is also a well that is believed to be one of Abraham's wells... but one thing is for sure, the cisterns they dug were quite impressive as we were able to walk through them. Even today the city still uses a cistern system to contain their water supply through the dry months.

Beersheva and Baby Zeb

We spent a few days visiting our friends from back home living and going to school in Beersheva... Anthony and Irene and little Baby Zeb... the girls had a great time playing with Baby Zeb... of all the things we saw on the trip... Zeb was their highlight.

How Low Is That?

When you're driving you don't really give much though to how low the Dead Sea valley really is... but when we noticed on the altimeter of the truck that we were at -300 meters... I just had to get a pic of that... for those back home... -300 meters is 984 feet BELOW sea level... yeah... the lowest point on earth... well... ok... on dry land anyways!

Kinneret / Yardenit

We stopped at Yardenit for baptisms for the group... Sandra and I wanted to be re-baptized because of the significance of being here... and for Mia... this was her first time to be baptized. What a great place to commit and re-commit to the Lord!

Galilee & Capernaum

The trip to the Galilee region was very interesting too... just to see the landscape getting greener and greener as we drove was something... although the countryside was still pretty rocky and hilly... it was now green by the time we were to Tiberias. Here we are in Capernaum's excavation of houses in the background. This area was really something special to see. A walk to the shore of the Galilee and you could see why Jesus would have used the sea as a place to conduct teachings... marvelous!

Fill Up? Are You Kidding??

Somethings speak for themselves... but let me put this into perspective here... 1 USD = 3.3 NIS... the sign says 1 liter of gas is 6.32 NIS... so that means a liter is $1.91... and it takes 3.78 liters to make a US gallon... so a gallon of gas is $7.24!! WoW... that makes ya' think twice before filling up... actually... we only bought 37 liters in Israel the whole trip... but that's enough... and since we're spoiled here in Egypt with gas that cost 96 cents a gallon gas... well... 7.24 was sticker shock. Once we were back into Egypt... the thirsty truck happily took 120 liters of petro.

Jerusalem ... So Much to See

The city of Jerusalem was pretty incredible... just seeing the city puts my beliefs in the Word of God into a deeper perspective... walking the narrow streets of the Old City... and how hilly it is... seeing the Western Wall along with the Tunnels of the Western Wall were outstanding to see. The streets truly were so crowded since it was the western Easter weekend.... actually walking the Via Dolorosa... crowding through the Church of the Holy Sepulcher and hearing the Greek Orthodox priest cussing out the crowds...


wow.... funny how the things Jesus taught about are still happening even today with those that are suppose to be leaders even in such a tourist place... Here's our "cussing priest" as he appears to be having a "bad day at the office"...



even the walk from the Old City itself to the Garden of Gethsemane just re-enforced the ruggedness of the terrain that Jesus dealt with... we all found our legs to be tired at the end of the day of walking all the hills we're just not use to treading up and down... even these olive trees... believed to be 3,000 years old... are a living testament to the kind of places Jesus departed to ... to pray!

Dead Sea Float

Well... we made it through the board crossing... and now it was time to visit the Dead Sea and see what this salt water phenomena was all about... no one else in the family was willing to "lay back and take a free ride" on the Dead Sea except "ole Dad"... but I have to say... it was beyond belief to me to lay there and not have to do anything to float... wow! Way too cool... this was one of those times where 1 Peter 5:6 came to life... "Humble yourselves, therefore, under God's mighty hand, that he may lift you up in due time." In this case, to just put yourself into the Dead Sea... the creation of the Creator... is a humbling act... and He was faithful to lift us up and not sink within the sea He created.

Neighbors at Peace?

It's hard to see in this picture (click on it to have a better view) It's very interesting to see these two flags flying next to each other at the Taba boarder crossing... We were crossing on the Prophets Birthday and Purim... so between the two... there were no lines ... or more appropriately, because of God's grace there were no lines for us to wait in as we crossed the boarder... although it still took us two hours to cross... even with no one ahead of us at any step of the way...

Where Are You Heading?

That's exactly what we were wondering as we were descending on the town on Taba... but it's an important question each of us need to ask ourselves in regard to our daily walk with our Lord... where are we headed?

Israel 2008

We are currently seeing a few of the sites here in Israel ... so... more than anything this is just to let you know were we're at and will post a few shots when we get back... Josh... Happy 21st Birthday

Color's of Cairo

Purple seems to be the first colors this year...

Sixth Grade Art work

This is the picture Angela displayed for Woman's history month... it was pretty funny watching people check out her art work... I know for me... it was very different and I really don't know what to make of it... but a lot of folks seemed to like it... which was great to get to pass those compliments along to her ...

Second Grade Art Work

Because it's women's history month... with a theme of women's art... work held an art exhibit for woman's art work... these were Mia's contribution to the event. Enjoy

Spring Is In The Air

It's amazing how quick the seasons change... but we're finally starting to get those great scents in the air from the flowers that are just now blooming (jasmine being the best to me) ... the cherry blossoms are popping out now... and it won't be long and the flame trees will be bright red again too. These purple things... I don't know what they're called... but they're pretty while they're in bloom!

Funny thing about Cairo. I needed to get a spare key made for the car... I went to an auto repair shop... and of course they don't make keys... but they did know who did... this old guy that was just sitting in front of a dry cleaners shop... he had a little grinder and tool box full of blanks... all the times I've talked down that street in two years... and I'd never noticed that guy there... I wonder how many people I walk by and never notice.... and then God really reveals the obvious to me that there are so many people I miss because I'm caught up in my own world... trying to do "my thing" and usually... even when I do manage to do something for our Lord... I'm still doing it in my strength instead of trusting in Him to carry it out ... wow... the life of Peter is a great encouragement... not that I'm a great disciple like Peter... but when I blow it... at least God has allowed me to drawl strength and encouragement from Peter... or when Jesus called him "Simon, Simon" instead of using his "new" name... as a reminder that we can have the tendency to get off track... but our Heavenly Father is faithful and just to cleanse us of all our unrighteousness... if we'll confess it to Him... Lord... I ask that you'd work in my heart today... forgive me for crowding You out of my life with what I've made important... I ask for a renewed focus on what you'd have me to do... thank you Lord...

How Girls are Different from Boys

Months ago when I had mentioned to my boss that I needed to place an order for some new books for the girls... he'd told me I should wait because they had loads of books they could probably part with since his girls were getting older now... Sandra went over tonight... and came back with this lot... there's 48 Nancy Drew books alone... plus... as you can see... many others on the floor... now notice that the girls are smiling... happy to receive books.... I know when I was young... if it wasn't a book about trains (with more picture on the page than print)... don't expect me to be too excited about it... but these girls are great readers!! Enjoy Ladies.

Now on the other side I can attest to how important it is to continue to read... I usually see positive results in the classes I'm taking... because I read the material... now today I received the results for the state dept exam I took back in December... I didn't study one bit for it (I wanted to see what I knew I told myself) ... and ... it most have shone (that it wasn't as much as I thought) ... because my score was not high enough to receive an oral interview... but there are a few points to be remembered (or even learned...) first... if it's God's timing... it'll happen. Second... next time I take the exam I should study the little "cheat book" they sell... so I'm better prepared for the exam... and Lastly... if it's God's will... He'll open the door... in His timing... He knows my attitudes and how I would have reacted had I passed this exam this time around... so... I'll try again next December... Praise God for keeping me focused on what's important now and not letting me getting "off track".

They Say The Mind is the First Thing to Go

As I was downloading the pictures off the camera... my memory was jogged as to other things that had recently happened... that I'd forgotten to mention... like Angela's birthday party... and our going out for Thia food to celebrate Sandra's birthday... So in a feeble attempt to catch up... here's a few pic's from these events... plus one from Mia's birthday party too

Drive Time Music

Today on the way home Crystal Lewis’s song “Frustrated” came on… and it just made me laugh… as she’s singing, “Frustrated, aggravated, each time I fall… frustrated, simply stated, wait on His call”… but as I’m driving in traffic… all my mind was really hearing was “Frustrated… Aggravated!!” Yeah… that’s right I’m “frustrated… and aggravated”… each time I drive… oh… that’s not how that song goes…

Well… last night I started reading “They All Can’t Be Right” by Steve Russo… and he makes a great opening point that “is is not unusual to see Jews, Muslims, Hindus, and Buddhists working together and living next door to one another. Because many of them are citizens who have the same rights as those born in this country, it’s easy to think that the various religions they follow are pretty much the same as well, that they’re only different ways of understanding the same God.” Wow… that’s a big part of what the politically correct culture has falsely led people to believe… but as he points out... just ask those that follow these religions if all religions are the same... they'll tell you no... I'll try to let you know how this book goes...

The Semester is Over…

I know... I've turned back into the "Blog Slug" again ... yeah... someone that has a blog... but then doesn't do anything with it... I assure you though it's for good reasons (ok... in my little mind I've justified it) for not writing lately... most of that comes down to the two courses that just finished up this weekend... the final exam in the Politics course was on Thursday night and I just took the final quiz and essay in History today... so now... it's off for the next 3 weeks... hurray!!

It's only been since this afternoon with the last bit of course work being done... but it's such a relief knowing there's no homework I'm behind in... which seems to be how it works for me... read all day and still find I'm two chapters behind...

Two weekends ago... or gee... was it three weeks ago now already?? Anyways... we went out with a group from work to the Italian School in downtown Cairo for dinner.... imagine that... cafeteria food that you go out to dinner to eat... on the weekend? Anyway, the Italian School has it's own little money maker on the weekends where they open the schools kitchen up and cook good ole true Italian food ... and it was outstanding. We were full on just the appetizers ... Caprese salad, calamari's, fried eggplant, bruschetta, good ole fire cooked thin crust pizza and so many other things I've forgotten the names of... oh, we were so full when we left it was incredible!! And we hear that if you call in advance they can cook just about anything you want.

Well... there you go... at least you're simi up to date on what's going on here... as always... more to follow...

My Politics Class "Flat Tax" Report

I know you might be wondering why I don't post anymore... this site doesn't let you put an attachment so you can choose to download something... so I'll try shrinking the font on this... so you can see what occupied my time last weekend anyways.

Taxes are one of those things that America’s love to hate and it’s something that touches every working person in our country. It’s interesting to note that at the Founding of our country, the “single” source of income for the government was tariffs. It wasn’t until 1909 that the income tax was proposed and then ratified by the states and added to the Constitution as the Sixteenth Amendment in 1913 (Ginsberg, Lowi, Weir, p 650). In 1934, individual income tax accounted for 14 percent of federal revenue, by 2004 that figure had risen to 43 percent (Ginsberg, Lowi, Weir, p 640).

The tax system in the United States is a progressive system, meaning that as the amount of income increases, so does the percentage of tax to be paid. Federal gift and estate taxes as well as most state income taxes are also progressive in nature. Sales taxes are considered a regressive form of taxation as everyone pays the same rate. A regressive tax means that as you earn more the percentage of your income that is applied to sales taxes becomes less, conversely that means that for a lower wage earner a higher percentage of their incomes is used to pay sales tax. Social Security is another example of regressive taxation (Ginsberg, Lowi, Weir, p 640).

The current tax rates in the United States are 10, 15, 25, 28, 33, and 35 percent. Each rate has its own minimum and maximum income range, which applies to your total earnings. For example, if you made $45,000 in 2007, your tax bill would be $7,676.75, which is figured by 10% of $7,825 plus 15% from the next $24,025 earned plus 25% tax on the last $13,150 earned, giving taxes due of 782.50, 3,603.75, and 3,287.50 respectively for a total due of $7,676.75. The current rates have a sunset provision that will revert to the pre-2001 rates of 15, 28, 31, 36, and 39.6 percent in 2010 if Congress chooses to do nothing (Hoffman & Willis, p 3-20).

Tax reform is something most American’s can agree upon as something that needs to happen within the complex system that has evolved in the Department of the Treasury with tax collection duties assigned to their agent, the Internal Revenue System. The question though is how do we proceed with reform? What is the best approach to simplify the tax system and make it fair to all citizens? President Bush commissioned an advisory panel in 2005 for Federal Tax Reform, and neither of the two proposals submitted by the panel recommended the Flat Tax.

According to Mitchell (2005) the flat tax would simplify the way taxes are prepared in America. Instead of a myriad of forms and procedures, the flat tax would simplify the taxation process for individuals and businesses alike with a single form for each group. This alone will result in savings in preparation costs which is now estimated at over $100 billion annually while also reducing preparation time. Other benefits of the flat tax include:

• A single flat rate would be levied on each individual or business.
• Eliminate deductions, credits, and exemptions. This would simply the tax filing process.
• Elimination of double taxation on savings and investments. This would mean “no death tax, no capital gains tax, no double taxation of saving, and no double taxation on dividends.” (Mitchell, 2005).
• Would encourage economic growth by not taxing overseas assets of U.S. companies while the new simplistic rules would encourage foreign investment.
• Elimination of undo political influence by companies seeking tax advantages from members of Congress, having a positive effect on the legislative process too.

As we consider the flat tax, it only makes sense to look for other examples where the flat tax is currently being used. There are currently 13 countries using the flat tax, with 9 of those being in Central and Eastern Europe. Let’s take a look at a few of these countries and evaluate what kind of success they are having according to Cardais (2007).

• Estonia was the first to go to the flat tax with a rate of 26% in 1994 and is in the process of reducing their rate in phases to 20%.
• Russia set an individual rate of 13% and a corporate rate of 35%. Russia saw a 25% increase in revenue with the switch, but there are mixed thoughts for the cause for this growth. Some believe it’s a mix of people simply paying the new rate while before tax evasion was rampant, causing the state lost revenue. Second it is possible Russia was in the midst of a “wider economic recovery” which would have generated more tax revenues for the state.
• In the Czech Republic they have a 15% rate on individual income. According to Cardais (2007) though, because people are taxed on their “super-gross income,” the real tax rate is closer to 23 percent. Super-gross income includes health benefits and social insurance.

Russia did have a progressive tax system for a time but found it to be “quite disastrous.” Their rates were so high that businesses started to flee while tax evasion was rampant among the citizens. The flat tax was implemented in 2000 (Hoffman & Willis, p 1-17).

Something that is interesting though is for many of the countries that are using a flat tax system they are still coupling deductions, exemptions, and other exceptions to their code, thus making many of these countries complicated flat tax zones, something that runs counter to the whole idea of flat tax. Another side effect to the states reduction of income by a reduced tax rate is the possibility of reductions in welfare programs that benefit the lower class citizens. Slovakia experienced this when they implemented their 19% rate in 2004.

“To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service and enacting a national sales tax to be administered primarily by the States” (Thomas, 2007). This is the beginning of H.R. 25 and S. 1025, better known as the “Fair Tax Act of 2007”. Tax reform is a hot topic these days as everyone sees the taxes they pay to the government and invariably everyone believes they are paying too much in taxes. This has led to twelve legislative proposals that are working their way through the 110^th Congress for consideration and possible action.

Of the twelve tax reform proposals, seven are flat tax oriented with a basis on consumption as opposed to our current progressive tax system. Three plans simply outline for tax reform and the last two deal with the elimination of the Alternative Minimum Tax (AMT) while even the flat tax plans call to eliminate the AMT. Let’s look at the highlights of the flat tax plans according to James Bickley (2008) with the Congressional Research Service:

• H.R. 25 and S. 1025 are related bills that would impose a 23% sale tax beginning in 2009 to be adjusted as needed. Since 45 out of 50 states are versed in state sales tax collection, tax collection would be moved to the states instead of the federal government. This would qualify as an example of “devolution” by moving the collection of federal taxes from the federal government to the individual states (Ginsberg, Lowi, Weir, p 555). “Every family would receive a rebate of the sales tax on spending up to the federal poverty level (plus an extra amount to prevent any marriage penalty) (Bickley, CSR-6). This 23% rate would not be imposed on exports. “Social Security and Medicare benefits would remain the same with payroll tax revenue replaced by some of the revenue from the retail sales tax” (Bickley, CDR-6). H.R. 25 and S. 1025 would also abolish the Internal Revenue Service after 2011 and “establishes in the Department of the Treasury (1) and Excise Tax Bureau to administer excise taxes not administered by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and (2) a Sales Tax Bureau to administer the national sales tax (Thomas).
• H.R. 1040, the Freedom Flat Tax Act, would impose a 19% tax rate for the first two years then lowering to 17% thereafter. This plan did provide proposed figures for standard deductions as the current system uses with $25,580 being the married filing jointly deduction. This is meant to ensure lower income families are not paying taxes on this first $25,580 earned. This plan does tax employer compensation provided to the employee without charge. This tax plan would allow an individual or a business to choose to be taxed via the flat tax plan, but once the choice is made it is irrevocable. Taxation on a business would be broken down by gross sales minus the cost of doing business to include business activities, wages, and retirement contributions. H.R. 1040 would also repeal the estate, gift, and generation skipping transfer taxes too (Bickley, CRS-7).
• S. 1040, the Tax Simplification Act of 2007, is very similar to H.R. 1040 and also would begin with a 19% tax rate with a reduction to 17% beginning tax year 2010. One big difference with H.R. 1040 is that this plan is intended for nationwide use for individuals and all businesses. It would require taxing dependent children under the age of 14 on any of their taxable income. Deduction rates are the same as H.R. 1040. S. 1040 imposes the employer provided benefits compensation tax at the same rates of the national tax rate for “government and nonprofit organizations having to add to their wage tax base the imputed value of their fringe benefits” (Bickley CRS-7). Items to be repealed would include “the alternative minimum tax, all income tax credits, estate, gift, and generation skipping transfer taxes, and income tax provision, except certain provisions relating to retirement distributions (Social Security) and tax-exempt organizations.” (Thomas, S 1040). Bickley (CRS-7) also states that this plan is truly a “modified Value Added Tax (VAT).
• “Under the VAT, a business would pay the tax (approximately 17%) on all of the materials and services required to manufacture its product. In effect, the VAT taxes the increment in value as goods move through production and manufacturing stages to the marketplace. Moreover, the VAT paid by the producer will be reflected in the selling price of the goods. Thus the VAT is a tax on consumption.
• The United States is the only country in the Organization for Economic Cooperation and Development that does not have a VAT. Approximately 136 countries around the world use a VAT, ranging from 5% in Japan to 25% in Denmark” (Hoffman & Willis p 1-17/18).
• S. 1081, the Flat Tax Act of 2007, would impose a flat tax of 20% on taxable earned income. This would be earnings over the $25,000 married filing jointly standard deduction and would still provide “additional standard deductions” for the number of dependents of the taxpayer (Bickley CRS-9). This plan still allows for the home mortgage interest deduction. S. 1081 also taxes government and nonprofit employee compensation as S. 1040 would requiring the addition to ones wages the value of fringe benefits received. S. 1081 would also repeal the “estate, gift, and generation-skipping transfer taxes, financing of presidential election campaigns provisions, and coal industry health benefits provisions” (Thomas S. 1081).
• S. 1111, the Fair Flat Tax Act, is a simpler progressive tax with rates of 15, 25, and 35% with the brackets applying at under 30K, between 30K to 120K, then over 120K respectively. A 35% rate would apply to all corporate taxable income. The idea behind a flat rate for corporate income tax is to “eliminate special tax preferences that favor particular types of businesses or activities” (Bickley CRS-9). S. 1111 would repeal capital gains and dividend income taxes and it would keep real and personal property tax deductions while also keeping a health care standard deduction. Would provide the Earned Income Credit (EIC) to taxpayers that did not have children if their income was low enough to qualify for the credit. S. 1111 would also repeal the alternative minimum tax along with other unspecified credits, deductions, and exclusions (Thomas S.1111).
• H.R. 4159, the Simplified USA Tax Act of 2007, is also a simpler progressive tax with rates of 15, 25, and 30% with brackets at under 40K, between 40 K to 80K, and then over 80K respectively. This plan is the most entailed of all submission at 414 pages and has deductions for many items supported by the current system with a noticeable addition of child support as a deduction too. For businesses they would use a cash-flow business tax (a subtraction-method VAT) with a rate of 8% applying up to $150,000 then the rate moves up to 12% after that. All imports would be taxed at the 12% rate. H.R. 4159 would allow the home mortgage deduction and would exempt injury and sickness compensation payments. Rule changes for how Roth IRA’s would be administered would allow tax-free withdrawals from accumulated principal and earnings on principal from the account for any purpose after five years. There is a credit for having paid the Social Security tax and the estate and gift tax would be repealed (Bickley CRS-11).
  

It is interesting to note that of the seven flat tax proposals, six are submitted by Republican’s with only one by the Democrat’s (S. 1111, which really is a simplification of the current tax system and not a true flat tax). The flat tax appears to be a very partisan issue. When we look at H.R. 25 all 70 Representatives that have signed onto the bill as cosponsors are Republicans with the same holding true for S. 1025, S. 1040, and H.R. 1040.

How fair is the current tax system though? As mentioned before, currently the top income bracket, those earning over $349,700, are paying 35 percent on their income to federal taxes. This is a 4.6 percent reduction from the tax rate that was in effect in 2001, which results in a tax savings of $16,086 for those earning the minimum, while those with earnings in the top one percent of American society are seeing an average savings of over $34,000 a year. During this same tax lowering period, the income for the bottom fifth of society raised a mere 0.3 percent ($18.00). This low figure for the lower wage earner is because most of their income is already not taxable because they’re living below the standard deduction line, meaning they are probably living below the poverty leave and their gains are minimal at best (Ginsberg, Lowi, Weir, p654).

One thing to consider is most people, as much as they dislike paying taxes, when they take their own tax scenarios into consideration tend to approve any reduction to their own tax rate without giving much consideration to the effects of others outside of their own tax bracket. For instance, for a middle class income earner, they received a 2.6 percent decline in their federal tax bill of 2001. Because of this, they were less likely to oppose the 4.6 percent decline in the upper classes tax bill because the current bill still provided them with a favorable outcome. As we’re starting to see, “people are happy to have their own taxes reduced and do not think about how such reductions may be exacerbating inequality by giving even bigger tax breaks to the wealthy” (Ginsberg, Lowi, Weir, p654-5).

Some important questions regarding the flat tax is how will the government compensate for the lost revenue that it currently receives from those in the higher tax brackets? Ginsberg, Lowi, and Weir point out that the government receives approximately 43 percent of its operating funds from the individual taxpayer (p 640-1). If we go to a flat tax, most plans still provided a standard deduction, so lower wage earners still will have a favorable tax situation, but now where will the government recoup the funds the upper level earners put into the “system”?

We have to also consider what our tax money is used for. Consider how are some of our current social policy programs being funded? Funds collected from individuals are providing 37 percent of the funding for welfare programs such as Social Security, Medicare, and Medicaid while we find that corporate taxes have fallen from 17 percent to a current 2005 rate of 13 percent since 1970 (Ginsberg, Lowi, Weir, p 671). These programs are things we must consider and ask what would happen to them if we convert to a flat tax system and how the tax burden of today’s society would actually become a regressive tax system and be nothing more than a BIG tax break for the wealthy in American society.

There are other issues that we should be concerned with in the flat tax system. Will lower income families be able to afford homes when they’ve counted on the interest deduction they would receive under the current system? And what about contributions to charitable organizations, will they decrease also with the loss of deductions? For those working for the government and nonprofit organizations having to include fringe benefits as wages for tax purposes is disheartening and could cause many benefits that people rely on to vanish. For instance, an employer or employee, depending on which tax plan was implemented, would have to pay tax on the value of a company provided employees health care insurance plan, something that is currently exempt from taxation, so if it cost the company five thousand dollars a year for health care benefits for each employee, they’d have to pay tax on that five thousand dollars for each employee.

As we have seen, there are many ideas for tax reform via the flat tax system and they have many similarities too. Most take aim at the estate, gift, and generation-skipping transfer taxes along with the ever despised alternate minimum tax. The term flat tax though appears to have come to symbolize tax reform though more than a true flat tax that is applied to all citizens across the board. Hopefully if a proposal makes its way out of Committee, American’s will take the time to not just to look at how the proposal effects themselves, but to look at the “big picture”. How will these changes affect others above and below me in the tax system and does it seem fair? We must also remember all the services that we as a nation provide and consider how a proposed change is going to affect those programs in the future.

References withheld so anyone doing their own college work will need to go and find them on their own... plus... a little google work plus the use of "turnitin" by a prof... and opps... so please feel free to get some ideas from this... but just be wise in doing so...