Government Spending (2)

"America is a land of taxation that was founded to avoid taxation"~Laurence J. Peter

To anyone who thinks higher taxes will fix government spending deficits (for example politicians in California) consider this graphic:

Since 1970, spending by the Federal government has risen seven times faster than the average household income. This is just not responsible and not sustainable.

Bottom Line

The TaxProf Blog also highlights another scary statistic of federal taxes. 53% of the households carry the entire tax burden, nearly half get a free ride:

47% Will Pay $0 Income Tax in 2009

Is there a solution? I would suggest eliminating the complex income tax with all its loopholes and impose a federal shopping tax for everyone. Add 5% to the cost of everything. Those who have little and buy little will not pay much tax. Those who have much and spend much will pay a lot. Everyone will pay a fair share. And think of the money saved when the IRS department is eliminated.