Taxation Without Representation

                                                                                        

We've already reviewed some, but certainly not all, of the expenses assumed in our names by the government pledged to uphold the Constitution. The greatest of these are the so-called “entitlements,”ⁱ such as the welfare package, Social Security, Medicare, Medicaid and the like.ⁱⁱ It's a mixed bag. Part of it is shared by the states,ⁱⁱⁱ while the Federal government is solely responsible for many of the programs. Indeed, some of it is funded through the donations^iv of individuals. But the combination of the cost of entitlements and the debt service for what we owe^v is more than can be handled by the implementation of an internet service so they will not be further addressed here, except to note that these programs are here to stay. Their promises have been around too long for us to back out now, and too many people have come to depend on them. All that we can try to do is to rein them in, make their administration less burdensome, and implement some of the cost-saving methods that have been proposed.

 

But it's time to return to the use of the internet to reduce the National Debt, and, more specifically, how we can trim the expense of collecting revenues.   I am most interested in the revenues provided through the Internal Revenue Service, the IRS.^vi For better or worse, we all deal with it. At least we're supposed to.

The tax system is chaotic. And no one understands it although there are a lot of interpreters who claim they do, or promote their own ability to play the system. Filling and filing taxes is a big business – especially for tax franchises and computer software makers. The IRS is now able to handle returns filed electronically, but that merely remains an option. Universal internet access should be used to make this kind of filing mandatory. Forms should be completed on line – using a government-designed audio/video program guiding taxpayers. There's a lot of money in it and it makes sense that some of it should go back to the taxpayers. The program would ask the same questions as (or possibly better questions than) existing programs and services. Actually they should be a lot better. It's reasonable to expect that the IRS's questions will be more perceptive than someone else's, since no one could possibly understand IRS regulations better than the IRS,^vii and the forms should be simple enough^viii for the average citizen to manage on his own. All IRS forms should be included in the program so that it is (theoretically) possible to complete the task on your own. Even so, some individuals may still require “professionals” to do the dirty work for them, especially for businesses or others who require complex returns, but if the government program is mandated the rest of us can get a cut of the action, even if done by a professional.

Requiring electronic filing of a governmental form, with no option for any kind of filing requiring expensive human intervention, will provide more than the saving of money (a Good thing by itself). Instantaneous auditing of all returns will be possible, as well as immediate payment. By instituting governmental credit/debit cards the IRS can rapidly collect what is due, as well as interest payments on what is owed. And if refunds are warranted, they can be credited immediately. The credit card accounts that result from this system can also be used to collect fees for other services^ix

Converting the existing method of tax collection to an internet/credit account such as this will allow the government to identify those who haven't filed their returns.^x As would be the case with voting, machine function would be frozen if tax forms are not filed. Until the form is completed,^xi what might appear on screen is a notification of the penalty, which would increase daily, for not filing the tax forms.^xii Prior to the filing date, for some predetermined period of time, a daily countdown of days until the deadline would be on screen continuously until filing, and it may annoy some people enough to file, in order to rid themselves of the reminder.

The discussion, however – that of mechanisms of lowering the debt – cannot be completed without acknowledgment that many jobs will be lost. It was previously suggested that the workers would be beneficial to private industry, especially computer construction, but there could be governmental jobs as well, though some may require retraining. Many individuals will be needed for computer repair and internet management, and this will absorb some of the bureaucrats who won't be needed. Most important, though, will be construction of the “infrastructure” – an act dear to the hearts of all our people. Included in such an effort, of course, would be the construction of communications capabilities, including the burying of overhead wires and cables which are susceptible to weather damage, and the protection of the nation' electrical system.^xiii But this is only a small part of what needs to be done. Great efforts should be undertaken to shore up those areas in which damage can be anticipated from future episodes of unusually harsh weather. It will require a large work force to do this, but it will lessen costs and grief in the future. It may diminish the expenses for agencies like FEMA.

Most important in the construction effort would be the building of new roads across country. Much is said about the inefficiency of the automobile as a source of transportation^xiv and the need for more public transportation. The reality, however, is that Americans love their cars. And the personal vehicle can get someone to the place he wants to go, rather than to a “central” clearing house inconvenient to everybody. And the individual driver makes his own schedule. Imagine having modern highways coast to coast with E-ZPass and never having to stop between Key West and Point Barrow^xv or wherever. At least not for tolls. The availability of the roads will create a stimulus for the automobile industry and a need for additional gasoline, until another power source is perfected. Many displaced workers could be employed in the shale-oil industry. Properly managed, shale-oil will make us the greatest producer of gas in the world, and if that is as much of a boon to our economy as anticipated, it will certainly have a long-lived and beneficial effect on our National Debt.

And that brings us back to where we started. There's been some rambling, and there's one more topic I want to cover,^xvi but the bottom line is that a national internet capability will offer the possibility of changing America (for the better). We might even get our representatives to actually represent us and cut our taxes. A higher internet may help us lower our safety net – at least what it costs us.

Enter.

Next episode: “Oh, Give Me A Home” – Help for the foreclosed.

i      How these are viewed depends very much on your philosophy. Some see them as a religious obligation – an act of charity – while others see them as a moral obligation of the rich toward the poor; some consider them to be in keeping with the Constitution, though some view them as contradicting the ideas of the Founding Fathers. Some don't care about the ideas of the Founding Fathers, and some simply don't care.

ii     Conservatives argue that the whole system represents redistribution of wealth from those who have, to those who do not; that the provision of entitlements furnishes a paving stone (or several stones) on the road to Socialism. Liberals point out that everyone, even Conservatives, gains by government programs. (Some might even contend that Socialism is preferable to Capitalism – but that's a different discussion.) They're likely to cite such benefits as the funding of the government itself, the military, road building, and various subsidies. These, however, are dwarfed by the entitlements which the government has taken on itself, and, indeed, some of the programs noted by the Liberals, like the government and the military, are specifically mandated by the Constitution. (Many of our citizens would prefer to pay fees for the non-Constutionally-mandated services if, in exchange, their taxes were significantly lowered because they were not forced to pay for services they did not need or want.)

iii    Or imposed on the states. Like “entitlements,” definitions are in the eye of the beholder.

iv    “Donations” isn't really an accurate description of the funding method of Social Security since participation is mandatory. In any event, your donations may not cover the extent of your benefits, and the difference must be covered by those currently working and by taxpayers in general.

v       Over sixteen and a half trillion dollars at the time of this writing (February 13, 2013).

vi      The Sixteenth Amendment to the Constitution legalizes the income tax, but our “representatives” (the legislators), and the bureaucrats they hire to write the rules, have found ways to soak us that we would never have approved if given the opportunity. In reality we understand neither the rules nor the forms.

vii     Okay. You can stop laughing now.

viii   Perhaps it's wishful thinking to credit the IRS with the ability to make anything simple, but it would be nice if they could.

ix     Like the “co-pay” for computer repair, lottery payments, and the fee for voting if the individual accepts it.

x       It hasn't been discussed, but a parallel internet mechanism would have to be instituted for businesses, charities, and other organizations, so they can receive pertinent information and file necessary documents.

xi      No matter how long it takes.

xii     In addition to interest on unpaid taxes.

xiii  Perhaps we should consider a second electric grid as well to provide redundancy in times of disaster.

xiv    And its carbon tireprint.

xv     We'll give Canada a cut if they participate.

xvi    See “Oh, Give Me A Home,” which will appear on March 17^th. I'll bet you can't wait.