A Modest Proposal

$300 Billion Dollars! That is the estimated cost of tax evasion, per year. Per Year! According to a recent article by Morgan Housel, that is about half the national debt. In 10 years that would total up to $3 Trillion Dollars! The author points out that is an amount of money equal to, “The Bush tax cuts, the Obama stimulus, and the wars in Iraq and Afghanistan combined.” Without increasing taxes or cutting expenditures we cut projected deficits in half by just telling the truth and obeying the law. From the waiter who under reports cash tips to the billionaire with an illegal offshore account in the Turk and Caicos Islands, couldn’t we just do a little better?

Our law makers are not helping the problem. Many officials in the current administration and various current and former congressmen are tax cheats. Major corporations have manipulated the election process to buy loopholes that they then legally exploit. General Electric pays no taxes, nada, zip, nothing, and it is all legal. They view their tax department as a profit center. Besides hiring the best tax attorneys and accountants money can buy, they hire senior experts right out of the IRS. From a Pro Publica article by Gerth and Sloan "An important rule to live by," a senior GE tax lawyer, Rick D'Avino, told a conference in 2007, "is to ensure that the tax team has as many former government tax experts as possible" to "help see both sides of an issue more effectively." D'Avino, a GE vice president, mentioned the IRS, Capitol Hill and Treasury as places to look when building a team and talked about how a former IRS lawyer working for GE helped the company build a "cooperative relationship" with the service.”

If only what one blogger terms, “middle class tax donkeys,” follow the rules, what is the future of our nation? Housel believes we just need to take a look at Greece, a country that is nearly bankrupt. Its creditors, mainly German and France are tightening the noose to the point that the Greek government is on the verge of collapse. Greece has a major problem, “an endemic culture of tax cheating.” A recent article in Vanity Fair estimates that between 30% and 40% of all economic activity in Greece is unreported and untaxed. The article goes on to state, “The scale of Greek tax cheating was at least as incredible as its scope: an estimated two-thirds of Greek doctors reported incomes under 12,000 euros a year -- which meant, because incomes below that amount weren't taxable, that even plastic surgeons making millions a year paid no tax at all.” It is estimated that about 98% of the Greek population cheat on their taxes. Is it any wonder their nation is on the verge of economic collapse?

Housel recommends increasing the IRS budget. An average IRS agent leverages his $60,000 annual income by a factor of six in collections, interest, and penalties. The author goes on to note that an agent who cracks one big case can pay for his entire 30 year career. I have a better idea. Why don’t we just pay our taxes?

Matthew 22

[15] Then went the Pharisees, and took counsel how they might entangle him in his talk.
[16] And they sent out unto him their disciples with the Herodians, saying, Master, we know that thou art true, and teachest the way of God in truth, neither carest thou for any man: for thou regardest not the person of men.
[17] Tell us therefore, What thinkest thou? Is it lawful to give tribute unto Caesar, or not?
[18] But Jesus perceived their wickedness, and said, Why tempt ye me, ye hypocrites?
[19] Shew me the tribute money. And they brought unto him a penny.
[20] And he saith unto them, Whose is this image and superscription?
[21] They say unto him, Caesar's. Then saith he unto them, Render therefore unto Caesar the things which are Caesar's; and unto God the things that are God's.
[22] When they had heard these words, they marvelled, and left him, and went their way.