Esim - The Future of the American Tax Code
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The Future of the American Tax Code (Old article)
Posted 12 years ago by
John Richards    
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Currently in congress there is a debate about where we should set our tax rates. There are basically two sides to this argument: one side calls for high import taxes, the other side calls for a compromise on tax rates so all Americans can benefit.

First, let’s examine the current state of our economy. Our wages are extremely high, and this is a big problem. Many people would like to think that our high wages a benefit, but this is simply not the case. Our high wages are caused by a combination of negative factors: a shortage of labor, the wage market being dictated by higher quality businesses, and “high rollers” being reckless with money simply because they can.

Shortage of Labor:

The total amount of companies in all American controlled territories is 514. The total of amount of citizens living in America is 1684, active citizens 885. 1684/514= 3.28 citizens per company. 885/514= 1.72 active citizens per company. The number of active citizens is most important, so let’s go with that number. We have less than 2 people per company!! No wonder wages are so high; all those companies are fighting for workers. This is simple supply and demand; there is not enough labor for the current economy, so the demand is sky high.

Wages being dictated by high quality companies:

Look at the job market, especially high skill jobs, most of the top paying job offers are from high quality companies. This is natural though, higher quality companies make more profit, they should be able to offer higher wages, but when is high too high? These outrageous job offers do a lot of harm to the economy. Let’s consider q1 guns. If a q1 gun company has to compete with high quality businesses in the wage market, how can they profit? The answer is they charge more for q1 guns. Consumers are paying more for q1 guns than they have to. Q1 guns are essential to any nation’s fighting ability; the goal should be for consumers to buy as much product as they can with their wage. High wages should be fine then, you may think to yourself, but we will look at that later.

“High rollers” being reckless with money simply because they can:

This is annoying. Taxes can help this, but not fix it completely. There are literally people who will jump the job market by as much as 5 USD. Why? You ask, just because they can. They either make enough money, mainly from high quality companies, or plain do not care if they lose money. I’m sure we can all come up with at least ONE example for this type of person. Some of these people feel their high wages provide a huge benefit for the country; the reality is these unnecessary high wages do more harm than good. The “high roller” business owners force themselves, as well as other business owners, to sell products at a higher price in order to make a profit.

Before I discuss any tax plan, let me make a side note. NO MATTER WHAT THE IMPORT TAX IS, THERE IS A WAY AROUND IT. If an American citizen makes a company in another country, they can sell their product in America WITH NO IMPORT TAX while paying the wages of that foreign country. That is garbage and something the admin should fix, maybe I’ll write an article in the future with [SUGGESTION] in the title and get a bunch of votes no matter what I say /end sarcasm. For real though, admin needs to fix this loophole.

So… back to the two sides of the argument. Pretend that we raise import taxes; would anything change?

High Import Taxes:

If we raise import taxes, the little foreign influence in our markets will disappear. Prices will probably go up a little, as well as wages. We would continue to see the wage market dictated by the same people. Product prices would remain unnecessarily high.

A Fair Import Tax:

That is around what I want, personally, 5% on weapons sounds good too. As you can see it is a little bit lower than our current import taxes. I am always open to compromise, but proposals like this contain zero compromise, and are certainly not helpful to anyone. I believe lowering the taxes a bit could help relieve some of current economic problems. What is the goal of lowering the taxes? To get the most efficient economy possible of course. By lowering the taxes, a few more companies will choose to sell their products in the USA. They will push the price of products down, not by a huge amount, but by a healthy amount. Some people believe in a doomsday scenario if this were to happen. They believe prices would be driven down so much that American businesses would have no chance to compete. This is not reality. The goal is NOT to have foreign companies control our product prices. We simply want prices to decrease a little bit. This will benefit the average American consumer, but it will also serve the purpose of driving wages down.

Wages would have to fall in order for companies to keep their profit margin. BUT LOW WAGES MEAN WE CANT BUY AS MUCH STUFF oh noes!! The goal is to have a positive tradeoff for the consumer. If wages fall, but prices fall more, than consumers will have higher purchasing power. This means you can actually buy more stuff!

There is one more benefit that would hopefully occur. Many foreign lower quality companies will not sell in the USA, due to the fact we have plenty of lower quality domestic companies that will keep prices down. Most of the imports will be from higher quality companies. This will force the wage dictators to bring down their wages, and help to bring the wage market into a sort of equilibrium.

That is how I see it, and I believe in it enough to literally write 1,000 words about it. I am in congress and I’m just trying to do what I believe will help America the most. That should be the goal of any kongress person. What are the opinions of the American citizens? You are the ones that voted us into congress, what do you think is the right course of action? Thanks for reading.

That is all. Keep on keeping on.




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