Tax and Budget Reform

I wish there was a decent way to file RFE’s (request for enhancements) with the federal government. I can’t do a thing about the complexity of the tax code or the annoyance of having to spend a weekend filling out forms just to get my money back. But there’s existing tax code for charitable deductions (although you can fall afoul of the AMT if you donate too much of your income … so that may need a little rewrite here). Create a new tax deductible donation categorization for government entities — then each department of the government not get themselves registered as a not-for-profit-goverment-entity that qualifies for tax deductible charitable donations. I would feel a LOT better about paying 10k in taxes this year if I knew the money was going toward departments I support (and not going to departments I do not support). I could literally donate every dollar I owe in taxes to specific departments – then get my payroll deduction contributions completely refunded (bonus, US government, you got the interest on my payroll deductions since you held on to them). Don’t want to bother? Then don’t – your payroll deductions will get allocated out for you through the budgeting process.

With a significant adoption rate, if no one wants to fund the Department of Whatever, then the people writing the budget could well take that as a hint. Obviously that’s not a perfect rule – no one wants to fund the IRS, but you’re still going to need someone to handle tax collection & filing (at least until you manage to sort out the tax code & processes). But someone who advocates eliminating the Department of Education may be surprised how many people voluntarily earmark their taxes for Education. Or the military industrial complex may be shocked that donations don’t approach the 60% or 16% (depending on your point of view of “all spending”) of the federal budget that goes into the military and Homeland Security.

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