There is a lot of racket going on about the proposed tax cut and reform of the tax system. One thing that stands out in all this racket is that most of those screaming about the proposed tax cut and tax system reform appear to have no idea of the purpose of a tax system!
Many of those making such an uproar believe a tax system is to be used for the transfer or redistribution of wealth. They are hollering for tax credits and tax deductions that would allow individuals to get tax refunds that are far in excess of the amount that the individuals paid into the tax system. The return of more money that you paid into the tax system is redistribution of wealth.
What is the purpose of a tax system? A tax system is put in place so governmental units; be it federal, state or local, can obtain the funds needed to operate the governmental unit. Without funds to operate the governmental unit it cannot support the services that the citizens need to live their life and prosper. It is not the job or responsibility of a governmental unit to redistribute wealth.
Why do governmental units give deductions and tax credits to be deducted from ones tax liability? The primary purpose of deductions and credits are to encourage the population to participate in certain economic or family activities. Tax credits and deductions should never allow an individual or corporation to have more money returned to them than they have paid into the tax system. The return of money in excess is wealth redistribution.
In any tax system all the individuals should pay their fair share. Individuals and corporations should all pay the same tax rate be it 10 percent or 60 percent. When everybody pays the same tax rate then everyone is paying their fair share. What is called Progressive tax rate is unfair and treats every individual or corporation with disrespect. I believe that tax rate application should begin at a level that is slightly beyond the poverty level.
We must all remember that wealth redistribution is part of the Marxist ideological point of view. I spent more than 20 years training and fighting against the Marxist point of view. It is time that we ended the application of Marxist ideology here in the United States.