Sunday, May 10, 2009

A better money-saving idea for Pres. Obama

Tax preparation costs $300 billion per year. A fairly large minority of workers work for the federal government.

Instead of having them pay taxes on taxpayer dollars, why not have the government simply offer less pay in the first place and make that pay tax free?

I realize that taxes are different for everyone, but that's another problem that needs to be addressed. But we can make a good start by imposing a no-deductions tax on all federal employees, which would be paid simply by pay cuts, thus saving them the trouble of paying taxes ,and taxpayers the expense of processing those taxes. and since as many as 10-15% of federal employees fail to file and even more claim fraudulent deductions, it would increase tax revenues.

As a gesture to our men in uniform, we could just make their current pay tax-free. All civilian employees would receive a 20% pay cut.