Tax to Encourage Savings Holds Promise - Now that the issue of tax reform is open for discussion, what we will be seeing are literally dozens of different proposals for revamping the current insane system we have.  What always happens at the end of these debates is that this creates too much of a divide among opponents of the current system, with not enough support for any single alternative.  This leaves us with people deciding that it's best to stick with the devil we know rather than take a chance on a new concept, such as a national sales tax to replace the income tax. 

As crazy as it sounds, there are huge constituencies that love the current tax system and are scared to death of any radical changes in it.  They know the fundamental rule of effective salesmanship is to only provide customers with a few options from which to choose.  Any more than that and their brains will fry and they will back away from making any decision. Opponents of changing the tax system have long used this technique - tossing out dozens of different options - in order to scare away support for leaving the perceived security of the status quo.   

I hope I'm wrong; but we've been down this road so many times - with the exact same result - that it's impossible not to be so skeptical of ever seeing any fundamental change in the tax code that has become so entrenched in our society. 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 11/14/2004 12:26:00 PM Send this post: