Taxes: 40% of Americans are getting a free ride

As the end of the calendar year approaches taxes arise again as a subject of discussion. As we wait to see the impact the Big Beautiful Bill has on our refunds in 2026 (for the 2025 tax year), President Trump is suggesting an effort to do away with income taxes altogether. At first glance that sounds like a great idea, properly executed.

Does anyone believe that any American fully understands the Tax Code? 

To understand the problem, let’s take a look at the facts. Although the formal United States Tax Code is only about 2,600 pages, there is an addition volume of explanations that is nearly 70,000 pages due to litigation and other regulations. Only about 60% of Americans pay income tax, which means 40% of Americans are getting a free ride. However, the top 20% of American earners pay 52% of the income taxes. We must not forget there are an additional, estimated 20 million illegal aliens, most of whom are receiving some kind of government assistance, while paying no income tax.

Does anyone believe that any American fully understands the Tax Code? Do you think there may be opportunities for corruption because of the complexity of the Code and its explanations? Could one logically think that the biggest lobbying effort for keeping and expanding the Tax Code are tax attorneys and tax accountants? Does it seem reasonable and fair that 60% of Americans are supporting 40% of Americans plus 20 million illegal aliens?

The primary inequity of the American income tax system is that it taxes productivity. The harder one works and produces, the deeper Uncle Sam digs into the productive person’s pocket. In other words, our tax system punishes those who work hardest in America. That seems seriously un-American to me. No wonder 40% of Americans choose to live by sucking on the golden teat of the American government. I may be stretching the point, but in my mind, taxpayers are being subjected to cruel and unusual punishment by being required to support non-taxpayers (citizen and non-citizens) in violation of the 8^th Amendment to the United States Constitution.

The primary inequity of the American income tax system is that it taxes productivity

The only totally fair tax system I have ever seen would be a flat rate consumption tax, more commonly known as a sales tax, that would apply to every product and service purchase that takes place in America. Absolutely no exceptions. The Tax Code could be reduced to damn few pages, even in government speak. Once again, with absolutely no exception.

The biggest positive impact of a sales tax would be that every person and business entity spending money in America would become a taxpayer. That would include nearly 100 million foreign visitors paying taxes to support the American infrastructure, and this includes any illegal aliens. This would also reduce the impact of special interests who might try to corrupt Congress while trying to get special tax carveouts.

Another big impact would be at least a 75% reduction of the IRS budget because the taxes would be collected by businesses at the time of purchase. Income tax evasion would become a thing of the past because everyone would always be paying when they buy things. Inheritance taxes would no longer be necessary for the same reason. Whatever the IRS load is on the Justice Department would be reduced by 90%. And, of course, hundreds of millions of dollars would be saved annually by taxpayers because there would be no need for annual income tax preparation and filing.

In America, everyone should be a taxpayer, and the only truly FAIR TAX is a sales tax or consumption tax

"If you do not take an interest in the affairs of your government, then you are doomed to live under the rule of fools." ~ Plato

From my perspective, by far the most important and critical reason for a consumption tax, rather than any other, is that if forces every America citizen to have “skin in the game.” Today, more than 50% of Americans are oblivious to much of what goes on in our government because it doesn’t affect them. Roughly 40% of the population are not paying for the country’s operation, so they have no incentive to get involved. But if you hit them in the pocketbook, then I expect many of these people will start taking an interest. Sharing in the cost of government is caring.

In America, everyone should be a taxpayer, and the only truly FAIR TAX is a sales tax or consumption tax. The more a person spends, the more they pay in taxes. In America everyone is equal, so everyone (I mean everyone) should pay their fair share to keep the government running.