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Joseph Bailey

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A Market Based Tax System

Several years ago I was introduced to the idea of a market based tax system that allows taxpayers to choose where their money will be spent. I began my career as a tax accountant and am actively pursuing the CPA, should be complete soon. I hold a bachelors and masters in Accounting.

Given my background in tax, I cannot imagine working in this system without trying to improve it. That is why I want to get a group together to discuss, trade, write, and begin a process that completely overhauls the US tax system.

I firmly believe the fundamental issue with our tax system is not the percentage that we pay, or the method we us. Instead, the fundamental issue is taxation without representation. Give me a flat tax, marginal, progressive tax system, it does not matter. When the tax payer gets to the line on a 1040 that says "tax" I would want them to fill out one additional page. Yes I know... more forms.

The additional page will allow the taxpayer to select funds (like a stock), or a pool of funds (like a mutual fund) for where their tax dollars will be spent. ALL government agencies and Federally Assisted groups will need to register with an oversight board that will place the entity in an " index." The entities will submit a budget, and hope the taxpayers help fund the budget. Those entities that receive tax dollars, will do so because taxpayers believe in the entities public service. Those that do not receive funding will scale down, or diminish all together. Once an entity meets its budgeted amount, the remaining money selected by a taxpayer will go towards the taxpayers second, third, fourth choice.

This is the only type of system that can bring transparency to the tax code, and give people fair representation in tax matters. Nay Sayers say this overhaul cannot be done... I say they have no vision or background in tax. If we can create an efficient stock market, we can do the same with the tax code. It is important to have an efficient tax market.

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