To the editor:

As we struggle to file federal tax forms, multiple reports argue the pros and cons of federal tax cuts; ending taxes on social security, tips and overtime; replacing progressive income taxes with a flat tax; implementing a value added tax; and replacing income and business taxes with tariffs.

The IRS estimates that Americans spend $133 billion annually out-of-pocket to comply with the federal tax code. The Tax Foundation estimates that counting lost productivity, the total compliance costs to individuals and businesses is $546 billion.

Given the cost and complexity of the tax code, and Washington’s proposed changes, wouldn’t it make more sense to streamline funding the federal government?

Part of the federal budget could still be funded by tariffs, etc. collected by the feds. The remainder of the federal budget could be assessed to the states based upon population. Since New York has about 6% of the U.S. population, NY would collect its 6% share however it wanted and submit that amount.

Individuals and businesses would no longer file federal tax forms, only state forms. States would be dissuaded from counting illegal aliens and otherwise fudging their population statistics to gain congressional seats and federal aid. And Congressional delegations would likely oppose spending trillions of federal dollars on foreign entanglements and myriad domestic boondoggles that increase their federal tax bill.

The states created the federal government but have become subservient to it. Drastically revising the method of federal funding would streamline government, cut deficit spending, and reassert state powers under our federalist system.

Reference for fact checking: https://taxfoundation.org/data/all/federal/irs-tax-compliance-costs/

“If we assume a reasonable hourly wage, the 7.9 billion hours Americans spend complying with the tax code costs the economy roughly $413 billion in lost productivity. In addition, the IRS estimates that Americans spend roughly $133 billion annually in out-of-pocket costs to comply with the tax code. This brings the total compliance costs to $546 billion, or nearly 2% of GDP.”

Robert Dufresne

Rensselaer