Submitted for your approval: The perfect solution to America’s national debate over taxes.

This proposal is completely serious. Below you will find my suggestion for an amended IRS 1040 form. As you will see, it contains two new sections: “Voluntary Tax Rate,” in which each American can individually determine his or her own rate of income taxation; and “Allocation,” in which taxpayers can apply their personal tax payments to specific federal expenses.

It’s simple, it’s completely non-partisan and even-handed, and it allows for total individual autonomy and personal freedom.

Will it lead to a complete restructuring of the United States government? Possibly. And if it does, will that be a good thing? Most definitely.

Read on to see how this new idea came about.

Problem #1: “Raise my taxes!” vs. “Don’t raise my taxes!”

Recently, billionaire investor Warren Buffett publicly announced that he wants the government to raise his taxes, because, he feels, he just isn’t paying enough. Soon after, fellow billionaire Donald Trump joined Buffett in announcing the he too would at least be willing to pay more taxes if necessary. Then millionaire TV host Jerry Springer joined the chorus of wealthy Americans demanding that their own tax rates be raised.

These high-profile champions of increased self-taxation are simply the most visible members of an entire sector of the American public who demand that we as a nation raise our own taxes to pay for our ever-increasing expenses. (Many of these high-tax-advocates of course pay few or no taxes of their own; what they really want is other people to pay more in taxes. That’s why actual taxpayers like Buffett and Springer make headlines when they join the call for higher rates.)

On the other side of the coin, groups like the Tea Party have quickly ascended into political prominence by charting the exact opposite course, insisting that the economy can only be rescued by an across-the-board lowering of taxes nationwide. Critics portray the Tea Party lower-tax platform as nothing more than “greed” — the selfishness of people who want to keep their own money, and not share it with the rest of us. Defenders of the low-tax-advocates point out that it’s not greed but a desire to kickstart a stalled economy: lower tax rates generally lead to increased economic growth.

Until recently, the argument was limited to two sides, each seeking to dictate terms to everyone else: liberals said, “We want all of you to pay more taxes!”, while conservatives said, “We want all of you to pay less taxes!” But Buffett and Trump and Springer changed the parameters of the debate; instead of demanding that everyone else pay more taxes, these wealthy high-tax-advocates’ new twist is to announce, “I personally want to pay more taxes!”

» Solution #1: Voluntary Tax Rates

This seemingly intractable debate gave me an idea. Both the liberal and the conservative positions are ethically untenable: No one should have the right to force anyone else to pay more or less taxes than they prefer. These billionaires have hit upon a brilliant concept: Instead of everyone trying to force everyone else to conform to this or that view of tax rates, let each person voluntarily set his or her own tax rate!

Thus if Warren Buffett wants to pay more in taxes — he can do so! And if a Tea Partier want to pay less in taxes, she can do so as well. And if liberals think the tax rate is too low — well, under this new system they are free to pay at whatever higher rate they can afford.

It’s as simple and streamlined as can be, and everybody gets what they want. (See the amended 1040 form below for how it would work.)

Problem #2: “I’d willingly pay taxes for those government programs I like, but can’t tolerate paying for programs I hate.”

Both liberals and conservatives have this exact same problem: They’re more than happy to pay for their favorite government departments and expenses, but it drives them crazy when they’re forced to subsidize stuff they hate.

Liberals and anti-war activists, for example, have long insisted that their taxes not be used for war; so (especially when a Republican president is in office and/or during wartime), you will frequently hear them demanding that their taxes not be used for “the war machine,” or for certain weapons systems (like nuclear missiles) or for any number of things they deem distasteful (e.g. drone attacks, harsh interrogations, foreign combatants in military prisons, etc.). Conversely, conservatives frequently complain that their taxes are used to support “freeloaders” who spend their entire lives as recipients of the welfare system, and who as a result never contribute to society. So conservatives bristle at the thought of paying for overly lax welfare programs, not only because they see themselves as shouldering most of the burden, but also because they think the welfare system fosters a culture of depedency, leading to a downward cycle of fewer and fewer people paying more and more of the taxes.

And what drives both liberals and conservatives to distraction is when they discover that their tax dollars are being used for programs or procedures which they deem morally wrong; liberals, for example, don’t want their taxes to pay for the federal government to break up immigrant families by deporting the illegal parents while allowing the natural-born-citizen legal children to stay; while many conservatives find it intolerable that their tax dollars are used to pay for abortions in federally subsidized clinics — a procedure which they feel is tantamount to murder.

Yet the problem is, we’re all paying into the same big pie, and we don’t get to determine what our personal tax contributions are used for. Thus liberals end up paying for war crimes, and conservatives end up paying to murder babies, and everybody’s unhappy.

» Solution #2: Personalized Earmarks

Why are we still using this outdated system that leads to universal dissatisfaction? If each person was able to “earmark” the specific aspects of government which he or she deems acceptable, then no one would feel that their taxes were used for programs which are either unhealthy for the soul or for the national economy.

The solution to this problem is obvious: Simply amend the tax code to allow each taxpayer to individually allocate which governmental expenses receive funding from that person’s tax payments. Presto! Everybody’s happy, because nobody is being forced to pay for things they don’t like anymore.

But would this create a lot more paperwork for the IRS? Somewhat. As for re-designing the 1040 form, I’ve already done that part, so nothing to worry about there. As for totaling up the calculations of how much each government department gets from each taxpayer — well, sure, that would require more bean-counters, but the overall amount of extra IRS employees needed for the task would be tiny compared to the number of bureaucrats in most other areas of government, and this minor inconvenience is a small price to pay for fundamentally reorganizing the tax code in such a way that is pleasing to everyone.


Below you will find my proposed amended IRA 1040 form; the top image shows the full front page of the 1040 form with the two new sections in situ, as they will appear to taxpayers; and the bottom image shows just the newly added sections, for extra clarity. (In each case, simply click on the image to see a much larger and clearer version of the amended form.)

Don’t like my proposal? Feel free to add your own revisions, critiques or alternate suggestions in the comments section below. Let the debate begin!

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…and, for the record, here’s the same new revision, all by itself (click to enlarge):



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94 Responses to “Voluntary tax rates and personalized earmarks: How to solve the debate over taxes”

  1. 1Kathy on Aug 22, 2011 at 6:10 am:

    This already exists: https://www.pay.gov/paygov/

    Well, there is no option to lower your taxes below what Congress/IRS demands, but it’s already in place that you can donate more of your money, and earmark it to a certain governmental agency.

      

  2. 2Scott on Aug 22, 2011 at 5:49 pm:

    Hey Zombie: This is a perfect solution. A work colleague and I were discussing this very thing this morning…the solution to all the George Zimmers and Mobys of the world is to simply tell them that they are free to stroke a large check to the IRS right now. I think I would ammend your proposal with some sort of public outing of what (in particular) the “rich” are volunteering to pay. I figure it will take the place of buying a yacht or Mercedes Benz…in fact, there ought to be marketed prestige associated with generous giving to the government (Hey, if Olgilvy & Mather can be hired to market Obamacare, why not givingto the fed?). Currently, taxation is a necessary evil, and accountants are hired specifically to find ways to pay the least taxes for their clients. Why not the other way around? Tom Hanks and Morgan Freeman should be thrilled to pay more and more fortheir guy to be successful in office! John Kerry wouldn’t have to hide his yacht in shame in the waters off of Rhode Island. Now he can PROUDLY display his largesse on the Internet to show those terroristic Tea Baggers that they aren’t paying enough! Chris Mathews, Jeanine Garafalo, Michael Moore, rejoice! Tax paying is prestigious! Trade in that Chevy Volt and pay an extra $41Gs in tax, friends!

      

  3. 3JustVic on Aug 22, 2011 at 9:24 pm:

    hilarious and thought provoking, as usual. Keep up the good work and thanks again from fly-over country.

      

  4. 4hella on Aug 22, 2011 at 11:34 pm:

    Here’s my ideal IRA 1040 form:

      

  5. 5Felix on Aug 24, 2011 at 11:53 am:

    I absolutely agree, but I’d make it a public thing. While it’s okay, because of privacy concerns, not to tell the public how much everyone makes, it’d be fine to tell them which tax rate they chose.
    If you’re driving your car on tax-payed roads but don’t want to pay any taxes, people should know about it. The police and fire departments are paid by taxes as well: your neighbors should know if you ask for protection but don’t want to pay for it.

    That way, truly everybody would be happy.

      

  6. 6Concerned on Aug 26, 2011 at 7:26 am:

    People are going to have income to pay taxes?

      

  7. 7William O. B'Livion on Aug 29, 2011 at 1:44 am:

    Wot Felix Said:

    Post everybody’s tax rate and distribution (by percentage) on the web so friends and neighbors will know exactly how much you’re willing to pay.

      

  8. 8Avery on Aug 31, 2011 at 9:04 pm:

    This was actually a Washingtoons cartoon back in the 1980s. They called it the “Fun Tax”.

      

  9. 9TheFred on Sep 5, 2011 at 10:36 am:

    If taxpayers were given an option of a 0% tax rate there would be no revenue from the income tax.

      

  10. 10richb on Sep 6, 2011 at 10:57 pm:

    Well, TheFred, the 0% Income tax rate would be for us folks that believe that the Federal government still (never-mind the 16th adm) has no right to collect income taxes.

    There would still be plenty of other taxes to pay. State, local, sales, property taxes and are still a big portion of everybody expenses.

      

  11. 11pa on Sep 9, 2011 at 1:42 pm:

    What a fabulous proposal. Another welcome benefit would be that Congress could put together budgets much more quickly by obeying the people’s will as indicated by the allocations designated by taxpayers. If lots of people allocate large payments to cover the Evironmental Protection Agency, well then hey, they get a big budget. If people don’t want an agency to have power over their lives and therefore withhold their tax allocations, then that agency just won’t have as much money to spend on its power trips. Politicians would have their hands tied, being bound by the allocations specified by taxpayers, so they wouldn’t be susceptible to the corrupt dealmaking our current system fosters.
    The benefits of this plan would clearly go far beyond the stated goal of letting taxpayers design their own tax plans. It could easily solve that whole federalism debate by starving the DC beast — just think what it would mean if decisions were being driven by those who actually pay taxes. The half of the population that doesn’t pay any taxes wouldn’t be getting the last laugh anymore, I bet.
    Zombie’s list of allocation categories doesn’t allow much, if any, wiggle room for those corporate and finance guys who want to use government to quash smaller competitors. Those who, like GE’s Immelt, seek to ensure their company’s profitability by crony capitalism and government subsidies (rather than by being forced to compete in a true free market economy) would find no joy in this proposed tax reform. Ha ha ha, you looters and moochers!
    I think Zombie’s proposed tax reform would solve virtually all of our country’s problems. It would make free market principles central to the governing process. Once people are allowed to directly shape government policy by voting with their tax dollars, conservatism will win.

      

  12. 12Carl on Sep 12, 2011 at 10:50 am:

    Half this idea can be found in Fredrick Pohl’s novel “The Problem Pit” written decades ago. (The half about where you want your money to go.)

      

  13. 13Felix on Sep 13, 2011 at 10:55 am:

    The one problem I believe would come up is, that the federal gov would just find other ways to finance itself. As richb pointed out, there are other taxes, and those would probably rise and dc would just get its fingers into the states pockets.

    Also: there should be a tax history. Those who did every not put any money into welfare or social security-programs shouldn’t get anything, should they ever need to. Those who didn’t check Law enforcement, shouldn’t get help from the FBI – or pay it there and then. Hey, it’s free market after all.

      

  14. 14J S Poonia on Oct 14, 2011 at 8:04 pm:

    what about corporate taxes.
    if the boards get to choose, its a utopian scheme; no chance of taking off.
    if they do not, the idea is meaningless; back to govt deciding.

      

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