In this day and age, Americans set aside far too much of their income towards taxes. Tax Freedom day for the year 2008 was held on April 23rd - Americans had spent about four months of their lives working to pay off their annual taxes. The U.S. tax code is constantly being modified; taxpayers are continually reviewing the tax codes, at the cost of lost time, to make sure they’re in compliance.

It is undeniable that tax reform need be initiated in the United States. However, before such reform can take place, we need to reduce the strain that taxes are thrusting upon Americans. True tax reform efforts begin with reduced government expenditures. Thereafter, tax codes which are more straight-forward and fair for all citizens would need to be put in place.

Numerous strategies exist for how we can approach tax reform. An example of one would be to create a fixed income tax, and do away with other levies, including capital gains taxes and estate taxes. Yet another option would be to swap a consumption tax in place of income and payroll taxes. However, this would require the repeal of the 16th amendment - the amendment which authorizes the government to tax the income of its citizens. If such a repeal were not to take place, and a consumption tax were introduced, the government would be collecting from citizens on two fronts - from both income and consumption taxes.

Tax reform options which have yet to be proposed could also prove promising in the battle to reform the tax system. Most of the reform ideas that have been introduced are far better than the current system that’s in place. However, we need closely examine these options to see which offer the most in regards to promoting prosperity and safeguarding liberty.

Tax reform should not be limited to modifying the tax code. Corporations face some of the highest income taxes in the world. These high taxes have left the U.S. lagging behind. Many of the taxes thrust upon citizens by the government are anything but encouraging. Estate taxes reap the government money on the basis that people pass away, and capital gains taxes dissuade those looking to invest or who are interested in capital formation. Steps need to be taken to reduce and eventually completely do away with these taxes.