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Personal Tax Earmarking

As April 17 approaches, check out this proposal for Personal Tax Earmarking:

Suppose that each government agency selected a certain portion of its budget to be paid at the choosing of the taxpayers. This means any individual could use the IRS website to navigate through budgets and line items for a wide variety of government agencies. Want to help buy a plane? Head to the Department of Defense. Want to finance a new episode of Sesame Street? Try the National Endowment for the Arts. Although this model could be applied to any government that collects and redistributes tax money, we’ve chosen to stick with U.S. income tax for our examples.

Taxpayers who are interested in participating in the free program would be able to select items from the list on a first-come, first-served basis. They would log in via a web interface and choose the expenses that they wanted their tax payment to be earmarked for. Click the thumbnail below to see a possible screenshot of what taxpayers would encounter when they went to allocate their money:

Earmarking_3 


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