Tuesday

How about a Flat tax (Sales Tax).

Lets think about this for a minute and give it some honest assessment. In our current tax code there are so many loopholes that those with the means, or more bluntly, the money can avoid paying taxes commensurate with their income. The current tax code is so complicated that even the people who are responsible for its creation and modification are unable to muddle through the maze of tax code (point and case Charlie Rangel, Tim Geitner et al.). Why not change to something a little more manageable and less subject to fraud. Do away with the IRS and all of the waste and inefficiency associated with it. Do away with fines and penalties. Sound good so far? Its as simple as abolishing the current tax code and replacing it with a flat sales tax system. Everyone consumes. It is still a progressive tax, which should appeal to liberals, because those who make more will spend more and therefore be taxed more. This system eliminates tax cheats as there are no loopholes, you spend you pay. This system would even tax illegal immigrants living in the country who are working under the table. They consume goods and therefore would be taxed. It is a much more fair system as it does not directly penalize success and does not allow for tax fraud at a consumer level. I think the greatest opposition to this system is that it wrestles control away from the government. They cannot engage in social engineering without the ability to redistribute wealth as they see fit. If you have a logical argument against this system please feel free to post. I have not found a downside to this but I'm no economist.

2 comments:

  1. http://www.wordwiz72.com/flattax.html

    Flat taxes have been beat to death. The problem isn't the system, it's people evading the system. If you tell me that I must pay commensurate to what I earn, as a rich person I guarantee you I can find a way to earn less, on paper. Or, said rich person will move said earnings to a country or locale with a lower tax rate, and get even richer.

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  2. Which is why I am advocating a sales tax. This is a broad net that catches everyone. Everyone consumes everyone pays. I can't think of a way to circumvent the system. I guess you could by only foreign goods, while out of the country and then bypass customs to avoid taxes. Seems a bit unrealistic though.

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