OK, this isn't what I was originally going to post about, but Saturday morning TV talk being what it is, they changed my mind...
Let's talk taxes. What really constitutes a fair tax plan?
The way I see it, the most "fair" tax is the one that simply divides dollars needed (B) by population (P). It would look like this:
B/P= tax amount
Now, that's fair! You are a citizen of our country, so you must pay your share. Medicare and Social security are just as easy. B/P= Tax. You would get a card in the mail in January, and it would tell you what you owe. Don't pay and you get to choose where to work it off. Easy stuff. Choices for indentured labor would be amongst the many public service project now proposed. Welfare equals work. Refuse to work, live in the desert in a tent. We will provide a vitamin, water and rice every day. End of story. Would that make my personal taxes go up? OH YEAH. Would it make politicians accountable to constituents? 'Kin A!
If we have to have a regressive tax (call it what it is) the simplest form would be a national sales tax. Make it a tax on EVERYTHING PURCHASED. No graduated rates based upon the "luxury rating" of the item. No way out. Just a flat rate on EVERYTHING. If you can't afford it, don't buy it. This would maintain the regressive nature of the current tax plan because the wealthier will always buy more than poorer. The rate may fluctuate a little the first few years, because poorer and more entrepreneurial folks would barter rather than go to the store if they have the opportunity. It would take a little adjusting just to see how much influence bartering had on revenue. Bartering would probably have a positive impact on society as well. The value of many items now taken for granted would change, and we would have to interact as members of society more often. Folks would get closer to their food supplies. That can't be bad.
There are many options similar to these two. I believe the most important thing is to make the citizen write the check. Far too many folks never realize what they pay because of automatic deductions. The second most important thing is to ensure NOBODY goes without paying. Of course that would be taken care of the minute people start writing those checks!
OK, these are "out there" examples, I know. They do however, solve the Octomom situation (14 kids (P) times the tax on each person would HURT. It would also make us more "green". 24% tax on a Suburban would SUCK. If you could afford these things, they would still be available to you. Everyone wins! Toss in a Constitutional ammendment for a balanced budget (accounting for debt and interest payments Mr. Clinton), and we may just have something.
Bottom line, we have to quit attempting to kick the can further down the road. We have to suck it up and make some tough decisions. The buck should stop here, today.
Post some thoughts and comments on this. Let's get a discussion going.
Till next time, keep your powder dry and your eyes open.